Research On Formation Mechanism Of Dynamic Capabilities Based On Entrepreneurship

Dynamic capabilities theory is a strategic management frontier, which was formed and developed to solve sustainable development of enterprises in turbulent and complicated competition condition. Contemporary Chinese enterprises, which are in changing technology, global competition, restructuring economy and upgrading industry, are faced with more environmental dynamics, complexity and uncertainty. So how to constantly develop and cultivate dynamic capabilities which can match with environment change has become the biggest challenge China's enterprises facing.Currently research on dynamic capabilities mainly focused on discussion about its concept, mechanism and influencing factors. The formation mechanism of dynamic capabilities is the core in dynamic capabilities theory. How to answer this question is the key on whether dynamic capabilities theory can effectively guide enterprises to develop and improve their dynamic capabilities. The existing research results can be roughly divided into two groups. The first was called internal organization perspective. Its main ideas include:the formation of dynamic capabilities is determined by enterprises'property and development path; the formation and evolution of dynamic capabilities are guided and shaped by learning mechanism; the formation and evolution process of dynamic capabilities is the dynamic process of knowledge formation; the process of dynamic capabilities formation is the process in which enterprises formed their technology rail and technology model, etc. The second was called environment perspective, which mainly focused on the relations between enterprises dynamic capabilities and environmental impact factors from" the perspective of local production system". This viewpoint came from some scholars' attempt on researching enterprises'dynamic capabilities from network embedding perspective. In recent years, the above two ideas begun to appear integration trend. Such as, some scholars proposed self-organization theory on dynamic capabilities formation. That is, they regarded dynamic capabilities formation as a self-organizing process which can meet with environment. But on the whole, research on dynamic capabilities is still in the initial stage. The existing analysis frameworks are still not perfect and mature, so can't fully explain the nature of the dynamic capabilities and the source of sustainable competitive advantage.Dynamic capabilities are "the capabilities which can integrate, establish and reconfigure internal and external capabilities to adapt to change of internal and external environment". To study the formation mechanism of it should reflect the features of combining inside and outside factors. Entrepreneurs are the main body of the enterprise innovation. Be situated between the market and enterprise organization, They are the concentration of information and decision makers. With its unique position and entrepreneurship, only they can constantly screen, combine, and reorganize enterprises resources and ability according to the internal and external conditions changes. But in the existing research on dynamic capability formation process, Entrepreneurs vacancy phenomenon exists generally. This situation hindered people to deepen understanding of the dynamic capability formation process.Founded in the 1950s, System Dynamics is one kind of research pattern and analysis method starting from the whole and emphasizing on system thinking in essence. This paper argued that the lack of system research perspective was the main reason that led to the lack of research results. Introducing the analysis perspective, this paper tried to discusses dynamic capabilities formation mechanism in a system thinking framework. The purpose is to open the "black box" of dynamic capabilities formation, and put forward the beneficial reference for enterprises about how to break the dilemma in dynamic capabilities evolution, and how to enhance the international competitiveness of China's enterprise and promote economic health in China.The main research contents include the following parts:Partl:Put forward the analysis framework of dynamic capabilities formation.Dynamic capabilities theory is the extension and development of core competence theory. It arises from the complex and volatile competition conditions in order to enhance the enterprise response to environmental change. Focusing on core rigidity to overcome, it is considered as the source of sustainable competitive advantage under dynamic environment. However, in previous research, dynamic capabilities were mainly seen as the capabilities which can constantly change strategy or the routines which can change operating routines. In this definition, although dynamic characteristics was emphasized, but because dynamic capabilities can't be directly evaluated, so the forming process could not be explained very well and enterprises' practice could not be effectively guided. The introduction of organization improvisation leads to that we can check organization improvisation level with specific assessment index and infer dynamic capabilities according to it. So it put forward a important thoughts for the theory and practice research of dynamic capabilities formation.This paper put forward a dynamic capabilities formation framework from the system evolution perspective to deeply explain the formation process of dynamic capabilities from the perspective of combining short term and long term, which is made up of by the relationship chain " Entrepreneurship -Organization Improvisation-Dynamic Capabilities"Part2:Analyze the inner mechanism of dynamic capabilities formation.On the basis of the above analysis framework, taking quick strategic adjustment ability and rapid strategy implementation ability as two specific assessment indexes, this paper describes the system dynamic mechanism of dynamic capabilities formation by using system dynamics analysis method.In the theoretical framework about dynamic capabilities formation put forward by this paper, the formation process of dynamic capabilities is made up of two enhancing loops: quick strategy adjustment ability during strategy period and rapid strategy implementation ability during operation period. Enhancing circuit performs two kinds of behavior:either a vicious cycle, or a benign circulation. The specific performance depends on how the loop was triggered. We found by system thinking:entrepreneurship is the activation mechanism of system elements in the process, and " high lever" in the system structure.This paper defined entrepreneurship in three different levels:the individual, the organization and the social level. Then concretely analyzed the inner mechanism on how three levels of entrepreneurship activate system elements and accelerate dynamic capabilities in order to make the theoretical framework put forward in this paper based on the science logic foundation.Part3:Analyze the control mechanism of dynamic capabilities formation.Due to the existence of process paradox, to research the formation mechanism of dynamic capabilities not only need to consider source of power, but also the control mechanism. From the perspective of system dynamics, this paper revealed the inner mechanism of process paradox, and provided a new perspective for more understanding of process paradox and control mechanism of dynamic capabilities. Further, we proposed the recognition mechanism of strategy adjustment in this foundation, and put forward ideas on how to solve process paradox and control dynamic capabilities.Part4:Put forward dynamic ability strategy based on entrepreneurship cultivation.This part belongs to the countermeasures study. We deeply discussed the dynamic capabilities construction strategy in order to provide guidance and reference about how to promote dynamic capabilities by fostering entrepreneurship. Firstly, we constructed the analysis framework about entrepreneurship formation from the perspective of system coordinate. Then we deeply analyzed the source of individual level entrepreneurship, the diffusion mechanism and dynamic inheritance mechanism of that.Part5:We tested the analysis framework and theoretical model put forward by this paper using comparative case study method.Finally, through case investigation for five typical enterprises, that is Apple, Toyota Motor Company, Lenovo Group, Haier Group and Huawei Technologies Co., we tested the analysis framework and theoretical model put forward in this paper from the perspective of positivism, made out a summary for the important conclusions of this research, expounded this theoretical contributions and practical value, analyzed the insufficiency in research and proposed the research direction in the future.The innovation of this paper lies in:1. Analyze the formation and control mechanism of dynamic capabilities in a systematic thinking framework.As a process in which enterprises capabilities are constantly matching with the environment, the formation process of dynamic capabilities has characteristics of dynamic and complex system. Using system dynamics method, this paper put forward an analysis frame on dynamic capabilities formation mechanism, which is made up of by the relationship chain " Entrepreneurship - organization improvisation-dynamic capabilities ", and deeply analyzed the formation and control mechanism of dynamic capabilities in order to open "black box" of dynamic capabilities formation, crack the dilemma in enterprises dynamic capabilities development, and enrich and promote dynamic capabilities theory.2. Analyze dynamic capabilities formation from three levels:The individual level, the organization level and the society level. Dynamic capabilities are "the capabilities which can integrate, establish and reconfigure internal and external capabilities to adapt to change of internal and external environment". Only when the internal and external factors were combined together, can we have a comprehensive understanding on formation mechanism of dynamic capabilities. However, the existing research lacked the perspective of combining internal and external factors together. This is the reason why we still lacked systematic understanding on the formation path and formation mechanism of dynamic capabilities. We found by system thinking:entrepreneurship is the activation mechanism of system elements in the process of dynamic capabilities formation. So introducing the analysis perspective and taking entrepreneurship as the starting point of our analysis, this paper deeply discussed the internal mechanism on how entrepreneurship activated system elements and promoted dynamic capabilities formation from three levels:The individual level, the organization level and the society level.3. Put forward dynamic capabilities strategy based on entrepreneurship cultivation.Firstly, this paper constructed the analysis framework about the formation of entrepreneurship from the perspective of system coordinate. Then we deeply analyzed the source of individual level entrepreneurship, the diffusion mechanism and dynamic inheritance mechanism of it. Finally, we put forward an operability path to cultivate and promote enterprise dynamic capabilities.