Mutual Guarantee Systems of Small and Medium-Sized Enterprises in China: An Application of Self-Organization Theory

Mutual Guarantee Systems of Small and Medium-Sized Enterprises in China: An Application of Self-Organization Theory

Yi Yang (Beijing Union University, China), Hong-yan Yan (Beijing Union University, China) and Ze-yun Yang (Beijing Union University, China)
DOI: 10.4018/jabim.2010070101
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Mutual guarantee systems (MGS) of small and medium enterprises (SMEs) ares complex system mainly serving the SMEs, including the mutual guarantee institutions formed by SMEs, financial institutions, industry associations and credit re-guarantee institutions. From the perspective of system theory, this paper illuminates the self-organization mechanisms and the self-organization characteristics of openness, far-from-equilibrium, nonlinearity and fluctuation of mutual guarantee systems of SMEs. The implication of self-organization theory is that under some conditions, mutual guarantee systems have the internal tendencies of autopoietic, self-evolution and evolution from disorder to order and from low level to high level to solve SMEs’ financing problems. Using self-organization theory, this paper proposes suggestions and measures to improve the operation efficiency of mutual guarantee systems in China.
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2. Theory Of Self-Organization

In general, the organization refers to the order within the system structure or the formation of this ordered structure. German theoretical physicist Hermann Haken (1983) found that the evolution of form from the organization point of view, it can be divided into two categories: he organized and self-organization. If a system formed by the external command organization, is his organization; if there is no external instruction, the system in accordance with the tacit agreement of some kind of rules, fulfill their responsibilities and who coordinated automatically to the formation of ordered structure, is self-organization.

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