The Research On Firm's Growth Capabilities

The turbulence changing circumstance permeated incertitude hasbrought more challenges for firm's existing and developing. The key toanswer the challenges effectly is capabilities, because it relates firm'ssustainable growth. Based on the logic of (dynamiccircumstance)dynamic capabilities-dynamic innovation-dynamiccompeting advantage (sustainable growth),the systemic research hasprobed into the choke point for firm's growth capabilities withmanufacturing enterprises mostly (especial in Hunan), which should besolved desiderately. The research comprehensively exerts theoretics andmeans of management, economics and science etc.. It pays more attentionto both qualitative analysis and quantitive analysis. It pays more attentionto theory innovating as well as practice applying.Following is the main contents and viewpoints.The dynamic theory of firm has developed the useful and discard theuseless of analysis pattern of static of traditional economics or relativelystatic of firm's contract theory, which initiated dynamic analyzingfirm. Researching the essense of firm's growth with the dynamic theory offirm, I think that the essense is dynamic evolving process of capabilities offirm. Limits of firm's growth lie on firm's dynamic capabilities, which maybe judged entity and dummy limits, or behaviour and psychologylimits. No matter what interior limits or exterior limits, no matter whatlevel limits or portrait limits in traditional firm, their characters all presentclarity, stability and non-penetrability. But nowadays, under the turbulencechanging circumstance,dummy of firm assumes pricking up trend, firm'slimits present faintness, dynamic changeability and penetrability.Firm's growth capabilities indicate sustainable competence orpotential in the turbulence changing circumstance, as well as knowdgeand skills being accumulated with firm's growth, which determineslikelihood threshold of finn's growth. If a firm possesses of greatcapabilities, it can surpass lifecycle and achieve sustainable growth. Based on this, I have constituted a model for three phases of firm'sgrowth, namely original growth, quick growth and anew growth.What is the mechanism of firm's growth under the turbulencechanging circumstance circumstance? I have attempted to make up amodel for firm's growth. Firm's core capabilities can bring competingadvantage of certain logic time. Under dynamic condition, firm engendersdynamic capabilities through spuring core competence to dynamic changein order to acclimatize the changing condition. Thereby it can acquirecompeting advantage of series of logic time(sustainablegrowth). Therefore, the mechanism of firm's growth is indicated such as"dynamic capabilities-dynamic innovation-dynamic competingadvantage (sustaining growth)". It reflects the logic of firm's growth.Firm's dynamic capabilities are materialized within the elements ofthe system of firm's growth capabilities. I think that firm's growthcapabilities contain studying capability, innovating apability, entrepreneurcapability, strategic capability, technic capability and organizingcapability. These capabilities don't act the same as effect and statusthroughout the course of firm's growth, which may be devided into threeadministrative levels, namely kernel capabilities, dominant capabilitiesand basic capabilities. Kernel capabilities consist of studying capabilityand innovating capability, which determine other capabilities and firm'sgrowth. Dominant capabilities consist of entrepreneur capability andstrategic capability, which affect firm's growth and other capabilitiesdirectly. Basic capabilities consist of technic capability and organizingcapability, which act supporting firm's growth and other capability, andthey are important constitutes absolutely. Being established the system offirm's growth capabilities, I designed the observing quantum andinvestigsting questionnaire of the elements of the system of firm's growthcapabilities, then carried through demonstration research, having validatedthe theory of firm's growth capabilities.How to cultivate and advance firm's growth capabilities?Firstly, foster entrepreneur and make entrepreneur developing mechanismhealthiness. Secondly, consider strategic dominant logic again, orientatefight, make strategy flexible and insist on strategy innovating. Then establish leming organization to cultivate and advance firm's growthcapabilities. The last is to put persisting integration innovation intopractice,achieving integration and well effect among strategicinnovating,technology innovating and organization innovating.