GEOSTRATEGIES OF TRANSNATIONAL CORPORATIONS FROM ASIAN NEWLY INDUSTRIALISED ECONOMIES

Abstract

Despite the growing significance of transnational corporations from Asian Newly Industrialised Economies [ANITNCs], there are still relatively few studies on their transnational spatial strategies or "geostrategies". It is, therefore, the intention of this dissertation to look at some of these geostrategic issues with respect to ANITNCs. The following objectives are set for this dissertation. It intends to identify and examine the important motivating factors and their changing configurations pertaining to geostrategic pursuit of ANITNCs. It also attempts to link the relationship between the geostrategies that are pursued by ANITNCs to their modes of foreign entry, organisational structures and competitive orientations. Data for examining these issues are obtained from in-depth interviews with senior executives, self-administered questionnaires and published sources. A total of twenty eight ANITNCs are included in this study. Based on the analysis of data collected, three geostrategies of ANITNCs with different geographical scales are identified. They include local, regional and global geostrategy. It is also revealed that these three geostrategies that are pursued by ANITNCs is different in combinations or patterns. The central proposition set for this dissertation that a higher proportion of ANITNCs would pursue their geostrategic pattern in a gradual and sequential manner [from local to regional and eventually global geostrategic pursuit] over times is supported. Some of the identified important factors that motivate the pursuit of this sequential geostrategic pattern by ANITNCs are diversification, market opportunities and, geographical and cultural proximity. It is also found that there is a strong relationship between the examined geostrategic patterns of ANITNCs and their three organisational dimensions mentioned.