Perspective On Control Of The Chinese Family Enterprise Institutional Change

Family business is the earliest and most common enterprise system. It's a kind of business form which holds the largest number most characteristic internal relations and most different in scale, it's also mainly led by each enterprise and organization. More than 90% private enterprises in China adopt family-system which is also the main choice. Simply rejecting and refuting family-system means negating private enterprise actually. Therefore, it's not only of theoretical significance, but also has practical value to study the Chinese family business and its institutional change.Many scholars have taken theoretical research on institutional change of family business. But they show greatly divergence on it because of different perspectives, even the definition and meaning of family businesses have not reached a consensus. It should reveal the nature of family business from the perspective of control, and then define the content of family business. As an institutional arrangement, the nature of the family business is that family owns the continuous control over enterprise. The sustained effective controls are a bundle of rights of exclusive over the use and disposal of scarce resources, which can be divided into capital control, human resources control, market control, core technology control and cultural control. Because of the difference in the implementation mechanism and manifestations, multiple control lead diversified combination. Therefore, the institutional family business is a set of concepts of dynamic, complex and varied. To adapt this situation, the institutional change of family business present a series of external features which are different from induced institutional change and mandatory institutional change. It more reflects in the intermediate distribution pattern—blur institutional change.The key to reveal the family business institutional change is to rationalize the mechanism of control, they mainly reflect as:share the value of core elements, internal radiation and incubation. The three factors enhance the "potential profit" in varying degrees. In order to verify the theoretical analysis paradigm, based on the principle of feasibility, scientific and comprehensive, a further decomposed about the 5 controls is analyzed and erects a three-level index system. Take 31 family enterprises in Zhejiang Province as the research sample, verifying the control mechanism during the process of family business institutional change by SPSS software with the method of factor analysis and multiple linear regression equation. Correct control opening time and appropriate transfer ratio are keys to the performance of family business institutional change. Combined internal condition system with external environment system, construct the model of transfer time and transfer ratio, establish the optimal implementation mechanism during the process of family business institutional change.The process of family business institutional change is dynamic and continuous evolution. Enterprises should be flexibly according to the actual situation and innovative control mechanism. Government should create a positive policy environment, good market environment, guide and help family businesses to promote institutional change process smoothly.