What Is Industrial Organization?
Industrial Organization refers to the organization or market relationship between enterprises in the same industry.
Industrial organization
- The concept of organization in economics
- An industrial organization is an "aggregate" of industry, with certain structural conditions. That is to say, as an industrial sector, "there are many basic units. These basic units constitute an industrial sector according to certain conditions. These conditions are the commonality between the elements of the collective. They are summarized as follows.
- First, productivity. The so-called productivity is the function of creating wealth. Generally speaking, there are two kinds of production. "In the first production, the producer materializes"; "In the second production, the materialization created by the producer". However, "all production is the possession of nature by individuals in a certain social form." This possession is creation
- Industrial organization and enterprise organization
- Difference between the two
- Industrial organizations correspond to intra-firm and inter-firm relationships, while corporate organizations mainly refer to intra-firm organizations, including bureaucratic organizations (U-shaped structure, H-shaped structure, M-shaped structure, and X-shaped) Structure) and corporate governance structure (Corporate Governance).
- Corporate bureaucracy
- The departmental organization within the company. In the past, the departmental organization inside the company was mostly U-shaped, that is, the unitary structure of the department divided by function. With the development of science and technology and the expansion of the size of enterprises, the M-type structure is currently used, that is, the division system or Multidlisional Structure. Enterprise groups mostly adopt H-type structures or holding company structures. The X-shaped structure is a mixture of these structures. An enterprise group is a "gray organization" between "pure industry" and "pure enterprise". It is said that it is an "enterprise", and the companies that make up the group are mostly independent legal persons. They are said to be decentralized individual enterprises, and there is a certain degree of coordination between them. More emphasis on the independence of the enterprise will reflect the market characteristics more; more emphasis on the coordination between the enterprises, it will more reflect the hierarchy (Hierarchy).
- Corporate governance structure
- Another important aspect of the internal organization of an enterprise is its corporate governance structure. This is also a hot issue in the study of industrial economics. In fact, the reason is very simple, industrial organizations pay attention to corporate behavior, and corporate behavior is largely determined by the corporate governance structure of the enterprise. For example, in general, companies with stronger shareholder control focus more on profit maximization, and companies with stronger inside people control, such as managers, may pursue enterprise size (or maximize sales).