Evolutionary theory of enterprise development

Author: Wu Guangbiao
Publisher:
Publish Date: 2004-10-01
Features: Dr. Wu Guangbiao points out that a firm is a collection of routines and their structural and coherence dimensions. The development of a firm is an evolutionary process based on routines. The existence of a firm lies in achieving effective allocation of production and transactional advantages through evolution. The coherence dimension of routines, their variability and retention capacity, selection mechanisms, dominant logic, routine sets, and their paths determine the boundaries of a firm. A firm's competitive advantage depends on processes and coordination, organizational learning, development paths, and dynamic industry selection mechanisms. Strategy is the organic unity of concepts, learning, and positioning. The evolutionary themes of a firm explain and predict its specialization, diversification, vertical integration, strategic alliances, virtual positioning, and development, as well as its business strategies and exits. Routines construct the forms of existing and future organizational structures. The complexity of routines determines the adaptive value of organizational structures. The manifestation of the adaptive value of organizational structures is a dynamic process continuously influenced by initial effects and evolutionary themes. Shared vision, routine (set) balancing management, routine complexity management, and business process reengineering are the main evolutionary management methods for firms. Dr. Wu Guangbiao takes the deconstruction of routines as the basic approach of his research, designs micro-analytical mechanisms and specific analytical methods of evolutionary theory, and applies them to research on the current construction of firms, the routine construction of organizational structures, the integration of competitive activities, and the integration of non-competitive activities. He constructs evolutionary themes such as dominant logic, development paths, organizational learning, and selection mechanisms, and further analyzes competitive advantage, the essence of strategy, dominant logic strategy, firm strategy, business strategy exits, and business strategies to grasp the interaction of the firm's micro, structural, procedural knowledge configuration, and dynamics.