On Selection Of The Path Optimizing Industrial Organization

The core of the problem of industrial organization is how to obtain scale economy on the condition of effective competition. In the period of planned economy, there were almost no competitive relations among the enterprises in the same industry. So it is unnecessary to study industrial organization. Since the reform and open-up policy adopted over 20 years ago, the market structure of monopolistic competition has formed basically in China. And this make the problem of industrial organization more and more outstanding. This problem not only affects the adjustment of industrial structure and the speed of economic growth, but also influences improving international competitiveness of industry.Nowadays, the situation of our industrial organization is low and unreasonable in general. It is a result of mutual effect of various factors, of which the factor of system and policy are the most direct and outstanding. Because of these, the major theme in our acedemic field is to find the path of optimizing industrial organization. The majority of scholars hold that, we should enlarge the scale of enterprise rapidly by means of merger and acquisition among enterprises to get scale economy and to improve the industrial centralization, then we can get to the target of optimizing industrial organization. But the practice shows that the effect is not idealistic. The author thinks a lot about it and considers that, the deep-seated reason of it is ignoring the difference of economy culture between the west and the east, and simply mimicing the path of industrial organization which is based on the the two-divided framework of "market-hierarchy".The network organization theory, which appears frequently in economic documents recently agrees with our east asian culture in many aspects. On basis of this theory, the three-divided framework of "market-network-hierarchy" considers network organization as one level of institutional arrangement among enterprises. Network organization lies between the market and the hierarchy is a new organization form, it is more flexible than hierarchy inside enterprise and more stable than market out of enterprise. Network organization has many concrete forms, such as strategic alliance, sub-contracting institution, virtual enterprise, enterprises cluster and so on. Enlightened by network organization theory, the author tries to find the best path of out industrial organization optimization from it, and build a three-level institutional framework including among large enterprises, among large, medium and small-sized enterprises, among medium and small-sized enterprises. Thus, a high-efficient industrial organization pattern will come into being, in which the enterprises in different scales compete in order and cooperate to co-existence in the same market.This paper consists of five parts:1. The summarization of industrial organization theory.2. The main problem of our industrial organization.3. The comment on researches of the optimization path of our industrial organization.4. The new conception to optimize our industrial organization: network organization.5. The concrete measures of optimizing our industrial organization by applying the conception of network organization.