Study Of The Causes Of Enterprise Groups

Since the introduction and establishment of enterprise group (or incorporate group) in 80th of last century, the theoretical research of enterprise group has become one of the central issues of the theoretical research of Chinese economy for a long time. Many economists, by means of modern economic methods and tools, examined the problems in the procedure of the establishment and development from various angles and pointed out a lot of significant outlooks, which, in some degree, help us to know what enterprise group is. However, because the theoretical research about the enterprise group in China pay much attention to the introduction and general analysis of enterprise group as well as the organization and performance of enterprise group, the theoretical research about the enterprise group in China ignore the theoretical research of the general enterprise group, that is, the theoretical research of the general enterprise group lack depth and systematicness. The drawback in the theoretical research of the general enterprise group especially is the theoretical research of the nature and the cause of formation of enterprise group. While confirming the opinions of the economists at home and abroad about the theoretical research of the cause of formation of enterprise group, the paper points out the limitation of the opinions, that research the cause of formation from the different angles of economics of scale, scope and speed, the collective effect and the decrease of transaction cost. On the basis of the outlook, the paper puts forward that we should make analysis of the cause of formation of enterprise group form the angle of the division of labor and specialization. The paper believes that the real cause of formation of enterprise group is the further development of the division of labor and specialization, and explores the relationship between the cause of formation of enterprise group and the division of labor and specialization in the aspects of the market structure, market and government, the limitation on the technological best scale, the form of the inner-transaction of enterprise group, the limitation on the form of monetary capital collection as well the innovation and accumulation of technology. Then the paper proves the basic function of thedivision of labor and specialization in the formation of enterprise group. According to the analysis of the cause of formation, the paper makes a new definition of enterprise group and its nature. The paper thinks that the enterprise group is the outcome of the further development of the division of labor and specialization, that is the para-hierarchy that makes an organic combination of some functions of the market, enterprise and government through the various links. By means of enterprise group, some functions of market, enterprise and government will be implemented particularly by the enterprise group. This determines the special function of enterprise group, which is different from the functions of market, enterprise and government. After finishing the theoretical research of general enterprise group, the paper, by using the previous theoretical research of enterprise group, examines the formation, development, and present condition of Chinese enterprise group and the characteristics of the economic system in China. The paper points out that the formation of Chinese enterprise group is different from the formation of the enterprise group of the western developed countries. The establishment of Chinese enterprise group is not due to the promotion of the market economy and not in accordance with the law of the development of the division of labor and specialization. On the contrary, The establishment of Chinese enterprise group is due to the non-marketing and non-economic factors (such as the effect of the traditional planned-economic system and the intervention of government into the establishment of Chinese enterprise group). Finally the paper researches the problems incurred from the formation and development of Chinese enteiprise group and gives s...