A Study On The Fostering Mechanism Of Multinational Subsidiaries’ Strategic Leadership Roles

With the rapid growth of foreign direct investment, multinational companies in China plays a more and more important role on the world market. Further improvement of multinational companies’ governance structure has been the basic safeguard that promotes the investment performance of enterprises’ FDI. And overseas subsidiaries have been one of the most important factors to perfect the corporate governance structure and enhance the investment strategy of multinational performance. In particular, more and more enterprises in the developing world reversely invested to developed countries, the function optimization of overseas subsidiaries became more important. Based on the theory of parent-subsidiary relationship and the realistic condition our country enterprises’ FDI, this paper explored the "character" overseas subsidiaries of multinational positioning.The existing research laid a necessary theoretical basis for this paper to study on the role positioning of overseas subsidiaries. The existing literatures, found that parent-subsidiary relationship theories has related to the overseas subsidiary strategic value and its dynamic evolution. But most of the existing theoretical research were sampled on multinational companies in developed countries, and also failed to reveal the internal mechanism of the establishment of subsidiary strategic position and its evolution. This paper took the market size of parent-subsidiary corporates as the substitution variables, deconstructed multinational parent-subsidiary relationship between strategic collaborative and described overseas subsidiaries in the realization of the strategic value in the process of multinational company’s overall business strategy by utilizing the method of game analysis. At the same time, combining with "centipede game" model, further revealled the evolution path of overseas subsidiary company growing into a multinational company strategic leadership role. The strategic leadership role is not given by the equity structure or multinational company organizational structure, but is essentially a kind of "endogenous" option within the multinational corporation management environment and the strategic implementation process. Therefore, this paper focus on depicting the multinational company subsidiary overseas strategic leadership of three formation mechanism. Based on that, this article gave some recommendations on the promotion of multinational companies in China subsidiary.This article posed a research on multinational company subsidiary overseas strategic value out of the equity structure and organization structure framework, took the formation and establishment of subsidiary strategic leadership as the inevitable result of market selection. This analysis method can not only objectively describe the growth logic of the overseas subsidiary, but also to perfect the corporate governance according to requirements of the multinational company’s strategic structure. At the same time, the analysis put forward higher requirements for the development of multinational companies overseas subsidiary in China.