The Enterprise Expands Boundary: Theoretical Model Analysis

In order to adapt to challenges arising from globalization and information age, more and more companies are ready to adjust organization structures and firm boundaries. On the one hand, global annexing between companies becomes more common; on the other hand, companies try and proceed with great change and reform taking place in the market economy of China. The state-owned enterprises keep reducing their boundaries in the reform, while the private enterprises are unceasingly expanding their boundaries. In reform, no matter state-owned enterprise or private enterprise have all paid the huge trial mistake cost.Because of the background and reasons, researches on firm boundaries have great values in theory and practice. Since 1990s, the transactional cost economics has been able to have learned the fast development, deepened the people to the enterprise boundary change rule understanding. The new institution economist has made the significant contribution to enterprise's boundary theory. They analyzed the influence factor of the enterprise's expansion boundary from many angles. In the actual research, their theory and the model divide the model besides of the ultra boundary mainly are the establishment in the transactional cost theory and in the classical economic foundation, but the new-classical economic enterprise boundary model establishment in the division of labor theory by Smith and in the inframarginal analysis theory foundation which comes, they all gave up the work theory of value. Based on above reasons, this paper carries on the fusion from the enterprise survival angle attempt to both theory, attempts to analyze the enterprise from one kind of new angle the expansion boundary, applies the transactional cost theory and based on the division of labor theory viewpoint research results the enterprise to expand the boundary in the analysis. This paper thought the enterprise boundary the research content concentrates in two aspects, the first aspect is enterprise's existence boundary, the second aspect is enterprise's expansion boundary, had pointed out remembers under the condition in the production technology enterprise's expansion boundary determining factor: Enterprise internal transaction expense and specialized economical degree, thus conducts the research from the enterprise survival angle to enterprise's existence foundation and enterprise's expansion boundary determining factor. Through the theories based on the work theory of value and the division of labor rationale mathematical model analysis, this paper pointed out that, enterprise's survival must take obtain the surplus value as a foundation, but obtains in the competition surpasses own creation surplus value ability is the material base which the enterprise expands unceasingly. But enterprise's this kind of ability is having decides the production technology the enterprise to say by enterprise's specialized economical degree decision; Enterprise's expansion boundary by enterprise interior transaction expense and enterprise's specialized economical degree decision. The enterprise presents the dipression tendency in the internal transaction expense the stage to be supposed to stop in no way to the labor force investment, the enterprise having moreover to be supposed to continue to expand the scale; The enterprise expands the boundary exists in the internal transaction expense presents the increasing tendency the stage. This time enterpdse's expansion boundary(or said enterprise most superior labor force employment quantity) decided by the equation below:This paper studies attempts to analyze through above, hoped applies the transaction cost theory and based on the division of labor theory viewpoint research results the enterprise to expand the boundary in the analysis, hoped forms in this foundation to the enterprise nature and expands the boundary to decide to hasten reasonable and the comprehensive explanation, and provides the instruction to enterprise's boundary strategy.