A case study of enterprise resource allocation based on the interaction between value proposition and dynamic capabilities

ZHANG Lu; LEI Jing; CHANG Qing; HUA Lian-Lian

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Science Research Management ›› 2021, Vol. 42 ›› Issue (4) : 180-190.

A case study of enterprise resource allocation based on the interaction between value proposition and dynamic capabilities

Cui Li¹, Lei Jing², Zhang Lu², Cui Minjie², Yan Hongyue²

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Abstract

In the context of consumption upgrading, value proposition can accurately convey the value advantages of products and guide the effective allocation of resources, which can help enterprises to gain competitive position by optimizing the allocation of resources to better meet market demand. As a benefit statement describing what value an enterprise provides to its customers, value proposition affects the choice of products and the direction of resource acquisition and allocation. In recent years, enterprises pay more and more attention to how to convey product advantages through value propositions, and optimize the allocation of resources around value propositions to achieve market goals.
As a strategic tool, value proposition affects the key processes and the combination of key resources of enterprise operation after the enterprise determines what product value it will provide to customers. In order to attract customers, enterprises put forward new value propositions in combination with market development and demand. But in the process of implementing them into resource allocation, they may be constrained by capacity and reduce effectiveness. This means that enterprises need to be aware of the phenomenon of overestimating or neglecting their own ability factors when making value propositions, so as to avoid the dilemma that the ability is not enough to allocate resources to fulfill the proposed product value commitment, and the dynamic ability can help enterprises to allocate resources adaptively and manage resources so as to promote enterprises to achieve the established goals. Therefore, it can be concluded that both dynamic capability and value proposition are the key factors affecting resource allocation. However, the existing research is only to explore the relationship between the above two factors and resource allocation independently. It is not clear how the value proposition and dynamic capability affect the internal process mechanism of resource allocation. Therefore, it is of great theoretical significance to explore how to allocate limited resources to enhance the competitiveness of enterprises through the coordination of value proposition and dynamic capability. This paper takes the resource allocation phenomenon of M-Grass Ecology as the case study object, analyzes the case data by using the grounded theory, constructs the theoretical framework, and analyzes the internal influence mechanism of the synergy of value proposition and dynamic capability on the process of enterprise resource allocation under different situation factors, as well as the behavior characteristics of resource allocation under different development stages.
The results show that: (1) The acquisition and integration of dynamic capability to change information in the environment promotes the formation of value proposition and value proposition reacts to dynamic capability and guides the direction of dynamic capability to resource. Under the inducement of a variety of situational factors, the dynamic ability, after perceiving and integrating the information resources in situational factors, urges enterprises to combine their own development and market demand, and initially draw up value proposition to propose the product value corresponding to the demand. At the same time, predict whether the transformation and utilization of dynamic capabilities to resources is enough to realize the product value proposed by the value proposition. If the product value to be provided to customers can be realized under the function of dynamic capabilities, then clearly put forward this value proposition and guide the direction of the dynamic capabilities to the resources through it, otherwise it needs to be re-adapted. In this process, the purpose of rapid interaction and adjustment between value proposition and dynamic capability to achieve matching is to ensure the effectiveness of value proposition and promote the capability to the extreme; (2) Value proposition and dynamic capability are the key influencing factors of resource allocation. According to the value proposition, enterprises extract the decision-making of resource allocation, and transform and utilize the resources by the dynamic capability in the expected way. The different dominant types of value proposition and the direction of dynamic capability′s action on resources are the main driving factors of the difference in resource allocation behavior. In the stage of entering the market, due to the limitation of the stock of resources and capabilities, enterprises make resource allocation decisions according to the low-cost oriented economic value proposition, and use the scattered resources by the integration capability, so as to improve the customer value surplus, showing the characteristics of simple patchwork resource allocation. In the stage of market stabilization, in order to form the technical advantages of the industry, enterprises make resource allocation decisions based on the functional value proposition emphasizing product performance and scientific and technological level, and establish research and development institutions under the construction capacity to develop excellent varieties, showing the characteristics of exploration and development resource allocation. In the stage of market expansion, enterprises make resource allocation decisions based on the emotional value proposition that emphasizes customer relationship connection, and restructure and utilize industry resources under the role of restructuring capability, showing the characteristics of concerto sharing and promoting the win-win cooperation of the whole industrial chain. Therefore, the resource allocation mode presents the evolution process of "simple patchwork-exploration development-concerto sharing".
The conclusion of this study has important theoretical and practical significance for enterprises to obtain competitive advantage through effective resource allocation realized by clear value proposition.

Key words

value proposition / dynamic capability / resource capability / resource allocation

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Cui Li, Lei Jing, Zhang Lu, Cui Minjie, Yan Hongyue. A case study of enterprise resource allocation based on the interaction between value proposition and dynamic capabilities[J]. Science Research Management. 2021, 42(4): 180-190

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