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Characteristics of enterprise network

Source: Shangpin China | Type: website encyclopedia | Time: 2015-06-19
From an economic perspective, Network production The essential characteristic of an organization is a quasi market organization of cooperation and competition. Its basic attributes and characteristics are compatible with the new technological and economic environment, and highly consistent with the trend of industrial development. The characteristics of network organization mainly include the following aspects

(1) In the network organization, the enterprises are in essence a kind of value complementary relationship
 
For all products and services in the network, we should start from the market demand. We should spontaneously organize production and services under the overall plan of the core enterprise (product), sell them through a unified network channel and under a brand with a strong business backbone. Finally, we should share profits according to the value of their respective products (services). Each member has a well planned coordination mechanism and a fully functional information network to achieve the best configuration through the fast communication system. On the basis of complementary advantages among network organization members, a cross enterprise, cross industry and even cross region value chain has been formed. This value-added value chain ensures that enterprises in all links can survive by adding value.

(2) Network organization is an institutional arrangement between meso market and enterprises

Corresponding to the traditional bureaucratic organization, the network organization transcends the physical boundaries of the traditional organization and forms an organizational structure across the enterprise boundaries. The main structure of the network organization is a highly integrated organization across formal boundaries. The point-to-point connection between network organizational units supported by information technology breaks the boundaries of enterprises and blurs the geographical boundaries. It focuses on the use of "shared resources" outside the enterprise, thus weakening the boundaries between the enterprise and its external environment. It also weakens the differences between suppliers, customers, distributors and competitors. Networked enterprises are often regarded as the boundary of enterprise networks

 
 Enterprise network
 
(3) The key to network organization is to construct network relationships that can produce interaction
 
After the formation of the network, the behavior of node enterprises is neither completely controlled by the price mechanism, nor completely determined by various plans and authorities within the enterprise. Its overall operation is to achieve the common goal through intensive multilateral contact, mutual benefit and interactive cooperation on the basis of defining the roles and tasks of its members. The value of the network organization lies in the overall connectivity, It does not seek to repeatedly use its own production factors at a lower cost, but aims to give play to the complementary and proportionate effect of heterogeneous technology, information and management experience by virtue of the association of related enterprises, The network organization has realized the interactive transformation from the rationality of the internal structure to the external coordination. Intensive multilateral contacts and full cooperation are the important characteristics of the network organization. This is the biggest difference between the network organization and the traditional enterprise organization. At the same time, the behavior of enterprises is bound to be restricted by the requirements of the overall objectives of network organizations, the way of cooperation between enterprises and other conditions. The core problem of network organization does not lie in the boundary definition of enterprise economic activities, nor in the selection of reasonable bureaucratic organization forms within the enterprise and the matching of the best combination of internal production and external purchase, but lies in the network relationship that can induce various interactions inside and outside the enterprise and its construction equilibrium effect.

(4) The Boundary of Enterprise Network
 
Although the network has not fundamentally changed the "enterprise market" dichotomy structure, it has, to a certain extent, subdivided the original structure, making the transactions between enterprises and the market more complex, thus forming a fuzzy boundary of the enterprise network. The intermediary of the network makes the original internal non networked and networked organization of the enterprise connect with the networked and non networked structure of the external market of the enterprise, which blurs the boundaries between the original enterprises. At the same time, the different mechanisms in the formation process of network organizations usually make the network unable to be in a saturated state. In addition, there are some intermediate forms in the market space, such as enterprises and alliances, which are dissociated from the network organizations and the network market. This provides conditions for the expansion and "fission" of enterprise networks. The network is an organization used to implement the interrelation of project tasks. All elements with "liquidity", such as tasks, information, funds, can change the scope of the enterprise network, which has motivated the change of the network organization boundary.

(5) Rich formation and operation mechanism

The operation mechanism of the enterprise network is the regulator of the network organization. If the mechanism is in place, it will effectively coordinate, constrain and encourage the behavior of the cooperative members, so that the network organization is in a good operating state; On the contrary, enterprise behavior will be disordered and effective decision-making will not be formed, and the economic activities of the network organization will be distorted. Therefore, to ensure the effective operation of the network organization, in addition to the reasonable construction of the network structure, it also depends on the establishment of the following operating mechanisms, including the trust mechanism, coordination mechanism, decision-making mechanism, constraint mechanism, incentive mechanism, distribution mechanism, etc, Enterprise network is a dynamic game equilibrium formed under various mechanisms and incentives
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1. Part of the content of this site comes from the network, and the copyright of some articles and pictures involved belongs to the original author. The reprint of this site is for everyone to learn and exchange, and should not be used for any commercial activities.

2. This website does not assume any form of loss or injury caused by users to themselves and others due to the use of these resources.

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