Economy and Regional Development

Heterogeneous "channels" and localized networking of transnational corporations: Case of Suzhou Industrial Park

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  • Research Center for Yellow River Civilization and Sustainable Development; The College of Environment and Planning, Henan University, Kaifeng 475001, Henan, China

Received date: 2010-07-11

  Revised date: 2010-11-28

  Online published: 2011-08-20

Abstract

In the era of economic globalization, transnational corporations are the key driving forces of formation, development and evolution of development zones. In the "learning field" of the interaction of a variety of heterogeneous actors, TNCs must establish an effective localized nexus "channels" between local governments and local enterprises in order to achieve its globalization and localization strategy. First of all, "policy-channel" provides the most basic "channel" protection for TNCs, and becomes the first motivation of TNCs entering development zones. Secondly, the agglomeration-associated becomes the main type of TNCs in the development zones through the expansion of economic and social relations of technology, market and other aspects of "associated-channel". Finally, "value-chain-channel" will contribute to the fusion between the global forces and local forces. Therefore, to a large extent, the localized networking process of TNCs in the development zones is the evolutionary process of "policy-channel", "associated-channel" and "value-chain-channel". Seen from a perspective of evolution mechanism, the localized networking of TNCs is characterized by the "reverse" feature of "geographical proximity-relational proximity-institutional proximity" mechanism. In the combination of proximity mechanisms, the "heterogeneous channel networks" comprising " policy-channel", "associated-channel" and "value-chain-channel" play a crucial role in the localized networking process of TNCs.

Cite this article

AI Shao-wei, MIAO Chang-hong . Heterogeneous "channels" and localized networking of transnational corporations: Case of Suzhou Industrial Park[J]. GEOGRAPHICAL RESEARCH, 2011 , 30(8) : 1483 -1498 . DOI: 10.11821/yj2011080014

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