Research And Case Study On Dynamic Capabilities Of Entrepreneurial Enterprises

ABSTRACT: Entrepreneurial activity is one of the early human activities. With the transforming of economies and development of science and technology, entrepreneurial economy has become one of the most effective and efficient working way for economy. Information and economic globalization has made our economic circumstances become dynamic and unpredictable. External environment, opportunity, resource and team are keeping changing in the lifecycle of entrepreneurial enterprises. The capability which supports the development of entrepreneurial enterprises should also be changed to adapt to environmental changes. Dynamic Capabilities is a kind of capability which updates continuously to reacts to the change. The purpose of the paper is to find out the relationship between entrepreneurial enterprises and dynamic capabilities through theoretical analyzing and to use and examine the theory through case studying.Firstly, the theory of Dynamic Capability is reviewed. The author contends that Dynamic Capability Theory is practically important to the development of entrepreneurial enterprises. This part is a theoretical foundation of the others. Secondly, the Dynamic Capability of entrepreneurial enterprises is analyzed. Some related concepts and the entrepreneurship theory are reviewed. The opportunity, resource, team, environment and capability at different stages of the life of entrepreneurial enterprises are analyzed based on Timmons Model and the enterprise life cycle theory. The process of the changing of capabilities in the life cycle of enterprises is described by then. The author contends that the process of the development of entrepreneurial enterprises is like a process of the changing of capability. The development of entrepreneurial enterprises needs the support of Dynamic Capability. Finaly, theories reviewed before are used and examined through case study. The author compares Google and Baidu which both belong to hi-tech industry to Mengniu which belongs to conventional industry, and proves that the capability is changing continuously at different stages of the enterprise life cycle. The author also proves that the development of entrepreneurial enterprises need the support of Dynamic Capability and the Dynamic Capability theory has important guiding sense to the development of entrepreneurial enterprises. Further more, the author commends that the capability of entrepreneurial enterprise and the updating of it will be influenced by the industry which the entrepreneurial enterprise belongs to and the station of the industry. Some innovation has been reflected in this paper. Firstly, the author integrates environment, entrepreneur and process and studies from an integrated way. Therefore, entrepreneurial enterprise and Dynamic Capability are connected closely. Secondly, through case studying, capabilities of entrepreneurial enterprises which belong to different industry and their evolutionary processes are compared. And theories are used and examined in this way. The paper then has some significance in practical activities. The author hopes that this study can give some help to further research.