Rearch On The Growing Up Of Family Firms From Social Captical Perspective

Econimics workes at most optimum distrbution of resources. In the morden market economy, firms make good role of most optimum distrbution of resources, and the study for the firm is continuously deepened. Recently, more and more attentions have been paid to family firm from social capital perspective. Many experts have regarded it as a resource existing in the network of relations, since social capital was introduced form sociology to economics. Social capital is useful for conveying message and reducing transaction cost. As a result, it will be beneficial to individuals to make transactions. In my opinion, all above just opens the first door to analyzing economic issues from social capital perspective. Because when economic organization with superficial resmblance integrates with different economic ethic, it will bring about different efforts according to their features. Thus we care about the following questions:First, how the social capital of the family firms affects its growth? Second, during the course of economic transition in China, does the social capital of the family firms change? Third, if it changes, what effects does it make for the growth of family firms? These questions need further studies.This article studies the growth of family firms with social capital theory. Social capital theory originates the study of social structure and human behavior in sociology. Now it becomes popular in Econimics. Especialy in the study of economic behavior, social relations and social structure's influence to the development of economy and society. But the study of family firm with social capital theory is still in its youth. With the assumption of economic man and weak ties, this article studies family firm' s growth system with social capital theory. Family firm is a econimic organization which develop market network and reduce internal transcation costs with its social capital.As a economic man to pursue the maximal profit, family firm always realize its development with social capital, and cement its social capital during the course of development. The family firm's social capital exists in family relationship and market relationship,and funcions through these networks and mechanism. The social capital existing in family relationship and market relationship integrates each other,bring forth the total utility larger than their separate tuility. We analyse the relationship of social capital and family firm growth elements,finding that family firm's growth is the course of networks expanding and its getting resource and information.The influence of social capital for the family firm's growth is multi-leveled and muti-dimensional,accompanying informal networks and standardized networks. With the economic transition, the social capital of family firms existing in family network maintains or reduces its level,and the social capital existing in market network grows fast.During the course of tat-family networks development, the family firm's social capital existing in family relationship and market relationship will integrates deeply,which make good conditions for family firm's growth. With the economic transition, the influence of social capital for family firm's growth will different in the different course. The tendency is that the network of social capital evolves from family to tat-family and market.And the influence of social capital for family firm's growth is making family firm networked,and grow up into listed company. The article made positive analysis of social capital and family firm's growth, testing theoretical analysis of the article.During the economic transition,traditional family neiwork will weaken,and new market network will develop.The network of social capital should transfer form family to tat-family and market.during the course, family firm make good use of its social capital,and will creat new social capital to make growth. During the economic transition,the structural dimension of social capital and cognitive dimension of social capital will increase naturally. We should make effort to reconsitution the relational dimension of social capital in warious ways to make family firm growth.There are four points of innovation in this article. (1) With the assumption of economic man and weak ties, I study family firm's growth system with social capital theory in different aspects,such as the special network of family firm's social capital,. the social capital of family firm's optimal model, the social capital of family firm integrating sffects, the social capital of family firm effection for its growth,etc. It enriches and develops former research.(2) I analyse the effects of social capital for financing, organization development and increasing profit ability,with social capital theory and game theory.This is the depth of the former research.(3)I analyse the effects of economy transition for family firm's social capital on the structural dimension,the relational dimension and the cognitive dimension, and make some conclusion. I think it is an importmant question for Chinese family firm's researsh.This achievement filled in a gap for Chinese family firm'researsh.(4) I made positive analysis of social capital and family firm's growth, which tested theoretical analysis of the article.I find that the influence of social capital for family firm's growth will different in the different course. The tendency is that the netwok of social capital evolves from family to tat-family and market. Family firm should make the netwok of social capital evolving from family to tat-family and market.I also propose suggestions on countermeasures.