An Analysis Of Transformation Of Enterprise Organization In Marxism Economics

As to the origin and transformation of an enterprise, institution economics and Marxism economics construct different theories. The former explains it from exchanging cost and incomplete contract, and the latter from the perspective of the division of social production. In fact, these two theories can be connected together as one. This can be proved by"dual character of production", which is the basic principle of Marxism economics. This paper proves that the two enterprise theories can be connected in the framework of Marxism economics.Enterprise organization is an important part of enterprise theories, and the study of the transformation of enterprise organization is the theme of this paper. In this paper, enterprise organization is defined as the combining mode of the elements of production power in both natural and social meaning. According to this definition, enterprise organization contains organization in production and organization in property rights, and it is in the course of the interaction of organizations both in production and in property that the transformation of enterprise organization comes out. On the other hand, the dynamic factor of the transformation of enterprise organization is another key to this study. According to Marxism, production power is the first pushing power to economic and social development, so is to the transformation of enterprise organization. Therefore, in this paper, comprehensive production power is considered as the dynamic factor of the transformation of enterprise organization. Comprehensive production power is defined as not only an unity of latent production power and realistic production power, but also an unity of enterprise production power and social production power. Under the definitions of enterprise organization and comprehensive production power, the mechanism of the transformation of enterprise organization can be depicted as following:Comprehensive production power is the decisive factor of the transformation of enterprise organization. In the course of the development of production power, enterprise and social production powers are unparallel. When both of them is in low level, cottage industry and guild industry, suited for the conditions of production powers, are the main enterprise organization. As the development of labor appliance and social division in production, enterprise production power surpasses social production power, and then supply is relatively ample while market risk is relatively high. Bundle-buyer industry, with its flexible production, little constant cost and dispersive property, becomes a competitive form of enterprise organization. When social production power comes up with enterprise production power, market risk becomes relatively lower, and then workshop industry becomes prevalent form of enterprise organization. With the further development of comprehensive production power, (after Industrial Revolution, in history), both enterprise and social production powers improve in a large scale, and then enterprise organization experiences machinery industry, joint-stock company and corporation group in a row. With the comprehensive use of information technology, social production power is in so high level that production management in an enterprise can be done across far spaces instantaneously, and then network enterprise emerges in social production.To make the framework of analysis of the transformation of enterprise organization in Marxism economics complete, the mechanism of the development of comprehensive production power should be explained theoretically. From the view of comprehensive production power, the development of production power is not only the rise of the whole level, but also the optimization of the structure of production power. The rise of the whole level is correlated with the interaction of latent production power and realistic production power. On one hand, the level of latent production power is shown as the characteristics of the elements of production power, and the improvement of these characteristics should be achieved in realistic production power. On the other hand, the improvement of realistic production power depends on the development of the characteristics of elements of latent production power. The optimization of the structure of production power is shown as the improvement of the relation between enterprise and social production powers. In conclusion, it is by reviewing the development of production power both in the whole level and the structure and by defining enterprise organization as unity of enterprise organizations both in production and property rights that the mechanism of the transformation of enterprise organization is explained in Marxism economics successfully.