Research on the Knowledge Strategy of Chinese Automobile Companies Based on Globalization

Although China has been the biggest automobile supplier and market in the world, Chinese automobile companies (CACs) are far less competitive in global market. This explanative research elaborates the experience and lessons of the knowledge strategy experienced by JVCACs who focus on joint ventures and pure CACs who focus on independent development with multiple case study methodology. By spiting the knowledge strategy into knowledge absorption and knowledge expansion, new link is built to rectify the prejudice against the "trading domestic market for technology" policy. The analysis indicates that, to explore the global markets, JVCACs need to transit from passive absorption to active absorption while pure CAVs need to transit from developing markets expansion to developed markets expansion. A path map of knowledge expansion is raised to guide their future directions. Three implications enlighten the thought on CACs' survival against globalization.