Midea Group’s Service-oriented Transformation Path And Performance Research

The service-oriented transformation is an important strategic direction for the transformation and upgrading of the manufacturing industry,and it is also the main battlefield of manufacturing competition.Successful service-oriented transformation is not a partial transformation of a single manufacturing process,but a strategic transformation that is based on enterprise resources and capabilities and dynamically iterates and evolves.However,in practice,many enterprises have fallen into a "service-oriented paradox",making the path to service-oriented transformation difficult.Therefore,it is necessary to conduct in-depth analysis of enterprises that have successfully implemented service-oriented transformation,analyze the path of service-oriented transformation and performance improvement,and provide clear reference and useful practical guidance for other enterprises.This article takes Midea Group,which has successfully achieved service-oriented transformation,as the research object,and identifies the specific path of service-oriented transformation based on the dual theoretical perspectives of resource base and dynamic capabilities;Based on the basic principles of the balanced scorecard,this paper analyzes the service transformation performance of Midea Group from both quantitative and qualitative perspectives.Specifically,this article first uses the logical framework of "resource base dynamic capabilities service-oriented transformation" and grounded theory to construct a process mechanism model.Through the coding steps of labeling,extracting concepts,and classifying categories,it conceptualizes and categorizes the specific process of Midea Group’s service-oriented transformation from 2007 to 2021.Through analysis,Midea Group’s service-oriented transformation is divided into two stages,namely,the product oriented service-oriented transformation stage and the customer oriented service-oriented transformation stage;Then,the interaction,coupling,and collaborative evolution of the resource base and dynamic capabilities during the service-oriented transformation process of Midea Group are theoretically abstracted to refine the service-oriented transformation path.Finally,based on the basic principles of the balanced scorecard,evaluate Midea Group’s service-oriented transformation performance from multiple dimensions such as finance,customers,internal processes,learning and growth.Through research,this article finds that:(1)From the perspective of the path of service-oriented transformation,the realization of service-oriented transformation depends on the use of key resources,and dynamic capabilities assist resources to maximize their effectiveness while achieving their own evolutionary development;"Product oriented service-oriented and customer oriented service-oriented" constitute two stages of service-oriented transformation.Product oriented service-oriented focuses on using organizational flexibility to develop and restructure internal resources;Customer oriented service emphasizes the integration and collaboration of internal and external resources through the use of transformation and updating capabilities and technological flexibility,ultimately achieving upstream and downstream service linkage and "integrated symbiosis between customers and enterprises.".(2)From the perspective of service transformation performance,in the financial dimension,the value of the enterprise has increased and its profitability has steadily improved;In the customer dimension,the user experience has been continuously optimized,the brand value has increased year by year,and the market share has remained at the forefront;In the internal process dimension,the upstream and downstream layout improves efficiency and reduces costs,and business processes are optimized;In the dimension of learning and growth,research and development efforts have continued to increase,with the number of research and development personnel,new businesses,and patent applications increasing year by year.In short,manufacturing enterprises should pay attention to using dynamic capabilities to help capture,integrate,and iterate resources during service-oriented transformation,in order to achieve improved performance and sustainable competitive advantage.The research in this article can provide reference and reference for the service-oriented transformation of Chinese manufacturing enterprises.