Virtual agglomeration network relations, institutional logic differences and the&nbsp;growth of digital enabled enterprises: A research on enterprises based on cloud computing

CHEN Yan; ZHANG Rui-Qian; XIE Yi-Zhen

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Science Research Management ›› 2021, Vol. 42 ›› Issue (8) : 92-101.

Virtual agglomeration network relations, institutional logic differences and the growth of digital enabled enterprises: A research on enterprises based on cloud computing

Zhang Ruiqian¹, Liu Haozhuo², Xie Yizhen¹, Chen Yan¹

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Abstract

The new generation of information technologies, such as artificial intelligence, big data and cloud computing, are restructuring industrial organizations and transforming industrial clusters that rely on geographical proximity into a new form of virtual agglomeration. In virtual agglomeration, breaking traditional organizational boundaries and establishing non-geographic network relationships are indispensable for the growth of digital enterprises. Taking cloud computing enterprises as the research object, this paper studies the unique influence mechanism of network relationship and enterprise growth in virtual agglomeration, and tests the moderating effect of institutional logic differences. The conclusions of this study provide decision-making clues for the growth of digital enterprises and new capital construction.
The differences between this paper and existing studies are mainly reflected in three aspects：First of all, digital technologies have completely subverted the traditional industrial organizations and enterprise behavior logics. This paper reverifies the influence mechanism of network relationship on enterprise growth under the new situation of virtual agglomeration. Secondly, the existing research on virtual agglomeration has the problem of homogenization. This paper makes up for the homogenization problem. Thirdly, considering the differentiation of enterprise institutional logic, cultural background, role orientation and other factors, this paper expands the research scope of institutional logic theory.
This paper integrates the perspective of network and institutional logic. We focus on cloud computing enterprises and discuss the impact of virtual agglomeration network size, interconnectedness and role diversity on enterprise growth. We also discuss the regulating role of institutional logic difference between them. The empirical study shows that the size of virtual agglomeration network promotes the rapid growth of enterprises, there is an inverted U-shaped relationship between interconnectedness and enterprise growth, role diversity promotes enterprise growth positively. Institutional logic difference has a negative moderating effect on the positive relationship between role diversity and firm growth in virtual agglomeration network, and also the inverted U-shaped relationship between network connectivity and firm growth in virtual agglomeration network.
The conclusion of this paper expands the research scope of institutional logic theory and has guiding significance for enterprises with different backgrounds to cooperate and win-win in virtual agglomeration. Firstly, digital enterprises should pay attention to the important role of network relations in virtual agglomeration. These enterprises are supposed to establish multiple and complex non-linear relationships with different types of enterprises, acquiring resources and technologies that they lack, and penetrate into all fields of production activities. Secondly, although network relationships play an important role, digital enterprises should not rely too much on traditional business partners. Especially for large enterprises, it is necessary for them to re-examine rigid and inflexible partnerships. Therefore, digital enterprises need to take into account the balance between traditional business and new business, and timely establish cooperative network relationships to master the emerging technology. Thirdly, the government should further optimize and clarify the responsibilities of SOEs and non-SOEs, as the differences in institutional logic will cause conflicts between them and also affect the growth of enterprises. SOEs are less dependent on partnerships, so they are supposed to break the original partnerships and establish a balanced partnership network with different enterprises, so as to further optimize the new infrastructure layout and better play their social duties.

Key words

virtual agglomeration / digital enabling / network relation / enterprise growth / disruptive technology

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Zhang Ruiqian, Liu Haozhuo, Xie Yizhen, Chen Yan. Virtual agglomeration network relations, institutional logic differences and the growth of digital enabled enterprises: A research on enterprises based on cloud computing[J]. Science Research Management. 2021, 42(8): 92-101

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