National Strategy And The Enterprises Horizontal Integration Management Mode

With the economic development of the Chinese market, China has become the world’smost promising emerging markets, has become a corporate focal point of contention in theworld. Economic globalization and its impact on Chinese enterprises, Chinese enterprises’international competitiveness not only from the unique advantage of factor cost advantagesand supporting industries and, more importantly, China has a market size advantage. In orderto capture the Chinese market, Chinese enterprises by way of horizontal integration, seekingself-development, access to beneficial resources to obtain economies of scale, economies ofscope. Especially for domestic enterprises to take the national strategy of horizontalintegration of the domestic market is an important measure for enterprises to enhance theirinternational competitiveness.However, due to China’s special economic transformation, creating the dual nature ofmarket characteristics in the Chinese market, bringing a new challenge for the nationalstrategy enterprises in the choice of horizontal integration management model. The existingstrategic theories suggest that the national strategy enterprises should be taken to a centralizedmanagement model in the process of horizontal integration. However, the Chinese market hasdual characteristics, with the role of the dual forces of the market, leading enterprises of thenational strategy in the horizontal integration management mode of choice to take a flexiblemodel, that is, adjust its horizontal integrated management model to adapt to changes in theexternal environment. Therefore, this paper attempts to study Chinese dual marketcharacteristics influence the enterprises of the national strategy of horizontal integrationmanagement model.To the enterprises taking the national strategy for research, institutional distance andmarket distance as independent variables, as a regulator variables of the industry nationwidepotential, and horizontal integration management model as the dependent variable, emphasison the relationship between institutional distance; market distance; the industry nationwidepotential and the horizontal integration management mode of the enterprises of takingnational strategy. Through a variety of ways to collect data and, ultimately, obtaining135valid samples, using SPSS18.0statistical analysis found that:(1) the enterprises of taking the national strategy, the horizontal integration of regional markets in the dual characterizedChinese market by the greater the institutional distance, the enterprises more tend to adopt alow degree of horizontal integration of management mode, the lower matching between thenational strategy and the horizontal integration management mode;(2) the enterprises oftaking the national strategy, the horizontal integration of regional markets in the dualcharacterized Chinese market by the greater the market distance, the enterprises more tend toadopt a low degree of horizontal integration of management mode, the lower matchingbetween the national strategy and the horizontal integration management mode;(3) in thedual characterized Chinese market, the enterprises of taking the national strategy in which theindustry nationwide potential is higher, the role of the institutional distance deviation fromthe high degree of integration is smaller;(4) in the dual characterized Chinese market, theenterprises of taking the national strategy in which the industry nationwide potential is higher,the role of the market distance deviation from the high degree of integration is smaller.Less research on the management mode of the national strategy enterprises of horizontalintegration, and focus on the case study approach, this study use the empirical analysisapproach, and expand the traditional strategic management theory in a new context, andfurther deepen the understanding of strategic management theory. This study not only for theguidance of Chinese enterprise of taking the national strategy enterprises to effectiveimplementation of horizontal integration strategies and enhance their internationalcompetitiveness has important practical significance, but also revealed the enterprises oftaking the national strategy in special scenarios how alternative management models to adaptto the external environment needs.