Study On Governance Of Interior Network Of Business Groups

In order to adapt to the constant changing environment, the development of business groupsshows many new special feathers. Recent studying results indicate that the interior organizationstructure is changing into networking. After reviewing the theories on network organizations andcorporate governance, this paper gives a systematic and thorough study on governance of interiornetwork of business groups.The studying object of this paper is the mother-subsidiary business groups. Analyzing theinterior relationship among the mother company and the subsidiaries, which are the interiormembers of the business groups. On the basis of clear explaining the interior network structure,this paper concludes the remarkable characters of it, including all-round information flowing, thecadre of moderately scattered assets and resources, specialized and different members, dynamicchanging, interdependent and whole coordination. And these special characters make thenetwork structure can respond to whole groups' efficiency and members' difference at the sametime, improve key members' ability, strengthen strategic flexibility and obtain key resourcesthrough many channels.On the interior network governance, this paper sums up governance systems from the viewsof internal, external and intermediate. Then it points out the existing governance problems ofChinese Business Groups. At last, on the basis of some of the China's listed business groups, thispaper gives an empirical Analysis. The results show that the internal related intensity, thenumbers of the independent directors and interlock mangers in one group have the positive effecton the group's governance, while the times of the related transaction and the number of posts ofan interlock manger has little effect on it.