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CEVT of Geely: A broker between Geely and Volvo Cars and a Facilitator to promote Geely to become global

Chapter in book
Authors Jun Jin
Maureen McKelvey
Zhengyi Zhange
Published in McKelvey, M. and Jin, J. Innovative Capabilities and Globalization of Chinese Firms: Becoming a Leader in Innovation Spaces
Publisher Edward Elgar Publishers
Place of publication Cheltenham, U.K.
Publication year 2019
Published at Department of Economy and Society, Innovation and Entrepreneurship (IIE)
Language en
Links www.e-elgar.co.uk
Keywords Globalization, strategy, R&D center, CEVT
Subject categories Economics and Business

Abstract

With the global market development, more and more Chinese companies set up their R&D centres in western countries in order to access the latest technology, to develop products for local market demand in developing countries, and transfer technologies to China. However, the development of China Euro Vehicle Technology Company (CEVT), a wholly subsidiary of Geely Auto, shows a specific strategic role and management system of Chinese overseas R&D centre. Taking the fast growth of CEVT in three years as case, the chapter explores the distinguish role of CEVT in the globalization strategies of Geely, who is a facilitator to drive Geely and Geely Auto to become a real global company. The chapter suggests that the independent technology company can work as a broker between bilateral companies of an M&A event not only at the aspect of new product and technology development but also at the aspect of global market strategy after the acquisition and merge. The chapter will provide insights to the strategy and management of international R&D centres, and the global R&D strategy management, especially for companies in mature industries from emerging countries.

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