What Is the Impact of International Strategic Management of Transnational Corporations Under Economic Globalization Backdrop?
What is the impact of international strategic management of transnational corporations under economic globalization backdrop?
Introduction
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
Introduction
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
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