Study On The Credibility System In Chinese Private Enterprises

With the rapid development of private enterprises in China, the private enterprises have become important driving forces to the development of socio-economy in China, which have played an irreplaceable role in placing employment, increasing the fiscal revenue, maintaining social stability and activating urban and rural markets. Facing the intense competition at home and abroad and the impact of international financial crisis, this thesis aims at doing some realistic research on the existing problems in development and discusses the correspond countermeasures for the healthy, stable and rapid development. Through analyzing and combing the related literature reviews on credibility problems, credibility problems in enterprises and credibility problems in private enterprises, research results on credibility problems in private enterprises are rarely found, the academic influence of which is weak, and the research scope of which is scattered about and doesn't develop in an organized way. This will make the study, theoretically, have certain space and value.The theory of institutional economics is the theoretical perspective of this thesis. The transaction cost theory, property theory, contractual theory of enterprises and institution theory are widely applied in this study. The contents of the developing theory of private enterprises are important basis for this thesis. Application of the credibility system in private enterprises must be closely combined with theory of business management. Those are just the theoretical foundation for the study of this thesis.From the perspective of institutional economics theory, locking Chinese private enterprises and analyzing credibility system are the necessary tache of this study. This part analyzes contractual theory and credibility system of enterprises, implications and characteristics of credibility system in private enterprises, functions of credibility system in private enterprises, related factors and relations of credibility system in private enterprises, and compositions and efficiency of credibility system in private enterprises. Credit is considered as the inherent regulation of enterprises. The credibility system in Chinese private enterprises have a series of special representations, such as opportunism intension without good faith, presenting steady maturity, unicity of origination and constraint, presenting morality, emotionality, utilitarianism and incompleteness, low level of social identity and lack of stability, positive correlation between credibility system and enterprise scale, and low degree of institutionalization. The credibility system in private enterprises is provided with the following functions: reducing trade expenses, internalizing negative externalities caused by discreditable behaviors, improving the competitiveness in the market and so on. Elements of competences, costs, earnings and environment are relevant factors to the credibility system in private enterprises, and with strong correlation. Efficiency of the credibility system in private enterprises is mainly determined by non-discriminatory and explicitness, systematicness and dynamics, mechanism of institutional administration, system coupling and transaction costs, and so on. The links in the demonstrative research of this thesis is to analyze deficiency in the credibility system in Chinese private enterprises and its reasons. For deficiency in the credibility system in Chinese private enterprises, this thesis states fundamental performances in production and management, marketing and internal management.The thesis also analyzes the damages of deficiency in the credibility system in Chinese private enterprises, such as damages to private enterprises themselves, to line of private enterprises, to regional economy and to social harmony and stability. The causes of deficiency in the credibility system are analyzed from the internal and external aspects of private enterprises. The internal causes of enterprises refer to opportunism behavior tendency in nature, deficiency and inferiority in performance of contract,"lagging supply"in property rights institution, path dependence on dishonest transaction, and vacuum and ineffectiveness in rigid system of enterprise credibility, while the external causes of enterprises refer to imperfect system of market economy, defectiveness of compulsory system, defective implementation mechanisms and low cost of breaking faith of enterprise credibility system,"surplus"of institution supply in mode of"political rent creation"and"rent extraction"and"add fuel to the fire"in regional protectionism, and weakened functioning of informal institution of credibility. The necessity of constructing credibility system in Chinese private enterprises is approached from three aspects—credibility system and transaction cost saving in private enterprises, credibility system and development of life circle in private enterprises, credibility system and endogenous growth in private enterprises.Credibility system arrangement in Chinese private enterprises is the core of this study, which is generally the specific description of the designs of credibility system. Firstly, arrangements of formal and informal credibility system in private enterprises are remarked from two perspectives, one from the interior of private enterprises, the other from the exterior. Secondly, implementation mechanism of credibility system in Chinese private enterprises is analyzed from subject of implementation, implementation procedures, control mechanism, supervision and punishment mechanism to the subject of implementation and so on. Lastly, accessional mechanisms of adaptive efficiency in Chinese private enterprises are investigated from adaptive efficiency and its path of ascension of credibility system in private enterprises. The efficiency of credibility system in Chinese private enterprises has following problems: low efficiency of supply of credibility system in private enterprises, development of private enterprises and path dependence of construction obstacle of credibility system, and collision of credibility system in private enterprises. In order to enhance the supply of credibility system in private enterprises, remove path dependence, and achieve coupling system, such measures muse be adopted as continuous innovations of credibility system inside and outside of private enterprises, adopting gradually institutional transition, emphasizing informal system construction, and so on.Ministry practice of credibility system in private enterprises is the standing point of this thesis, which consists of management of Chinese private enterprises under the arrangement of credibility system and safeguard measures concerning effective functioning of credibility system in Chinese private enterprises. Management of Chinese private enterprises under the arrangement of credibility system is analyzed from such aspects as strategic management, manufacturing management, marketing management, financial management and human resources management. Strategic management of private enterprises based on credibility system, from the perspective of the Balanced Score Card, devises the framework of strategic integrity management in private enterprises and the content of strategic integrity management in an all-round manner. Manufacturing management of private enterprises based on credibility system requires the enterprises to adopt honest manufacturing strategies with a pattern of cluster, to establish a regulation mechanism of honest manufacturing management, to utilize 5S management to push forward honest manufacturing management in private enterprises, and to enhance the ability to execution in honest manufacturing management. Marketing management of private enterprises based on credibility system, in private enterprises, lays emphasis on strategies for honest product, strategies for honest marketing channels, strategies for honest price, strategies for honest promotion, and strategies for honest brand. Financial management of private enterprises based on credibility system requires private enterprises to improve integrity of accountants, to perfect the procedures of accounting management, to reinforce the transparency of financial information and to turn private enterprises into honest taxpayers. Human resources management of private enterprises based on credibility system emphasizes to strengthen the recruitment management, to establish mechanism of training and education, to advocate performance management system in implementing integrity, and to boost employee relationship management.Credibility system in Chinese private enterprises can effectively run the following main ideas coming up with related safeguard measures. Healthy social credit system is an important prerequisite for the effective functioning of the credibility system in Chinese private enterprises. Perfect property system is the solid foundation for effective functioning of the credibility system in Chinese private enterprises. Scientific governance mechanism is a crucial restrictive strength for effective functioning of the credibility system in Chinese private enterprises. The government with honesty and high efficiency with limitations is the essential social condition for effective functioning of the credibility system in Chinese private enterprises. Meanwhile, through the process of study, this thesis proposes some related measures to perfect both social credit system and property system, and brings forth some countermeasures and suggestions of constructing scientific and effective governance mechanism in private enterprises and building a government with honesty and high efficiency with limitations.