The Growth Of The Firm For The Coordiation Of Knowledge

Although economists generally hold such a view that the evolution of division of labor is the basic driving force of the one of all human social economic organization and the cardinal principle of the development of human society, in fact, there exists a more fundamental motive force to promote the evolution of economic organization—the coordination of efficiency improvement. That is, the core of the efficiency of division of labor is to coordinate efficiency improvement and the difference between levels of coordination is the main source of the difference between efficiency of division of labor. As a result, the coordinative improvement is"the motivity"to promote the evolution and then drive the development of human society and organization regulations. But all the designs and evolutions of produtive organizations in human society formed to improve the coordination between labors by human, consciously or unconsciously. Such a conclusion can get fully tested in historical observation about the changes of the forms of all productive organizations in human society.Judging from the objective historical facts, the main force to drive the transition from families as self-supporting productive organizations to enterprises as marketable productive organizations lies in expand of coordination of division of labor while the difference between the coordinating mehtods in economy of division of labor is the key divergence of marketing trade and enterprise organizations. Therefore, we decide, the"coordinated"angle of view combining"division of labor"is the practical base on which to analyse the problems of the birth of enterprise—enterprise which is an outcome of the evolution of coordination system to a certain stage comes from the coordination improvement demand in the circumstances of evolution of division of labor. Every evolution of the enterprise structure is done to meet the demand of coordination improvement in the circumstances of evolution of division of labor. Outwardly, the demand of coordination improvement generally performs as a contradiction between productive supply and market demand in the circumstances of social division of lablr; inwardly, it performs as a demand about efficiency of coordinate and manage separate labor, whose root lies in the mutual effect and contradictory movement between social productive forces and production relations.If starting from Hayek's proposition to suppose division of knowledge on the base of division of labor, we will find that the core porposition behind division of labor is actually Hayek's"division of knowledge"while every concrete demand of coordination improvement in evolution of division of labor can be logically abstracted as an efficient coordination demand for dispersive knowledge in division of knowledge, in nature—coordination exists everywhere, the essence of all act of coordination in human society can be summed up as"knowledge coordination". Any purpose to create any organization in huan society is to seek the efficiency of knowledge coordination. The reason why enterprise exists is that in a real world with market failure and bargain failure, enterprise, in nature, can be regarded as a prior coordination model to solve uncertain problems on knowledge, whose coordination"priority"expresses in two relative ways. On one hand, compared with market coordination, in a way enterprise can prominently give full play to the function of management and coordination to deal with problems on knowledge more sufficiently through a whole coorcinative system featured by inside"authority"; on the other hand, in some categories and fields, organization coordination in an enterprise way can save knowledge and coordiante cost better than that in a market way.However, although compared with market price coordination enterprise can have certain advantages when faced with outside problems of knowledge by getting coordination through setting different units or levels because of creating common knowledge and cooperation work. But we must see that"problems on knowledge"don't disappear or can be thoroughly solved because of the existence of enterprise coordination; instead, setting different sections or units to improve the coordination of division of labor will in turn bring about new knowledge problems and then increase the difficulty to coordinate the knowledge inside enterprise. In fact, all the factors that restrict enterprise growth can be restored to"outside knowledge problems"by Hayek theoretically but"the double Hayek's outside knowledge problems"is exactly a real portrayal of the difficulties that enterprise is faced with inside and outside in its growth. So how to form a reasonable economic sequence inside enterprise to make sure it can make use of its member's dispersive knowledge and market knowledge as much as possible and then to improve the coordination standard of inside and outside knowledge has become a key point in enterprise growth.The predicament of inside and outside coordinating knowledge that enterprise organizations are faced with makes enterprises coordinate and take advantage of knowledge in the same way as market spontaneous sequence use dispersive knowledge theoretically. That is, enterprises must be able to transmit the most proper knowledge to the most proper person at the most proper time point to get the person to make the most proper decision and reaction. Thus, the macrologic of enterprise growth can be described as a cooperative evolution of a complicated sequence. From"organization sequence"to"spontaneous sequence"or from"procedural organization"to"organic organization"is the macroexpression and theoretical portrait of enterprise growing procedure. But to be concrete to microlevel, enterprise's unique coordinative complicated system makes up its core growth system, mainly including three concrete coordination systems, contractual dominant coordination, conventional recessive coordination and enterpriser spirit. The first two coordination systems are knowledge coordination generally aimed at"known outside knowledge problems"while the last one is knowledge probe, discovery and coordination aimed at"unknown outside knowledge". The micromechanism of enterprise growth is that enterprise is a recognition substance faced with uncertain environment, which can orgnize partial knowledge discovery in different ways in shared intellectual structure and spread, coordinate and share knowledge by authority, rules, convention and organizing study and so on. So it is another knowledge discovery and coordination program different from market competition.Just as many domestic scholars realised, in the 21st century, Chinese enterprises have entered an age of scanty benefit and enterprises development has entered a altitude period. Enterprises can't grow big or strong. Big but weak, strong but not long have become one of the practical difficult problems for Chinese enterprise. In fact, a real enterprise growth should be a unity of living long, growing big and being strong. Living long is the most important and cardinal aim; being strong is the inside qualitative change in enterprise growing procedure; growing big is the outside change and a possible outcome of enterprise growing procedure. Consequently, enterprise growth seek progress but not expansion,"the essence of enterprise growth is constantly promotion of the core competition ability of enterprise, accumulation of kinetic energy for enterprise growth and driving enterprise grow from small to big continously and steadily". At present, the wrong idea of"growing big"blindly has forced many Chinese enterprises on a morbid developing way. Only based on the improvement of the enterprise's core ability and combining growing big and being strong, enterprise can grow sustainably.Enterprise's core ability is the source for enterprise get long term competition advantages, which plays an important role in enterprise growth. If we study core ability from the angle of enterprise growth, it can be understood as a"growth power"that can help enterprise develop sustainably. Enterprise growth is a comprehensive result of many influential factors, such as economy, society, culture, strategy, management, market, competition and so on. Analysed generally in terms of systematic dynamics, it is a"joint force"formed by the interactions of several forces from different directions. The speed and level of enterprise growth is eventually decided by the result of the contest of the several forces. Considering the concrete content and strcture, enterprise growth can be expressed using a model object with four sides made up by industrial power, regulation power, technology power and market authority and the six connected rings between them, which is a knowledge coordination power in nature. In this way, the key to fostering enterprise growth is to improve and promote enterprise's knowledge coordination ability and this can be realized through some knowledge management key link by organizing study and enterpriser coordination.