Enterprises' Choice of Organizational Structure in Their Initial Stage of Internationalization——Comparative Study on European, American and Japanese Transnational Corporations and Its Revelation

Abstract

Abstract:

The matching between organization structure and strategy is a key factor for enterprises to survive in the initial stage of internationalization. Chinese enterprises are in the initial stage of internationalization and the average survival period of their subsidiaries is only about four years, which is far shorter than expected. Transnational corporations in Europe, America and Japan have entered a stage of stable development since they went through the initial period of international expansion in the 1920s-1930s, 1950s-1960s and 1970s-1980s respectively. Based on reviewing the relevant theories on the matching between organizational structure and strategy, this research compares the strategies and organizational structures adopted by European, American and Japanese transnational corporations in their early stages of internationalization, which can provide reference and inspiration on the organizational structure choice of Chinese enterprises. According to the context of Chinese transnational corporations, it is suitable for them to adopt transnational strategy which has the advantages of both low cost and localization. Given that Chinese enterprises have established subsidiaries in both developed and developing countries, it is better for them to apply the integration network organization to fit transnational strategy.

Key words: initial stage of internationalization, organization structure, strategy, European, American and Japanese transnational corporations

Zhou Wei, Wu Xianming, Adel Ben Youssef. Enterprises' Choice of Organizational Structure in Their Initial Stage of Internationalization——Comparative Study on European, American and Japanese Transnational Corporations and Its Revelation[J]. , 2017, 29(12): 116-126.

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