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Value Chain Remodeling Mechanism in the Digital Transformation of Enterprises:A Longitudinal Case Study Based on Huawei and Midea |
Zhu Xiumei,Lin Xiaoyue |
(School of Business and Management, Jilin University, Changchun 130012, China) |
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Abstract The digital transformation of enterprises has become a hot issue of common concern in both academia and practice in recent years. Many Chinese enterprises take digital transformation as their next development focus. Enterprises with successful digital transformation normally develop from initial exploration to digitally-driven value chain operations,such as transforming digitalization from focusing on a single link, industry, or field to a comprehensive mapping of all links in the value chain, continuously using digital technology to remodel the value chain, and accelerating cross-border integration and synergy with multiple external entities. How to remodel the value chain is a challenge for enterprises facing the digital transformation, and it is also a theoretical frontier problem that needs to be solved. However, the value chain remodeling mechanism in the digital transformation of enterprises involves both digital transformation and value chain, yet they have not established sufficient connection, and there is a lack of attention on the value chain remodeling in digital transformation. Therefore, it is also the core issue of this paper to investigate the value chain remodeling mechanism in the digital transformation of enterprises.#br#This paper selects Huawei and Midea for a longitudinal dual case study, relying on the logical line of "technology-behavior/capability-result" of technology empowerment theory, and constructs a "digital technology-resource orchestration-value chain remodeling". The study explores the dynamic evolution mechanism of value chain remodeling in the process of digital transformation, reveals the realization path and value transmission mechanism of value chain remodeling, and compares and analyzes the similarities and differences of the value chain remodeling mechanism between Huawei as a foundation -oriented enterprise and Midea as an application-oriented enterprise.#br#It is found that digital technology is the engine and the most fundamental driver of value chain remodeling and that by empowering the new resource combination of data resources and traditional resources, it enhances resource bundling, and innovates resource leveraging methods, thereby triggering value chain remodeling. In the digitalization stage, the value chain remodeling of foundation -oriented enterprises follows the path of "single-point digital technology and distributed digital technology-deep resource structuring, stabilizing resource bundling, business leveraging-value chain digital rebirth and value chain digital co-progression". The value chain remodeling mechanism of application-oriented enterprises follows the path of "single-point digital technology-deep resource structuring, enriching resource bundling, environmental leveraging-value chain digital rebirth and value chain digital co-progression". In the networking stage,the value chain remodeling of foundation-oriented enterprises follows the path of "distributed digital technology-extensive resource structuring, enriching resource bundling, platform leveraging-value chain digital twin and value chain digital co-creation";the value chain remodeling of application-oriented enterprises follows the path of "distributed digital technology-extensive resource structuring, enriching resource bundling, platform leveraging-value chain digital twin and value chain digital co-creation". In the intelligence stage, the value chain remodeling mechanism in the digital transformation of enterprise follows the path of "distributed digital technology, intelligent technology-deep and extensive resource structuring, pioneering resource bundling, human-machine leveraging-value chain digital newborn and value chain digital co-evolution". The differences in the starting point, motivation, and transformative nature of digital transformation between foundation-oriented and application-oriented enterprises bring differences in value chain remodeling mechanisms in the digitalization and networking stages.#br#This paper innovatively constructs a research framework of "digital technology-resource orchestration-value chain remodeling" to explore the dynamic evolution law of the value chain remodeling mechanism of foundation-oriented enterprises and application-oriented enterprises, which to a certain extent makes up for the static and one-sided defects of related research. As a result, this research promotes the deep integration of digital transformation research and value chain research.Furthermore, it provides a new explanatory framework and ideas for the value chain remodeling in the digital transformation of enterprises based on technology empowerment theory and reveals the paths and laws of value chain remodeling in digitalization, networking, and intelligence stages of case enterprises based on the research framework, expanding the application context and research boundary of technology empowerment theory in digital transformation research. Finally, it clarifies the definition and dimensions of resource orchestration in the context of digital transformation, responding to the call of scholars for strengthening the exploration of the laws of resource orchestration in the era of big data by using the case study method.#br#
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Received: 30 December 2021
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