Research On The Organization Evolution Of Family Business During The Economic Transition In China

A remarkable characteristic of economics is the growing up of family business during the economic transition from plan economic system to market economic system in China. Many researches indicate that the sustained and rapid development of family business is one of the important drives ensuring the economy sustained increase in China. At present, the classical framework characterizing with ownership and control is mainly adopted by family business in the phases of throwing in and growing up in China. The researches into development and evolution of classical family business are the imminent problems along with the socialism market economic system is establishing and perfect.The topic of the dissertation is to study the organization evolution of family business during the economic transition in China, discuss the affecting factors of the organization evolution of family business, so as to supply the theoretic support of the transformation of modern enterprise and networking to prompt family business in China, and then propose the policies and advice to ensure the healthy development of family business in China. The researches are as follows:Firstly, the development and evolution of family business during the economic transition in China are analyzed including: â‘ The history of development, main types and the basic characteristics of development and evolution of family business during the economic transition in China are analyzed. The development of family business undergoing three phases, including two main types and family business mainly adopting classic framework characterizing with ownership and control are elucidated. But the transformation of modern enterprise and networking during the economic transition are emerging in some family business. â‘¡The history analysis of family business during the economic transition and the comparison of family business with that in the developed market economy country (US) are made, and some problems on family business, including competition deficiency and restricted innovation system are elucidated. Besides, the basic affecting factors of the organization evolution of family business during the economic transition, including external market, social trust, institution, technology and management capability in family business are elucidated. Secondly, the basic affecting factors of the organization evolution of family business during the economic transition are analyzed.â‘ Based on the path of the corporate institution, the effects of politics and legal institutions, external market (including labor market, product market and capital market) and social capital (including trust and entrepreneur network) are analyzed. The labor market emphasized particularly the role of professional managers market in employing managers and realizing the separation of ownership and control is analyzed. The product market emphasized particularly the effect of institutional barriers to entry is analyzed. The capital market emphasized particularly the effect of family business going public is analyzed. The social capital emphasized particularly the effects of trust and entrepreneur network is analyzed.â‘¡Based on the path of networking, the effects of trust, entrepreneur network and specialization division on the evolution of organization of family business network are analyzed.Thirdly, DL groups and Liushi low-voltage component enterprise clusters in Wenzhou are analyzed, which makes the study more concrete and verifies the theoretical problems.Fourthly, based on the underdeveloped external market, social trust and the internal governance, some policies and advice ensuring healthy development of family business during the economic transition in China are proposed. The contents of the policies and advice cover standardizing government conduct, establishing and consummating the external market (including labor market, product market and capital market), social trust and internal governance (including mechanism of choice and inspiration & restriction on manager, entreprene...