Author(s)

Jing Ma

Corresponding Author

Jing Ma

Abstract

If any business theory is conceptualized and modeled to explain and anticipate the characteristics and behavior of the firm, then such corporate theory can be traced back very early in the history of economics, at least in Adam Smith. A piece of discussion can be found there. But the problem is that in the traditional economics where the West is in the mainstream, it has long been only in the sense of treating the enterprise as an abstract producer, to analyze the characteristics and behavior of the enterprise; as for what the enterprise itself is, It’s always just a “black box”. It was not until the rise of the new institutional school represented by Ronald Coase that the situation changed. Since then, modern enterprise theory has gradually become mainstream. However, although modern enterprise theory has brought the attention of the economics community to corporate theory to the understanding of the enterprise itself, the theory of this school has not satisfactorily explained the enterprise itself. The root cause is that the school has never regarded the enterprise as an organization, and its theory does not address the characteristics of the organization as an organization and the resulting internal structure of the organization.

Keywords

Enterprise Organization, Economic Analysis, Social Economy Activity