Research on the Theoretical Model of Enterprise Entrepreneurship
Based on Complexity System
Jianfeng Lin and Na Li
*
Chengdu Neusoft University, No. 1 Dongruan Avenue, Qingchengshan Town, Dujiangyan City, Chengdu, China
Keywords: Attractor, Complex System, Environmental Change, Corporate Entrepreneurship.
Abstract: This paper describes the dynamics of corporate entrepreneurship system by using the principle of complexity
system. Put forward the concept of attractor in the evolutionary dynamic system of enterprise entrepreneurship,
and divide enterprise entrepreneurship into three states: enterprise recession, stable survival and
entrepreneurial development by using different values of attractors. This paper believes that the existence and
development of enterprises is a dynamic process, which has an effect and influence on enterprises and their
entrepreneurial behaviors and processes.
1 INTRODUCTION
1.1 System Theory
In 1968, the Austrian scholar L.Von Bertalanffy
published the representative work of general system
theory General System Theory: Foundations,
Development, Applications. Bertalanffy defined the
concept of general system as "a system is a whole of
various components in a certain relationship with the
environment"
(PETROV A A, RESCONI G, FAGLIA R,
et al 1984)
.
The core idea of system theory is the concept of
system as a whole. Bertalanffy emphasized that any
system is an organic whole, which is not a mechanical
combination or simple addition of various parts. The
overall function of the system is a new quality that
greater than the sum of parts" to explain the integrity
of the system, and opposed the view that the element
each element does not have in an isolated state. He
used Aristotle's famous saying that "the whole is
performance is good, the overall performance must be
good, and the overall performance must be good, so
as to explain the mechanical theory of the whole in
part. At the same time, it is believed that each element
in the system does not exist in isolation. Each element
is in a certain position in the system and plays a
specific role.
1.2 Definition of Corporate
Entrepreneurship System
Corporate entrepreneurship is a systematic
organizational behavior or activity. A number of
macro environmental factors and micro
environmental factors that affect corporate
entrepreneurship are closely related to each other in
interdependence, mutual restriction and interaction.
They are "an organic whole with specific functions
and relationships with the external environment
formed by a number of interrelated and interacting
components"
(HE XIAOLAN 2010). In order to better
study the systematic activity of corporate
entrepreneurship, this paper applies the principle of
system theory, Analyze and study the entrepreneurial
activities and processes of enterprise organizations in
detail, and reveal the laws of corporate
entrepreneurship from the perspective of system
theory.
In this paper, "corporate entrepreneurship system"
is defined as an organic whole composed of
interrelated and interacting macro environmental
elements and micro elements, which can promote
enterprise entrepreneurship and the generation of new
enterprise value
(MIAORONG L, GU D2006).
Lin, J. and Li, N.
Research on the Theoretical Model of Enterprise Entrepreneurship Based on Complexity System.
DOI: 10.5220/0012033800003620
In Proceedings of the 4th International Conference on Economic Management and Model Engineering (ICEMME 2022), pages 407-411
ISBN: 978-989-758-636-1
Copyright
c
2023 by SCITEPRESS – Science and Technology Publications, Lda. Under CC license (CC BY-NC-ND 4.0)
407
2 ANALYSIS OF
ENTREPRENEURIAL SYSTEM
OF COMPLEX ENTERPRISES
2.1 Dynamics Description of Enterprise
Entrepreneurship
(1) Entrepreneurship Status
If the current state of the enterprise is x
0
and the
continuous entrepreneurial state is x
1
, ... x
k
, ... x
n
, then
the set of enterprise states is: I={x
0
, x
1
,... x
k
,... x
n
}, k
∈[0, n]. The enterprise status here includes enterprise
strategic orientation, share of entrepreneurial
resources, organizational management level
(HUINING, ZHANG XIAONING 2009), core
competitiveness and other internal endowments of the
enterprise, as well as external forms such as market
opportunities, profit levels, and enterprise size, X
k
is
a quantitative description of e elements, x
k
={x
1
k
, x
2
k
,
... x
i
k
, ... x
e
k
}, i={1, 2,... e}. According to the general
phenomenon of enterprise evolution, we can get
Equation (1):
𝑥
＝
x
∈(x
+δ,+∞), x
⊂A
x
∈(x
−δ,x
+δ), x
⊂B
x
∈[0,x
−δ), x
⊂C
,
k∈[0,n]
A∪B∪C＝I (1)
In this way, the entrepreneurial status of
enterprises is divided into three categories: first, the
enterprise has developed more than the previous time,
which is defined as status A
(LV GUIXING 2006);
Second, the enterprise has no significant change
compared with the last moment, which is defined as
state B; Third, there is a recession compared with the
last moment, which is defined as state C. The
dynamic system acting in A state is recorded as ƒ
A
,
similarly, ƒ
B
, ƒ
C
, but ƒ
A
, ƒ
B
, ƒ
C
are not fixed and can
be transformed into each other.
(2) Environmental Status and Evolutionary Goals
Because the enterprise is not an isolated system, its
entrepreneurial evolution is not only dominated by
the dynamic system formed by its own endowment,
but also affected by the environment. The external
environmental factors that play a key role in
enterprise entrepreneurship mainly include
government mechanism, social mechanism and
market mechanism. Averitt believes that there are two
enterprise clusters in the modern economy, namely,
the core enterprises and the peripheral enterprises
(ZHU Q H, Dou Y J 2007).Hollander pointed out:
"The continuous interaction of market and
technological changes has created opportunities for
the development of enterprises to make up the gap
between mass production and mass circulation,
despite the concentration of resources and economic
forces to huge enterprises…… Enterprises can give
full play to the professional technology and
management capabilities formed by 'product
differentiation' to find the 'gap' in the market"(LI
GENGYIN, HUANG NINGHUI 2001) Translate
these qualitative descriptions into mathematical
language to define the set M of the whole market:
M=M
1
∪G
(2)
(2) M
1
is the collection of a large number of
markets occupied by core enterprises, and G is the
collection of gaps between M1. For M1, it can be
expressed as:
M
1
＝{m
1
∪m
2
…∪m
i
…∪m
n
},i={1,2, …,n} (3)
(3)
M1 conforms to the mathematical
definition of countable set. When n is finite, M1
is "finite countable set"; When n →+∞, M1 is
"infinitely countable set". Further decompose
the set G:
G=G
1
∪G
2
(4)
(4) G
1
is the gap between the markets occupied by
core enterprises, and G
2
is the gap within the market
occupied by a core enterprise. The combination of G
1
and G
2
includes the gap market of these large core
enterprises. For the whole market set M, it represents
a continuous real number interval, and the
mathematical description is "infinite uncountable
set". Whether M
1
is "finite countable set" or "infinite
countable set", the result of M - M
1
= G is "infinite
uncountable set" (ZUO YALI 2007).
The market of "infinite and uncountable sets" not
only explains the soil and realistic possibility of
enterprise entrepreneurship, but also infers that the
entrepreneurial space of enterprises is huge, which
further indicates that in addition to rapid growth, the
entrepreneurial evolution goal of enterprises is "stable
survival", which is the realistic development status
and development goal that most enterprises should
establish.
(3) Chaos, Criterion and Characteristics of
Entrepreneurship Process
There is chaos in the process of entrepreneurship.
Chaos has the following basic characteristics:
dependence sensitive to initial conditions, internal
randomness, irregular order, etc. These features are
the basis of various chaotic identification methods
(YILANG TAITIAN 1991).
The enterprise conducts entrepreneurial evolution
under the role of the dynamic system. The process can
be described as follows: ƒ: I → I is the mapping of the
entrepreneurial evolution process of the enterprise,
where ƒ is the dynamic system of entrepreneurial
ICEMME 2022 - The International Conference on Economic Management and Model Engineering
408
evolution of the enterprise; I is the survival state of
the enterprise; The current state set of an enterprise is
S ⊂ I, S= {x0
1
, x0
2
, x0
3
,... x0
e
}. This initial state has
the characteristics of an uncountable set. It can be
inferred that this process meets the following
conditions:
𝑙𝑖𝑚
→
infd(ƒ
n
(x)-ƒ
n
(y))=0,∀x,y∈S (5)
𝑙𝑖𝑚
→
upd(ƒ
n
(x)-ƒ
n
(y))>0,∀ x,y∈S,x≠y (6)
(5) The economic explanation of the formula is
that two initial states of the same enterprise may
eventually reach the same state after a long period of
entrepreneurial evolution
(6) The formula represents that the same
enterprise may eventually reach different states after
a long period of evolution under two different initial
states.
Through qualitative empirical analysis, it can be
concluded that these two conditions are valid in the
entrepreneurial evolution process of enterprises.
Based on these two conditions and the possible A, B
and C states of enterprises under the action of
dynamic system, according to Li——Yorke theorem,
it can be determined that the entrepreneurial evolution
process of enterprises may be chaotic(TIAN GENG
2013).
2.2 Enterprise Entrepreneurship
System Model
As shown in Figure 1, Based on the above research
on the structure of the corporate entrepreneurship
system, according to the characteristics of the
corporate entrepreneurship system in China,
according to the characteristics of the system, we call
the system composed of micro elements such as
entrepreneurs, opportunities, resources as the system
element system. The external supporting factors of
government mechanism, market mechanism and
social mechanism will become the environmental
system(FAN ZHONGQI, CAO MING 2006).
Figure1: Structural model diagram of the company's entrepreneurial system.
Based on the above discussion, a theoretical
model and a series of assumptions on the mechanism
of corporate entrepreneurship elements are
proposed, as shown in the figure below 2.
Research on the Theoretical Model of Enterprise Entrepreneurship Based on Complexity System
409
Figure 2: Model and hypothesis diagram of the mechanism of the role of entrepreneurial factors.
H01: Entrepreneurial orientation of entrepreneurs
interacts with entrepreneurial behavior of companies,
and the two are positively correlated;
H02: Entrepreneurial resources interact with
entrepreneurial behavior, and they are positively
correlated;
H03: Entrepreneurial opportunities interact with
entrepreneurial behavior, and they are positively
correlated;
H04: Entrepreneurial resources interact with
entrepreneurial orientation of entrepreneurs, and they
are positively correlated;
H05: Entrepreneurs' entrepreneurial orientation
interacts with entrepreneurial opportunities, and the
two are positively correlated;
H06: Entrepreneurial resources and
entrepreneurial opportunities interact and are
positively correlated;
H10: Corporate entrepreneurial behavior interacts
with the environmental support mechanism, and the
two are positively correlated.
H11: The government mechanism plays a positive
role in the environmental support mechanism, and the
two are positively correlated;
H12: The market mechanism has a positive effect
on the environmental support mechanism, and the
two are positively correlated;
H13: The social mechanism has a positive effect
on the environmental support mechanism, and the
two are positively correlated;
H14: The government mechanism interacts with
the market mechanism, and the two are positively
correlated;
H15: Market mechanism and social mechanism
interact, and they are positively correlated;
H16: The government mechanism interacts with
the social mechanism, and they are positively
correlated;
3 RESEARCH CONCLUSION
Based on the principle of complex system, this paper
describes the dynamics of corporate entrepreneurship
system, puts forward the concept of attractor in the
evolutionary dynamic system of corporate
entrepreneurship, and divides corporate
entrepreneurship into three states: corporate
recession, stable survival and entrepreneurial
development by using different values of attractors.
Because attractors are attractive, stable and ultimate,
enterprises have a tendency to develop towards
attractors under their own conditions and external
environment. At the same time, it points out the
bifurcation points of the system, at which the
entrepreneurial system changes from one equilibrium
state to another.
ACKNOWLEDGMENTS
This paper was supported by a project of Guangxi
Natural Science Foundation. Project name: Research
on several intuitionistic fuzzy multi-attribute decision
models: using decision maker preferences as an
analytical perspective. Project Task No:
2018GXNSFBA281102. Project Application No:
2018JJB180015.
ICEMME 2022 - The International Conference on Economic Management and Model Engineering
410
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