A Study On The Effects Of Social Capital Upon Firm's Regional Relcation Behavior

The cross-regional relocation is an important strategic decision-making for the enterprise survival and development, which has an important impact on the enterprise performance and local economic environment. However, on the view of China's current actual situation,cross-regional relocation has the features of blindness,following accuracy and irrational distribution,which has seriously constrained China's enterprises to enhance the competitiveness. In the backdrop of the economic globalization, the open capital investment system has provided a worldwide opportunity for the enterprise to touch the complementary resources. However, the mere existence of such an opportunity is not enough, and companies must be aware of the potential value of such opportunities and own the corresponding ability to make use of such an opportunity. Therefore, it has the strategic and practical significance to explore how companies rely on their cluster to provide information, and how to use its ability to capture strategic opportunities to promote the success of the cross-regional strategic relocation. This article is precisely centered on this core question.In the past research for the enterprise cross-regional relocation, the research under a variety of macro-perspectives has occupied the mainstream while the study on the decision-making of the enterprise cross-regional relocation is relatively rare. The decision-making of the enterprise cross-regional relocation is studied as the micro object and the model choice and the construction of action features are proposed to characterize the behavior of enterprise cross-regional relocation. Three main research issues are put forward in this paper. The first one is how to describe the micro-features of strategic action of the enterprise cross-regional relocation. The second point is about the effect on the model choice and action features of the cross-regional relocation The third one is on the effects of the uncertainty of local investment environment for the relationship of the social capital and the cross-regional relocation. In order to solve the above problems, on the basis of review of theory and related research literature,the author for this paper has had in-depth interviews and case studies on the compnanies of Bosch Rexroth and semiconductor crystal, then has made field research on a number of the enterprise in a lot of regions of Shaanxi province, and has conducted a large sample questionnaire survey, that is adopting the method of combining typical case studies with large sample data analysis to empirically test the theoretical assumption in this paper. The main research innovations in this paper are following aspects.First of all, through the introduction of two variables of key strategic behaviors -- the "action features" and "mode selection", a more detailed portrait of the differences of the enterprise in the decision-making process of relocation is proposed. The author analyses the behavior of enterprise cross-regional relocation from the micro-perspective and describes the behavior of cross-regional relocation as model choices (the overall relocation and part of the relocation) and action features(independent relocation and mass relocation). The different ways of relocation have significant difference requirements on inter-organizational resources, information and capacity, which have different impacts on their host clusters. The risks and benefits of the relocation are also different.Secondly, the proposed framework from the social capital perspectives to analyze the decision-making behavior of relocation expands the social capital theory and business strategy theory in the study the application of the relocation behavior. The structural and relationship features of the socal capital in the enterprise clusters have significant effects on the behavior of the enterprise cross-regional relocation. These findings indicate that the enterprise which is in a cluster of broad heterogeneity in the non-central location and maintains close links with key partners is more likely to use the strategic cross-regional relocation model of the independent act and the part relocation. On the other hand, the enterprise located in a relatively high homogeneity within the cluster, the center position, and linked not closely enough with key partners.is more likely to adopt strategic model of cross-regional relocation with following the action and the overall relocation.This conclusion greatly expands the explanation of the social network theory for options of organizational strategy action.Thirdly, the moderating effects of environmental uncertainty on the relationship between external social capital and relocation behavior are analyzed. The uncertainty of the location for the investment environment has regulating effect on the relationship between social capital and decision-making of the cross-regional relocation. In particular, the degree of the uncertainty of the location for the investment environment, heterogeneity, non-central and contact intensity is higher, the less likely for enterprises to use the independent action and part relocation it is. Such a conclusion shows the cross-regional strategic decision-making is influenced not only by internal structure and relationship characteristics within their own cluster network but also the uncertainty and risks caused by the investment environment.Fourthly, based on the above reviews of existing research findings, this paper constructs a conceptual model of cross-regional transfer based on the social capital, which gives a more fully explanations about the enterprises in the same cluster play different strategies of relocation process in the face of the strategic differences about the choice of micro-mechanisms. Though the use of exploratory factor analysis, we ensure the scientific nature of the conceptual model about the possible factors for cross-regional transfer; and then we apply the method of statistical analysis of a large sample to test the relevant empirical hypothesis.The results from both hierarchical regression models and structural equation models are indicative of supporting for the hypothesis. The final results are then discussed, the research findings can help companies reduce the high-risk of relocation strategy, and to take reasonable and effective methods to govern the corporate social networks. The results also give valueable suggestions for business organizations being moved in-and-out, the trade associations and the desion-makers in various stakeholders.