For enterprises, as their domestic and existing markets become mature and
saturated, they will think about going-global and exploring new territory of market
to secure their pace of business growth. Gradually, they will be becoming real
multinational corporations (MNC). In the new environment of economy, how can
ambitious MNCs achieve their goals of business expansion and duplicate their
successes as they have done in the past? How can they set up subsidiaries
under different cultural environment, and let the subsidiaries survive and grow up
well? How have these headquarters successfully transferred their well-proved
competitive capabilities to these young subsidiaries and educated them to build
their competitive powers eventually? To answer above questions, concentrating
on the competitiveness relay from headquarters to subsidiaries, a framework of
theory about competitiveness composition and relaying model has been
developed in the thesis. Furthermore, under the direction of the competitiveness
relaying theory, the roles played by influential factors in relaying process have
been investigated, and the case of middle layer competitiveness relaying based
on OEE tool in Degussa’s subsidiary –DEA has also been studied.
The theoretical framework of competitiveness composition and relaying
Based on the theory, competitiveness is composed of both knowledge and
carrier. The knowledge is the key ingredient of competitiveness, and the rest of
competitiveness is the carrier of knowledge. Correspondingly, an enterprise’s
competitiveness could be summarized as follows:
Corporate competitiveness = overall knowledge + corporate organization
Corporate competitiveness consists of three types of competitiveness, and each
has its special knowledge content and carrier.
Core competitiveness = Tacit knowledge + Combinatory (cultural +
organizational + technical) systems
Middle layer competitiveness = a mixture of tacit and explicit systematic
knowledge+ processes of procedural activities
Surface layer competitiveness= a mixture of explicit knowledge and
information + products
Among above three types of competitiveness, although core competitiveness can play an important role in sustainable development of an enterprise, middle layer competitiveness is more critical in relaying the competitive power from headquarters to subsidiaries. In general, competitiveness relay involves in four steps, and they are competitiveness decomposition, knowledge transfer, knowledge receiving and competitiveness creation.
Investigation on the significance of influential factors on relaying performance
With the help of questionnaires, 18 key influential factors identified and summarized based on relevant literatures about knowledge transfer have been investigated to see their impacts on the effectiveness of competitiveness relaying.