Dissertation > Economic > Industrial economy > China Industrial Economy > Industrial sector economy

The Research on Leading Firms’ Development Strategy Based on the Industrial Cluster

Author LiuZhuo
Tutor HuangZhongWei
School Zhejiang Normal University
Course Business management
Keywords Leading Firms Industry Cluster Development Strategy
CLC F426
Type Master's thesis
Year 2012
Downloads 211
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Leading firms are generated from the industrial cluster, and promote the development of the industry cluster. Leading firms and industrial clusters play a major role in promoting the development of the cluster, the innovation of the technology and the growth of the regional economy. Effected by the global financial crisis in the2008, the pattern of international trade and domestic economic structure changed a lot. Many domestic leading firms and industrial clusters go wrong frequently and present in a cyclical recession. In the critical phase of economic transformation in china, leading firms take should take what kind of strategies in action, to play the lead role of industrial cluster upgrading, renew industrial clusters’"vitality", promote China’s regional economic transformation and upgrading of bibcock enterprise oneself, realize sustainable development, has become the community on issues of common concern.This paper is titled with "the research on leading firms’development strategy based on the industry cluster". This study contains the interactive relationship between industrial clusters and leading firms based on the related concepts and theories of the leading firms and industrial cluster. Then, the "M2M" model of the leading firms is built, which illustrates the inner logic of how the leading firms make their own development by taking the cluster mission. Finally, the development strategy of the leading firms is proposed. On the basis of the theory study, I analyze the internal mechanisms of interaction of the industrial cluster in Changsha construction machinery and their leading enterprise of Zoomlion. And I propose the corresponding policies in the case of how Zoomlion promote the transformation and upgrade of Changsha construction machinery to achieve their sustainable development. The conclusions of this study are:(1) The leading firms exist in the internal and external of the market of the industrial clusters. The relationship of the leading firms and the inner and outer market of the industrial clusters can be deconstructed as these eight kinds of relations: the inner and horizontal competition, horizontal cooperation, longitudinal matching relations, the vertical supporting relations, cluster external competition relations, external cooperation relations, external sales relations, external support and anti-supporting relations.(2) The motive power of development of the leading firms comes from the interactive mechanism of the inner and external market of the leading firms. This is presented as the mutual transformation of the four forces:the supporting support forces, cluster competition forces, market diffusion forces, and supporting lock forces. These forces form the external market expansion effect and internal market lock forces which provide the products performance, products price and the sales competition advantage to upgrade the leading firms’ability to lock the high quality supporting firms and cluster innovation resources that can promote the interactive development of the inner and external market of the leading firms.(3)"Two markets","eight relations","four forces" inside and outside of the leading enterprise cluster can construct the development mode of "M2M" of the leading firms. Internal market is the "resource" sources of the leading firms. External markets are the "energy" sources of the leading firms. The development of the leading firms depends on the interaction of the internal and external markets.(4) On the basis of "M2M" model--the inner logic of the leading firms’ development, the leading firms must unify their own development and the industrial cluster’s development, and actively undertake the mission (market expanding, leading innovation, brand maintenance and transformation and upgrading). The leading firms should be based on the industrial cluster and achieve their sustainable development by completing the cluster mission to drive the industrial cluster’s development.(5) Leading firms bear the cluster mission to feed their own development. They should implement a combination of four strategies:the competition strategy based on the cluster market; the supporting strategy based on the innovation of the cluster; the maintenance strategy based on the cluster band and the innovation strategy of the transformation of the cluster.The main innovation of this paper:Firstly, the analytical mode of "M2M" is formed on the basis of the deconstruction of "two markets" and "eight relations" of the market form of the leading firms. This mode also interprets the internal logic of the leading firms’development creatively from the perspective of the industrial cluster. Secondly, according to Schumpeter’s innovation theory, the framework about the innovation of the firms’integration based industry relationship is constructed. Then, I propose the leading firms’diagonal lines, vertical lines and parallel lines innovation channels and transformation strategy.

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