The Impact Of Social Networks On Intermediaries' Behavior

As the necessary part of the market economy, intermediaries play an important role in macro-control and market-control efforts. And they also affect a lot the resource allocation of market. So far, intermediaries have improved their key role in the market economy establishment. However, the lack of standardization happens a lot in our intermediaries, which induces the low-productivity problem.This article starts from the classification and characteristic of enterprise social networks in our country, explains three ways where social networks influence the behavior of enterprise, analyses the lack of standardization among our country's intermediary industry from the angle of the above influence, especially in transition period, and verify the conclusion by using the province panel data of China. Due to imperfection of factor market in transition period and the large power owned by government to economy, our intermediaries rely on the social networks to a great degree when they try to obtain resources. Moreover, the instability of social networks makes intermediaries shorten their operating plans, and finally results them deviating from continuable profit model. In order to standardize intermediaries'behavior, our government should enhance external supervision, consummate factor market, cut down government staff and their interference to economy and enlarge the capacity of intermediaries to absorb foreign investment, meanwhile encouraging cooperation between local intermediaries and overseas-funded enterprises.