What is the impact of international strategic management of transnational corporations under economic globalization backdrop?
Under the condition of economic globalization, transnational companies are the direct pushers to globalization deeply revise their strategy of investment. The transnational companies play an increasingly important role in the world economy. Research assumes that managers in today’s multicultural global business community frequently encounter cultural differences, which can interfere with management practices in organizations (Sonja and Phillips, 2004). Considering these culture issues, there are mainly three aspects which the multinational corporations might use nowadays, which are localization of human recourse management, management localization and capital funding localization.
This paper assumes that the strategy of localization could enhance transnational companies core competitiveness and obtain advantage in international competition. The localization of human recourse management would be the basic of the localization strategy. In particular, employ local competent people, who can easily establish an intimacy with local people and local corporations. It would help to overcome the cultural difficulties and improve firm’s performance. Therefore, by measuring the data collected from sample groups, figures can be analyzed to support whether the hypothesis should hold or reject. In this paper, the following hypothesis will be researched: -Null Hypothesis: Employing local employees benefit firms by overcoming cultural difficulties and gaining competitiveness advantage within the competitions. -Alternative Hypothesis: Employing local employees does not help to overcome cultural difficulties and gain competitiveness advantage within the competitions due to cultural differences. However, quantitative research may face inaccurate conclusion and consequence due to unrepresentative sample or unsuitable measuring method and analysing tool. Sample
Sampling is a process used in statistical analysis in which a predetermined number of observations will be taken from a larger population. This quantitative research sampling will be focused on transnational corporations which operating in the China. It selects a convenience sampling from transnational corporations in various industries. By contrasting cultural and regional differences in western and eastern countries, corporations adopt and adjust strategic management such as merger and acquisition and financing to localize a multinational company. In order to ensure the sample represent appropriately, the paper sampled different types of TNCs based on the different localization strategy as above.
This paper will use the Multi-stage cluster sampling method to identify the samples. Multistage sampling is used frequently when a complete list of all members of the population does not exist and is inappropriate. But in cluster sampling we would then go on to measure everyone in the clusters we select. Moreover, by avoiding the use of all sample units in all selected clusters, multistage sampling avoids the large, and perhaps unnecessary, costs associated traditional cluster sampling.
The Quantitative data collection method, rely on random sampling and structured data collection instruments that fit diverse experiences into predetermined response categories. They produce results that are easy to summarize, compare, and generalize (UWEC, 2004). Data Collection is an important aspect of any type of research study. Inaccurate data collection can impact the results of a study and ultimately lead to invalid results (Worldbank, 2011). A data collection process let a project collate data efficiently and enabling to measure and establish a baseline of current performance whilst quantifying later improvements. Researchers can collect data by themselves (primary data) or the others (secondary data). This paper will mainly ask people...
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