Research On The Development Of The Enterprise Based On Co-evolution

Human society has entered into post-industrial society gradually since the mid-20th centruy. New economics and management theories appropriate to post-industrial society have been raised and studied by more and more researchers, while those applied in the industrial society have collapsed. My advisor has paid attention to this problem for many years, and studied it continually. Economics and management theories for the industrial society presented by David Hume and Adam Smith were based on the view that human is selfish in nature. In Malthus period, especially Darwin period, the relationship of different enterprises was considered to be based on struggle completely. The only objective of enterprises was to pursue the maximum profits. The enterprise management theory divided managers and the people being managed entirely. The planning----commanding----controlling management pattern, supporting the development of industrial society, has formed the order of industrial society since Fayol. The feasibility of this theory was based on the fact that laborers were strongly depended on capital, which led to the high internal instability of enterprise. The struggle among enterprises caused disaster to human society. In post-industrial society, the technologies and products are continuously innovated. The producing ability is rising rapidly. And the competition among enterprises is more and more intense. Therefore, the ecological environment for the existence and development of enterprises has radically changed. Technical personnel have become the first element of enterprise development instead of capital. The situation where Laborers strongly depended on capital has changed to that where capital strongly depended on talents. The consumpation of consumers has tended to diversification, and they require high quality products and services. The enterprises are requied to take up social responsibility. Then it has become a significant research subject to find the appropriate pattern of the economics and management applied to post-industrial society.We suggest that the primary character of the change from industrial society to post-industrial society is the change from struggle to co-evolution. Enterprise management is studied from the point of view of co-evolutional ecology in this paper by means of ecology, complex science, catastrophe and symbiosis theory, system dynamics and differential geometry theoretical approach. We have proposed co-evolutional enterprise management theory and methods, analyzed the meaning and characteristics of enterprise ecosystem systemically, constructed the dynamic co-evolution models of the enterprise operation and management, discussed the dynamic evolutionary rules and evolutionary mechanism of enterprise ecosystem by use of differential geometry theoretical approach, and studied two fundamental issues of enterprise management from the point of external co-evolution and internal co-evolution, which are enterprise internal stability and adaptability to the environment.For the first issue about internal stability, the dynamic evolution of enterprise internal stability is discussed in this article in the view of integrated control for mutual catalytic of dual human nature under the enterprise institutions, culture and contract management, through the construction of dynamic models and the use of differential equation geometry theory, and it is proved that the enterprises would be difficult to come to be complete stability. When there is no supervision and punishment governance mechanisms, enterprises which rely on culture governance can reach sub-health steady state; when there are supervision and punishment governance mechanisms in the enterprises, and contract implementers could not self-reversal convert to defaulters, there are three steady states complete health, sub-health and morbid state for the enterprises. Furthermore, the enterprise can achieve complete stability only when the relation between the number of monitors and persons being monitored is quadratic. If contract implementers could convert to defaulters, there are two cases of stable state for the enterprises, a sub-health steady state, or a sub-health steady-state and a morbid state. For the second issue about the enterprise adaptation to environment, we have discussed the co-evolution between enterprises and environment from two aspects:the co-evolution between enterprises and enterprises and the co-evolution between enterprises and customers. Several conclusions have been drawn.(1) We have demonstrated the dynamic evolution process and evolution results ---- catastrophe and symbiosis of firm competition system through constructing the co-evolution dynamic model and using differential geometry theoretical approach. Moreover, we show with a numerical simulation that the evolution results of competition depend on the fierce degree of market competition, and the autocatalysis effect can accelerate the development of firms.(2) Modifying conventional ecology model, we has constructed pure competition dynamics model and cooperation in technology development but competition in market dynamics model with perdition threshold, and analyzed the evolution of firm competition and cooperation using differential equations geometry theoretical approach. The findings are as follows:there are four saddle points, four stable nodal points and one unstable nodal point for the pure competition system under the condition of non-fierce competition. The phase plane is divided into four regions, which are called as co-existence, synnecrosis, and win of the strong firm, by the ridge lines of four saddle points, and two competitive firms can realize co-existence only when their initial conditions are greater than the perdition threshold. There are three saddle points, two stable nodal points and two unstable nodal points for the system of cooperation in technology development but competition in market under the condition of non-fierce competition. The phase plane is divided into four regions, i.e. win-win, synnecrosis, and win of the strong firm, by the ridge lines of three saddle points. In the model of cooperation in technology development but competition in market, only the win-win state can be realized for the cooperation between strong firms, and cooperation between weak firms must lead to synnecrosis. Cooperation between strong firm and weak firm either makes both firms evolve to synnecrosis, or makes strong firm exist and weak firm die, and the possibility of the synnecrosis is greater.(3) Studying the co-evolution between enterprises and customers, we have suggested that the marketing strategy of enterprises is to find the quality market, where the firm can make the customer satisfaction tend to be maximum and gain positive profit continually through innovation efforts. To this problem, we propose the concept of "consuming fatigue", which is resulted from the innovation competition between firms and can be taken as the measure of fierce extent of innovation competition. Then we construct a model of the co-evolution between customer satisfaction and firm's innovation efforts, which can be classified into four types based on the characters of customers and firms. It has been proved that the quality market is existent from the analysis of these four different co-evolutionary models by use of differential geometry theoretical approach. However, the quality market can be occurred only when the customers are the type of pursuing fashion, and the response coefficient of customers to firms' innovation efforts is greater than the consuming fatigue coefficient. The conclusion provides theoretical foundation for market selection, forecasting analysis and countermeasures of firms.(4) We have demonstrated that the "survival of the fittest" is not inevitable, and "the survival of the inferior and the elimination of the superior" can be realized through constructing the co-evolution dynamic model and using differential geometry theoretical approach. In the model, we both consider the competitive selection between firms, the selection of customers and the synergy effect between customers and firms. As a result, the elimination or survival of a firm does not depend on whether it is inferior (weak) or superior (strong), but is associated with the initial advantages and synergy effect. This suggests that "survival of the fittest" is not a reliable maxim, and the initial advantages and synergy effect are important for firms in market competition. This paper advances the dual human nature that selfishness and generosity evolves with the development of society. Since the emergence of civil society, the lure of material made selfishness to a high degree so that struggle and greed became the mainstream of human nature of the society, which caused the catastrophe of human society. However, nowadays human nature has gradually returned towards generosity, calling for social responsibility, harmony and cooperation. In the technological, economic and political environment of the post-industrial society, cooperation and co-evolution have become necessary and inevitable, and enterprise management evolves dynamically with the social ecological environment, therefore enterprise management research based on the co-evolutional ecology thought is suitable for the future and reality of the post-industrial society.