Review of the Western analysis of organizational theory in circulation

[Abstract] In Western Economic theory, the study of the circulation of tissue scattered in the research organization, although the Western study of organizational theory in circulation through a scratch, from static to dynamic, from simple to complex, from the abstract to specific, from the individual to the system, from homogeneous to heterogeneous development process, but different schools of thought have their own analysis to provide a perspective, so that gradually enriched the study.

[Keywords] Western Economic theory circulating tissue organization

Neo-classical Economics on the theory of market equilibrium assumption automatically within a country or may set up, but expanded to between countries, due to factors not flow freely, the interaction of supply and demand is difficult, circulation or trade problems have surfaced out as an Economics problem can not be avoided.


Comparison of several distribution organization theory
The flow of the organization in new institutional Economics theory of new institutional Economics and business are the market as a system, and transaction costs between the two systems as an alternative reason. Coase's transaction costs through a general analysis of the institutional factors as an important variable introduced into Economic analysis, trading activity and demonstrated the scarcity of enterprise systems, he pointed out that "business is the nature of the price mechanism to replace". ① range in size of the business, as business management authoritative presence, making the cost of internal coordination mechanisms to be less than the price of the costs incurred by the operation, although the concept of Coase's transaction is not explicit, but for in-depth study of market transactions between the organization and integration between the intermediate type of organization for the regulation of contractual relations theory of development, provides a theoretical perspective and concepts necessary prerequisite Williamson on transaction costs, Coase developed the concept, he believes distinguish the various types of transactions marked by asset specificity, uncertainty and frequency of its occurrence. From the perspective of asset specificity, his analysis of why the business will occur prior to integration (ie, organization of production and sales organization integration, backward integration (ie, organization of production and supplier integration, but Williamson said only the vertical market integration can save transaction costs, but did not explain what happens when it is vertical integration? when vertical integration occurs, in the end who is integrated Who? is an integrated organization of production flow of the organization, or vice versa? for Grossman, Ha and Moore for the special representative of the incomplete contract theory, from the perspective of property rights and incentives to re-examine the costs and benefits of integration, which compared with the traditional theoretical framework, no doubt, is a major breakthrough.

New Classical Economics, organization theory .20 circulation since the 1980s, to Rosen, Becker, Xiaokai, Huang Youguang as the representatives of the economists, with the ultra-marginal analysis method, re-classical Economics on the division of labor and the important ideas into professional and balanced decision-making models, and distribution organizations in a more systematic analysis.

Distribution organization for the emergence of new classical Economics, that is the result of division of labor, they said: When the circuitous chain of production continue to lengthen, the deepening division of labor, professional traders would appear, then the transaction appeared in the hierarchical organization of professional businessmen in the top professional production of various products in the lower when transaction efficiency continue to improve, it will become increasingly long as the division of labor in roundabout production chain, leaving the division structure to enhance the level of increase not only due to the division of labor in different industries appear hierarchical organization, but within the industry will also appear in the same hierarchical organization, "when the transaction to further improve efficiency, the trading industry, the emergence of specialized wholesalers in the trade between regions and local buyers to deal directly with end retailers, This allows the product to further increase the efficiency of the transaction, thereby producing an increase in the division of labor ... .... "②
For the flow of the evolution of the organization, they believe that productivity gains so that people can choose a higher level of specialization, while the higher level of specialization, in turn accelerated the accumulation of experience and skills improve, so that further improve productivity. In this way, giving rise to a virtuous cycle in which accelerated the evolution of division of labor, however, whether elevated professional level people can really speed up the rate of accumulation of professional knowledge, but also depends on the level of understanding of the optimal division of labor.

Study of the history of the flow of business organization theory. Chandler proposed that the rise of large enterprises managed to create the organizational capacity of enterprise and a source of sustained competitive advantage and the momentum of economic expansion, determine the enterprise and prosperity of a nation, he that the United States the rise of modern industrial and commercial enterprises, on the one hand is the organizational structure of multi-sectoral, multi-sectoral structure of production and proliferation because it is more effective coordination of large-scale production and distribution, especially distribution organization, taking advantage of new technologies of the potential for organizational innovation, "this opportunity for entrepreneurs in the area of ​​distribution of the reaction is much faster than production, because the distribution of innovations is mainly organizational rather than technical in their fields of transport and communications innovative response is almost immediate. "③ the other hand, paid professional managers in the business management functions of the business owners an alternative - that is," management revolution "," management revolution "is in mass production enterprises After the first horizontal or vertical merger vertical integration of these two ways, the combination of high-volume distribution business into its own process of completion. The management revolution of the result, "the modern industrial and commercial enterprises in the coordination of economic activities and the allocation of resources has been replaced by The so-called market forces of Adam Smith's invisible hand. "④ so, the modern industrial and commercial enterprises have two consequences: First, coordinate production and distributor of high-throughput needs, encourage enterprises to employ a large number of professional managers, the second is occurred during the merger the management of centralized, resulting in the separation of ownership and management, resulting in the gradual control of paid professional manager of enterprise management. Links to free download http://www.hi138.com
Evolutionary economics in the flow of organizational theory that the evolution of economists Kaldor, general equilibrium theory does not reflect the true reality of the state, because the flow of mainstream economics ignores the existence of the organization, and it is the existence of the organization in circulation, only to make reality present non-equilibrium state, he believes that Walrasian general equilibrium theory in 100 years after the development is backward rather than progress, because of assumptions which are more stringent than ever, but also more abstract. Walrasian economic equilibrium was originally phenomenon of a "typical case" and that "typical examples" usually associated with the real economic process is exactly the opposite. Walrasian equilibrium, only two types of producers and consumers, market players, they are both the buyer and the seller, whereas in real markets, traders and brokers that the flow of the organization is the market maker is that they initiate to adjust the producer price changes in supply and consumer demand, they rely on "spread" for a living, "difference" must include the profit and inventory costs to compensate for the risk of future market prices fall. the sale and purchase of any differences will be reflected in the inventory, which forced the organization must adjust its distribution price and the purchase price in order to adapt to the market turmoil, the magnitude of price changes depends on the flow of the organization's expectations and commodity prices are expected to believe that the extent of this due to merchants and other organizations in circulation there, the market is not strictly under the standard theory of supply and demand balanced sense of the "market clearing", the stock market always changing, which is less than the supply demand is not over, even the short time of the transaction is not conducted in a uniform price market prices are changing every minute.

Overall assessment
Xiaokai, who pioneered the new classical economics, that with the continuous improvement of the efficiency of the transaction, the evolution of division of labor will occur, and the constant flow of specialization and the evolution of the organization are a manifestation of this evolution, although new classical economics attempts to In the revised neo-classical marginal analysis, based on relatively static from the perspective of general equilibrium and the division of labor, economic organization and transaction cost theory in a completely unified system, but this effort is a failure because "the theory of division of labor in its is still a black box ", ⑤ the so-called general equilibrium point of supply and demand balance is just a hypothetical analysis of the optimal conditions, either exogenous or endogenous transaction costs concept of transaction costs, do not break through the limitations of neo-classical economy. seen emerging from the classical can not really grasp the historical perspective to the division of labor, technology, economic organizations and many other areas of the relationship between, and, new classical economics does not distinguish between the market and the division of labor within the enterprise division of labor, to the neglect of enterprises to achieve increasing returns as a person's internal mechanisms.

Chandler interpretation of history has proven, business development capabilities through its organization in the United States, Britain and Germany's industrial economy has played a central role in the subject an anti-mainstream economics, the latter on economic growth studies rely on the concept of production function, that is treated as a source of output growth factors of production - labor, capital and land, growth, or productivity growth of these elements, but on Chandler, the United States and Germany than in Britain decisive factors and not just physical capital investment rate, not the government, entrepreneurs, personal qualities or cultural factors (although these factors play a role, but support the development of vertical integration, large enterprises and organizations of professional management system development Chandler is set out in blind spots of mainstream economics: the "visible hand" of the important role and the production and sales management system and structure of the investment component of gross capital formation. Chandler The most controversial argument is that he may have organizational innovation to all of the reasons attributed to technology.

Kaldor's existence from the circulation to start the organization, demonstrates the absurdity of general equilibrium theory, to that of being ignored by mainstream economists, an organization - distribution organization in the process of refuting the theory of equilibrium, Kaldor believes it is The emergence of flow of the organization, so the price changing, circulation spreads to rely on the organization to survive, the organization is the real flow of the market maker. Kaldor from a phenomenon we all turn a blind eye to start, the orthodox neo-classical economics, the concept of a challenge, use of modern dynamic analysis to reveal the process of economic development and institutional change, and tried to reconstruct paradigm of economic analysis, but the purpose of Kaldor's argument is refuted equilibrium theory of error, so he is only the existence of the organization to start from the circulation , the lack of circulation economics of organizations to further in-depth analysis.

Although different schools have their own analysis to provide a perspective for the study of tissue circulation is often covered in the study of organization as a whole, but the content is more abundant, more in-depth research-level course, with the the flow of the organization in strategic industries in the modern production status of the establishment of distribution organizations, research has yet to be demonstrated from the economics system. Links to free download http://www.hi138.com
Note
① R. H. Coase. "The Nature of the Firm: Origin", Journal of Law, Economics, & Organization, Spring, 1988. Vol.4, No.1, 4.

② Xiaokai, Zhang YS: <<new classical economics, marginal analysis and ultra->>, Beijing: Social Sciences Academic Press, 2003, p. 142.

③ [United States] D · small Alfred Chandler: <<enterprise economies of scale and scope economy>>, Beijing: China Social Sciences Publishing House, 1999, p. 67 - 68.

④ [United States] D · small Alfred Chandler: <<visible hand>>, Beijing: Commercial Press, 2004, p. 1.

⑤ Nicholas Kaldor.Causes of Growth and Stagnation in the World Economy.Cambridge University Press, 1996,13. Links to free download http://www.hi138.com