Empirical Study About The Network Effects On The Enterprise Size And Performance

After 1990s, the rapid development of economic globalization and information technology has greatly changed the business environment. In response to environment changes, enterprise organization, size and performance are in constant change and adjustment. Currently, Theory circle has a research upsurge based on the enterprise size, performance changes and network. There is the embedded interactive relationship among the enterprise size, performance and network in the network formation process, so one-sided, isolated discussion in which one or two aspects are not comprehensive, not enough to reveal the enterprise development principle and the formation law. From the point of the network formation process how to induce, deduce and certificate the mechanism among the enterprise size, enterprise performance and network, has become an important basis for the selection of research topic.Based on the perspective of the formation network process, this study adhering to the principle of theoretical and empirical analysis, static analysis and dynamic analysis, and using the research methods of econometrics, social network analysis, divided the network formation process into three stages about the affect of the network on the size and performance:Before the network formation stage:mainly through literature, reviews the division standard of enterprise size. A correct understanding of the connotation of enterprise size is the fundamental starting point and the foothold to understand the enterprise size adjustment, enterprise boundary changes and the network formation and development. Based on the correct understanding of the nature of enterprise size, using China’s listing Corporation’s data, the statistical analysis on the relationship between enterprise size and performance, to clarify the correlation between the enterprise size and enterprise performance and made the reasonable explanation to the deviation from the reality of the enterprise size and enterprise performance.The network formation stage:First, from the rent and relationship perspective, to explore the mechanism of network affect on the enterprise size and performance. From rent perspective, enterprises joined the network organization is a kind of rent-seeking behavior to improve the enterprise survival ability and performance level. Second, from the point of the embedded relations view, enterprise joined the network; the network structure will directly affect the network member’s friendship, loyalty, commitment, trust degree, and then affect the enterprise enthusiasm and efforts to adjust the size. To make clear the factors and mechanism about the network rent and effects on the size adjustment and performance change is key to understand how the network transformation. Finally, Simulation and observation about network stability under impact on different enterprise size constitute and contract speculation rate by using NetLogo software.After the network formation stage:this part will focus on network structure (network size, structural holes, density as well as the center and edge) how to affect the enterprise size and performance, based on the understanding of network structure have different influence on the enterprise size and performance. Through the comparative analysis, reveals network organization internal structure nature and operating rules.According to the network forming process, Through the continuous, dynamic analysis about the affect of network on the enterprise size, performance to better grasp the inherent laws of the operation mechanism of the network formation, enterprise size adjustment and performance changes during the process of network formation development, provides the theoretical basis for reference to optimize the network structure, adjust the enterprise size and improve the performance.This study is divided into seven chapters. The first chapter mainly elaborated the selected topic basis, research objectives, research contents, research methods and innovation points etc. The second chapter summarized the background of network, and elaborated the related the factors and conditions of network operation. The third chapter reviewed the relationship among enterprise scale, performance and network, and mainly made a general comment on the three existing research literatures, pointed out the existing problems, the future research trend and the research direction. The fourth chapter focused on the correlation between enterprise size and performance before the network formation. Analysis of the size distribution of China’s large, small and medium enterprises, and the problems that Chinese enterprises size exist; At the same time took the China’s listing Corporation as a sample, empirically tested the correlation between enterprise size and performance. The fifth chapter analyzed the mechanism of the network affect on the enterprise size and performance mainly from the network rent enterprise boundary and network size perspective, to reveal the nature of enterprises entering the network before and after. At the same time, from the enterprise scale structure and contract speculation rate perspective, analyzed network stability. The sixth chapter focused on the empirical research about the influence of network structure on the enterprise size and performance. Through the analysis of the Japanese Mitsubishi group network structure, revealed the structural differences of network organization of firm size and performance. The seventh chapter is conclusions and suggestions. Summarized the main conclusions of this research, and put forward the relevant strategy to optimize of network, adjust enterprise size and improve the enterprise performance.