Abstract:Digital development has accelerated the change frequency and complexity of the external environment of firms, making the organizational situation unpredictable, and at the same time, it means that firms need to adjust organizational strategies to adapt to the complex environment constantly. The complex situation makes firms face the obstacles caused by the contradictions between many elements, and at the same time brings opportunities for transformation and upgrading, which requires firms to manage the contradictions and tensions between various goals and needs. The multi-level paradox represents the contradiction and tension between elements located at different organizational levels. It may be the best perspective to help firms sort out complex situational relationships and achieve strategic upgrades. However, how to use the paradoxical relationship to achieve strategic upgrading is still a mystery to us. There are three main gaps in the existing research: First, the existing literature focuses on the influencing factors, paths, etc., and summarizes the laws hidden behind the behavior of strategic upgrading. No scholars have explored the problem of strategic upgrading from a paradox perspective. Secondly, the existing research mainly explores the process and approach of a certain paradoxical relationship equilibrium. It lacks the discussion on the multi-level paradoxical relationship equilibrium and the multi-level paradox structure. Finally, although some scholars have discussed the relationship between paradox and strategy through elements when analyzing paradox equilibrium, they have not further analyzed the role of paradox equilibrium in strategic upgrading. They have not explored the effect of multi-level paradox equilibrium on enterprise strategy realization. The mechanism of action of the upgrade. Therefore, it is necessary both theoretically and practically to explore the process mechanism of strategic upgrading based on the perspective of multi-level paradoxical equilibrium. For the study of process mechanisms, the case study method is suitable. This study selects two strategic upgrading processes of an industry-leading firm as case samples to study the mechanism of the strategic upgrading process from the perspective of multi-level paradoxical equilibrium. First-hand data was obtained through semi-structured interviews, and a large amount of second-hand data was obtained through various channels for supplementation. To ensure the original authenticity of the interview data, the interview recordings were organized into text data within 24 hours after the end of each interview. Otherwise, writing teaching cases based on data to deeply understand the two strategic upgrading processes of firms and communicate with firms many times about the authenticity and data accuracy described in the cases to prepare for this research. The study found that the multi-level paradox is composed of paradoxical relationships at various organizational levels. The opportunity environment for strategic upgrading is formed in a nested form, and the paradox elements will change with the growth of firms, mainly in the form of chains and upgrades. Sorting out paradoxical relationships in complex situations and balancing the highlighted multi-level paradoxes is an effective way for firms to seize opportunities for strategic upgrades successfully. The process of the multi-level paradoxical relationship from prominence to re-balance is the process of strategic upgrading. The key to realizing strategic upgrading is accurately grasping the inner core contradiction that makes the paradoxical relationship protrude. In summary, this study has three following theoretical contributions: One is to break the status quo that existing research only analyzes a pair of paradoxical equilibrium approaches and explores the multi-level paradoxical equilibrium problem from a multi-level perspective, supplementing the problem of multi-level paradoxical equilibrium the existing paradoxical equilibrium theory. The second is to expand the concept of the multi-level paradox proposed by fairhurst and propose that the multi-level paradox involves the strategic layer and organizational layer, etc. The various types of paradox relationships included are in the form of chains and nesting. The third is to explore the essence of strategic upgrading from the perspective of a multi-level paradox, which expands the new perspective of strategic upgrading research. In addition, there are practical inspirations, reminding managers that the process of strategic upgrading is extremely complicated, and it is necessary to sort out the multi-level paradoxical relationships contained in the appearance of the predicament. Abandoning a single and static perspective to look at problems, examining the elements of each organizational level of the firm from a dynamic perspective, and systematically exploring the deep reasons that hinder the firms’ further development from multiple aspects. That is, sorting out the many paradoxical relationships hidden under the appearance of the dilemma can make the solution strategy more targeted.
