VALUE CHAIN RESTRUCTURING: THE IMPACT OF DYNAMIC CAPABILITIES ON BUILDING BUSINESS ECOSYSTEMS FOR TRADITIONAL LOW-END MANUFACTURING ENTERPRISES
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Abstract
In today’s complex and dynamic external environment, many enterprises choose to build business ecosystems to gain competitive advantages, with dynamic capabilities playing a critical role in this process. However, existing research faces two major limitations. First, it predominantly focuses on large or high-growth enterprises, neglecting the transformation processes of traditional low-end manufacturing firms. Second, it fails to clearly explain the mechanisms through which dynamic capabilities influence the formation of business ecosystems. Through a single-case analysis, this study reveals that the sub-dimensions of dynamic capabilities—sensing, learning, integrating, and reconstructing—evolve dynamically across four stages: accumulation, transformation, expansion, and optimization. These capabilities drive the continuous transformation of traditional low-end manufacturing enterprises through four mechanisms: internal value point mining, vertical and horizontal extensions of the internal value chain, and external value chain expansion. Ultimately, these processes lead to the gradual construction of a business ecosystem. These findings broaden the research context of business ecosystems, clarify the mechanisms by which dynamic capabilities influence ecosystem formation, and offer practical insights into the transformation and upgrading of traditional low-end manufacturing enterprises.
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