Study On Life Cycle Of Small And Medium Sized Enterprises Network Organizations Based On Reputation Mechanism

With the social division and specialization, small and medium-sized enterprisesnetwork organizations (SMENO) playing an increasingly important role in the nationaleconomy. However, in their dynamic process of development, the life cycle will beaffected by different internal and external factors. As an important mechanism fornetwork governance, reputation plays a significant impact on life cycle of SMENO.Based on the theories of reputation, life cycle and network governance, this paperexplained the active role of reputation in the various life stages of SMENO. Firstly,according to the characteristics of SMENO, this paper divided its life cycle into fourstages as generation, growth, stability and decline. For the characteristics of reputation,it analyzed the mechanism of action between reputation and Life cycle; secondly, itselected six factors that would affect the reputation and built reputation quantitativeevaluation system for SMENO; finally, empirical tests for the relationship betweenreputation factors and life cycle had done and Yongkang mug industry had been taken asa specific object, which demonstrated that the impact of reputation on the life cycle ofSMENO. From the empirical analysis, we draw the following conclusions: throughaccelerating the production phase, promoting the growth stage, extending the stablephase, and putting off the decline phase, the reputation thereby promote SMENO toextend their life cycle.