Network Embedded And The Upgrading Of Private Enterprise From Resource-based Perspective

The development of economic globalization brings opportunities for developingcountries’ economic development and technological progress, by virtue of low-costmanufacturing, numerous manufacturers joined in the global production networks andhave been developing rapidly, but it also brings us a serious challenge. Chinese currenteconomic growth model has many problems: one is the long-term extensive economicgrowth mode of resources has caused destruction of energy and environment, on theother hand, companies mostly stay in the low end of the value chain, there isn’t much ofcore technology in the company, they are in the lack of critical intellectual property andinnovation capacity. Therefore, issues related to enterprise upgrading, graduallyattracted extensive attention of scholars.Much of the previous research on enterprise upgrading was concerned aboutcorporate upgrade path, pattern, upgrade strategy, etc., For the enterprise upgrademechanism, relatively few studies conducted, but research firm upgrade mechanismwill help to understand its inner logic roots, it is a key to enterprise upgrade. Therefore,this study focuses on the upgrading mechanism.In this essay, internal resources and external networks embedded perspectives arecombined, based in Zhejiang Province, the author has selected six private enterpriseswhich has participate in global production networks and there are companies upgradeprocess in the company as cases. The author used the multi-case study approach toexplore local businesses upgrade mechanism. First, combing and studying the literatureabout enterprise resources, network embedded and enterprise upgrades carefully toprovide a theoretical basis for grounded theory analysis the latter. Secondly, usinggrounded theory methods of analysis to collect qualitative data and then code for theclassification, as a result, built up the constructs dimensions of resources, networkembedding and upgrades. Then, exploring the relational model between enterpriseresource and network embeddedness, the model of resources, network embeddednessimpact mechanism for enterprises to upgrade based on the combination of case data andexisting theory. This paper has got the following conclusions:First, the enterprise’s resources are mainly made from the base class resources,transforming class resources and advanced resource.Second, the enterprise upgrading was caused by the accumulation of internal resources.Third, the network embedding will lead to the accumulation of enterprise’sresources.Fourth, network embeddedness has an impact on the enterprise upgradingindirectly through the resources upgrading.This study selected a more comprehensive perspective of the enterprise upgrademechanism, using a case study approach for enterprises upgrade mechanism will alsomake the results more refined explanatory power. Explore the upgrade of privateenterprises have a certain reference value.