Researches On The Innovation Of Governance Mode Of China's Family Enterprises

During the early stage of pioneering work, patriarchy governance mode is implemented in the family enterprises; the management and organization are integrated as one. The family members are both the producers and managers. This governance mode realizes the management on the enterprises by a cohesion function of blood relationship between family members, and this cohesion function can form relatively strong internal integration force in the enterprises. The outer performance of this force is the trust and corporation between family members; they can work very hard at the early stage of pioneering work. So, this kind of patriarchy mode can be very helpful to the enterprise management at the initial time of enterprise pioneering work, it can save labor force and cut the costs. However, when the enterprise grows stronger with the changes on outside conditions, there are higher risks and uncertainty among the enterprise management and the drawback of this mode will be more and more obvious. The enterprise will face an 'Inverse U curve' problem, this is the maximum of growth. So it has been urgent to revolute the governance mode of family enterprises.In this thesis, the methods such as institutional Analysis, normative analysis, comparative analysis and data analysis are used to find out that the selection of governance mode of family enterprises will directly affect the their performance. This was based on the comparison of three kinds of representative global corporate governance modes and the description of current condition of family enterprises, the theory and practice of corporate governance structure, the reasons of formation, special efficiency and drawbacks of governance modes of family enterprises and after the empirical analysis of investigation on China's family enterprises samples. In order to get good performance, the family enterprises should use 'Both Strong' governance mode which has both strong relation-based governance and strong contractual governance. In the end, the innovation methods of governance modes of family enterprises are brought forward, which include constructing a governance mode with multi-monitoring subject, optimize the salary incentive mechanism for managers, enterprise innovation culture and improve external governance environment.