Research On System Dynamics Of The Mechanism Of Rapid Growth Of Firm

With the continuous development of Chinese economy, many industries have spawned a large number of fast-growing firms, "rapid growth" has become a distinct characteristic of these enterprises.In China,there were some fast-growing firms in the early reform and opening up,and now many of them have been closed down,or fall into trouble, unable to extricate themselves;But many firms still maintain a good development trend,why some firms continue to grow and develop,while others stagnate or even decline in the same social environment?How firms can achieve healthy and rapid growth?What leading firms are taking different measures to make the rapid growth of the firm achievement?What factors and what is the mechanism to promote and restrict the rapid growth of firm actually?The growth of firm is a complex dynamic process,which is result of the role of the positive feedback and the negative feedback loop.Positive feedback is the driving force for the growth of the firm and negative feedback is the stablizer for the growth of the firm. Therefore,there are at least a positive feedback loop and a negative feedback loop in the growing progress,when the positive feedback loop plays a dominant role,the firms growed rapidly;when the negative feedback loop plays a dominant role,the growth of enterprises slowed and even stopped. Firms Can change the rate constant or initial values of state variables in the positive feedback loop to speed up the operation of positive feedback loop to make the firm rapidly.With the growth of the firm in fact,factors inhibiting the growth of the firm are also continually strengthened,so that obstacles to growth are bigger and bigger,and the problem are more and more difficult to solve. This requires managers to identify key factor and the negative feedback loop to limit the growth of the firm earlier,and eliminated,so that firms can be faster and better development.The growth of firm with system dynamics theory is just beginning,and is still in an imperfect,initial stage.The mechanism of the rapid growth of firm literatures has not,and the rapid growth of firm based on system dynamics'theory is a new perspective.At last,the paper establishes a system dynamics model,and analysis the causes of the formation of the rapid growth of firm,and draw some feasible suggestion.