Study, Based On The Ability Of The Theory Of Firm Boundaries

The boundary of firm has been the core problem of business enterprise theories research. Especially since the end of 19th century, the boundary of firm exercises more multifarious. From the horizontal integral to lengthways integral, from diversified development to return to core, the boundary of firm constantly changed and also caused different scholars'studies. Such as the lately classic economics theories, the trade expenses economics theories and the lately produce power theories. But these essential business enterprise theories inclined to explain the boundary activity of the firm from the angle of economics. Although the theory of competence explains the business boundary activity problem from the angle of ability, it hasn't enough. This thesis answers the boundary of the firm, so as to solidify the theory of competence. This thesis sets up a competence management frame, so as to provide instruction for boundary activity of the business enterprise.This thesis takes firm competence as a starting point and takes business enterprise type as a connection, it explains the boundary of the firm from both static state angle and dynamic state angle, and it also sets up a competence management frame which keeps competitive advantage. So this thesis has strong theoretic and realistic instruction meaning to the firm boundary strategy. This thesis mainly includes:(1)Based on analysing the existing firm boundary theories and the competence theories, this thesis perfects existing theory system. It answers the existing of firm from the angle of competence. And it also takes firm as a competence system.(2)According to the competence theories and the business enterprise type, this thesis explains the relation between firm competence and business enterprise type so as to come to a decision that the competence type decides business enterprise type.(3)This thesis explains the boundary decision from the angle of core competence and subsidiary competence, it explains the boundary development from the angle of the dynamic competence, so as to come to a decision that the competence size decides business enterprise boundary.(4)To the demand of competence enhancement, it sets up a competence management frame, which has an important function in continuously competence promoting and competitive advantage obtaining. This frame include competence identify, competence cultivate, competence allocation, competence maintenance and competence development.The demonstration proves the argument of"the competence type decides the business enterprise type", and"the competence size decides the business enterprise boundary". The demonstration shows that the boundary definition according to competence and the competence management frame have important instruction meaning to modern business enterprise strategy and to obtaining and keeping the long-term competitive advantage of business enterprise.