Research On The Effect Of China’s Family Firm Gene On Enterprise Growth

Family firm is an ancient and unfailing enterprise form,which has played an important role in economic development in countries all over the world.With the deepening of China’s reform and opening-up policy,private economies with family firms as the main bodies obtained prosperity and development,and became the main force to promote the development of economy.Great attention should be paid to the role of family firms in economy transition and development of China.But at the same time,it is necessary to strengthen the research of Chinese family firm growth problem,such as lacking of competitiveness and short lives.With the decipher of human gene,and the disclosure of the nature of living body,some researchers began to utilize enterprise gene theories to analyze the growth of China’s family firms,so as to supplement the deficiencies of traditional enterprise growth theories.Therefore,taking enterprise gene as basic unit to analyze the problems of family firm growth has a strong theoretical and practical meaning.Through literature review,this paper finds that the existing research on family firm,enterprise gene and family firm growth all has gotten rich achievements.Although there are some researches using enterprise gene theory to study the problems of enterprise growth,but it is relative shortage in family firm gene research,and the empirical researches on influence of family firm gene on family firm growth and the empirical researches on genetic variations are quite limited.Therefore,the research purposes of this paper are as follows:Firstly,empirical discrimination of family firm gene.Constructing cell base for family firm gene by analyzing value chain and basic resource of enterprises,and then screening and classifying family firm gene according to the gene characteristics.Secondly,influence of enterprise gene on family firm growth.Illustrating the gene influence mechanism on enterprise growth and exploring the regularity of different characteristic gene influence on enterprise growth.Thirdly,conditions of genetic variation of family firm.Analyzing the genetic variations of family firm in changing situation and finding the regularity of genetic variations of different characteristic gene.Beginning with the research purpose,this paper makes theoretical analysis on the influence of enterprise gene on family firm growth and the conditions of genetic variation and formed research propositions,constructs the cell base of family firm gene,uses factor analysis and canonical correlation analysis to extract and screen the family firm gene,and determines the categories and types of family firm gene.At last,this paper uses dynamic panel GMM models to analyze the influence of different categories and types of gene on family firm growth and the genetic variation of dififerent categories and types of family firm gene.Through the theoretical analysis and empirical studies on family firm gene and family firm growth,the paper finds:(1)The empirical results show that difference firm gene categories’ influences on family firm growth are significant differences.Therefore,the division mode for family firm gene categories by three value chains and six resources factor is suitable.Also,the division mode for enterprise gene type determined by its characteristic factors,correlation with enterprise entity is suitable too.(2)The family firm gene’s influence on family firm growth is determined by controllability of resources factors on the value chain and degree of correlation between gene factors and the enterprise.The former determines the influence orientation and the latter determines the influence degree.The more controllable of resources factors and the higher correlation between gene factors and the enterprise,family firm gene is more beneficial to enterprise growth,conversely,more harmful to the growth,or even terminates the enterprise.But if the gene factor has low correlations with the enterprise entity,its’ effect is limited,even though the gene factor has low correlation with enterprise entity.(3)When external environment changed,the gene variations are different with different family firm gene categories.If the consisted resource factors are better controlled and their regeneration capacity comes from internal of the firm,the gene category can vary totally,and the variation will benefit to the enterprise growth.But if the consisted resource factors are bad controlled or even better controlled but their regeneration capacity comes from external of the firm,the gene category cannot vary.But it cannot eliminate the possibility of individual gene varied that easy to adjust resources strategies.(4)When external environment changed,the gene variations are different with different family firm gene types.Family factors,which have high correlation with family firm only,are easier to vary under changing environments,furthermore make the gene which contained family factors varied.The research conclusions of this paper helps to form a comprehensive and systematic understanding on family firm gene,to grasp the rules of the influence of family firm gene categories and types on family firm growth,to master the variation regulation of different characteristic gene under changing external environment,and to enrich the research methods and research results in the field of family business and enterprise growth,which has strong theoretical significance for the adjustment of resource strategy and enterprise development decision of Chinese family enterprises.