Study On Corporation Boundary Theory And Application

In order to fit in with the economical globalization and the challenger of the knowledge economic times, more and more corporations begin to adjust the organization structure and the boundary of the corporation. On the one hand, merger and acquisition (M&A) has become a trend in the whole world. The total amount involved in the M&A case was in excess of $464 billion in 1990; it enhanced to 3400 billion and formed a lot of big enterprises such as Boeing and National city bank of New York. On the other hand, with the improvement of the average income level and the more unfair degree of income allocation, the mass market with similar preference has gone off, the consumer's preference has become personality and the market was subdivided into a variety of layers, which gave the chances to multitude small and middle corporations. Thus, it has important theory value and practical purpose to study the boundary of the corporation.Since 1990's, with the development of the transaction cost theory, the recognition about the alteration law of corporation boundary especially vertical boundary, established the theory basis of the study in horizontal boundary,vertical boundary and integer boundary, which help to make a decision about the strategy of integration,diversification and strategic alliance. At the same time, the development of corporation theory, especially the resource based theory and corporation capability theory, offers new methods and new viewpoints in the decision of corporation development target and mode,the cultivating and use of core competence.The dissertation applies the strategic economics,organization economics and the new system economics to study the corporation boundary by the numbers. It is composed of eight chapters: In the first chapter, it sets forth the background and theoretic and practical value of the corporation boundary theory. After reviewing the actuality and fruits on boundary theory, the thought line,content and method are put forward in chapter 2. It explains the corporation's existence and analyzes the basic growth mode and development direction of corporation, which provides the coordinate to the study of boundary's change rule. Chapter 3, analyzes that which kinds of operation should be kept in corporation and which kinds should be out, sequentially, gives the corporation reasonable boundary a economical explanation. And points out the change trend of boundary in knowledge economic times. The forth chapter construes the motivation of vertical boundary's forming. It works over the elements influence the relatively efficiency between market exchange and vertical integration, and how to balance the technology efficiency and attorney efficiency in special situation. After this, it discusses the confirmation of vertical boundary, and brings forward the method to scale the vertical integration and process mode to confirm the vertical boundary. Chapter 5, exerts itself to the confirmation of the horizontal boundary from the angle of scale economics and scope economics. It researches the origin of scale and scope economics and the infection elements, advances some method to calculate the economic scale. On the basis of analyzing of diversification's motivation, the measure technique of diversification is brought forward and the relationship between diversification and organization structure is discussed in chapter 6. It researches the effect to the forming of corporation boundary of strategic alliance in chapter 7 and it sums up the work has been done in this dissertation in chapter 8.