Research On Impact Of Organization Structure On Firm's Competitive Capability Based-on Red Queen Theory

Studied Red Queen theory of Organizational Ecology together with Resource Operation theory as well as other articles in Organizational Ecology theory, basing on the research on China Auto Vehicles Industry data. Then a research has been done on how competitive experience could affect on the firm's viability. In front of the challenge of the coming age of low carbon economy, the firm could use the organizational Innovation together with the new tech to deal with the new competitive logic.1. Studied over 100 auto industry companies on their competitive history from 1998 to 2010, during the study on their related data in the 51 quarters, we proved the exist of Red Queen theory in this industry. The result showed that the recent experience will benefit the competitive advantage as well as the viability, and the distant experience will do harm to them. Company must join the competition proactively so as to ensure their survival and keep their competitive advantage in future.2. The importance of competition to the viability of the organization has been highlighted in red queen theory, which put the organization analysis into the view of the whole organization environment instead of focusing on the single one. The theory supposes that the relationship between the organizations affect the viability of the members. As soon as the low carbon economy is coming to China, the theory aware us that if we ignore the new competition logic in low carbon economy, the old competition capability may become as a negative force to reduce the viability of the organization. As well, if the whole organization group could not prepare well to face the new logic, the group will fall into competition trap and may not be eliminate at once, but may face a greater challenge from the outside competitors who fit the new logic well.3. This article used RBV view and set up a double-drive force model to analyze how disruptive innovation could push the competition advantage as well as the luck did. By this model, we conclude that when the enterprise could get his first mover advantage, the first thing he should do is to modify his organization structure to fulfill the request of the new technology and keep his sustainable competitive advantage. This article developed a new organization structure for the manufacturing company on its application to the new technology as well as its development, facing to the low carbon economic that coming in future. Applying a new theory named as Red Queen Theory locating between the organization learning and organization ecology. When the competition logic is changed, the firm should apply a matrix organization structure to develop new technology and make the most use of the on hand resources, so as to get used to the low carbon economy and be more viable in the competition. By the end of the article, we gave a case study to show the efficiency of applying such method to maintain the competition.