Value Chain Reconstruction and Innovation

Mengdan Wang (), Nengmin Wang (), Qi Jiang () and Junling Han ()
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Mengdan Wang: Xi’an Jiaotong University
Nengmin Wang: Xi’an Jiaotong University
Qi Jiang: Xi’an Jiaotong University
Junling Han: Xi’an Jiaotong University

Chapter Chapter 4 in Enterprises’ Green Growth Model and Value Chain Reconstruction, 2022, pp 67-96 from Springer

Abstract: Abstract “Green development” has become an important part of the core competitiveness. Simultaneously, with the development of next generation information and communication technology and environmental protection technology, a series of changes have taken place in value chain activities under the new form of industry and new business model, which requires enterprises to reconstruct their value chain and growth model to adapt to the new development trends. This chapter discusses in detail on value chain reconstruction and innovation in enterprises’ green growth model inclusive of four aspects: strategy, technology, activities, and members, and identifies the factors and actions that affect value chain reconstruction and innovation. First, green transformation is strategic transformation in essence, which requires enterprises to evaluate the strategic activities of the original value chain, assess enterprises’ strategic activities, and then devise an enterprise strategy with the aim of green growth, so as to reconstruct the value chain. Second, new form of industry and new business model, driven by new technologies, have changed the business environment; enterprises must reconstruct their growth models and value chains. A value chain is an organic system composed of a series of value creation activities. A green value chain can be defined as a dynamic closed-loop process that encompasses product design, raw material procurement, product manufacturing, product marketing, logistics, product consumption, and recycling. In enterprises’ green growth model, key value chain reconstruction and innovation activities need to be sustainable at each step, including product design, procurement, manufacturing, logistics, and consumption. Finally, the green growth model of enterprises proposes new requirements for selecting members in the value chain. Suppliers, enterprises, consumers, and governments affect value chain reconstruction and innovation performance, and thus, selecting members according to relevant indicators is necessary.

Date: 2022
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DOI: 10.1007/978-981-19-3991-4_4

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