The Research On The Firm Theory--Boundary And Integration

The Firm Theory includes the theory of the essence of firm, the boundary of firm, the interior organization of firm and the competitive advantage of firm. In the last century Firm Theory had developed notably, quantities of scholars devoted themselves into this research field and on the base of these researches, several schools, including the Transaction Cost Economics, the Property Right Theory, the Principal-Agent Theory, had been established. But the ability of Firm Theory to explain the realization and predict the future is very limit for its over-strict hypothesis. For the purpose of obtaining practical value more, this paper tries to establish new explanatory models, which will be testified by the data and cases, based on the less strict hypothesis.With the retrospect and critique of the existing Firm Theory, this paper analyses the possible faults of each school's theory, which includes the theory of Smith, Marx, New Classical and Neo-institution, and utilizes the historical data to analyze the relation between the firm's boundary and income, and classifies the direct and indirect income of the firm to establish a new function of the firm's boundary which can explain the changes of the firm scale and the effect of the perfecting institution diminishing the transaction cost and raising the efficiency of the society action. At the same time, this paper believes that the communist society wouldn't be an unrealizable dream with the institution perfecting and the reducing difference between the goals of individual and society. Meanwhile, basing on the perspective of the relativity of the asset specificity and the comparison between the contract arrangement in American manufacture industry and that in Japanese, for classifying the existence of the integration which affects the firm scale, this paper establishes the model of industry competition structure from a total industry angle, extending the concept of the exploitable quasi-rent, holds the opinion that there are other reasons to cause the integration. Finally this paper summarizes the views and evaluates the practical significance of the new models.