An Empirical Research On The Relationship Between Market Structure And Performance Of Software Industrial In Zhejiang

The development of the software industry can not only promote the development ofnew industries, but also the transformation and upgrading of traditional industries. It hasbecome the strategic industries of the promotion of national economic construction,scientific and technological progress and social development, which marks the level ofdevelopment and modernization of a regional information. The level of its development isan important manifestation of the comprehensive strength of the region. The softwareindustry in Zhejiang Province not only owns the strong growth in consumer demandinformation, information technology investment to accelerating the emerging field of goodopportunities, but also faces the challenges of a weak global economic recovery andshrinking market demand. In the context of this background, it’s necessary to analysis thesoftware industries in Zhejiang Province.This article related to industrial economics theory is based on the empirical study onthe relationship of market structure and performance in software industry of Zhejiang, toverifying whether can adjust the software industry in Zhejiang market structure to furtherimprove market performance, and exploring the inherent law of the software industrydevelopment in Zhejiang and the reasonable to explore the software industry in Zhejiang,sustainable and healthy development.Based on the previous studies the relationship between market structure andperformance, the paper research the relationship between the performance of the softwareindustry and the market structure through the status of software industry in ZhejiangProvince between2008and2013. We analysis the law of the market concentration of thesoftware industry by statistical data in Zhejiang, reference to the software productdifferentiation and entry barriers. Studies have shown that the degree of software industrymarket concentration in Zhejiang Province is declining, and the scale shifts in the nationalranking, but still higher than the national average. Using factor analysis and SPSS.18software, we consider the impact on the market performance of the software industry withthe growth, operations, profitability. Zhejiang software industry supports the hypothesis ofmarket forces, but do not support the hypothesis of efficiency of the structure. Based onconclusion that the impact of market concentration on the software industry of Zhejiangmarket is positive for performance, and market share is not significant impact on the performance, we propose some suggestion from the optimization of market structure andthe improvement of market performance.The innovation of this paper is to verify the applicability of the software industry inZhejiang based on the hypothesis of market forces and effective structure. We examined therelationship between market structure and performance of software industry in Zhejiang,explored the theory application of industrial organization in the software industry andbroadened the scope of industrial organization theory research.