And Mechanism Of The Formation Of Competing Interactive Perspective Of Dynamic Capabilities

Rapid technological developments, frequent changes in customer preferences, new product introductions with short product cycles, and hyper-competition have increased the degree of change or 'clockspeed' of the business environment. Changing environments continuously destroying the value of existing competencies, disrupting existing means of competition. In today's turbulent environments, organizations need to diversify, adapt, and even reinvent themselves to match evolving market and technological conditions to survive and thrive.An important means of differentiating in turbulent environments is innovative moves, agility, and strategic flexibility. Therefore, a basic premise of this study is that a competitive advantage arises from the ability to continuously improve, innovate, and reconfigure existing resources to develop valuable functional competencies that match changing environmental needs. The ability has been formally described in the dynamic capabilities perspective. Dynamic capabilities centered on the stage of strategic management theory as a result instead of core competences and RBV etc.Dynamic capabilities is described and used to abtain or supply sustainable advantages. For the moment dynamic capabilities has been systematically investigated only for about fifeen years. The research documents could be classified into three folders: fundmental questions such as concept, characteristics, connotation, essence etc; function mechanism of dynamic capabilities on sustainable advantages; integrating other subjects use for references to create innovative theories. Existing research documents rudimentally focused on theoretical model construct or theory discussion. The absence of practical validation is especially evident about function mechanism of dynamic capabilities.Dynamic capabilities theory origined from resource based view(RBV) which stressed host power while effeted by environmental conditions. Despite the importance of dynamic capabilities in rapidly changing environments, we know little about how it change and facilitate resource reconfiguration to match turbulent environments. Outside bodies around enterprises supply supporting stage for the construction and function of dynamic capabilities. Among them six bodies constituted the core network for products or service supply which mainly includes competitors in existence, mutual product or service producers, latent competitors, suppliers, distribution sellers and substituted production suppliers. And in our analysis enterprise network would be expressed by this style. Inter-firm relationships are defined as purposive strategic relationships between independent firms. Based on this the relationship between enterprises in network could be described as some level of Competition-Cooperation Interaction(CCI). As a consequence the construction and function of dynamic capabilities should be analized from the perspective of CCI. To be simply, the content of this paper will be classified by two subjects: function mechanism of dynamic capabilities on sustainable advantages; formation and elevation of dynamic capabilities.Configuration arrangement of this paper will mainly include five parts. At first, correlated documents about dynamic capabilities, enterprise network and organizational routines will be summarized in order to have a brief introduction about the fundmenatal concepts. And based on the summary the paper discussed the correlated coefficient between dynamic capabilities and sustainable advantages. And in part three, the paper will probe into the function mechanism more deeply by take into accout the influence of cooperation level among enterprises and turbulent level of environments. In part four configuration model will be created and discussed. In this model organizational routines are regarded as gene of dynamic capabilities. From this perspective paths and processes will be discussed and influence factors will also be included. From the practical test some evelation advice will be supplied. And at the last part, the conclusion about the theoretical and demonstrated analysis of the paper will be summarized. At the same time some advice about future research directions will be supplied.The kernel of this paper focused on the formation and function mechanism of dynamic capabilities which should be particular analyzed as follows.(1)The discussion of function mechanism of dynamic capabilities. It will be divided into two steps which the fist part describe the fundmental framework between dynamic capabilities and sustainable advantages. And on top of the first step influence factors on the power of dynamic capabilities will be considered. The measurement on dynamic capabilities will from four dimensions include opportunities exploitation, system support, resources configuration and advantages protection. Based on this correlated hypothesis will be brought out. And model building, variables measurement, data computing will be followed.Positive analysis shows that plus coefficient exists between dynamic capabilities and sustainable advantages. Detailed data analysis found that all four dimensions except resources configuration have notable positive effect on sustainable advantages. Conformatory case analysis about UT Starcom on the relationship between dynamic capabilities and sustainable advantages will be discussed deeply in order to test the result acquired from data analysis.Based on the framework of function mechanism of dynamic capabilities two influence factors include cooperation level and environmental change level will be considered to complete the function mechanism. Output of software showed that obvious positive effect existed. Cooperation level could enforce the power of dynamic capabilities. Enterprises could strength the cooperative relationship with parters so as to exert dynamic capabilities more powerly.Environmental changees is defined as the general external conditions of technological and market uncertainty. And contrary to previous researches about the impact of environmental change on dynamic capabilities the AMOS output showed rarely no obvious change before and after environmental factors considered. It suggested that enterprises should emphasize the power of dynamic capabilities whether in steady or turbulent environments.(2) organizational routines will be utilized as gene of dynamic capabilities. Based on the parable the evolutionary paths and processes could be depicted more legible and practical. Based on the model the influencing factors will be distilled and tested by questionnaire data. As byproduct some advice about how to strength the level of dynamic capabilities also be supplied.Both qualitative analysis and quantitative analysis were included in this paper. The qualitative analysis method were mainly theory discussion such as documents summary, theoretical model construction etc; and the quantitative analysis method includes emulational simulation, demonstration research and case analysis.The selected analysis software includes SPSS13.0 which is popular data computing software and AMOS5.0 which is popular Structural Equation Model (SEM) software worldwide. And in the simulation process of the evolutionary competition-cooperation relationship among enterprises Eclipse is used for the model building which is a free software exploitated by IBM.The primary contribution of the paper rest with four innovative fields depicted as follows:(1) the paper explores the relationship between dynamic capabilities and sustainable advantages take into account the influence factors which include cooperation level among enterprises and the environmental change level. And the positive research brought some innovative and useful fruits.(2) The mathematical simulation proved that the relationship between enterprises would gradually inclined to competition or cooperation which is decided by win function after enough rounds. So the relationship could be predigested as simply cooperation level. The mathematical model was designed to be more familiar with practical life. And the result proved that competition and cooperation could exist at the same time. The cooperation level would stressed as the interaction time increased.(3) The organizational routines were regarded as gene to depict the formation and evolution of dynamic capabilities. Dynamic capabilities are depicted as the set of organizational routines and management processes by which firms integrate, coordinate, reconfigure, and transform internal resources to achieve congruence with business requirements. As organizational routines could be easily managed the formation and evolution model settled the problem which rest with the dead cycle from theory to theory or from abstract to abstract in the theoretical research of dynamic capabilities. (4) the distillation method of influence factors on dynamic capabilities was based on the perspective of player, tool and stage of dynamic capabilities formation. And as the result of positive test the paper supplies some advice for the evelation of dynamic capabilities level.