Strategies of transnational companies in the technological sector

Abstract

Purpose. This study examines transnational corporations in the technological sector. Transnational companies minimize costs by transferring R&D results to affiliates and maximize profits. Design. This study lists the benefits and drawbacks of the fundamental business methods used by multinational corporations. Analysis was based on R&D data, the cutting-edge technology application, and the dissemination of new management organizational forms. A model for developing a strategy for transnational companies to promote innovative products was considered. Findings. The ability of transnational corporations to use a flexible mechanism of investment activity and organizational methods analyzed in global economic change. Artificial intelligence, digital technology, and digital platforms were also identified. The key factors for achieving technological leadership in transnational corporations through global production systems are grounded. Originality. The proposed decision-making model illustrates the author’s approach to monitoring and assessing the effectiveness of the TNCs' selected innovation strategies. A transnational business strategy combines elements and features of innovation strategies. The use of innovative strategies stimulates technological development and increases competitiveness.