Research On The Mechanism Of "Internet+" Connection Of Global Value Chain And China's Industrial Upgrading Strategy

Since the Reform and Opening up,Chinese industry has made historic achievements and changes.Meanwhile,the embeddedness makes Chinese industry encounter fatal bottleneck.The resources supported the capacity of "local space" for Chinese industrial development is close to the limit.In the process of climbing up,Chinese local industry encounters “triple repression” by governments,production-oriented multinational enterprises and purchasing multinational enterprises in developed countries of the global value chain,facing the risk of being locked in the "middle/ low end" in the global value chain for a long time.How to break through the limitation of "local space" and take advantage of "extension and expansion space" has become an important strategic choice for Chinese industrial upgrading.With the development of“Internet Plus” human society has entered the era of "interconnection of all things";and global industrial activities can be coordinated "face to face" without long distance.As a result,the “Internet Plus” linkage has become the novel important way for the global strategic entities(eg.countries,regions and enterprises)to expand their space and create competitive advantages.The industry between China and “the Belt and Road” has stronger complementary relationship with competition;and China has the high-end competitive advantage.Meantime,China have dynamic mechanism,prerequisites and core competencies with “the Belt and Road” in the area value chain.As a result,“the Belt and Road” area has become the ideal extension and expansion space for Chinese industry to borrow advantages.As the “Internet Plus” operation and“the Belt and Road” initiative are further developed,China has got the important strategic opportunities to take advantages of the external two-way situation,which is to promote industrial upgrading and development through “the Belt and Road” countries by “Internet Plus” connection.Under this background,exploring and revealing the “Internet Plus” connection mechanism of the global value chain and the strategic path of the strategic subjects(countries,regions and enterprises)to borrow external advantages,which is of great theoretical and practical significance for Chinese's industrial upgrading and development by“Internet Plus” connection along “the Belt and Road” area.Based on this,this paper in accordance with the general research approach of "induction-deduction",follows the specific research ideas of "concept definition – mechanism reveal-strategy propose-countermeasures and suggestions",which adopts the research methods of literature research,theoretical deduction,in-depth interview,case study,model and network analysis.This research focuses on following five aspects to makes a systematic theoretical and empirical study on the global value chain "Internet Plus" connection mechanism and China's industrial upgrading strategy.The first one is to conduct detailed sorting and in-depth comments on the existing research literature,including the enterprise value chain,global value chain,regional value chain,the “the Belt and Road” regional value chain,“Internet Plus”,China's industrial upgrading and development,the relationship between“Internet Plus” and global value chain and other related research literature review.The secend one is to define the theory of global value chain “Internet Plus” connection,including the definition,classification and platform of "Internet Plus" connection.Meanwhile,this paper builds the "Internet Plus" connection theory model of the global value chain by using the trade gravity model.The third one is to study the mechanism of the “Internet Plus”connection,exploring the upgrading strategy of the global value chain by "Internet Plus" connection,including the gradient connection mechanism and channels of global value chain “Internet Plus” connection,construction of "Internet Plus" connection strength and new competitive advantage,strategic path of industrial upgrading by borrowing external advantages.The forth one is to carry out empirical research on building the “the Belt and Road” regional value chain by “Internet Plus” connection from China's perspective,realizing industrial upgrading by borrowing external advantages.The fifth one is to make empirical study from enterprise' perspective,that Chinese enterprise how to build global value chain and upgrad industries development.Take the example of Liu gong Group,this paper explore mainly studt the global value chain construction and the growth process of Liu gong group,Liu gong group's global value chain construction strategic path on borrowing wisdom by "Internet Plus" gradient connection and borrowing markets by "Internet Plus" complementary connection.Through theoretical and empirical analysis,this paper makes conclusions that:(1)The "Internet Plus" connection of global value chain is divided into gradient connection and complementary connection.Among,gradient connection is between locations in the same value module,while complementary connection is different value modules.(2)The "Internet Plus" gradient connection mechanism of global value chain includes module decomposition mechanism,function matching mechanism and technology integration mechanism.Among which,the R&D value module include liquefaction,reverse outsourcing and integrated innovation;the manufacturing value module include equipment digital connection,enterprise digital connection,product digital connection,cross regional capacity sharing;the marketing value module "Internet plus" gradient connection way is modular classification of commodity category,precise matching of consumer demand,technology demand and market aggregate.(3)The "Internet Plus" complementary connection mechanism of global value chain includes information reverse feedback mechanism and process intermediation mechanism;while,its route includes the reverse feedback of module information and the process of module to intermediate.(4)There are two strategic approaches for China to take external advantages by "Internet Plus" connection: on one hand,connect with the strategy of borrowing wisdom from abroad in advanced development areas gradiently.On the other hand,connect with the strategy of borrowing markets from abroad in developing regions complementarily.(5)The“the Belt and Road” regional value chain agglomeration has been increasing year by year,forming a “four-potential space areas” of China,Russia,Poland and Hungary.China should make full use to connect the “four-potential space areas” of “the Belt and Road” by “Internet Plus”.That is to borrow wisdom from advanced developed regions differently,promoting industrial innovation driven upgrading development;and to borrow the markets from developing regions actively,expanding the scale of foreign trade.As a result,China can build a a regional value chain with countries along the line “the Belt and Road”dominantly.(6)In order to speed up the digital transformation,promote the "liquefaction" and "disassembly" of the industrial chain,establish a collaborative innovation platform,build an online innovation ecosystem,build an overseas R&D platform,Liu gong group has upgraded the development strategy path to borrow technology from advanced developed regions by "Internet Plus" gradient connection.Meanwhile,In order to develop overseas markets relying on e-commerce platform,improves the operation efficiency of the value chain by information reverse feedback,promote "end-to-end" connectivity and flat collaboration,Liu gong group has upgraded the development strategy path to borrow markets from developing regions by "Internet Plus" complementary connection.On the basis of fully referring to and absorbing the existing relevant research results,this paper has achieved three innovations and breakthroughs:firstly,to integrate “Internet Plus” connection's creatively developed and transformed into the global value chain theory,revealint the "Internet Plus" connection mechanism of the global value chain,and furthering the theoretical system of global value chain research.Secondly,to explore ways to construct and form regional value chain by “Internet Plus” connection between China and countries along the line “the Belt and Road”,promoting the research progress on the integration and coupling of national value chain(NVC)and global value chain(GVC)furthermore.Thirdly,to put forward new strategic views on promoting Chinese industrial upgrading and development with “the Belt and Road” by "Internet Plus" connection,realizing that borrow wisdom by "Internet Plus" gradient connection and borrow markets by "Internet Plus" complementary connection.