Enterprise's Performance Determination Theories And Study On The Performance Of SOCB

? As to the question how enterprise's performance is determined, there are many disputes. Property right theory, beyond property right theory and key competitiveness theory of enterprise's performance determination are the three kinds of most representative views.Property right theory of enterprise's performance determination thinks the final decisive factor that determines enterprise's performance is whether a property right is distinct. A clearly established property right includes distinct property right ownership and property right structure. The more distinct they are, the easier for us to perfect corporate governance, which leads to good enterprise's performance, and vice versa.Beyond property right theory of enterprise's performance determination thinks the final decisive factor that determines enterprise's performance is market competition. In fact, this theory is an inheritance and development of the property right theory. It thinks such factors as the clearly established property right are really helpful to improve enterprise's performance in a short time, but in the long run, enterprise's performance is decided by market competition. The fiercer the market competition is, the more power enterprises have to perfect their corporate governance, which leads to the enhancement of the enterprises' performance.Key competitiveness theory of enterprise's performance determination thinks the final decisive factor of enterprise's performance is the key competitiveness of its own, but not those external factors such as clearly established ownership hold by property right theory and market competition hold by beyond property right theory. In terms of management, it proposes if you want to improve enterprise's performance, it is important to improve the enterprise's key competitiveness.These three major schools stick to their own version on the issue that how enterprise's performance is determined, and their supporters are carrying on positive research respectively, expecting break through to some extent in their own fields. However, some inherent defects of these theories can't be overcome during their development within the range of themselves. It is biased of property right theory of enterprise's performance determination to extremely advocate to clearly established property right, and under the environment of special reform of our country, the opinion of accepting and implementing the property right theory totally will possibly bring some problems; beyond property right theory of enterprise's performance determination has its main defects of exaggerating the function of competition and ignoring the prerequisites for the function of competition, in addition, because of our country's special reform environment, the expectancy that the result of competition may not necessarily be done just as beyond property right theory either; key competitiveness theory of enterprise's performance determination has its main defects in emphasizing excessively enterprise's competition advantage and neglecting the external factors influencing enterprise's performance.Generally speaking, these three kinds of theories have made a common mistake: do not see the decision of enterprise's performance is the result that various kinds of factors act on together. On this basis, four key element theory of enterprise's performance determination has carried on a synthesizing and development to the traditional enterprise's performance determination theories. It proposes that the decision of enterprise's performance is a system made up by four key elements including market competition, property right, corporate governance and enterprise's key competitiveness, which exert different influence on enterprise's performance and have verycomplicated relationships among themselves. The primary conclusions of four key element theory include: Effective market competition is favorable for enterprise's performance boost; Distinct property right ownership and structure is propitious to enterprise's performance boost; The more perfect corporate governance is, the better enterprise's performance is; The stronger enterprise's key competitiveness is, the better enterprise's performance is.Through the analysis hi such aspects as performance, market competition, property right, corporate governance and key competitiveness of SOCB of our country, we find four key element theory of enterprise's performance determination can be used to explain their low performance. The reasons are lack of effective market competition, indistinct property right, imperfect corporate governance and incomplete key competitiveness. So, to improve the performance of SOCB, we must start with from the construction of effectively competitive market, the forming of distinct property right, the perfection of corporate governance and the cultivation of enterprise's key competitiveness soon.