From Vertical Integration to Vertical Disintegration——Analysis on Relation of Unity of Opposites

Vertical integration and vertical disintegration directly determine the firms’ vertical boundaries,and also affect vertical relations of industry,having been emphasized all the time.From the traditional definitions and our intuitive understanding,they are opposite.Essentially,though being opposite process to each other,vertical integration and vertical disintegration are unity in opposition.Under the hypothesis of change of enterprise boundary,this paper analyzed the relation of opposite in physical boundary and unity in virtual boundary between vertical integration and vertical disintegration from perspective of division and integration.Quasi-vertical integration and horizontal integration,which can form intra-industry vertical relationship network and inter-industry hybrid relationship network,were considered as two integration approaches of vertical disintegration.Then this paper discussed industry driver and positive feedback of effects of vertical disintegration,enterprise thinking and behavior choice under vertical disintegration,as well as evolution of enterprise and industry organization form.