Research On Virtual Enterprises’ Strategic Management Process Based On The Classical Grounded Theory

As the development of the knowledge, networking and globalization, some traditional business entities change their organizational model in order to better grasp market opportunities and respond to consumer demand, they establish the flexible virtual enterprise organizational model. However, as a new organizational form, the aspects of its organizational structure, strategy and the paradigm are different from traditional corporate entity, which is bound to make the strategic management process specific and distinguished. So, the specific process of virtual enterprise strategy management is what the current academic circles have no detailed study, especially the lack of empirical research using standardized methods to further in-depth Chinese virtual business problems and fully explain the findings of the theoretical framework of its strategic management process on practice.Be faced with a rapidly changing market environment and a completely different organization form from the traditional business entities.In this paper, we make a depth analysis of the strategic management process of H and M company in order to construct a theoretical framework for the strategic management of virtual enterprise and analyze the course of business under the guidance of grounded theory methodology. We use classical grounded theory, the qualitative research to do data processing and get three core categories,such as the associate chief corporate environmental analysis,dynamic environment analysis and the entity of virtual enterprise. Eventually, this paper constructs a theoretical model of virtual enterprise strategic management theory through the theoretical coding.This paper argues that static environment analysis framework of traditional corporate entity will not apply to virtual enterprise strategic environment,due to the virtual enterprise boundaries is dynamic and fuzzy, it must be taken into account the dynamic factors in the environment research. Meanwhile, the virtual enterprise strategy formulation and implementation process each have a centralized and modular features. Strategy formulation and implementation does not rely on traditional business entities executive order, but in deed and mutual cooperation, the Chief or ASC is a major strategic subject and the process of its implementation of the strategy is a parallel project, so each subject is responsible for the implementation of the strategy. In addition, the controlling process of virtual enterprise is completed by all the subjects, which both has centralized and diversified characteristics. Obviously, due to the different structure of virtual enterprise, the process of the strategic management is different from the traditional corporate entities.The practical significance of this paper is that the preliminary theoretical framework model provides theoretical guidance to strategy management process, such as business partners’ selection, service division and so on. By further enhance its strategic flexibility and adaptability, it can establish and consolidate the competitive advantage. Ultimately, it can help to improve the virtual enterprise’s core competitiveness.Certainly, because of the limit of time, vigor and research resource, this paper has many shortages, we need to select more samples to deepen the research of the new phenomena which discovered by this paper.