| The conjecture "the Conjecture about enterprise's vertical scale diseconomy " thought the enterprise's vertical scale diseconomy infered the quantity of the vocational work chains, which was contained in the internal part of companies. According to the conjecture, since the vertical scale diseconomy, the enterprises should have reduced the size of its vertical motivation from the time series, the vertical scale enterprises there constantly deflating trend. This paper attempts to use empirical testing methods, the actual test in the economic life of the existence of this trend.The thesis considers the listed company of China's textile industry as the study samples, using the Herfindahl Index(H) which express the centralization of the business scope and the Ratio of product-related(RR) which express the product's related level as a measure of enterprise's vertical scale of the two indicators established trend of the time series model. Then it raised two assumptions: Herfindahl index has the progressive trend with time sequence. The ratio of product related has the upward trend on the time horizontal axis. Positive test results supported the thesis good assumption, the main conclusion show that the scope of business enterprises increasingly concentrated, business products is becoming more relevant. Enterprise products related higher scope of the enterprise's operation more focused, more concentrated and the operating scope of the enterprise business unit includes the less, the corresponding vertical scale enterprises will become. Therefore, the enterprise's vertical scale would narrow the underlying trend in real reality.Based on the findings, this paper analyzes some inspirations that the trend of vertical size of the enlightenment impact Chinese enterprises. At the same time, the author proposed countermeasures in order to get rid of superstition , reduce the scope of the operation of enterprises, access to competitive advantage and improve theoperational effectiveness. |
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