Operational Scale of Small/Medium Size Transnational Cooperate Enterprises

• Main Authors: Hong-Xing Chen, 陳宏興
• Other Authors: Chen-Guo Li
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/16413070401138383847

碩士 === 嶺東技術學院 === 國際企業研究所 === 93 === Increasing direct foreign investment emerged since 1990’s in Taiwan by which leads the small/medium transnational enterprises can afford to develop their respective optimal scale by posing global spread of international enterprise. Afterward the current of economic globalization and business globalization that manifests the need of transnational enterprises need to adopt the international operation environment orientation to confront the significant changes in the worldwide operational environment. Meanwhile, interpretation of some brand new characters are beyond the ability of the traditional transnational theory as reflects to the international operation environment base of large and small/medium transnational groups. This paper adopts theory and empirical study two means through implementing market-oriented economy and scale economy to analyze the subjects. The result designates that under a imperfect competition of market structure, not only the scale economy exists but also the enterprises performing optimal minimum scale, which contrast to the enterprises of not able to reach effective scale of which dealing with harsh competitive environment. In addition, small/medium transnational enterprises as well as performed by the large enterprises in a corresponding (relevant) developing space while large enterprises are no longer on the leadership of direct cross border investment. In order to testify the theories for the transnational enterprise, this paper employs differential equation of economic analysis to demonstrate the suitable enterprise scale through defining the degree and market structure of scale economy to divide the enterprises of subject into four models, monopolized large-scale model, monopolized small-scale model, competitive large-scale model, and competitive small-scale model. It is questionable for the existence of scale economy while under a complete competition or closed complete competition of market structure. Not only the scale economy did exists in an incomplete competition of market structure but also a disadvantageous status is confronted by the optimal minimum scale enterprise of which can’t reach an effective scale. The property and degree of scale economy differs from the respective transnational enterprises of which the activity scales of foreign investments are varied as well. The small/medium transnational enterprises as well as large enterprise obtain a role of playing in the international economy development. In a word, the international market is wide open as long as the small/medium transnational enterprises capable of evaluating the change of market structure and employ the evolution of scale economy.