The Interaction between Corporate Strategy and Business Strategy: From Resource Flow Perspective

Draw from resource-based view and dynamic competency theory, this paper redefines the definition of interaction between corporate strategy and business strategy. This paper firstly analyses resource distribution between two levels, and then describes the paths of resources flow, which involve integration, leverage, learning and releasing. In order to describe the effect of resource flow on interactive process clearly, this paper describes four temporary states, i.e. jointly maintaining state (JMS), top-level leading state (TLS), inner pushing state (IPS) and jointly creating state (JCS). Based on them, we discuss the effect of resource flow on transformation among these temporary states.