A Research On The Evolution Of Politic-business Network Relational Embeddedness And Family Enterprise Value

The economic behaviors of enterprises are deeply affected by social background and social relations. Only be placed in particular social, political, and cultural background, can they be better understood (Miegel,1991).As a kind of informal institution,"politic-business network" gradually is paid attention by scholars and entrepreneurs. On a global scale, many enterprises are keen to embed in the P-B network, which is a common phenomenon (Dombrovsky,2010). Many entrepreneurs and executives regard political strategy and market strategy as equally important. According to a survey, under the background of economic transformation in China, family businesses spend time and energy accounted for more than50%on maintenance P-B network (Zhang,2001). It can fully prove the urgency and importance of studying P-B network.The influence of government on enterprise is greatly important. For it controls a large number of scarce and key resources and holds the power of approval on market access’s qualification and making regulations. Then can close P-B network always bring positive benefits for enterprises value? The deeper embedded in business network, the higher value. Is it right? The answer may be not. For everything has a "reasonable degree".Based on this, the paper takes the typicality and representative of cases as the standard and selects the case of SUMSANG to analyze the evolution relationship between P-B network, relational embededness and family business value. This paper puts forward that it is unreasonable to illustrate the positive correlation or negative correlation between them. At first stage, the value is continuously improving as the embedded degree is strengthening. When it is beyond the "tipping point", the value is down with the strengthening of embedded degree. Therefore, there is a reasonable "embedding threshold".This paper includes six parts. The first part is introduction which mainly introduces the research background, research purpose and meaning, research method, structure arrangement and innovation point of this paper. The second part is to review the literature of business network, relational embeddedness and enterprise value. The third part is the research design which introduces the research methods of case study, case selection; data collection process and variables defined. The fourth part is case description. The fifth part is case discussion. First of all, it puts forward the dual effect of P-B network embedded:the effect of economic interests and the effect of efficiency loss. Besides, by combining with the development and key events of Samsung, it concludes the evolution path between P-B networks. The evolution path is from "attachment style" to "peer-to-peer style" to "penetration control type". Lastly, it analyzes the evolution mechanism. The last part is the conclusion and future prospect.The paper reaches following conclusion by case study. The relationship between politics and business network is not simple or static, but is dynamic and nonlinear. The value of the enterprise is constantly changing with the degree of embedding in P-B network. There is a reasonable. Before reaching the "embedding threshold", the value is increasing with the deepening of embedding degree; after the "embedding threshold", the value is decreasing with the deepening of embedding degree. This is "inverted U" model of Uzzi.This study has three innovation points. Firstly, it breaks through the traditional static research level and clarifies the relationship and the evolution process between business and enterprise value by dynamic level. Secondly, it reveals the reasons of different conclusions:different degree of relational embeddedness. Thirdly, it illustrates the interwoven relationship between P-B network and enterprise value through the depth analysis of case study. Moreover, it prompts entrepreneurs should keep an appropriate distance with government. On the one hand, enterprise’s right embeddedness can bring key scarce resources and qualifications for it. On the other hand, the enterprise should avoid excessive embedding and falling into the bad situation of the relational and locked resources.