Research on Headquarters Value Creation Mechanism under the Network Environment: A Case Study Based on the Dual Embeddedness Perspective

Abstract

Abstract:

This paper studies the case of the CSR Zhuzhou and puts forward a theoretical model of headquarters value creation mechanism under the network environment. We find that value creation behaviors by headquarters can be divided into four types:business development, resource sharing, business management and support services, and business development can be viewed as external embeddness perspectives, while resource sharing, business management and support services belong to the internal embeddness. Headquarters value creation based on embedded network will lead to different network effects:interests support positive network effect and elastic limit negative network effect. Effect of value creation activities on the network is under the regulation of network embedded fitness. Headquarter value creation will lead to interests support positive network effect and promote the growth of subsidiaries with high network embedded fitness, otherwise it will inhibit the growth of subsidiaries through elastic limit the negative network effects. The conclusion of this paper has important theoretical and practical significance on the explanation of how the value creation behaviors of headquarter affect the growth of subsidiaries.

Key words: headquarters, value creation, dual embeddedness, case study

Wang Chang, Sun Qiao, Xu Jian, Zhou Wenhui. Research on Headquarters Value Creation Mechanism under the Network Environment: A Case Study Based on the Dual Embeddedness Perspective[J]. , 2019, 31(3): 279-294.

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