What are the characteristics of modern enterprise boundaries?

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Enterprise boundary refers to the business scope and scale formed in the process of interacting with the market based on its core competence, and its decisive factor is business efficiency. The business scope of the enterprise, that is, the vertical boundary of the enterprise, determines the boundary between the enterprise and the market, and determines which business activities should be completed by the enterprise itself and which business activities should be completed by market means; Business scale refers to the scale that an enterprise can produce and operate under the condition that the business scope is determined, which is equivalent to the horizontal boundary of the enterprise.

The characteristic of modern enterprise boundary is that it is very convincing to explain the existence, boundary, heterogeneity and competitive advantage of enterprises with the ability characteristics of enterprises. For example, an enterprise exists because its ability and knowledge are difficult to pass through the market; The extension boundary of an enterprise lies in the applicable boundary of its ability, which determines the business scope of the enterprise, especially the breadth and depth of diversification. The heterogeneity of enterprises lies in the difference of formation and accumulation ability in the production process of enterprises; The distribution of decision-making power within an enterprise depends on the distribution and relationship of enterprise capabilities (knowledge). Therefore, from the economic point of view of enterprise nature, the connotation of enterprise should be defined by the most fundamental homogeneous thing, that is, the "enterprise ability" that can produce intellectual capital. This capability is closely related to the different efficiency levels of each enterprise and has strategic value.