Industrial Chain Of Vertical Integration

With increasingly keen market competition,the ability of enterprises to exist and develop has become an important topic for academic researches.In order to effectively control source of industrial chain,companies always choose integration pattern to grow.In the research field of industrial chain integration,from the perspective of division of labor,the theory of transaction cost and the knowledge-based theory of the firm are both based on equilibrium analyzing framework of New Classical Economics,which is static in essence.Even though dynamized,it is still comparative static analysis from one equilibrium point to another, which can not describe the process of change.The currently available literatures are all concentrated on improving the competition ability and acquiring competition advantage for individual enterprise which are lacking in a specialized research in the level of integration,evolution mode and strategy of integration in a dynamic environment in terms of vertical integration of industrial chains.The dissertation combining industrial economics and evolution economics,investigated systemically the fact that in dynamic environment,industrial chains has vertical integration level of synergy of evolution.The performance of vertical integration of core enterprise industrial chains is influenced by internal factors as well as external ones.This research chose the internal and external factors which influence core enterprise vertical integration as point of penetration,and managers of enterprises as research subjects.We train our thought along a logical line of "factors influencing integration(internal and external)—→integration strategy/integration level—→performance of vertical integration(which is reflected in lasting vitality and development)".On the base of literature review and combined with the project of construction of base for advanced manufacturing industry in Zhejiang Province,we put forward our research hypothesis and model of theory.The data are gained via typical case studies,depth interviews, and questionnaires.We adopt analysis methods such as CITC,a coefficient, correlation analysis,factor analysis,independent- sample T test,ANOVA and CEM to explore the mediating effects of strategy of integration and level of integration and to test all the proposed research hypotheses and theoretical model.The purpose of this research is to explore function mechanism bf internal and external factors influencing the lasting existence and development of core enterprises as far as the manufacturing industry is concerned.The research included such parts as follows: Study one was to establish the background of integration of core enterprises of the industry chain in order to make sure the target feature of industry chain integration, the performance evaluation and influencing factors.This study includes two sub-studies.Through typical cases and depth interview,the first one investigated the practice of industry chain integration of the manufacturing enterprises in different areas of Zhejiang Province with different ownership and size.With full and accurate data about industry chain integration,the structure is analyzed through content analysis method.The result indicates that the goals of industry chain integration for most enterprises are concentrated on improving the ability of competition and further development.In the second sub-study,based on the literatures and interviews,the dimension and performance of industry chain integration.The 415 returned questionnaires were valid.Exploratory factor analysis,confirmatory factor analysis and SEM(Structural Equation Modeling) revealed that the independent variable affecting industry chain vertical integration performance had three dimensions,that is,vertical relation,resources,and ability.Empirical study showed that these measure scales had good reliability and validity.Furthermore,a positive correlation was found between the independent variable and performance after integration.The purpose of the second study was to make sure the influence of integration strategy on integration level during the process of industrial chain vertical integration. The first-hand material about the level and pattern of industrial chain integration of 15 integrating practices in 8 firms was acquired by depth-interview.Content analysis revealed that core enterprises often selected high or middle level of integration,and often use the pattern of human resource integration of direct management based on direct integration at high level of integration and use the pattern of outsourcing at middle level of human resource integration.Finally,the research results the interview were supported by the questionnaire research.In the third study,the process and key effectives of industrial chain vertical integration selection were investigated in order to reveal the internal mechanism.The current researches focus on factors such as direct effect of resources,ability on enterprise development,while researches on thevertical relation captial and lasting existence are rare,and it has not been investigated whether resource and ability can influence lasting vitality and development of industrial chains through influencing other factors.This research indicated that industrial chain integration strategy and integration level have complete mediating effect on lasting vitality of industrial chain.The fourth study aimed at the analysis of control strategy of cooperative effect of vertical integration of industrial chains.This study mainly analyzed control strategy under mechanism of selection of core enterprises of industrial chains on the basis of theories of evolutionary economicsFinally,the main conclusions of this paper were summarized.The theoretical progresses and practical implications of the present study were discussed,and the limitations of this study and the directions for future research were provided.