Analysis on the Impact of E-business on Multinational Corporations’ Outsourcing Performance Abstract
With the rapid development of the economic globalization, multinational corporations have become the important engine for economic development. To adapt to the new situation of the economic globalization and economic informationalization, multinational corporations come to make significant adjustment on their operating strategy and business model. The competition among the enterprises is service competition rather than product completion, is not the competition among the individual enterprises but the completion among those enterprises in the whole value chain system, and then become the competition of business model. Outsourcing has become the most important component of multinational corporations’ global new strategy，meanwhile e-business has become a very important role in new business models of multinational corporations. As an important managing idea and effective enterprise operating model, outsourcing is developing rapidly as a new efficient industry. And the technology-based e-business, the important means of multinational corporations advancing towards the world, is attached more and more importance by the decision-makers. Therefore, this article mainly analyses the impact of e-business on the multinational corporations’ outsourcing and try to find a way for the multinational corporations on how to improve the enterprise performance and create more value by combing the e-business strategy and outsourcing strategy. To analyse clearly the e-business strategy impact on multinational corporations’ outsourcing performance, this thesis is composed by the following: First, there is an outline of the related theories on outsourcing and enterprise performance, and the present study on it at home and overseas. It provides an theoretical basis for the following analysis. Second, by comparison and analysis of motives and risks of multinational corporations outsourcing, the article gets the relationship between outsourcing and performance of the multinational corporation. The first view is that there is an inverted-U shape relationship between the enterprise outsourcing degree and performance, that is, too little outsourcing and too much outsourcing both will reduce the enterprise performance. Since the extremes produce the worst possible outcomes, while there is some optimum in the middle for the outsourcing degree which can make the enterprise obtain the most favorable and reasonable performance. The second vies is that a firm has some overall optimum level of outsourcing that lies in between complete integration and complete outsourcing. Also, it should be noted that we do not argue there is a universal single optimum. Rather, each firm will have its own optimal level, which is changing all the time, depending on its inside and outside changing environments. The third view is that the multinational corporation has its own optimum outsourcing level under the interaction among the inside and outside motives and risks of the multinational corporation. And this optimum outsourcing level could best strengthen the...
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