Formation Mechanism Of Strategic Alliance Research

Being a brand-new modern organization, MNC strategic alliance has become an effect form to the modern MNC to enhance their international competitive capability. Based on the transaction costs theory and the knowledge-based theory of the firm, the paper tries to explain the formation mechanism of MNC strategic alliance from the angle of governance mode choosing.First, this paper expatiates the meaning of MNC strategic alliance, research background, significance as well as some domestic and foreign outcome of research. Then, based on the transaction costs theory, the paper tries to explain the formation mechanism of MNC strategic alliance. View from the transaction costs theory, it is a mode of hybrid governance which can save transaction costs. Not only it avoids the deficiency of market and firm, but also makes use of their advantages effectively. Modificatory Williamson Oliver's heuristic model is used here to explain the medium organization's characteristics and formation mechanism of MNC strategic alliance. At the last of this part, the paper points out the limitation and deficiency of the transaction costs theory in the explaining. Later on, by bringing in some important factors of the knowledge-based theory of the firm, Modificatory Williamson Oliver's heuristic model is improved, and a new model which is used to explain the formation mechanism of MNC strategic alliance later is fabricated in the paper. Finally, wielded it, the paper analyses a typical case of Shanghai-volkswagen.