Study On Global Value Chain Governance Of Machinery And Electric Enterprises In China

With the intensification of economy globalization and international vertical specialization, multinational corporations enhance their competitiveness through production system decomposition and production processes outsourcing, keeping their core links such as R&D design, marketing, packing, brank management which possess high profit. That makes the specialization of Global Value Chain. During the shift and outsourcing of industries, most of the multinational companies entrust their orders to OEM companies. Relationship of mutual corporation and dependency is formed between OEM companies and multinationals which allocate power and profit in the value chain. This kind of phenomenon is strongly explained by the theory of Global Value Chain Governance.Machinery and Electric Enterprises boost rapidly since1990s and shoulder the responsibility of manufacturing the largest export commodity in China. Besides, China becomes a rather important production base of global machinery and electric products since2009. Whereas the cost advantage of machinery and electric enterprises is weakening. Problems like thin profit, weak ability of technology innovation, lack of self-owned brands and the incapability of catching up with international standards arise in the development. Adding with the control and strike of international businesses with brands and strong manufacturing capacity, machinery and electric companies hover in the bottom of global value chain. It is necessary for our machinery and electric enterprises to govern the current value chain and exit from the present quagmire. Therefore it is very significant for the value chain improvement by doing research on the global value chain governance of machinery and electric enterprises in China and locating the influencing factors and ways.The vital role played by machinery and electric enterprises in China’s foreign trade raises the attention of scholars. While most of the existing researches just concentrate on the competitiveness of products. These researches haven’t studied the international position from the angle of global value chain and its governance. Given that, this essay analyses the current situation and shortcomings of global value chain governance of machinery and electric enterprises in China, and try to find out key factors and ways of governance through questionnaire investigation and econometric analysis. In the hope of offering guidance to enterprises in the governance, we also put forward some countermeasures at the end of the essay. Based on the above research ideas, the essay is divided into six chapters.Chapter1is the introduction of the research. It mainly describes the background and significance of this essay. Theories of Global Value Chain and Global Value Chain Governance are elaborated in this chapter, together with analysis of research contents, methods, difficulties and innovations.Chapter2is the theoretical foundation. In this part we sort out and elaborate the theory of Global Value Chain Governance, including the governance modes, governance modes’characteristics and their determinants. We also state the impetus of governance which means why we should govern the value chain. Chapter2also concludes the influencing factors and ways of Global Value Chain Governance laying a sound theoretic foundation of influencing factors model.Chapter3is analysis of the current value chain governance situation of machinery and electric enterprises in China. First we give a concept definition of machinery and electric products in this Chapter in order to determine the classification in foreign trade and resolve the products’value chain. We also give an overview of the development situation in global value chain and conclude that machinery and electric enterprises are in the mode of semi-hierarchy value chain governance. Shortcomings of development are also analyzed in chapter3.Chapter4is questionnaire investigation and econometric analysis. In order to specify the reality of value chain governance, we distribute questionnaires to some enterprises and use SPSS to make factor analysis and regression analysis. So we can find out key factors and ways of value chain governance of our enterprises. We also make a brief interpretation of empirical results.In Chapter5We put forward the direction and ways of value chain governance of machinery and electric enterprises in China.Chapter6is countermeasures and suggestion. We raise some countermeasures and suggestion for the enterprises to achieve the goal of value chain governance.