||There are more and more multinational companies adopting localization|
strategy in china, including all kinds of functions. Comparing with the
reality, the related reaserchs about localization issues are very fewer.
In order to understand more about the content of “localizatin” (or call
“local responsiceness”), the study divided localization into three
kinds of sub-parts, including physical business activities, soft
management machanism and human resources. Futhermore, the study propses
and examines various determinants of localization.
The findings of this reaserch are following: (1) Factors including
culture distance, product demand heterogenity and Taiwan experience will
influence the localization of physical business activities. (2) Factors
of affecting localization of soft management machanism contain product
demand heterogenity, industry cluster, headquarter commitment and Taiwan
experience. (3) Factors of affecting localization of human resource
contains product demand heterogenity, headquarter commitment and the
dependence of subsidiary on headquarter.
Above all, we also found the influencial factors for three different
kinds of localization are different.