Restructuring Multinational Enterprises in China
Project Director - Professor Stephen Nicholas
Newcastle Researchers - Dr Brendan Boyle and Dr Rebecca Mitchell
Dean Zhao Shuming, Nanjing University School of Business, Nanjing
This project analyses how multinational enterprises (MNEs) have restructured their activities in China over the past decade. There have been significant changes to the Chinese domestic economy since 2000, including the rise in foreign direct investment, which has increased the competition and interaction of domestic Chinese firms with foreign JV and wholly-owned companies. Second, the Chinese economy has witnessed significant changes in its property rights system, including the transition of state-owned to private-owned enterprises. Finally, the Chinese economy has experienced rapid economic growth, which has created new domestic firms that have challenged MNEs.
This project seeks to understand the internal organisational changes in MNE subsidiaries. Second, the project studies the changing relationships between MNE subsidiaries and their foreign parents. Thirdly, the project studies the composition and experiences of the top management team (TMT) responsible for decision-making and restructuring decisions in MNE subsidiaries, including the positions of TMT members, their tenure and previous experience.
The project maps the types of restructuring undertaken by MNE subsidiaries, including spin-offs and sell-offs; merger and acquisitions; changes in geographical location; changes in technology, product lines and supply chains; changes in market segments; and changes in internal management practices (including HRM and accounting).
The process of restructuring, especially whether the changes in MNE subsidiaries has been gradual or a planned restructuring are investigated, as well as the role of the current global economic crisis in restructuring.
One significant contribution of the project will be to related types of restructuring to specific changes in China's domestic and the global economy.
The project aims to provide new insights for Chinese policy-makers into the types of restructuring by MNE subsidiaries as well as to contribute to our understanding of the evolution and transformation of foreign business enterprises in China.