Endogenous Growth Theory - An Explanation Based on Information and Knowledge

Author: Wang Jing'an
Publisher:
Publish Date: 2006-06-01
Features: This book attempts to answer the question of the determination of enterprise scale from the perspective of the generation, acquisition, processing, and utilization of information and knowledge. The book views enterprises as institutional arrangements for producing, collecting, processing, and utilizing information, with the core issue being how to effectively collect, process, and utilize information. In enterprises, on the one hand, business operations generate and require a certain amount of information, and the generation and flow of enterprise information are constrained by material laws. On the other hand, enterprises must promptly collect, process this information, and use it to make decisions. In enterprises, the collection, processing, and utilization of information are completed through bureaucratic structures. The organizational structure, incentive structure, and their compatibility with information characteristics determine the efficiency of information acquisition, processing, and utilization. Therefore, under certain environmental conditions, a certain scale and technological level of enterprises always imply a certain amount of information. To support a certain enterprise scale, it is necessary to possess the ability to acquire, process, and utilize the information contained within the enterprise. Ultimately, the scale of the enterprise is determined by its information capacity and its ability to acquire, process, and utilize information.