Empirical Research On Innovation And Upgrading Path Of Chinese Cost Leadership Enterprises

Along with the development of economy and change of environment from both home and overseas, the comparative cost advantage of Chinese cost leadership strategy enterprises that was built upon resource superiority is gradually weakened. The morass of locking on the lower end of the global value chain is becoming bigger and bigger. Under such a new circumstance, the research of finding an innovating and upgrading path that suits Chinese cost leadership strategy enterprises and helps these companies to survive and develop is of great importance.On the basis of relevant literature and theories, this thesis uses questionaire and case analysis methods to study Chinese cost leadership enterprises'innovation conductions,upgrading approaches and their relationships. The conclusions are listed as follows:(1)Chinese cost leadership enterprises need and have benn changing the original competition patterns, so as to integrate innovation into the implementation of cost leadership strategy.(2)Chinese cost leadership enterprises give much consideration to efficiency improvement, and try to integrate innovation with efficiency, so as to promote the upgrading of cost leadership strategy.(3)Chinese cost leadership enterprises give consistant attention to the time and risk of innovation, while lacks focus on input cost.(4)Chinese cost leadership enterprises generally choose the improvement of purely products,purely markets or products & markets as upgrading methods, only large-scale companies will choose trans-industry upgrading approaches.(5)Chinese low-cost enterprises'innovation and upgrading influence and promote each other, since products and markets upgrading helps enterprises to obtain technological resources and market-scale advantages. While sustained technological innovation facilitates the extention of product series and the construction of high cost performance product characteristic, which will help to realise the upgrading of products,markets and the whole industry.This paper studies on the real-life employment of innovating and upgrading paths in Chinese low-cost strategy enterprises strategies through questionnaire surveys and case studies. It also provides a deeper understanding on the reciprocities of upgrading and innovation under the circumstance of low-cost enterprises which fills in the blank of current researches.