The Influence And Execution Of Business Innovation Caused By Corporate Governance

Being a modern country, it is essential to keep economic developing healthy. However, the greed of human nature is making a competing desire to prevail over individual interests in a fair and reasonable basis, and some operators do not follow the state law the right way, disguised use of the mechanism of incomplete and information on the asymmetry the relationship between the expense of public interests and welfare of their own money to meet the strong desire. So a huge amount of economic crime, false financial reporting, the case of hollowing out the company's assets continue to occur throughout the world, and the general public is too kind-hearted commitment to their financial black hole left by the state and the people to make up. In these financial crisis, the public have discussion on improving the way, in many proposed methods of alleviating the financial reform, corporate governance is becoming the accepted remedy; so in recent years, evolving concept of corporate governance, strengthen the corporate governance system to become the subject of a modern state can not be ignored.Based on the inspection of the economic panic's effects, the main purpose of this paper is to review and amendment the traditional business management theory that emphasize efficiency and profit above everything else. In recent years, there are many bankruptcy, corporate scandals and the outbreak of financial crisis have taken place in Taiwan and international famous enterprises, such as: "BDCOM Technology", "China Rebar Co.", the United States energy company "Enron", the "Freddie Mac and Fannie Mae", "Lehman Brothers bonds" and the suddenly closed down of AIG Group, each of they created the economic panic.This paper attempts to explore the key issues of "corporate governance" and discuss how to improve the corruption prevention and profits promotion of enterprises by the study of theory and practice. Generally speaking, the theory and practice of "corporate governance" that have three focus of research: shareholders, board of directors, chief executive officer (CEO).All of that is the major player of decide the direction and performance of the company. However, most of these researches were limited to the discussion of principles, structure, model and code of corporate governance, in practice, these studies have not been particularly successful. A more complete study of the subject is needed: how to improve the corruption prevention and profits promotion of enterprises.Furthermore, the most important subject of business is to make business growth, stable development, survival and more robust governance; thus that is another key issues, the carry out of blue ocean strategy—"business innovation", can not be ignored.Main point of this study is to proceed from the company level, in addition to explain the relevance of corporate governance system and its significance, we should also face an overall strategy from the perspective of the organization supporting the development of innovative strategies to effectively create and implement the company's growth opportunities, and promoting innovation . First of all, innovation must be guided by the strategy, can only continue to promote the innovation, to make and generate innovative performance. The innovation strategy is correct, innovation and performance is good, depending on organizational innovation at the high level performance; This is the implementation of the system of corporate governance is closely linked with the promotion. In addition, the study also combines the Balanced Scorecard and business execution in order to effectively to corporate governance goals into actionable innovative strategies and models. Grade was why the main purpose of this study is not to thin chain reaction for the discussion of the legal provisions of the rule of law, or a variety of corporate governance principles, governance structure and governance model of the discussion; but will focus on how to more effective implementation, attempts to corporate governance as the foundation, the Balanced Scorecard as a pillar, and the executive power as an important adhesive to construct an irrefutable business development - business innovation. In other words, to the spirit of corporate governance guidelines for the enterprise, supplemented by the Balanced Scorecard objectives and performance assessments, and strengthen business execution in order to build innovative strategies for enterprise development.Through the literature, this study found that the corporate governance system well impact the company's entrepreneurial spirit and innovative and shaping the bargaining position of the stakeholders: create different incentives and resource allocation to manufacturers and different groups of shareholders. The corporate governance system can be considered related to an innovative strategy. In recent years, the research of business innovative focused on two models: 1.public pension fund managers prefer internal innovation; 2.professional investment fund managers prefer external innovation (acquisition); the others studies emphasize the relationship between the company's enterprising spirit and the structure of corporate governance.This study also claims that we must construct a high-quality enterprise development direction -business innovation. That is contribute to an environment of business innovation strategies for enterprises, and must link to corporate governance (as a basic value), the balanced scorecard, (set up goals and performance assessment), and execution (implementation of innovative strategies) from a macro-perspective of business innovation strategy.More specific description, this paper attempts to establish the business innovation model that not only be the academic research, but also be the practical application of business, after the case study of Dafeng TV Ltd. . That the theory of business innovation is the combination of corporate governance ( as the foundation ) the balanced scorecard ( as the pillars ) , and execution ( as the connection ) .