The Impact Mechanism Of Strategic Orientation Deviation On Corporate Value

Strategic orientation refers to the management cognition,expectation,attitude and values about how to gain competitive advantage.It is a potential philosophical system and culture of strategic management within an enterprise.For China’s foreign joint venture automobile enterprises,its main purpose is to exchange the absorption and learning of foreign advanced technology through the domestic automobile market,through continuous absorption and accumulation of technical knowledge,independent research and development of independent brand products with advanced technology,so as to stimulate customers’ demand for independent brand and realize sustainable value creation.In terms of strategic orientation,it is technology orientation.However,in the practice of joint venture in China’s automobile industry,the independent innovation ability of most automobile enterprises has not been significantly improved.On the contrary,joint venture dependence has been formed,and market orientation has gradually occupied the dominant position.Enterprises focus on improving short-term performance by catering to market demand,rather than cultivating sustainable competitive advantage,which curbs the initiative of independent innovation of enterprises and leads to low external absorption capacity.To a certain extent,it produces the crowding out effect of innovation.The weak independent brand and the lack of competitive advantage affect the creation of enterprise value.In addition,with the lifting of the restrictions on the share ratio of joint ventures in the automobile industry,domestic automobile enterprises will face the risk of losing the control right of joint ventures,which will have a greater impact on the enterprise value of Chinese automobile enterprises that rely on joint ventures.Therefore,corporate strategy as a guide to corporate behavior values,what is the transmission path of corporate value,how Chinese car companies should use joint venture to achieve corporate value promotion,is worth exploring.At present,most of the researches on strategic orientation and absorptive capacity at home and abroad are empirical studies on economic consequences or enterprise value,which cannot explore the impact mechanism of strategic orientation on enterprise value,and rarely link strategic orientation and absorptive capacity.Therefore,this paper takes Brilliance Auto’s foreign joint venture as an example,gives full play to the advantages of case study,innovatively puts forward the theoretical framework of "strategic orientation-absorptive capacity-enterprise value",deeply explores the specific influence mechanism of strategic orientation on its enterprise value,and puts forward corresponding suggestions.This paper draws the following conclusions.(1)Strategic orientation will affect the absorptive capacity of enterprises.Different strategic orientations have different preferences for external knowledge resources.The resulting "filtering effect" can be understood as absorptive capacity,that is,the ability to acquire,assimilate,transform and explore external knowledge resources.(2)For foreign joint venture enterprises,due to the weak innovation consciousness of the enterprise’s top management,excessive catering to profits,joint venture stock ratio restriction policy and other reasons,it is easy to deviate from the technology orientation to the market orientation.(3)The deviation of enterprise’s strategic orientation will directly affect the strength of potential and actual absorptive capacity,and the strength of absorptive capacity will directly affect the cultivation of competitive advantages such as independent innovation ability.(4)The competitive advantage of enterprises will further affect the creation of enterprise value by influencing the profitability,debt financing ability,equity financing ability and asset utilization ability of enterprises.Based on the above research conclusions,this article also puts forward relevant suggestions for foreign joint venture auto companies.Firstly,strengthen the guiding role of strategic orientation.For technologically innovative industries,it is necessary to establish shared values based on technology orientation,and at the same time make proper use of it.The market orientation plays a guiding role in independent innovation and corporate value enhancement,and realizes the complementary and synergistic effects of the two strategic orientations to obtain lasting competitive advantage and higher corporate value.Secondly,actively cultivate knowledge absorptive capacity and establish a discovery mechanism for external knowledge,continuously complete the integration of new and old knowledge through acquisition,assimilation,transformation,and exploitation,overcome the core rigidity of the enterprise,establish a basic research and development platform to promote the transformation and utilization of knowledge,and increase innovation output.Thirdly,reasonably respond to the risk of cancellation of restrictions on equity ratio.Prior to the full liberalization of shareholding restrictions,it will fully benefit the country’s various preferential policy support for the local auto industry,develop its own-brand business quickly and down-to-earth,prepare for resource reserves and competition,and pursue quality,and finally create an independent brand with international competitiveness.