The limitations of modern organization theories and the nature of enterprise clusters

The theories of transaction costs and information economics have explored pioneeringly the nature of organizations, especially that of enterprise organizations; however, they fail to explain the nature of enterprise clusters-that not only contains relationship of transaction, but also contains the organization of manifold competitive relations due to their focus on transaction relationship. Based on basic unit of analysis-information, this paper discloses the differences among enterprise clusters, enterprise organization and market organization because of difference of information production and the way of flow, showing that cluster is an essential institutional arrangements to save information costs, rather than a single saving transaction costs device. This paper not only draws the conclusion that the industrial clusters is an effective information space, but also provides new visual angle to analyze the nature of organization.