Entrepreneur Hubris,ambidexterity,and Dynamic Capability Construction Of Wuxi Suntech

Since the 21 st century,the world economy has presented dynamic changes.Big data,mobile Internet and artificial intelligence technology are constantly making innovations.Because of the complexity of the market competition,the uncertainty of technology innovation and the height integration of the organization and market,if enterprises want to gain sustainable competitive advantage,they must build a dynamic capability which is adaptable to competitive market and dynamic environment,as well as reconfiguring and integrating existing resources and capabilities.First,this thesis uses the literature research method to comb and review the theory of dynamic capability,ambidexterity and managers' hubris hypothesis.Then,based on the existing literature,this thesis constructs a theoretical model of the dynamic capability.By interviewing with experts,scholars and entrepreneurs of the photovoltaic industry,the thesis collects the information on the influencing factors of dynamic capabilities and summarizes several major decision-making events about Wuxi Suntech.Finally,the paper focuses on case study methods.Using the longitudinal case study of Wuxi Suntech power company in 2001-2016,the paper chooses ambidexterity as a dynamic capability index and analyses the events of the last 16 years.Through the study of the ambidexterity changes in the development of enterprise,the thesis explores the process of dynamic capabilities start,development,and loss,and development under the influence of core entrepreneurs during the company process of rise and fall.Studies have shown that when the major decision maker(the founder entrepreneur)has the trait of hubris,the decision-making process may be overly arbitrary and a decision of being exploratory or exploitative alone is likely to be made.On the contrary,when founder entrepreneur is aware of the hubris and shares the decisive power,the decision of being ambidextrous as a dynamic capability is more freely to be achieved.The dynamic capacity of different life cycle stages is different,and the tendency of managers to be conceited in the period of maturity recession is more obvious.The study of this thesis extends the observation period of dynamic ability,to have a more detailed understanding of dynamic capability.At the same time,this thesis discusses the managers' hubris hypothesis which has not been studied before,but has great influence on the construction of dynamic ability.Therefore,the theory of dynamic capability has been enriched and perfected in this thesis.Secondly,managers' hubris hypothesis is considered in the environment of entrepreneurship.This study explores the impact of the managers' hubris hypothesis on the development of dynamic capability,which involves the initial stage,development stage,maturity phase,decline phase and redevelopment stage of a company.It is a new addition to previous research,which has contributed to the theoretical study of managers' hubris hypothesis.In practice,enterprises should use mechanism to constraint management decisions,strengthen the supervision role of the board of directors,train managers' dual thinking,balance the managers' ability between using existing resources to develop and exploring potential future advantages.