Research On The Evolutionary Path And Dynamic Mechanism Of Huawei's Integration Of Business And Finance

Nowadays,the rise of high-tech with the Internet as the core has greatly promoted social production and business development.At the same time,with the rapid changes,the business environment that organizations face is full of volatility and uncertainty.Developing and maintaining competitive advantages in a turbulent and complex environment has become a common issue faced by large and medium-sized enterprises,and is also a hot issue of academic concern.From the reform and opening up more than forty years ago to today's new stage of deepening reforms,transformation and upgrading,with the strong support of national policies,Chinese enterprises have begun internationalization,and their business scale has been increasing day by day,which puts forward higher requirements for enterprise management level.Finance is an important functional support for business operations.The Integration of business and finance has become an important issue for enterprises to improve their management and maintain their competitive advantages.Especially for large multinational companies,basic accounting functions cannot meet the needs of business development,so it is urgent for them to transform and upgrade their finance and develop in coordination with their business.Therefore,based on the perspective of organizational conventions,this paper takes large-scale private multinational companies as case objects,and studies how enterprises can integrate business and finance to meet the needs of strategic advancement and business development in a constantly changing environment.Based on the principles of typicality and representativeness of the case,this paper uses the single case longitudinal research method to select Huawei,the world-class information and communication infrastructure and intelligent terminal provider,as the case study object,to study the evolution path and power mechanism of Huawei's industry finance integration.Huawei is a large multinational group company of communication manufacturing.It has a long history of development.Since the end of the 20th century,Huawei has taken the initiative to change,carry out financial reform,continuously update financial operation practices,and promote the Integration of business and finance to maintain its competitiveness.Therefore,this paper makes an in-depth study of Huawei's financial reform from the perspective of organizational practice evolution,analyzes the evolution path and dynamic mechanism of Huawei's industry finance integration,and provides reference experience for Chinese enterprises to implement industry finance integration.Through in-depth study,this paper draws the following conclusions:(1)From a vertical perspective,Huawei's industry-finance integration process has a clear evolution path,which is divided into three stages.In the first stage,the financial operation practices of accounting,reporting and remote monitoring are unified and centralized backward.Traditional accounting is transformed and upgraded to shared finance,and business and finance are initially integrated.In the second stage,the financial operation practices of budget management,decision support and close distance supervision are integrated with forward refinement.Traditional accounting is transformed into a trinity of shared finance,business finance and strategic finance,and business and finance are formally integrated.In the third stage,the financial operation practices of omnidirectional monitoring and control are highly collaborative.The Trinity's finance continues to play a role of value integration,and business and finance are highly integrated.(2)From a horizontal perspective,each stage of the vertical evolution of Huawei's industry-finance integration includes two processes:formal integration and substantial integration.Form integration is the concrete measure and essence integration is the result.Dynamic financial capability is Huawei's driving mechanism for formal integration and substantial integration.Dynamic financial capability can be divided into first-level force and second-level force.First-level force is the ability of adaptive absorption and integrated reconstruction that directly affect the formal integration of business and finance.It is driven by adaptive absorption and integration and restructuring.Through cross-border search,organizational learning and integration of resources,it can develop the formal Integration of business and finance and realize the renewal of financial operation practice.The second-level force is the ability of financial environment perception and rapid response to indirectly affect the substantial integration of business and finance.The updated financial operating practice promote financial transformation and upgrading,strengthen financial environment perception and rapid response,promote further business development,and achieve substantial Integration of business and finance.Based on the perspective of organizational practices,this paper carries out research on the process of Huawei's financial transformation,analyzes Huawei's financial transformation methods and measures,and further enriches the process research of industry-finance integration,and provides a reference paradigm for large group enterprises to promote industry finance integration in the face of complex and changeable environment.At the same time,this paper studies the Integration of business and finance from the perspective of vertical evolution and horizontal transition.It analyzes and summarizes the evolution direction of financial operation practices and the dynamic mechanism of the horizontal transition of industry and finance integration,which provides a relatively new idea for scholars to carry out the research on the transformative organizational practices and the functional mechanism of dynamic financial capabilities.