Study On The Small And Middle-Sized Enterprises Network And Its Effect In Central China Agricultural Area

The human society enters an epoch of knowledge economy. The speedy change of productive technology and organization and the quick speed of economic globalization do not lower the position or weaken the effect of regions. On the contrary, the status and effect of regions has been given prominence to in the global economic competition. Enterprises are the subject of regional economy. And their competitive advantage is an important part in the competitive advantage of the country and the regions they lie in. Under this kind of background, a new type of special organizing form of small and medium sized enterprise-regional small and medium sized enterprise network (also called small and medium sized enterprise cluster) become the focus of the academic research both home and abroad because of its powerful competitive advantage. The perspective taken by the researchers is different from the traditional agglomeration theory. They tend to research into the institutions, social and cultural background where the economic network embedded from the researches into the transportation cost and the substantial relationship between the investment and production of the enterprises. The present research within the Chinese academia into the network .mostly copies the west mode while taking little of the influence of our traditional history and culture on the development of the network into consideration. Moreover, the regions under researches concentrate on the east part of China and the industries under researches are mostly new and high technology industry. Due to the influence of the informal institutions such as traditional culture, the development of the small and medium sized enterprise network of central agricultural regions shows a strong feature of informality. Based on the former researches, this paper attempts to analyzes and explore the small and medium sized enterprise network of central agricultural regions of our country both from the view of theory and from the perspective of demonstration. The paper consists of fiveparts.Part one, based on the former researches and the reality of the small and medium sized enterprise network of central agricultural regions, defines the concept and their features of the small and medium sized enterprise network of central agricultural regions. The small and medium sized enterprise network of central agricultural region is a loose group developed from the informal relationships among the local behavior subjects. That is the steady relationship system among these behavior subjects represented by the enterprises developed from connection and the communication between social relationship such as relatives, country fellows and friends because they concentrate on the same place and share the common cultural background. The five features of the network are, equality of communication, intimacy in connection, dynamics and plasticity in organization, humanity in running and the complementation in general benefits.Part two explores the background of the development and the mechanism of the network. The development of the small and medium sized enterprise network of central agricultural regions is deeply affected by the informal institutions such as the family institution, Confucianism, and religion. Because of the long influence of the centralization of political rights culture, the development the small and medium sized enterprise of central agricultural region has a special relationship with the local government. The development of the network is confined in the framework regulated by the informal institutions. The connecting of knot acting of the network is embedded the network of social relationship and shows a very strong feature of informality. The local government completely interfered with the course of network's development. Thus it plays a very important role in the connection within the network and the increase of the knot acting.Part three, the development of the network will have a series of positive and passive effects on the small and medium sized e...