The Enterprises’ Institution Status And Horizontal Integration Management Model Based On The Differences Of The Regional Institution Environment

Horizontal integration strategy is the effective strategy choice for Chinese companies toexpand their market share and enhance their national competitiveness. However,thesegmentation of Chinese market makes the implement of horizontal integration strategy withgreat obstacles. The key problem is how to choose the appropriate management model underthe background of obvious differences in regional institution environment.Based on thecomplex background of China’s economic system reform, this article studied the enterprises’institution status’ influence on the horizontal integration management model and tried to digout the difference and regular pattern of enterprises’horizontal integration management modelfrom the perspective of institution theory.By reviewed the literature, this article summarized the formation of the differences ofChinese institution and its influence on enterprises’ horizontalintegration behavior.Then itdeduced the related hypothesis about institution environment，institution status and enterprises’horizontal integration management model and then constructed the theoretical model of thisarticle. The paper used the standard empirical method including variance analysis; correlationanalysis and regression analysisto analyze and test the hypothesisusing the sample data of135Chinese enterprises which had implement the horizontal integration strategy. Finally, thearticle drew the following conclusions:(1)Enterprises’forms of organization and managementautonomy exhibited regularity differences with the changes in the enterprises’ institutionstatus. The higher the institution status of the enterprises ina particular district, the enterpriseswill more inclined to adopt the form of branches there, and more likely to give greatermanagement autonomy to the branches.(2)External institution environment regulates therelationship of enterprises’ institution status and branches’ managementmode.Specifically,external institution environment regulates the relationship of enterprises’institution status and branches’ organization form; external institution environment regulatesthe relationship of enterprises’institution status and branches’autonomy.The regulatory role ofthe institutional environment makes enterprise’ branch management mode selection becomesmore complex.The paper revealed that enterprises’ institution status changed with the regionalinstitutional environment and enterprises’ selection of the management model must considerthe impact of the enterprises’ institution status. The enterprises’ horizontal integrationmanagement model was the result of enterprises using their institution status to―resist’ theexternal institution environment pressure and get the legitimacy. The paper revealed thedifference and regular pattern of enterprises’ horizontal integration management model from the perspective of institution theory. Itprovided theoretical guidance for Chinese enterprises tochoose their management model.