Research On The System Vicissitudes Of Family Enterprise In China

Family enterprises in China is accompanied by China’s reform and opening up, the trendof rapid development of market economy and developed. Many studies have shown that therapid development of China’s economy in recent years, also cannot leave the family businesssustained steady growth. But based on the unique historical and cultural factors in China, thescale of the development of family enterprises in China are usually small, average life isrelatively short. Many family firms have realized that need to change enterprise systeminnovation, but for the understanding of mechanism and path of change is not clear. Besides,there are differences between the degree of the development of family enterprises in ourcountry, the situation is different, its development stages are also different, so the timing ofthe institutional change and path selection should also be different. In conclusion, research forcompanies in the different life cycle stage path selection of suitable institutional change hasbecome a very urgent issue.In this paper, using the framework of new institutional economics to analyze the problemof the family business to choose the path of institutional change. In this paper, we first balanceanalysis was carried out on the family business, respectively from the macroscopicenvironment and microcosmic system arrangement of family enterprises, this paper discussesthe macro environment of administrative environment, legal environment and policyenvironment in family business demand for institutional change. Through the analysis of themicro system arrangement of the family business, the analysis of the family businessinstitutional change of supply and demand inducement constraints. In the next chapteranalyzes the current situation of the development of family business, including the differentstages of life cycle analysis of the status quo. And then analyzes the system characteristics offamily enterprises, and also the conditions for family enterprise’s institutional change arediscussed in this paper. Respectively by the enterprise scale, the cost benefit of institutionalchange, entrepreneurs’ cognitive and external environmental factors of the four conditionschange analysis, using the cost-benefit method, what kind of business for the change, what stage of the change and meet what kind of conditions of the enterprise for theproblem solution. The last part of the article firstly analyzes the institutional change theoverall direction of family enterprises in China, and guided through the different main bodyinstitutional change caused by different paths are analyzed. This article also from anotherperspective, the perspective of enterprise life cycle to analyze family business to choose thepath of institutional change, including phased analysis about the present situation of familyfirm, with the life cycle of periodic Angle of view to analyze the condition of institutionalchange, from the perspective of life cycle analysis of family business the path of institutionalchange. Not only from the lateral analyzes the family business to choose the path ofinstitutional change, and has carried on the elaboration to the longitudinal, make the articlemore complete, from the point of view of are in various stages of the family business tochoose in the path of institutional change on providing a complete thought.