Path Dependence And Going Beyond Path Dependencein Transformation Of Chinese Enterprises

The current world has encountered the “market globalization, ubiquitous information technology, desalination organizational hierarchy, new forms of organization and the Internet+ revolution”. And along with the time, this situation will continue to accumulate and deepen which will let enterprises face increasingly varied and complex operating environment.In this dynamic environment, enterprise transformation is the fundamental guarantee to obtain sustainable competitive. Compared withthe western enterprises which have different external economic environment, Chinese enterprises have their own characteristics. Therefore, its transformation will also exhibit very different properties. Exploring the transformation of the Chinese enterprises with different resources and endowments has practical significance which may help the different enterprises recognize transformation direction as well as the essential qualities needed.Based on the review of relevant literatures, this paper introduces the combination analysis of structuration theory and dynamic capabilities theory;builds a model of the path dependence and going beyond path dependence in transformation of Chinese enterprises.Then we launch the model in the Chinese economic background, and comb the evolution of the state-owned and private enterprises since the reform and opening up. Binding the definition of structure(or resources)in structuration theory, we divide the Chinese enterprisesinto four types and demonstrate their resources, strategy and ability characteristics. At the same time, we select four companies and use the case study method to further demonstrate the analytical framework’s importance and rationality.The results show that, the analytical framework based onstructuration theory and dynamic capabilities plays an important role in analyzing the enterprise transformation and the evolution of their resources and abilities. It helps us to understand the differences in the transformation and the optimization approach of different companies. 1) The initial endowment determines a company’s strategic orientation, and thus forms its strengths and rigidity. 2) Transformation reflects a characteristic of path dependence, and the fundamental reason is the difference of initial endowment, abilities and knowledge. Enterprises will select transformation path based on their ability features, and continue to deepen the existing accumulation advantage in the transformation and development. 3) In order to go beyond the path dependence in the transformation, the company needs to play the role of dynamic capabilities, make up the resource and ability gaps. And, the degree of going beyond the path dependence depends on the strength of dynamic capabilities.The main innovation of this paper exists: This paper introduces the structuration theory for the first time into the study of enterprise transformation, and gains the conclusion that enterprises will exhibit path dependence and going beyond path dependence characteristics when they choose transition paths; then divide Chinese enterprises into four types based on China’s transition economy characteristics, and explore the difference paths of transformation of the four types with case study method.