Enterprises' soft power and hard power in E-commerce era

Abstract

The development of the Internet and E-commerce makes the enterprises' competition beyond the time-space constraints. The rules of traditional market competition also have been changed. Soft power has become as important as hard power in the enterprises' development. A clear exposition of the relationship between soft power and hard power is very important for acquiring sustainable competitive advantage. Enterprises' soft power is made of the intangible assets and resources. Comparing with hard power, soft power originates from the spirit and intellectual property. Because of lacking physical existence, it is difficult to be counted and duplicated. The cultivation of enterprises' soft power is difficult and time spends. Soft power can be achieved only when it is admired and approved by enterprises' stakeholders. In order to get competitive advantage in E-commerce era, enterprises must focus on flexibility, speed, and cooperation with partners. These features originate from enterprises' soft power and hard power, especially depend on soft power. The value of soft power determined by hard power, but soft power also can influence hard power. The accumulation of soft power and hard power promotes the enterprise's development.