The Life Cycle Of Family Firm And Its Impact Factors

The development of family firm is a trend which appeared as the result of China reformation. The trend is more and more strengthening with the development of the economy and society. As a whole, Family firms affect the economy and society at the same time. The status of Family firm is very significant in the social structure of China. Family firm's life cycle is in possession of firmness and shortness which could conquer the difficulties in the Life Cycle of Family Firms obtaining great achievements and declining in a short time. All of the society should attach importance to these phenomena.Tribe and the culture of tribe underwent suffering and great transition in the modernization of China. It is too simply to owe impact factors in the life cycle of Family firms to traditional culture. There must be other social-forces leading to the shortness of Family firm's life cycle. Behind the extrinsic factors, the trust mechanism which appeared in the course of social transition affect Family firm's life cycle materially. The basis of this dissertation is the relevant theory of sociology and economics. Through the investigation of the some Family firms in Yancheng, the writer discussed the feature and the impact factors of the Family firm's life cycle, providing the expediency to understand Family firm.