Economic Analysis Of Corporate Culture

Corporate culture is an important part of an enterprise's soft strength. Lack of sound and active corporate culture will greatly affect livingness, cohesion and operational efficiency of an enterprise, as well as the ability of survival and development in a long term especially. Currently, the ideas and the practice of corporate culture construction in domestic enterprises lag behind greatly compared with the ones in many successful foreign big companies. The distance in this aspect is one of the main factors which actually impair operational efficiency, ability of stable development and international competition of the enterprises in our country. The lag of idea and practice in corporate culture construction in the enterprises in our country is naturally related with the short period during which our country began to develop market economy and during which the enterprises operate, especially in the condition of market economy. But at the same time, this lag is also highly related with our insufficient research about the theory of corporate culture. Today, in our country, the research in this field is not only deficient, but also remain in the analysis about some superficial problems such as concepts, roles, modes and experience study. It is greatly lack of the analysis which goes deep into the micro-behavior of economic agents, especially via economic tools like the nature and key features of corporate culture, the process and mechanism to establish and develop corporate culture, the environmental conditions and relevant strategies of forming corporate culture, and so on. Consequently, considering the imperious demand in current research and arming at the existing problems of corporate culture in our country, this paper uses analytical tools in economics, especially game theory and evolutionary game theory, to study corporate culture deeply.The first chapter in this paper firstly introduces, induces and analyzes the practice and academic situation in the study about corporate culture inside and outside of China, especially the distance between the international advanced level of practice and research and the situations in our country. At the same time, it also gives the main point, the analytical ideas and methods of this paper. The second chapter clarifies some problems such as the intension, feature, structure, type and functional mechanism and other aspects of corporate culture. The third chapter gives a general theoretical analysis and a summary of market environments and internally game relationship in the face of corporate culture, and explores the interaction between owners of human resource and enterprises in the market environment, which prepares for the deeply theoretical analysis about corporate culture via the methods of economics in the following chapters. Under the assumption that enterprises and employees act according to "utility maximization" and "free contract", the fourth to the sixth chapters go deep into exploring the interaction driven by interest among the agents related with formation and development of corporate culture as well as the internally evolutionary mechanism of collective behaviors ,by using game theory to analyses the relationships between employees inside enterprises and enterprises and between the employees in the aspects of competition and cooperation. These studies reveal the essential rules of formation and development of corporate culture and the restriction in internal environment to play its role. Based on the above study, the last chapter concludes and further discusses the problems such as the rules and the constructive ways of corporate culture, gives some suggestion for the enterprises in our country to construct good corporate culture, and summarizes the theoretic significance of this paper.There are several main conclusions obtained in this paper. First of all, corporate culture exists in the marker environment. Owners of human resource entering the enterprises via contract as potential employees or exiting the enterprises is highly related with the real situations in markets. Secondly, corporate culture should be constructed aiming at and suiting the rationally economic behaviors of enterprises and employees. The interest relationship between enterprises and employees and between employees can directly influence their working ways. While enterprises keep their confidence in employees and increase productivity via establishing reasonable payment system, the employees can strengthen the degree of enterprises' trust by some ways such as sending "signals". And for the cooperation and competition between the employees, enterprises can have an influence on the relevant actions via certain methods. Consequently, the internal game relationship should be analyzed in the economic points like income and cost, in order to adopt effective ways to construct corporate culture. Thirdly, the construction of corporate culture should base on the real and detailed situations inside enterprises. Each enterprise has its own character, and differs in many aspects such as the level of income, cooperative cost and discount rate. So, if a successful way of corporate culture construction in other enterprise is simply transferred to this enterprise, it could lose its role because it can not adapt to the real situation in this enterprise. Fourthly, the repeated game about corporate culture between enterprises or employees and between employees finds that the action of enterprises or employees is decided by the discounted net income in a period of time rather than the net income in one time. Time has an important influence on the construction of corporate culture. A stable relationship in a longer time is beneficial to enterprises and employees. Finally, the analysis shows that if there are enough employees in the enterprises and some of them act irrationally, the best time for the corporate culture construction is the early time after the establishment of enterprises in some time, and in other time, this construction should been be done in a long-term angle, depending on the different equilibrium between the employees.There are five aspects suggested in this paper that should be emphasized when the enterprises in our country construct their corporate culture, including the comparative advantage between corporate culture and competition for persons with ability, the equilibriums of benefit between enterprises and employees, taking full advantage of economic ways such as strategy, system and contract, the incentive for employees' long-term working, and looking corporate culture construction as a process of systems engineering.This paper also shows that introducing the methods of economic analysis, especially the analytical tools of game theory and evolutionary game theory into the research about corporate culture, can greatly deepen the study in this field, making this kind of research deeper and more systemic and getting more scientific and robust conclusions. It will bring theoretic inspiration and can be used for reference both for the research of corporate culture itself and the research about other social problems.