The Research On Value-power Related Questions In Strategic Management Field

One of the most important economic environmental characteristics is the increasing uncertainty. Under such changing circumstances, the traditional corporate strategic management approachs become more and more unaccommodated, and call on fresh thoughts and new tools. As an effective evaluating technology under uncertain circumtances emerging since the 1970s, real options approach is pervading throughout all kinds of industries in various application fields. Although to introduce the real options approach into strategic management field is a seemingly promising way to solve the prolbem, the combination of the two is disatisfying in pracitce. So in order to find a proper way to implement the real options approach in strategic management field, this research begins with the analysis on the essence of the real options, and finds out that real options are actually the claim for future value, whose universal form can be defined as the value-power. Hence we put forward and define the concept of value-power, based on which we develop a theoretical framework. After the discussion of the theoretical groundwork, we research on the concrete use of the value-power approach in strategic management practice, and then end the paper with an empirical study on the effectiveness of the value-power approach.Generally speaking, the main contents of this paper are as follows:1. Firstly, we bring forward the new construct of value-power and construct the related theoretical framework. We begin the research from the discussion of the essence of real options. After recognizing that real options are just specific forms of the claim for value, we put forward a more universal construct"value-power"to represent that kind of claims for value. Then we analyse and discuss the new construct theoretically from several aspects and primarily establish a theoretical framework surrounding the construct of value-power. 2. Secondly, we conduct the application research of the value-power approach in the strategic management field. From the above-mentioned theoretical framework we deduce the basic logic of the value-power approach in strategic management field, and then develop a series of analyzing curves for the use of strategic management. Following that, we discuss the application of the value-power approach and the relative tools in strategic management field, and finally use a case to demonstrate the whole process in practice.3. Thirdly, we carry on an empirical study on the effectiveness of the value-power approach. After the application research, we summarize the conduct characteristics of the value-power approach, and propose several assumptions according to current overall situations of Chinese enterprises. After the empirical study based on those assumptions, we find out that as a whole the the value-power approach has obviously positive influence on the performance of the enterprises in the sample. As to the conduct characteristics respectively, those enterprises that pay more attention to the acquiring of future value-power have better and more stable performance; and those enterprises that acquire value power more aggressively during periods of higer uncertainty can produce higher level of performance; those enterprises more concentrative on their main businesses also have better performance;while contrary to the assumption, those enterprises investing more to exercise present value-power under more uncertain circumstances still perform better than other enterprises. We provide explanation to this phenomenon with the"value-power obtaining effect", which means that besides obtaining the final value, enterprises can also obtain additional value-power while exercising present value-power. In addtion, we find out that the influence of the value-power approach varies among different industries, and in manufacture industries the influence is relatively more prominent. The main innovations of the paper are as follows:1. The innovation in research perspective. This paper begins with the examination into the essence of real options, which is different from most of the other researchers in this field who pay more attention to the technical problems in this field.2. The innovaton in construct and framework. To define and regularize the value-power related thoughts and ideas, this paper put forward several new constructs and then establishes a primary framework about the value-power. The construct innovation is adopted only when the related ideas cannot be suitably described by existent concepts, and always uses the simplest word.3. The innovation of approach and tools. Based on the new research perspective and the new constructs and framework, this paper naturally develops a series of new tools and hence a new approach, which we name as the value-power approach in this paper. This approach is developed mainly for the use of strategic management, consisting of the main logic, the application tools and the procedures.4. The innovation in empirical study. Compared to the current empirical studies of real options, the designing of the empirical study, including the assumptions, the way of testing , and the choosing of indicators, has some original ideas, and eventually get comparatively good results.To sum up, through the research on the constructs, the theoretical framework and the empirical data of value-power of this paper, we can understand more deeply the strategic management as well as other value related activities in uncertain environment, find a new perspective and approach for strategic management, and apprehend other management theories more deeply from a new perspective.