Study On The Development Path Of Enterprises In Industries With Excess Capacity In Government Regulation Perspective

Excess capacity has been existed for a long time during the Chinese economic and social development. Government macro-control which is based on market mechanism is the main treatment method to deal with excess capacity, and has produced some desired results. With the arrival of critical period of economic transformation, Promoting overcapacity industry governance efficiency by studying the internal rules, and promoting industrial transformation and upgrading, has been an important issue for China.In this paper, the selection of the development path is regarded as a driving process in which selection factors influenced by government regulation tools based on government regulation theory, upgrading theory and excess capacity research achievements, then influence the enterprise’s choice of development path through the influence factors system which includes driving factors. Based on this, we established a conceptual framework of enterprise development path of industries with excess capacity under government regulation. We reviewed the situation and evolution of Ningbo stainless steel industry, and summarized the regulation tool system and defects of excess capacity regulation before theoretical research. In the theoretical research stage, overcapacity control tools are divided into command and control tools, economic incentive tools, and information communication tools. The driving factors can be divided into control tools applied to enterprises and form control pressure, market pressure and social public opinion pressure three parts. In addition, enterprise development paths can be divided into exiting path, technology upgrading path, product upgrading path, transformation and upgrading path. Through a preliminary study on the driving mechanism and influence mechanism between government regulation and enterprise development paths, we put forward some assumptions. In empirical research stage, we get data through questionnaires, investigation and interview, understand the development of sample enterprise by descriptive statistics, extract the factors b factor analysis, test hypothesis by regression analysis, and get the conclusion. At the end of the paper, we put forward some suggestions for enterprises coping with excess capacity control with sustainable development goal, and put forward some policy recommendations for more effective tools using to govern excess capacity for government.Empirical research results are as follows with Ningbo stainless steel industry enterprises as samples:Firstly, We confirmed that government regulation tools can be divided into command and control, market incentives and information communication. Driving factor can be divided into control factors, social factors and marketing factors. Enterprise development path can be divided into capacity exiting path, technology upgrading path, product upgrading path and transformation path four dimensions.Secondly, the government regulation tool can drive the development paths’ selection, and effects and directions of tools are different. Results of regression analysis show that command and control tools, economic incentive tools have played a significant role in the perception of Government regulation pressure.Thirdly, driving factors, endowment factors, constraint factors will affect the choice of development path, but effects are different. Regression analysis shows that the driving factors have significant impacts on exiting path. Constraint factors have significant impacts on technology upgrading path. Constraint factors have significant impact on technology upgrading path and product upgrading path. Endowment factors have a significant influence on transformation and upgrading path.Finally, we put forward some enterprise management countermeasures and Suggestions for enterprises in the industries with excess capacity to cope with excess capacity regulation, and for governments to use regulation tools to control excess capacity based on development and control situation of Ningbo stainless steel industry enterprises. Enterprises should pay more attention to industry information, participate in the formulation and implementation of government regulation policies, and make decisions according to decision-making chain. Government should strive to raise the scientific nature and integrity of the policy, use tools to achieve regulation target on the basis of understanding the roles of regulatory tools characteristics. The government should timely evaluate, adjust and free government regulation policies. In addition, we should enhance the participation of social forces in the process of government regulation. Economic and legal tools should be drawn into government regulation system.