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China is confronted with the difficulty of breaking through the "cascade effect" under globalization background. This paper argues that different division level between developing countries and developed countries is the root to cause "cascade effect". In order to promote industrial structure optimization, developing countries should establish self-development value network through reconstruction of value chain, supply chain and industry chain, which can deepen division and take the initiative of optimizing industrial structure. Native system integration enterprises are dominant in the course of industrial structure optimization, which select appropriate products to form new comparative advantage and accumulate resource and capability, then lay the foundation of competitive advantage. During the course of industrial structure optimization, the government should provide supporting policies in accordance with enterprise strategy development, and encourage system integration enterprises to launch product and technology upgrading. As a typical case study of internalization, Huawei plays the pivotal role in researching reconstruction of value network, cultivation of system integration enterprise's capability as well as industrial structure optimization.

advances in intelligent systems research/advances in intelligent systems research

How to Break Through the “Cascade Effect” to Realize the Industrial Structure Optimization——Based on the Consideration of Huawei’s Binary Interaction Mode of Industry Upgrading