Dissertation
Dissertation > Economic > Economic planning and management > Enterprise economy > Enterprise planning and management decision - making

The Functional Mechanism and Governance of Enterprise’s Core Rigidity

Author ZengPeng
Tutor YangFang
School Guangxi Normal University
Course Business management
Keywords core competence core rigidity functional mechanism govern
CLC F272
Type Master's thesis
Year 2007
Downloads 162
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Since 1990s, with the expedition of technology innovation, the exquisite changes of industry environment, the embedment of world economic integration and the increasing diversification of customer demands, no enterprise was a routineer and they wouldn’t treat the competition lightly. Enterprises can survive in new environment only by adjusting their survival strategies actively. It has been proved by advanced international theories that the advantages of corporations originate from the improvement of enterprise’s core competence in market economy competion, especially for the big companies and big groups. However, during the management practice, the process of imforming enterprise’s core competence is going with the birth of core rigidity. Enterprise’s core competence and core rigidity are two sides of a coin, core rigidity will block the innovation of enterprises and make them lose advantages, even make them disused. What’s more, the birth of core rigidity is a long-term and a dynamic development process which is from recessive to dominance. Many enterprises realize their rigidity only when they are abandoned by their own customers or when the market value falls rapidly. Therefore, the issue of core rigidity has been receiving increasing attention by theory and practice boundaries at home and abroad. The present research is mainly developed from two aspects, the traditional strategic management theory and the core competence theory. On the basis of core competence theory, this paper studys on the functional mechanism and governance of core rigidity. The paper includes five parts.The first part is enalysing the core competence, thinking that it is the headspring of enterprise’s competition advantages.This part firstly studys on the cognitive process of enterprise’s competition advantages headspring, then delimits the conception of core competence, and probes into that the functions and affects of core competence, as the headspring of enterprise’s competition advantages, is mainly reflected in four aspects, deciding strategy of enterprise development, making enterprise get excess profits, maintaining long-term competition advantages, and increasing the advantages of market competition.The sencond part analyses core rigidity and points out that core rigidity block core competence is the headspring of persisting enterprise’s competition advantages. This part firstly starts with that core competence and core rigidity are two sides of a coin, and delimits core rigidity as a complex coupling system of blocking core competence as the headspring of enterprise’s competition advantages.Then studys on that core rigidity are mainly cuased by“knowledge restraining”activities, such as the dependence of enterprise’s growth path, the limitations of huaman linear made of thinking, the restriction of special assets transforming cost and the over-listening to customers. However, the main significance and harmness of core rigidity reflect in five aspects. For example, enterprise value concept turned into doctrine, old enterprise stragtistic design style, inflexible enterprise management procedure, being lack of enterprise ennovating power, complex social relationships, etc.The third part studys on the functional mechanism of core rigidity, raising that core competence and core rigidity are co-existing in various stages of enterprise growth, and their mechanisms of performance and functions are different, core rigidity can not be guard against, but only can be governed after occurrence.This part firstly introduces three theoretical models about functional mechanism of core rigidity, they are Globular model of enterprise, life model of enterprise and driving model of enterprise, and then synthetically applys the models to analyse the functional mechanism of core rigidity in venture period, growth period, maturity period, decline period, a new venture period (metamorphosis period) during enterprise growth.The forth part is researching on mechanism of core rigidity administration. Three mechanism types of core rigidity administration is different in solutions, however, all of them are based on revolution for enterprise accumulated knowledge system and management ways. This part explains the core rigidity administration theories of endogenetic mechanism, exogenous mechanism and revived mechanism separately and approved by relative cases of Intel Corp., Wang An Computer Corp., HP Corp. and Lenovo Corp.The fifth part probes into solutions for core rigidity administration and proves that continuous core rigidity administration can keep enterprise current core power and construct new core power.This part presents some solutions to keep core regidity. For example, execute dynamic manegement and set up study type organization to push enterprise to study; inertial management and revive strategy to make enterprise enrich resource and renew stratedgy resource; update legal entity management and administer people related to proficts to come up balanced enterprise profits between short term and long term; inspire prineering management and instruct positive effect of informal organization and make them cowork with formal organization; build combined enterprise knowledge and use outside resoure and expanded capacity to strengthen competive enterprise priority.This thesis is specialise and prineer in three aspects: firstly, this topic is full of foresightness, theory and practical significence. Due to there is rare core regidity reasearch in China, exploring the problem in core regidity effection mechanism and combined core regidity administration to research how does enterprise keep and revive continuous competitive priority become an oboviou issue of impetive theoritically and practical significence; secondly, combined core capacity to analyse connotation, effection, administration and solution of core regidity, it surpasses the prodecessors in system content; thirdly, there are originalities in exploring core rigidity effection mechanism, combined with the Globular model of enterprise, life model of enterprise and driving model of enterprise, it probe into core rigidity effection mechanism and analyse initial building period, growing period, mature period, declined period, transfroming period in enterprise growing period. All these have never appeared in any documents before.

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