Science Research Management ›› 2020, Vol. 41 ›› Issue (12): 22-31.

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The cooperation model and operation logic of emergency organizations in the context of major emergencies

 Wang Xu, Wang Lan, Yang Youde   

  1.  School of Business Administration, Shandong University of Finance and Economics, Jinan 250014, Shandong, China
  • Received:2020-03-09 Revised:2020-09-02 Online:2020-12-20 Published:2020-12-16
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Abstract:

Major emergencies aggravate the environmental uncertainty and complexity faced by organizations. Seeking inter-organizational cooperation becomes an important strategic decision for firms to cope with the external impact of emergencies. This study uses a dual case study method, taking the 2019-nCoV outbreak as an important research background. Based on the resource dependence theory and social network theory, this study proposes the emergency organization cooperation model and analyzes its structural characteristics and key operational logic. The study found:
First, the "distributed fixed-point radiation model" and "integrated interconnected symbiosis model" are the important organizational cooperation models adopted by two core firms, "professional producers" and "cross-border convertors", in response to major emergencies. Based on the differences in resource capabilities, there is heterogeneity in the logic of core firm building emergency organization cooperation. The core firm rely on the key core resources they possess to implement "fixed-point" technical support and resource supply to the node firms with professional production qualifications, and to play the advantage of the professional producer alliance in responding to external environmental impacts and degrading production complexity. This kind of cooperation model can be abstracted into "distributed fixed-point radiation model". When core firm and their node firms conduct cross-border conversion cooperation to meet market emergency needs, their cooperation model emphasizes resource sharing and risk sharing among organization members. This cooperation model is defined as an "integrated interconnected symbiosis model".
  Second, core firms with differentiated resource capabilities exhibit different emergency action paths. As a professional producers, through centralized power allocation, a unified emergency command unit is built to enhance the vertical integration capability of resources, thereby enhancing the resource locking ability of node firms; as a core firm of cross-border transition producers, by establishing specialization the project team formed a key force to solve the complexity of cross-border production, and used its ability to coordinate and transform resources to solve the rigid constraints of resources for cross-border conversion. 
  Third, the key logic of the operation of the two types of organizational cooperation models is different. In the "distributed fixed-point radiation model", the goal of organizational cooperation is " preventing epidemic and saving market", and due to the lack of cooperation foundation with most small and medium-sized medical mask manufacturers, the core firm and partners have adopted contract governance for effective interaction, and relied on the organizational form of "core firm leading + node firms following" to determine the participation in the cooperation subject′s rights and responsibilities. In the "integrated interconnected symbiosis" model, the value creation of organizational cooperation takes into account to fill the gap in social demand and assist the supply chain node firm to resume work. Their cooperation objectives are both "epidemic prevention and self-help". The core firm and the node firms jointly build a linkage conversion strategy on the basis of previous cooperation, and the interaction among members of the organization depends on the governance of the relationship, showing the organizational form of "core firm coordination + node firms participation". This study can enrich the literature of public crisis management based on the micro perspective of firms; in addition, the conclusions can provide policy suggestions for mitigating the impact of the epidemic on the key strategic material market, and provide management inspiration for improving the company′s defense against major emergencies.

 

Key words: major emergency, organizational cooperation model, core firm, double case study

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