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Definition and composition of enterprise network

Source: Shangpin China | Type: website encyclopedia | Time: 2015-06-19
Enterprise network is the evolution of long-term cooperation and competition between enterprises, and the product of the combination of market and enterprise organization. By relying on network organization, enterprises have obtained a kind of "intangible resources" and a means to resolve conflicts Grandori (2005) believes that enterprise networks and other forms of Network design They are unique in resolving conflicts, because they allow face-to-face exchanges, negotiations and negotiations between enterprises on the allocation of resources, thus helping to increase the fairness of an economic system in distribution and procedures, which is difficult to achieve in unilateral competitive decision-making or central planning, independence and orders. "The emergence of network organizations makes our concept of organizational boundaries change from narrow physical boundaries to more popular and organic boundaries including dynamic working groups and strategic alliances. This not only weakens the internal hierarchical boundaries, but also makes the division between internal and external enterprises less obvious. The enterprise should not be an internal community and cannot be easily broken up, nor can it come together because the enterprises are independent.
   
At present, although the enterprise network has become a hot spot in theoretical research in recent years, the research on enterprise network organization has received extensive attention, and many scholars have also conducted extensive research on its meaning, manifestation, operation mechanism, management mode and other aspects from the perspective of economics, management and sociology, However, what is enterprise network and its constituent elements is still the starting point of research.

 
  Enterprise network
 

1、 Definition of enterprise network
   
Thorelli (1986) believes that the network structure among enterprises is an organizational form between market transactions and hierarchy. Qin Qin (2004) believed that a generally accepted definition of network organization at present is that network organization is a consortium composed of multiple independent individuals, departments and enterprises for common tasks, and its operation does not rely on traditional hierarchical control, On the basis of defining the roles of members and their respective tasks, Cheng Jiajian (2004), from the perspective of organization, believes that network organization is an organization management mode characterized by specialized joint assets, shared process control and common collective purpose, and it is a mountain active node The three-dimensional connection mode and information communication mode between nodes constitute a whole with network structure. Ruan Deli et al. (2003) pointed out that enterprise network is a contractual relationship or institutional arrangement of economic activities between enterprises formed by the mutual substitution of enterprises and the market. In addition to the physical connection between inputs and outputs, the network relationship between enterprises also includes the mutual communication between enterprises to provide guidance for the production and operation of enterprises. This book believes that network organization is a complex socio-economic organization form that transcends the traditional dichotomy of market and enterprise. Its formation and role are multidimensional, including economic, historical, cognitive, normative and other factors. Moreover, this complex organization form is a dynamic and evolving historical process depending on a certain path, The displayed state is stable under certain Iul and conditions. In essence, the enterprise network is to entrust some fields or business links to other enterprises in explicit or implicit ways, such as contracts, agreements or trust, in order to maintain or expand their competitive advantages in the competition when the internal resources of the enterprise are limited or the external operating costs are too high, and to integrate and make up with external resources in order to seek the double optimization of the whole and the individual.

2、 Network elements
   
Sun Guoqiang (2001) believed that the elements of network organization generally include five elements: network objectives, network nodes, economic connections, operating mechanisms and network protocols. Luo Zhongwei (2000) believes that network organization consists of three elements: structure, process and purpose. Sheng Shihao (2006) pointed out that the main body of the global production network can be divided into leading enterprises and suppliers, and network elements are not only the connection mechanism to maintain and coordinate the internal nodes of the global cattle production network, but also the link to determine the mutual relationship and benefit distribution between enterprises. It includes network governance, production activities and related functions as well as geographical allocation. It can be seen that the enterprise network is composed of five elements, namely, mountain node enterprise, purpose of recruitment, connection, network structure and operation mechanism
   
① Node enterprises
 
Node enterprises are the essential elements of a network organization. They are independent enterprises or socio-economic organizations. They can be divided into homogeneous nodes and heterogeneous nodes according to their nature. Homogeneous nodes have the same or similar functions and are characterized by substitutability. The cooperation between homogeneous nodes is often competition or cooperation. Heterogeneous bamboo nodes have obvious functions A, and are characterized by differences. The cooperation between heterogeneous nodes is mostly complementary. Node enterprises provide resources and technologies to the network, and they adapt to the uncertainty and complexity of the external environment with changing collective behavior. W point enterprises have information processing and decision-making functions. Their status and role in network organizations are determined by their contribution to information processing capacity and network price, so node enterprises are dynamic and interactive.

② Canadian purpose

The purpose is the motive force for the action subject to participate in or implement certain actions. Network organizations have both common monthly standards and individual goals for node enterprises to participate in the network. The common goal is the cornerstone of the existence of any organization and the driving force for carrying out activities. The network goal is the guide for the operation of the network organization. Under the guidance of the common collective U goal, arrange the resources needed to achieve the strategy and coordinate the economic behavior of all partners. However, the common goal of the enterprise network is not immutable, it often changes with its environment, and it is realized by network members according to their participation in the network in action. Network members participate in network activities for a certain month, and the goals of these individuals are different, but they can form joint forces, play a role, and achieve the unity of individuals and the whole.

③ Connecting ties

Network organization is not a simple combination of different nodes. It connects nodes through certain information communication methods and interaction dependent paths to form an organically connected network architecture. The connection modes among node enterprises include contractual connection, capital connection, regional connection, cultural connection, etc. The node enterprises construct a network structure through the connection relationship, and determine the stability of the network structure and the price allocation rules of the network. In addition to a few contractual and capital ties, the connection of enterprise networks is usually loose and voluntary. In other words, enterprises have little or no material costs when they break away from network relationships.

④ Network structure

Structure is the basic framework of the network, through which all node enterprises are connected and promoted to play a role. In the network structure, node enterprises not only operate by themselves, but also can be supported by the network. The network structure will become more complex with the increase of network nodes, and the optimal structure of the network is often the one with the longest duration. In addition, the network structure also determines the position of the enterprise in the network, and then determines the distribution rules of the network. Therefore, before joining the network, the enterprise must have a certain understanding of the original network structure and its upcoming changes.

⑤ Operating mechanism

The operation mechanism is the regulator of the network organization. When the mechanism is in place, it will effectively coordinate, restrict and encourage the behavior of the cooperative members, so that the network organization is in a good operation state; On the contrary, enterprise behavior will be disordered and effective decision-making will not be formed, and the economic activities of network organizations will be distorted. Therefore, to ensure the effective operation of network organizations, in addition to building a reasonable network structure, it also depends on the establishment of operating mechanisms, including trust mechanisms, coordination mechanisms, decision-making mechanisms, constraint mechanisms, incentive mechanisms, distribution mechanisms, etc.
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