Science Research Management ›› 2023, Vol. 44 ›› Issue (1): 100-113.

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Research on the construction and renewal path of enterprise dominant logic under complex situations

Guo Xiaochao1,2, Jiang Yuting2, Zhang Qiang2, Zhang Shengtai1, Cui Minjie2   

  1. 1. School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing 100088, China;  2. School of Economics and Management, Inner Mongolia University of Technology, Hohhot 010051, Inner Mongolia, China

  • Received:2022-05-29 Revised:2022-10-28 Online:2023-01-20 Published:2023-01-18

Abstract:

   Fierce market competition and diversified customer needs prompt enterprises to constantly change their operating methods and ideas to cope with the volatile market environment. In this context, how enterprises deal with the adaptation relationship between complex situations and strategic choices, so as to construct a new dominant logic to guide resource allocation has become the key to break through the development bottleneck. Throughout the domestic enterprise development course, Yili, Haier, M-Grass covered all the enterprises in the face of the market changes to strategic transformation so as to achieve leapfrog development, such as Yili Milk in the face of the domestic liquid milk market distance when change the original development ideas, the line imported for a way to exploit the normal temperature milk business, thus achieving a substantial increase in profit margins. The fundamental reason lies in the fact that enterprises can adjust and change their development ideas and directions in time to adapt to environmental changes. Corporate strategic transformation or organizational change is a complex process in which the original development logic of an enterprise is abandoned and retained, and the new logic is established and consolidated. Therefore, an enterprise needs to extend the original behavior and practice reasonably based on its own situation and establish a series of dynamic continuous behaviors to achieve change. And, how to deal with the adaptation relationship between the environment and the dominant logic in the highly uncertain environment has become a key problem to be solved urgently in the field of organization and management.

       From the perspective of the adaptive change of organizational practices, this study selects the enterprise data of Yili since its listing in 1996 as the case study object. With the help of grounded theory, this study identifies three dominant logic types in the process of enterprise development, and clarifies the construction and renewal path of enterprise dominant logic in the uncertain environment. The findings are as follows: First, the formation of the revelation aspect of organizational practices based on context change represents the process of the organization interpreting and internalizing the context, which is the root of promoting enterprises to build the differentiation dominant logic; Second, it is the key for organizations to break through the path dependence of dominant logic, eliminate the gap of execution, and realize the dynamic construction and renewal of the new dominant logic. Third, environmental pressure and window of opportunity provide situational requirements for the generation and renewal of dominant logic, which prompts enterprises to gradually build a multi-logic system of "market expansion leading logic, brand leading logic and alliance innovation leading logic". The conclusion of this paper deconstructs the path of enterprise dominant logic construction and renewal in complex situations, and provides an enlightening research perspective for the field of dominant logic research.

     It is of great practical significance to explore the establishment, update and evolution process, mode and mechanism of these dominant logics for promoting the transformational development of enterprises in China. On the one hand, this paper introduces the integration theory perspective of adaptive change of organizational routines into the study of dynamic construction mechanism of dominant logic, and breaks the established framework of dominant logic from the dual interaction between revelation and execution of routines in the process of management cognitive construction and behavioral routine renewal. It provides a more suitable theoretical basis for explaining the difficult problem of how enterprises adapt to uncertain situations and construct new logic to adapt to turbulent situations, and opens the theoretical black box that dominates the process of logic generation and renewal. On the other hand, this paper deals with the relationship between the situation and the dominant logic from the perspective of the adaptation of organizational routines, which is helpful for enterprises to clearly recognize their own development logic, provide important theoretical reference for managers to identify their own development logic, and guide enterprises to cope with the situational impact and realize the transformation of business thinking. At the same time, it is helpful for enterprises to break through the path dependence of dominant logic through the adaptation change of routine timely when facing the uncertain environment, so as to promote enterprises to maintain sustained competitive advantages in the turbulent environment.

Keywords: 

Key words: dominant logic, adaptive change of organizational practice, grounded theory, Gioia Methodology, case study