Organizational Capital and the Nature of the Corporation

By differentiating and analyzing the concept of organizational capital of the enterprises,this paper defines the connotation of the organizational capital as the shared resources or assets in the production,operation and management activities,which are accumulated in the long-term practice of the enterprises,independent of any individual while included in organizations.There is a close relationship between the organizational capital and the nature of the firms,as the organizational capital can reduce the transaction costs.To a large extent,the organizational capital plays a role in the creation of enterprises,mergers and acquisitions,and diversified operation.In the production and operational activities,the organizational capital plays a mutual role with other capitals.And the effective organizational capital will enable the enterprises to save their capital,labor and other resources.Therefore,it is of great significance to enhance the motivation on the managers and the employees and to promote the formation of the organizational capital.