Modelling the disaggregated value chain – the new trend in China Online publication date: Sat, 16-Aug-2014
by Sekhar Chattopadhyay; Danny S.K. Chan; John P.T. Mo
International Journal of Value Chain Management (IJVCM), Vol. 6, No. 1, 2012
Abstract: China is one of the fastest growing economies in the world today. This is probably due to the world-wide perceived notion that the cost of labour and materials are cheaper in China. Giant corporations are disaggregating into small autonomous business units to combat fierce competition. Researchers use the theory of atoms and molecules to explain and analyse the architecture of large enterprises through the lens of these small autonomous business units. Attempts to enterprise modelling using molecular theory so far could only deal with the understanding of how system works but does not assist to design enterprise architectures to achieve cohesion and improve management efficiency. This paper attempts to create a generic enterprise model for the molecular organisations (MOs) arising out of the disaggregated value chain (DVC) in China and shows how people in different levels of the MO improve 'value chain' by enhancing mutual trust through collaboration in teams.
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