The Study Of Relation Between The Industrial Strategy And Enterprise Strategy

As economic globalization brings increasingly fierce competition in both domestic andoverseas market, industrial strategy has thus been given more attention to for it serves asthe linchpin between national strategy and enterprise strategy and has a direct bearing onnational and industrial competitiveness. The existing research has came to realize thatindustrial strategy and enterprise strategy are interlinked and the latter can influence theformer, but little study has been conducted systematically and in depth as to how theyinterrelate with each other and what factor can influence such interrelationship.On the basis of Michael Porter’s Diamond Model, industrial competition theory,industrial value chain theory and enterprise strategic management theory and the author’sinterview with administrative department of government, enterprise leaders and specialists,this paper hammers out research hypothesis, based on which related questionnaire aredesigned for18industries (including21government administrative departments and156enterprises). In the light of statistical analysis on262valid samples, the hypothesis isproved. Problems of our existing industrial strategic management are examined; features ofindustrial strategic management are summarized; interrelationship between industrialstrategy and enterprise strategy is revealed from the perspective of strategic consistency andconflict; solutions and suggestions are given to problems in industrial strategic management.Further still, research results are testified with telecommunication industry serving as astudy case. This paper is written with an aim to providing theoretical basis to our study onenterprise and industrial strategic management and rendering guidance and help to bettermanagement of both enterprise and industrial strategy.Major research findings and results are as follows:1. Generally speaking, industrial strategy has more influence on enterprise strategy.Their interrelationship can be specified as follows:（1） Industrial strategy has more influence on enterprise strategy in the intensiveindustrial structure than in the extensive industrial structure while enterprise strategy hasmore influence on industrial strategy in the intensive industry than in the extensive one.（2） Industrial strategy has more influence on enterprise strategy in the industry withhigh degree of monopoly, especially in the oligopoly market. By contrast, enterprisestrategy increases its influence on industrial strategy in parallel with increased degree ofmarket monopoly, especially in the perfect monopoly market.（3） Industrial strategy has more influence on the strategy of state owned enterprisesthan that of private enterprises. In turn, strategy of state owned enterprises has moreinfluence on industrial strategy than that of private ones. （4） As enterprises become more and more globalized, influence of industrialstrategy on enterprise strategy rises and falls like an inverted U shape. Therefore industrialstrategy has less influence on both more globalized enterprises and less globalized oneswhile it has more influence on medium globalized enterprises. In turn, enterprise strategyincreases its influence on industrial strategy in a linear manner.（5） As the enterprise climbs up the industrial value chain, industrial strategy hasless influence on strategy of enterprises at both the upstream and downstream of the valuechain while it has more influence at midstream, which works in an inverted U shape model.On the contrary, influence of enterprise strategy on industrial strategy works in the U shapemodel.（6） Industrial strategy increases its influence on enterprise strategy as the scale ofenterprise enlarges. In turn, enterprise strategy increases its influence on industrial strategywith the enterprise scaling up.（7） The consistency between industrial strategy and enterprise strategy shows apositive correlation with the performance of the industry and enterprise. In other words, themore consistent industrial strategy and enterprise strategy is, the better performance will befor both the enterprise and the industry, and vice versa.2. Suggestions are as follows：（1）In terms of industrial strategic management, a well-established theoreticalframework of industrial management should be formed; industrial management systemshould be improved; industrial strategy should be more reasonable and abide by the law ofscience. More attention should be given to the supervision, evaluation and feedback of theimplementation and adjustment of the industrial strategy.（2）In terms of intensifying the consistency of industrial strategy, the interests,capability and objectives of enterprise should be well considered. Industrial strategy shouldprovide guidance to enterprise strategy. The synergy and consistency between enterprisestrategy and industrial strategy can be enhanced through such measures as promoting theparticipation of enterprise into industrial strategy, increasing the publicity of industrialstrategy, fostering the authority of industrial management and improving the socialresponsibility awareness of enterprise.（3）In terms of handling the conflicting aspects between enterprise strategy andindustrial strategy, we should improve government’s capability of industrial managementand control the market competition to the reasonable extent. Their conflicting aspects suchas objectives and resources can be eased by scientific and effective supervision andadjustment of industrial strategy, and by rational division of labor and coordination. Weshould help establish right way of development and performance assessment model forenterprises and the industry. The industry as a whole should cultivate favorableenvironment for enterprise innovation. A scientific and effective information platform should be built for decision-making efforts of enterprise and the whole industry.Enterprise strategy and industrial strategy interact with each other in a dialecticalmanner, presenting a unity of opposites. Only by gaining a better understanding of theirrelation and handling it well can we lay a solid foundation for the better development ofnational, regional economy and industrial flourish.