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Theory of firm boundaries and comprehensive capacity building

Abstract: In this paper, Coase's theory of firm boundaries as a starting point, that is the size of the business and enterprise business resources and capabilities outside of the phase equilibrium outcome of market forces and put forward the ability of enterprises to obtain business advantage is the decisive factor Finally, a competency-based chain of integrated enterprise capacity building framework. Keywords: enterprise comprehensive capacity capabilities border chain according to Coase's theory, the corporate boundaries of coordination in the enterprise through the market to marginal cost and marginal cost of trading the same time. Then, in an external environment, the same industry environment, companies face the marginal cost of market transactions could actually be considered the same, and we also found that the same industry, there will always be different sizes, because what is it? Therefore need a more convincing analytical framework. Enterprise framework enterprise boundary means the boundary size of the business expansion of the boundaries of a sustainable development of enterprises is often accompanied by the continuous outward expansion of the border. Ability of the enterprise is actually the border the border, because the company's resources and capabilities of the different coordination of the lower cost, companies can do the larger scale. Resources are those that can is ultimately needed to reflect the body in specific individuals or groups of potential, dynamic, invisible capable of work or activities of a subjective Size of the business is the ability of internal resources and market power and the balance of power outside the enterprise results (Figure 1). Competition within the industry in the same enterprise, the market power difference is very small. Companies can use the resources and the effective use of these resources to determine the ability of the enterprise relative to other corporate boundaries. This relationship can also be used as follows formula: Q = R (x1, x2, x3, ∧ ∧) • A (y1, y2, y3, ∧ ∧) Q: firm's output or the scale of R (x1, x2,[link widoczny dla zalogowanych], x3, ... ...): resource functions, x1, x2, x3, ... ...: businesses can use the various resources; A (y1, y2, y3, ... ... ): ability to function, y1, y2, y3, ... ...: enterprise capabilities. In the market economy, most of the resources obtained through market transactions. So, in a mature market economy, relying on resources to get business advantage is more difficult. Advantages of such a construction business enterprise depends on the ability of different companies. Special ability of enterprises within the enterprise may belong to different individuals, but exists in the strategic management of enterprises and the special ability to be more highlighted the performance of the assets owned by an organization, rather than an individual's private assets. Enterprise is an organic whole, our analysis should be noted that when the enterprise capabilities of organic complexity and the different mechanical complexity. Based on this, if the enterprise capabilities into marketing capabilities, production capacity, research and development capabilities, and other functional capabilities, is a fragmentation of the enterprise overall. If the enterprise is a kind of machine to machine than the complexity of the method, and if the ratio of the enterprise organism, then that is an organic complex thinking. Features from the enterprise point of view, in fact, closer to the organism rather than the corporate machine, then we should be more thinking from the perspective of the organism's growth and development of enterprises.