Research On The Theory Of Firm Growth

Firm is not only the basic economic organization, but also the important carrier and symbol of the modern market economy system. And of course, the health and persistence of firm growth is also the pillar for the prosperity of the society and the greatness of national power. Accordingly, the field about firm growth is doubtless the hot one in the research of economics. In this dissertation, I divide the field of firm growth into three schools: Contracts-Governance Theory, Recourses-Capabilities Theory and Production -Conditions Theory. And then, insisting on the prospective of historical materialism, I fabricate the research structure of firm growth theory. Under this structure, I deeply analyze these three theories from the comparative angle, and then I synthesize these theories at some feasible degrees. I think this paper will be useful and valuable for sustainable growth of firms and great prosperity of macro-economy, especially from the theoretical reference angle.This dissertation contains three major sections: Section 1, I fabricate the research structure of firm growth theory, which consists of methodology part and stem theory part. This section supplies the objects and themes for the following theoretical comparison. Section 2, I compare the three theories at the aspect of methodology, and then, conduct the theoretical synthesis, which supplies the methodological foundation for the following parts. Section 3, I compare these three theories at the aspect of stem theory. The research is done through comparing the different analysis from these three theories about the two questions: Question A, what is the firm and then firm growth? Question B, what is the power of firm growth from? And I certainly also conduct some theoretical synthesis in this section.Throughout the whole dissertation, the main conclusions are below:Firstly,"firm growth theory"is a term which is more appropriate and pertinent than"firm theory", because the growth of the firm is the final destination of all researches about firm. Firm growth theory consists of methodology part and stem theory part.Secondly, Contracts-Governance Theory and Resources-Capabilities Theory all insist on the prospective of historical mentalism, adhere to the"economic-person"hypothesis, and then make research from the mechanical and unrelated angle. By contrast, Production-Conditions Theory insists on the prospective of historical materialism, adhere to the"social-person"hypothesis, and then make research from the dialectic and related angle. I think the later one is more logical and persuasive, so the methodology combined with historical materialism and dialectic prospective, social-person hypothesis, and which complemented by contracts-transaction and evolutional knowledge method is the most feasible one for the research of firm growth theory.Thirdly, Contracts-Governance Theory regards the firm as a knot consists of contracts, and holds the viewpoint that the combination of contracts formed during transaction is the essence of the firm. So, the firm growth is viewed as a process in which the contractual relationships and the governance are perfected and enhanced. Resources-Capabilities Theory regards the firm as a combination consists of resources, capabilities and knowledge. So, the firm growth is viewed as an accumulative process of resources, capabilities and knowledge in the firm, especially the accumulation of inner knowledge. Production-Conditions Theory regards the firm as an organization condensed by production conditions, in which capital make itself proliferated in value through the work of labor. And the essence of the firm is that the firm is the combination of production conditions and it also products surplus value and proliferate capital. So, the firm growth is viewed as an complicated process in which the enhance of productivity, the evolution of production conditions and organization mode is continuing through the contradictory interaction between productivity and production conditions. In this dissertation, I think the firm is the productive organization in which the social wealth is produced and added through productive labor, and through which the wealth is allocated too. The carrier of production conditions is the essence of the firm. The firm growth contains two dimensions: historical evolution of firm mode and realistic enlargement of the firm. The firm growth is process consists of the contradictory interaction between the production conditions and the evolution of scale and mode of firm organization. Based on the productive labor, the scale of the firm enlarges, the mode and production conditions evolve, and then productive labor itself also grows in this circumstance. And of course, the quantities of knowledge will increase, the governance structure will perfect in the growth of the firm.Fourth, From the contract angle, Contracts-Governance Theory views the well designed and conductive contractual governance structure as the radical power of the growth of the firm. They emphasize the importance of protection and encouragement for the specialized capital holders and avoidance of their speculative action, which is presented in the composition of executive board in a real firm. From the resources, capabilities and knowledge angle, Resources-Capabilities Theory views the capabilities from the resources and the knowledge about how to use these resources as the radical power of the growth of the firm. From production angle, Production-Conditions Theory emphasizes the important role of labor dividedness and cooperation, capital and productive labor, business administration and innovation of technology at the production of surplus value, which certainly should be viewed as the power of the growth of the firm. In this dissertation, I think the productive labor is the radical power of the growth of the firm. Dividedness and cooperation of labor is the economic form of productive labor. Contracts are the legal and constraint form of productive labor. The innovation and accumulation of knowledge is the offspring of productive labor, and which also enhance the development of productive labor. Business administrative is a part of productive labor radically. So, the composition of forces coded with productive labor and enclosed with other component of forces is the power of the growth of the firm. With these forces, the firm should keep sustainable growth and evolution.