The Analysis Of Specific Advantees Of Chinese Enterprises And Their Path Dependence And Breakthrough In Transnational Investment

With the background of economic globalization, transnational investment has been an irreversible trend. Since the 21st century, with the industrialization of developing countries, the global transnational investment condition has not been the companies from developed countries as the main part, the companies from developing countries is becoming an important part of transnational investment. China as the largest developing country, its companies has been growing fast. And with the conduction of"to go out"policy, the amount of transnational investment of China has been increasing fast. From the reality, we could find that although many Chinese companies made investment to other countries, a large number of them failed. This state makes the study on Chinese transnational investment important.However, extensive research takes the companies from developed countries as the object, and the analysis of specific advantage that is the basis of transnational investment, has intense characteristics of developed country. But the state of Chinese companies is complex, they have not only general characteristics of developing country, but the characteristics of their own, and they have their own specific advantages. Therefore, the western theory could hardly direct the transnational investment of Chinese companies. And so, it is necessary to analyze the specific advantages of Chinese companies, and then to direct their transnational investment.This paper defined the specific advantage with a new point. It firstly established an index system of specific advantage, and subdivided these indexes, and analyzed the transferability of each index in transnational investment. Because state-owned enterprises and private enterprises grew in different economic environments, they formed different specific advantages. This paper separately analyzed the feasibility and limitation of their specific advantages from a brand-new angle of view of transferability of specific advantages. On that basis, this paper raised orientation of path breakthrough for Chinese enterprises to keep their specific advantages in a long term in transnational investment. This work is significant for state-owned enterprises and private enterprises to make full use of their advantages and enhance their competitiveness and improving the level of their transnational investment.This paper, firstly, reviewed transnational investment theories from the point of specific advantage, and reviewed path dependence theories from the point of management perception and strategy selection. Then an index system of specific advantage was established, and subdivided these indexes. Then according to the index system, this paper separately analyzed the specific advantages of state-owned enterprises and private enterprises. Although these advantages are not absolute advantages, they are comparative advantage in domestic economic environment. Based on their own specific advantages, state-owned enterprises and private enterprises have taken different investment strategies. According to path dependence theory, the behavior and strategy choice of a company have inertia. It means that the past behavior would influence the future behavior. However, the specific advantages of Chinese enterprises formed in domestic economic environment, and the international economic environment is different from the domestic economic environment, so the degree of transferability of their specific advantages in transnational investment is different. It means that their specific advantages have limitations in transnational investment. So in the last part, based on their own specific advantages of state-owned enterprises and private enterprises, to aim at their limitations of the specific, this paper raised orientation of path breakthrough.