Chinese Private Enterprises For Sustainable Growth Factors In Empirical Research

Two decades' rapid growth has made China's private enterprises (CPEs) a crucial part in national economy, and also a most active and prospective one to propel further economic expansion. Nevertheless, most CPEs run into failure before growing up or show a trend of short life cycles. Based on the definition of CPE and growth stages segmentation in its life cycle, this paper tends to study the multiple factors impacting CPE sustainable growth from such aspects as corporate strategy, governing structure, organization mechanism, corporate culture and entrepreneurship, from which a CPE Sustainable Growth Affecting Factors ("SGAF") Model is worked out.Having systematically reviewed enterprise life cycle theories and enterprise sustainable growth theories, this paper put forward a practical life cycle stage standard for CPEs through a careful argumentation. That is, to segment the life cycle of CPE into four stages-Carve Out, Growth, Mature and Wane. And then, a CPE SGAF Model Questionnaire is designed according to this model and the corresponding assumed theory. On the ground of the 396 effective questionnaires returned, we use SPSS and LISREL software to perform reliability, effectiveness and correlation analyses. Multi-regression analytical method is especially used to analyze the affecting factors during each CPE growth stage to test assumed theory.The research result indicated that1. From an overall point of view, strategic capital (human capital, social relationship capital and R&D) input, enterprise incentive mechanism, entrepreneur renovation spirit and rent-seeking, corporate culture and organization efficiency affect CPE sustainable growth significantly.2. In Carve Out stage, social relationship capital input, R&D investment, enterprise incentive mechanism and entrepreneur renovation sense are significant SGAF.3. In Growth stage, R&D investment, enterprise effective incentive mechanism and entrepreneur's rent-seeking positively impact CPE sustainable growth.4. In Mature stage, R&D investment, enterprise incentive mechanism, entrepreneur's venture spirit and entrepreneur's rent-seeking are significant factors. Human resources investment and entrepreneur's renovation spirit also affect its sustainable growth.5. The significance of corporate culture cohesion effect on CPE sustainable growth differs with CPE progression in its life cycle. It is not significant in Carve Out stage, significant in Growth stage and becomes very significant in Mature stage.6. Strategic planning and vision, enterprise property right structure and decision-making mechanism are not significant factors affecting CPE sustainablegrowth. Take property right structure for instance, whether equity right is decentralized, enterprise is controlled by family, and board of director policy is in standard or not, do not affect CPE sustainable growth very much.7. Corporate culture cohesion and organization efficiency can be used as effective mediators to affect CPE sustainable growth.This paper claims some innovations in research perspective, methodology, model construction, variables and research findings when compared with other scholar's research. It investigated SGAF for CPE with the beginning of Enterprise life cycle theory, and further constructed a SGAF Model with reference to forerunners' research achievement. Then, a feasible private enterprise life cycle stage segmentation standard was put forward and demonstrated. Finally, this paper employed research data of CPEs and statistic tools to analyze and discuss CPE SGAF from both overall and partial point of view. From all the above analyses, this paper suggests a new methodology to research how CPE can thrive in long term, which contributes to the empirical research of CPE sustainable growth.