A Study On Resource Allocation Process And Pathway Of Strategy Formation For Chinese Firms

With economic globalization and advances in technology,external environment of enterprise has become more turbulent and complex. It is an important theme of enterprises strategic management how to respond to the rapidly changing environment, to allocate resources rationally between the autonomous innovation action and the induced strategic actiion, and to control pathway of strategic formation as to attain competitive advantage. Traditional strategic theories believe that enterprise strategy is formed through SWOT analysis, but Bower's case study in 1970s found enterprise strategy was formed actually through managerial consultation, bargaining, persuading and selection in the process of allocating resources, which lays the theoretical foundation for exploring strategic formation further through behavior mode of enterprise. In above practical and theoretical background, through survey and empirical research method of case analysis of new technology investment in boiler business of machinery industry, this paper explores the process and influencing factors of allocating resources and formation pathway of enterprise realized strategy, the main research contexts is as follows:Firstly, this study establishes theoretical model of process of strategic formation by using theory of resource allocation process and organizational theory of evolution. In this model, context of resource allocation process is extended, considering not only capital market, product market and also industrial competitive context as well as unique ability factors of enterprises'competitive basis. Enterprises'resource allocation process is regarded as the result of response, their commitment as process of try and error, namely process of organizational learning, from which managers'ability is promoted, and the way resources are allocated in the firm shapes realized strategy of firm. The study innovatively creates conceptive model of strategy formation based on Environment-Respond-Commitment.Secondly, measurement of resource allocation process and context factors, scales of realized strategy is designed. Based on B-B descriptive model and in-depth interview, scales on definition and impetus involved in key activities, also on structural context, strategic context, unique ability, capital market context and product market context are designed, which offers tools to analyze the cause - effect relation between variables of resource allocation process. Although validity and reliability needs to be further improved, subsequent researches can go out of description of phenomenon, increasing ability in predicting corporate strategy of this model.Finally, based on hypothesis model, sample data acquired from questionnaire survey is analyzed using method of structural equation model and variance analysis by statistic analysis software- Amos 4.0 and SPSS10.0. The result shows: realized strategy has positive correlation with both definition and impetus of realized strategy. In the process of definition, managers of operational level lead important activities, in the process of impetus, middle-level managers play key role in integration. Process of both definition and impetus positively correlate with realized strategy, and that of resource allocation plays key role in realizing established strategy goal and acquiring innovative strategy. Context of capital market cannot directly influence process of definition, process of impetus as well, where organizational context should be taken as intermediate variable, influencing process of definition and impetus. However, context of product market cannot only directly influence the process of definition and impetus, but also positively correlate with them, that is, projects consistent with product market's need can better leads to managers'definition and option, gaining strategic investment of corporate fund. Corporate organizational context, strategic context and unique ability positively correlate with process of definition and impetus, which denotes that projects consistent with them have more chance to be approved, and help form corporate realized strategy.