The Theory Of Th E Growth Of The Firm Based On The United Property Rights Institution

The growth of the firm refers to the whole expansion situation shown on the basis of excavating continuously the potentiality of internal and external resources of the firm. It is the course of a constant change changing from small to big, changing from weak to strong, which includes the growth of quantity and the growth of the quality. The growth of the firm follows the systematized model of specialization-diversification-internationalisation. The united property right is the union of element property rights and work property rights. Firm is a united property rights institution. The key problem of united property rights institution is effective disposition of net cooperative residual rights of reclaim and residual rights of control, so that the net cooperative surplus is maximized. All kinds of arrangements of the united property rights institution evolutes with the growth of the firm rather than predefined. The growth of the firm, under different restrictive elements, requires corresponding the united property rights institution to maximize the net cooperative surplus. The united property rights institution restricts the growth of the firm. Cornering to the growth of the firm, the united property rights institution only adapts to a special stage rather than the full process of the growth of the firm. Cornering to the united property rights institution, the optimum growth model only adapts to one (or several) special stage(s) rather than the full process of the evolution of the united property rights institution.