A Preliminary Study Of Transient Family Factory On The Rational Choice’s Aspect

Starting from a subjective point of view, the paper aimed to probe into an ordinary transient family factory’s logic of behavior on The Rational Choice’s Aspect. The family factory’s Economic Rationality, namely obtaining the biggest economic benefits by paying a certain cost, can be explained from two aspects:Firstly, it extended its business network by the chain of "Weak Relationship---Strong Relationship---Weak Relationship", turning relation into economic resources Secondly, it used flexible recruitment system to reduce personnel costs by transforming rationality form, and it solved contradictions between family members by family culture to reduce management costs, then it covered the ownership of the factory to lower monitoring costs and control the "legal" production by reproducing two later-born factors:loyalty and trust. With the growing demand of development reflected, traditional minds such as Small Farmer Mentality and Conservatism and None-Contractual were unable to go on play a positive role, the external polices and regulations and financial environment could not provide strong support either, thus the foreign family factory’s rational behavior could only be called "Bounded Rationality" behavior.