Innovative interaction between multinationals and local enterprises in emerging-market countries

Considering the influence of various factors in the cooperation, the signing of the contract in the international cooperation does not guarantee the effective innovation interaction between the multinationals and local enterprises. Based on the existing study on the comparison of interactive costs and benefits, the betrayal of the opportunity cost and perception of differences are analyzed. The conclusion of the study show: (1) The opportunity cost of the betrayal has an important influence on strategy selection of innovative interaction between multinationals and local enterprises; (2) Motivated by high expected interactive benefit, high opportunity cost of betrayal, and low interactive cost on the part of multinationals, and low expected interactive benefit, low opportunity cost of betrayal, and high interactive cost on the part of local enterprises, multinationals and local enterprises are more willing to carry out innovative interaction; (3) After multinationals and local enterprises conclude a contract, local enterprises will select interaction if multinationals have a low perception of differences, and multinationals will select interaction if local enterprises have a high perception of differences. The conclusion of the study has a certain theoretical and practical significance to the enterprise.