Research On The Influential Factors And Governance Mechanism Of Value Network Competitive Advantage Based On Scale-Free Network

Future competition is the competition between value networks. By using advancedinformation technology, value network integrates the value chain and supplies moreindividualized services to the customers. The value network also makes organizationalstructure more flat and business operation patterns more flexible. More and moreenterprises have established multiple network relationships with many companies underthe background of open economy and gained competitive advantages. But the structurecharacteristics of the value networks, resource of competitive advantage and governancemechanism need further study in both academic and practical perspectives.This paper uses theoretical analysis and case study approaches to analyze thenetwork generating features, influential factors of competitive advantages andgovernance mechanisms with the network theory, scale-free network model andresource-based view. Firstly, we reviewed the literatures of value networks andcompetitive advantages to get a deeper understanding of the value network and itsadvantage. Secondly, with the scale-free network theory, we systematically analyzed thevalue network business mode and its growth and preferential attachment characteristics.Thirdly, based on scale-free network theory, we connected its basic properties to valuenetworks, such as growth, preferential attachment, degree and concentration, and built afour-dimension model to analyze the influential factors of competitive advantage on thevalue network: resource richness, relationship diversity, relationship intensity andstructural strength. The conclusion is that resource richness, relationship diversity andstructural strength have positive influences over the competitive advantage; thecompetitive advantage will be higher if the capable nodes have higher relationshipintensity. Fourthly, we worked out the governance mechanism on value networks as:learning, netting, motivating and coupling according to the influential factors ofcompetitive advantages analyzed in the four-dimensional model. Finally, by analyzingthe background, motivation, formation and achievements of TD alliance, we figured outthat the theoretical analysis in this paper is applicable to case analysis and revealed thecompetitive advantage influential factors and governance mechanism in TD alliance.