Relationship With The Private Sector Management Performance Study

Private enterprises are fresh troops of national economy in China. How to accelerate the development of private enterprises has become an important problem in Chinese society. In the drastic market competition, the capacity and resource of the owner of private enterprise is crucial to the private enterprise. Based on this consideration, the author tried to study the informal performing mechanism of the owners' social relations network by theories and cases.Social capital is the capacity of getting scarce resources and obtaining benefits which the owners can achieve by social contact. The contact always refers to the continuous social based on trust and cooperation among people. The quantity and quality of social contact capital are decided by the scale and volume of the society. Social capital is one of the most important capitals the enterprises own, consisting of corporations with the core competitive power that accelerates the development. Study shows that there exists positive correlation in inner and outer social capital of enterprises and the behavior of the enterprises. Through the approaches of entrepreneurs, staff members, other enterprises, government, media, community and Internet, social capital affects enterprises greatly. Social capital works through the mechanisms of transaction cost, supervise, knowledge and information, innovation and resource allocation. It is also the ultimate reason that causes the rising, thriving and collapse of family enterprises. The solution to the problem of family enterprises is to turn family trust to social trust. Therefore, in order to reinforce the performance of the enterprises, great emphases should be put on the cultivation, accumulation, investment and application of social capital.Based on social capital theory, this dissertation attempts to analyze the social capital of entrepreneurs. This paper suggests that an private entrepreneur's social capital is determined by the economic structure and the entrepreneur's initiative , and that social capital improves an entrepreneur's capacity to develop its business and thus enhances its economic efficiency. The dissertation is organized as follows:Firstly the main topic, research framework, hypotheses and methods are introduced. The originality, development, definition and features of social capital in particular. It emphasizes that enterprise is not the isolated actor but a node in the network associated with all aspects of economic sector. The social capital of an enterprise is the ability to acquire scarce resources through this inter-linkage. The article interprets the significance of social capital for boosting the competitive of enterprise.Secondly, the thesis introduces entrepreneur's social capital and its functions. Based on the critical review of researches involving private entrepreneur's social capital ,the article studies the influence of social capital on the competitive of enterprise and further analyzes the structure of the influence. This part is written by explaining the relationship between enterprise and government or society, vertical link between corporation and clients, horizontal link between competitor and cooperator, thus presenting a clear picture of social capital's influence on enterprise.Thirdly, the article gives a case study on the connotation of the influence. First, enterprise social capital can save transaction cost. This part investigates how the enterprise enhance its competitive under the immature Chinese market economy, explains the model of inborn social capital, explores the possibility of achieving perfect result in practical transaction. Second, enterprise social capital can obtain profitable contacts. This part is narrated from the angle of practical case in market. Three, by comparing with state-own enterprise, showing that state-own enterprise monopolized the scare resources and social capital, private company is hard to compete with them.Last but not least, the author comes to the conclusion. The article agrees that enterprise should highlight the role of social capital. Enterprise should increase the investment on social capital, cultivate social capital and improve its competitive under the strategy of sustainability. This part presents the view by such facts of advancing the ability of enterprise, establishing professional association and perfecting relationship system.