Strategic Diversity in the Contemporary Multinational: Roles of Subsidiaries and Laboratories

Si Zhang and Robert Pearce

Chapter 2 in Multinationals in China, 2012, pp 23-41 from Palgrave Macmillan

Abstract: Abstract By the time China had commenced its significant opening to foreign direct investment (FDI) the leading MNEs that would pioneer this entry had achieved high levels of sophistication in their ability to leverage distinctive characteristics of individual host economies towards their needs for global competitiveness. These competitive needs can be seen to take two distinctive but complementary and interrelated dimensions. Firstly, the firms need to target the maximum profitability and growth potential from their current mature and fully-understood sources of competitiveness. Secondly, more speculatively but equally crucially, they need to be pursuing and investigating a full range of options in generating the roots of future sources of competitiveness.

Keywords: Foreign Direct Investment; Strategic Diversity; Host Economy; Subsidiary Role; Creative Transition (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-36542-1_2

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DOI: 10.1057/9780230365421_2

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