The Coupling Relationship Between Internal And External Value Chain Of Village Bank

Village bank is a new organization of domestic banking. Since the first village bank was established in2007, village banking had experienced a rapid growth. By the end of2013, the number of village banks in China got more than1000. But there are also many problems which are immature and lack of standardization. How to solve these problems, how to grasp the direction of the development of village banks, is the priority among priorities for future development.In view of this, this, article use the method of case study method to summary the characteristics of value chain and value creation by using Shulan Village Bank as a case. In the study,, this article firstly reviews the extensive literature and defines the concept of village bank and the constituent elements of commercial banks; secondly, put forward the research framework and elements of value chain of village banks; after that, this article uses grounded theory to analysis the coupling relationship between internal and external value chain of Shulan Village Bank.Through case analysis, this paper sums up the coupling relationship between internal and external value chain and the value chain characteristics, study shows:(1) In the internal value chain of village banks, Auxiliary value activities determine the nature and the ability of village banks. The basic value activities must rely on auxiliary value activities.(2) The external value chain of village banks can show the extent of its development. Among them, the crosswise value chain reflects the role and status of village banks in the value chain system of regional commercial banks, the longitudinal value chain to show the breadth and depth of development of the village bank in an area.(3) The village bank’s internal value chain through the decision of customer value defines the external value chain, but the external value chain will influence the internal value chain.(4) The value creation of village banks in the introduction stage mainly depends on the external value chain, gradually entered the mature period, then to inward, both external value chain directionFinally, based on the research summary and development business case in the case study, we proposed some suggestions and measures for the future development of village banks.