Internet、Firm Boundary And Market Integration

Firm Boundary is one of the three most important aspects of theory of modern enterprise, through the research of firm boundary, especially the research of its changes and the factors that may lead to these changes is conducive to deepen the understanding of the nature of the enterprise. With the development of science and technology, the traditional organizational structure has basically been changed in this Internet age, firm Boundary has undergone major changes and the degree of market integration increased significantly. This paper attempts implement a comprehensive understanding of the impact of the Internet on firm boundary from the transaction cost perspective, and explore the form of enterprises in the new economic patterns, which is conducive to deepen the awareness of the market integration in the future, and guide business development decisions. The structure of this paper is divided into six parts:The first part is preface, introduces the research background and its significance, major problems and research methods of this study.The second part is related surveys. By citing relevant literature and theories, to understand the relationship between enterprises and the market from the perspective of the transaction cost, and discusses firm boundary problem and integration market theory from all directions.The third part analyzed various aspects of the impact of the Internet on the company’s internal and external transaction costs incurred, and believe the core impact of the Internet to dimensions of transaction costs is to increase the dissemination of information. Development of the Internet makes the enterprise’s internal and external transaction costs have been reduced.The fourth part investigates the vertical integration of enterprises. First we recognized the mergers and vertical integration in recent years, then come to more definitive conclusions through empirical research, that believe with the use of Internet and other information technology, the vertical boundary of firms tends to shrink, at last use of the traditional firm boundary model to recognize the affect areas of Internet.The fifth part make a description of the importance of market integration in this issue, and then examined in detail of the qualities that Internet companies have in this new economy pattern, and discussed by example and related models.The sixth part summarizes the research findings and shortcomings, and subsequent directions in the future.