Proceedings of the 4th International Conference on Contemporary Education, Social Sciences and Humanities (ICCESSH 2019)

New Development of Traditional Industrial Clusters in China: Virtual Industrial Eco-clusters

Authors
Liping Zhang, Zuping Zhu
Corresponding Author
Liping Zhang
Available Online July 2019.
DOI
https://doi.org/10.2991/iccessh-19.2019.317How to use a DOI?
Keywords
traditional industrial cluster; virtual industrial eco-clusters; empowerment model; modularization of division of labor; user-centered value-creative process
Abstract
Traditional industrial clusters (TICs) have encountered many challenges in the Internet age. Due to geographical restrictions, TICs have high cross-regional cooperation costs and cannot meet the efficiency requirements of economic globalization. Some of TICs in China are evolving into Virtual industrial eco-clusters. Member companies of VIECs virtually aggregate on the Internet and they are conducive to improving external economies of scale and reducing transaction costs. In VIECs, the core platform companies have a large number of users and other resources. Through the empowerment model, companies within VIECs can share resources with one another like ecosystems. In VIECs, the boundaries of companies are unclear and every company acts as a module. Consumers actively participate in production and other value-creation processes. The supply-to-production model ensures the balance between supply and demand which helps to reduce the amount of stock and reduce production costs. Communitization of users makes relations between the company and the consumer transferring from one-way value transmission to bi-directional value transmission. The sales volume of a product depends on the degree of stability of the relationship between users or companies in the communities, no longer subjecting to a passive product lifecycle. All these features will help companies in VIECs to achieve sustainable competitiveness in the Internet era.
Open Access
This is an open access article distributed under the CC BY-NC license.

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Cite this article

TY  - CONF
AU  - Liping Zhang
AU  - Zuping Zhu
PY  - 2019/07
DA  - 2019/07
TI  - New Development of Traditional Industrial Clusters in China: Virtual Industrial Eco-clusters
BT  - 4th International Conference on Contemporary Education, Social Sciences and Humanities (ICCESSH 2019)
PB  - Atlantis Press
SP  - 1431
EP  - 1439
SN  - 2352-5398
UR  - https://doi.org/10.2991/iccessh-19.2019.317
DO  - https://doi.org/10.2991/iccessh-19.2019.317
ID  - Zhang2019/07
ER  -