Study on the Influence of Value Creation on the Internal Embeddedness of the Parent Company of an Enterprise Group

摘要

The existing research has not reached a consistent conclusion on how the parent company can create value for enterprise group. In this paper, based on the data of parent companies and subsidiaries listed on the A-share market from 2010 to 2016, I studied the ways in which parent companies create value, which in turn confirms the view that parent company create value for enterprise groups. The research results show that the internal embeddedness of the parent company can have a positive impact on the competitiveness of the subsidiary; subsidiaries' administrative embeddedness plays an intermediary role between parent's internal embeddedness and subsidiary's competitiveness; Subsidiaries' competitiveness has a positive effect on the growth of subsidiaries. In order to give full play to the value creation function of the parent company and drive the development of subsidiaries and enterprise groups as a whole, the parent company should strive to maintain good ties with various subsidiaries, establish and improve the communication platform and personal deployment mechanism. With the soft approach to administrative intervention, the definite purpose of supervision and control should be achieved. Developing competitive advantage should be control should be achieved. Developing competitive advantage should be treated as a long-term strategy and strategic reform and innovation should be successfully completed to make it a powerful major node of group network.