Evolution Of Focal Firm Network And Regional Development

Many facts reveal that with the firm growing, the nature of the network is constantly changing. In term of this reason, based on the analysis of formation and evolution of the mechanism of focal firm network, this dissertation makes an attempt to study firm growth and regional development from the perspective of the network. This dissertation is divided into six chapters.The first chapter is the introduction. This section includes the background, study framework, research method, case selection, and innovational points.The second chapter is the firm network theory research. Based on the related research of firm network, the focal firm network is divided into social network, production network and resource network. Three types of networks interact, interplay and embedded in each other.Chapter III studies the evolutional mechanism of focal firm network. Based on the research of the evolution of firm network and practical experience, it conceptualizes the general evolutionary model of focal firm network, the evolutionary process represents that focal firm network driven by the social network is transformed to network driven by production network, and further the network driven by resouce network. With the evolution of focal firm network, each network shows different characteristics of the space-time. Through studying the formation and evolution of mechanism on focal firm network, it puts forward the analytical framework of the formation and evolution of the network by the individual, regional and extra-regional level, and argues that the formation and development of focal firm network is the result of the interaction of three layered factors. The entrepreneurial spirit and resource defict is the focal element of the formation and development of focal firm network; resource endowments, geographical location, economic base and the traditional convention determine the direction of development; and government promotion, technology, market and the macro-economic environment determine the scale of focal firm network.Chapter IV analyses the relations between firm network and the growth of focal firm. On the one hand, the growth of focal firm promotes the growth and development of focal firm network; on the other hand, the co-ordination and improvement of network can promote the sustaintable and rapid growth of firm. Three types of networks are intertwined at different stages of firm growth, but different ownership of of firms and the economic environment (the planned economy and market economy) represent different strengths and weaknesses in different stages of growth. From the ownership, state-owned firm, privatized state-owned firm and private firm, as well as the network of private firms represent the differences in strength at different stages. Based on the study of three cases (YTO Group Corporation, Yutong Group and Weihua Group), it reveals that the expansion of production networks contribute to the focal firm growth, but the relation between the number of network nodes and focal firm growth represents as "S" shaped relationship.The expansion of resource network contributes to focal firm growth, the well-developed extent of resource network and focal firm growth are positively correlated. Social network contributes to the growth of focal firm, but the relationship between well-developed extent of social networks and the growth of focal firm represents the inverted "U" shape. Different types of networks play the different rols in the growth process of the focal firm and represent the dynamic change, that is, at different stages of growth, different network is dominated by the certain network. However, the different ownership of firms shows the different characteristics of the evolution.Chapter V researches the relation between focal firm network and regional economic development. The focal firm network has the following respects of impcts on regional development. First of all, the evolution of focal firm network affects regional economic development by self, which represents the regional industrial structure, employment, regional openness degree, regional market development, and related firms through the network. Secondly, the evolution of focal firm network affects regional resources and environment, including regional human resources and the human environment. Thirdly, the evolution of network has impact on the regional institutions. Finally, the evolution of network has effect on the regional technological innovation.The Study shows that different ownership, different stages of network have different levels of development, and the relations between different type of network evolution and regional economic development are multi-scale and multi-layered. The evolution of focal firm network has impact on regional development. From the dimensions of space, it can affect different scales of regional development, and the differences in extent; in the term of time dimension, over time, the networks of focal firm becomes gradually mature,and different types of networks show the different roles in each stage; From the firm ownership, the difference of firm ownership structure also affects regional economic development are different. Furthermore, according to the above research, we bring forward the idea of regional development that is based on the global localization of focal firm network.Chapter V includes the main conclusion and weakness.