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

 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

and the

continuous entrepreneurial state is x

, ... x

, then

the set of enterprise states is: I={x

, x

,... x

}, 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

a quantitative description of e elements, x

={x

, x

... x

, ... x

}, i={1, 2,... e}. According to the general

phenomenon of enterprise evolution, we can get

Equation (1):

𝑥



＝





∈(x



+δ,+∞), x



⊂A



∈(x



−δ,x



+δ), x



⊂B



∈[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

similarly, ƒ

, ƒ

, but ƒ

, ƒ

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

∪G

(2)

(2) M

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

∪m

…∪m

},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

∪G

(4)

(4) G

is the gap between the markets occupied by

core enterprises, and G

is the gap within the market

occupied by a core enterprise. The combination of G

and G

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

is "finite countable set" or "infinite

countable set", the result of M - M

= 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

, x0

,... x0

}. This initial state has

the characteristics of an uncountable set. It can be

inferred that this process meets the following

conditions:

𝑙𝑖𝑚

→

infd(ƒ

(x)-ƒ

(y))=0,∀x,y∈S (5)

𝑙𝑖𝑚

→

upd(ƒ

(x)-ƒ

(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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