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Research into Local Firm Growth and Our Country’s Countermeasures Based on Global Value Chain

Author: ZhuFengJuan
Tutor: DuXiaoJun
School: Northeastern University
Course: International trade
Keywords: Global Value Chain Local enterprises Business growth Countermeasure
CLC: F270
Type: Master's thesis
Year: 2007
Downloads: 154
Quote: 0
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Abstract


The economic globalization has brought about the globalization of resource allocation, and the resulting distribution of different segments of the global value chain in different countries of the international division of labor. This division of labor model provides opportunities for the growth of local enterprises in developing countries is of great significance, and therefore the growth of local enterprises in the context of the global value chain. This article reviews about business growth theory: the theory of internal growth, mergers and acquisitions, growth theory, The Theory of the Growth of the enterprise network, and from a new perspective - the global value chain to study business growth, established global value chain theory as the theoretical basis . First, we study the local enterprises into global value chains and barriers. Local enterprises into global value chains can get the capital they need to grow, market knowledge, and to obtain an engine for growth. The local enterprises into global value chains through FDI and OEM production, but various macro-and microeconomic barriers encountered in this process, and will also be more and more mature, local companies to enter the global value chain difficult. Secondly, the growth of local enterprises based on global value chains. In the global value chain, linked to local and multinational companies, to obtain the ability of an engine for growth. Provides an important prerequisite for the ability to grow as business growth. However, due to the control relationships between different local and multinational companies, the growth opportunities are also different. So this is mainly from the company's ability to grow mechanism, three aspects of the growth model and corporate growth opportunities to explore the growth of local enterprises in the global value chain. First of all, the global value chain of the different types of multinational corporations and local enterprises Contact, which makes the growth mechanism of the ability of multinationals to local enterprises. Therefore, this part of the first, depending on the driving force of the global value chain District divided into manufacturer-driven and driven two categories of buyers, and discuss the mechanism of the growth of the driver acting on the technical capabilities of local enterprises, management capabilities, marketing capabilities . Secondly, according to the different segments of the global value chain of value-added distribution depict smiling curve, as a tool for analysis of the growth of local enterprises in the global value chain mode to smile curve, summed up the three types of business growth model: the scale of the production processes of growth functional growth, high value-added sectors transitions, the transition of the value chain upgrade type growth. Finally, the analysis of the growth opportunities of local enterprises in the global value chain governance mode. This part first gives the global value chain the five governance model: market-based, modular, relational, leadership, level type, and to clarify the relationship of the similarities and differences between enterprises of different governance model, these differences make local enterprises growth opportunities. Order to facilitate research, the relationship between enterprises with similar governance model to integrate, the upcoming market type and module type leadership and hierarchy type attributed to market-based and leadership type, the growth of local enterprises and the three governance model under the opportunities for analysis. Then, the analysis of the case of Galanz Group and Taiwan Semiconductor Group is based on the growth of the global value chain, mainly analyzes the company's ability to grow and growth mode, verified the previous theory. Finally, the in-depth analysis of the problem of lack of barriers to entry faced by Chinese enterprises in the process of growing into global value chains and the ability to learn, given our business growth model and from the two levels of government and enterprises to promote enterprise-based global value chain growth countermeasures.

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