A Comparative Study On The Administration Model Of Anhui And Shanxi Business

Since the middle of Ming dynasty, district business group engaging in long distance trade had sprung up in some developed areas with the development of commodities production and traffic condition. Among these Hui business and Jin business were most representative groups. They had played active role in commodities exchange for several centuries, which made a profound influence upon modern economy and society.From the angle of business group administration, the way taken by Hui and Jin business is extremely representative. Hui business group most prefers to patriarchal clan administration based on blood relationship, largely employing clansman and their deep belief in big family to develop business activity, electing managers from them, carrying out selective encouragement by promoting the status of agent and employee in the patriarchal clan, handling agency relationship within business group by invisible agreement and family rules. On the contrary, Jin business forms contract model for business administration in practice based on geo-relation, choosing townsman as manager and employee rather than electing talents within the family by the principle of townsman coming first, restraining employees through official regulation and encouraging them through bonus and shares similar to modern way.To analyze the different administration model between Hui and Jin business, the thesis starts from the outside environment of business group administration based on detailed and informative historic materials. Before business groups sprung up everywhere, northern tribe gradually migrating to inland, ancient Hui area kept a more developed patriarchal clan than Shan Xi area. Developed patriarchal clan system, strong family power and rich family culture combined together as an informal system to result in patriarchal clan administration model of Hui business. Meanwhile, Jin business faced a higher requirement with business area and size becoming expanding, especially chain management becoming more popular. Without a developed patriarchal clan system, Jin business could only resort to systematic innovation. As a result, contract administration model based on geo-relation was born. The other endogenous factor of business group administration is capital composition. Hui business capital composition featured with public-owned property and ambiguous property rights, objectively working as real basis for the centralization and unification of Hui family and business power. However, Jin business capital composition featured with stockholding system of clear property right and definite right and duty, which became a necessary trend by establishing detailed rules to express and maintain each party’s right.The second half of the thesis starts from the model of business group administration, analyzing the mutual relation between different administration models and distinct customs, beliefs and values of Hui and Jin business groups. It concludes that business group culture, as an endogenous result, remains consistent to administration model with mutual support and reinforcement.The end part is conclusion and inspiration. Based on analyzing the differences, commons and factors of Hui and Jin business administration, it mainly helps us understand enterprise management models in distinct countries, especially the so-called best foreign management model, in order to inspire China enterprise to form its own management model.