Chinese Study Modern Enterprise System

This study is specialized to explore the Chinization of modern enterprise systemestablishment. Along with Chinese development, western modern enterprise system is widely usedin China. However, there are some questions. Among these are: How to make modern enterprisesystem suitable for Chinese enterprises and Chinese social reality? How to make modernenterprise system keep playing positive effect in management process? How to developChinization of modern enterprise system which could transcend western modern enterprise system?This study proposes the definition of trinity “Chinization of modern enterprise system” whichcombines “modern enterprise system”,“party management” and “social responsibility”.It is our understanding that the traditional concept emphasizes the advantages of the Westernmodern enterprise system, but overlooks the importance of enterprise system which has to bebased on social and political structure, and Micro-enterprise system has a certain dependence onmacro social system. The simple replication of western business enterprise system reflects blindfollowing and implementation western modern enterprise system. This situation not only makes ushave limited awareness of the SOE reform, but also handcuffs majority of private enterprises fromadapting and localization enterprise management system.Chapter One: the introduction clarifies the research background and significance of the study.It was also point out the research’s main objectives, proposed changes to address the misfit of thewestern model to the Chinese business enterprise system. It discusses the research methods andskills.Chapter two provides literature review of the revolution and detail description of Westernenterprise system, it reviews the evolution and development of Chinese enterprise system theoryas well, and it shows the weakness and inability of western modern enterprise system in deal withlabor conflict problems, furthermore this chapter presents the literature on balancing the interestsof business both internal and external, and internal control improvement. It highlights the crucialimportance of the Chinese enterprises to consider local socio-political structures when adoptingwestern modern enterprise system. Thus, Chinization of modern enterprise system is objective.Following from the above discussion, Chapter Three of this paper elaborates the common lawand the scientific connotation of the theoretical framework. Though there is congruence between general attributes of a modern enterprise system and Chinese enterprises actual needs, the socialattributes of modern enterprise system also requires the need to explore the characteristicenterprise system which is suitable for Chinese national conditions. Modern enterprise systemmust reflect Chinese distinctive. Based on the above analysis, this paper elaborates the “trinity”the Chinization of modern enterprise system. The trinity is basis of the modern enterprise system,protection of party building, and serves as the mission for social responsibility. It includes modernenterprise systems（the boundary clear multiple property right system、the balance and reasonablecorporate governance system、the system of scientific business management system）、partyconstruction system and social responsibility system. Finally, this paper analyzes the operatingmechanism of Chinization modern enterprise system as well.Chapter Four gives specific paths to the Chinization of modern enterprise system. First, thereshould embed the party’s organization structure to guarantee the healthy operation of corporate.Second, from improving the mechanism of social responsibility to meet the mission of the modernenterprise, could balance the internal and external interests. Third,“Worker participation” systemresolves the labor conflicts of modern enterprise. Fourth, strengthen the modern enterprise cultureby the traditional Chinese culture in the enterprise management.Chapter Five is a case study of the Hodo Group. The “trinity” Chinese modern enterprisesystem has been implemented in Hodo Group for many years. In the Hodo group business practiceincludes corporate governance, corporate social responsibility and corporate party buildingconstruction. Correlation of the China index and the Hodo Group’s performance of business dataare done to validate the proposed theory of the Chinization of modern business system. Entropymethod has been used to build a comprehensive modern enterprise system in China index. Theresults show that there is a significant positive relationship between them. Therefore, Chinesemodern enterprise system is suitable for Chinese national conditions.Chapter six is the conclusion and the prospect of this study.In brief, this study demonstrates western modern enterprise system was suitable for Westerncountries’ economy, social, political, culture and historical background, but it is not universallysuitable for any country’s universal principles. The construction of modern enterprise system mustbe combined with certain economy, social, political, culture and historical background context.The modern enterprise system is also a unity of universal and specificity of the different times in different countries. A modern enterprise system is set up in the socialist market economic system,we must closely adapt to the accurate Chinese socialism construction. The“trinity” Chinization ofmodern enterprise system is beneficial exploration and suitable to the situation both of China andthe actual business cases.