Theoretical And Empirical Study Of The Township Entrepreneurs Reward Mechanism

According to the "problem-solving" logic in management research, this article elaborates on the return mechanism of township entrepreneurs (RMTE). It not only puts emphasis on the theoretical bases, the structure, measures to improve, but also provides the readers with theoretical and empirical study in the following 12 chapters.Chapter 1, the foreword, consists of the background and foundation to select the title, the related concepts, the research framework and methods as well as the possible originality and drawbacks. In this chapter, the author sets the basic note of the whole article by forming the integrated model of precondition, decisive factors and influencing factors in RMTE.Chapter 2 studies the basic logic to pose the problem and its present situation. It draws the conclusion that contribution of township enterprises to macro-economy, demands of realizing industrialization, the importance of entrepreneurs as well as RMTE problems----all these show the theoretical and practical significance of posing the RMTE problem. There exist many disadvantages in RMTE such as confused theoretical framework, low payment, less reasonable structure and less flexible return system and so on. To analyze the reasons and to solve the problems mentioned above are the main purposes in the article.Chapter 3 summarizes incentive systems and return mechanisms on a selective basis according to the research demands. Thus the article poses a series of problems on RMTE to be discussed and studied.Chapter 4 deals with the precondition in RMTE, pointing out that return mechanism, township entrepreneurs system, the principal-agent system and entrepreneurs as resources make up the basic precondition for RMTE. All factors set the basic principles to design and to improve RMTE, on the other hand, they determine the major problems in RMTE. In other words, the main focus lies in realizing the standardization and systematization of return behaviors, introducing and perfecting the long-term payment in return mechanism, setting up and improving welfare-income and so forth. In addition, the article distinguishes township entrepreneurs from SOE entrepreneurs as well as private entrepreneurs by studying their uniqueness. At the same time, the author bases the following studies on this part.Chapters 5 and 6 analyze the decisive factors and influencing factors of the level and structure in RMTE by empirical method. It is concluded that influencing factors include regional differences, trade differences, entrepreneurs' opportunity cost and enterprises scale, while managerial structures in a company, education, entrepreneurs generation mechanism aswell as operational achievement make up the influencing factors.Chapters 7, 8 and 9 study incentive theories, incentive preconditions and incentive effects of specific paying ways in terms of short-term and long-term payment, postitional expense and welfare-income. The author comes to the conclusion that short-term and long-term payment, postitional expense and welfare-income make up the most ideal payment structure. Therefore, the integrity of the four factors implies the most incentive effect, which is the original thought on RMTE.Chapter 10 not only analyzes the concrete structure model of RMTE in a practical perspective, but also studies individual cases in terms of enterprise situations and incentive conditions. It draws the conclusion that RMTE is a more general practical incentive contract set with various concrete structure models. Under the circumstances of specific incentive preconditions and situations, it is possible for various return mechanisms in transfers set to achieve ideal incentive effect. Since return contract can in itself be chosen, there exist no universal conclusions for RMTE, which are changeable. The inspiration of return practice is that enterprises need not to be limited by any ideal structure model, and the most important is to make clear how entrepreneurs have to do their utmost. In addition, when entrepreneurs take measures to try their best, they should decide what suitable r...