Enterprise Relationship Investment and Competition —A Perspective of Industrial Organization Theory
1.Department of Economics and Trade, Taizhou Vocational & Technical College; 2.Institute of Industrial Economics, Jiangxi University of Finance and Economics
Abstract: As a social capital, an enterprises social network of relationship plays an important role in reducing transaction cost and getting priority in business. The relationship capital inventory depends on the comprehensive evaluation of an enterprises initial obtainable business. Under the same conditions of comprehensive evaluation, the optimized relationship capital inventory cannot change the probability of getting business, whereas under the different conditions, it will result in depletion of rent and waste of resources in the long run although relationship investment can affect the probability of getting business.
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