The Nature Mechanism Of The Impact Of Parent-subsidary Companies’ Relational Governance On Subsidiary Corporate Entrepreneurship

In recent years, corporate entrepreneurship has become one of the effective ways to start a new career for some large-scale enterprise groups. More and more parent-subsidiary companies attempt to keep the enterprise competitive advantage by subsidiary corporate entrepreneurship. However, in the face of numerous subsidiaries and the complex relationship between parent-subsidiary companies, how to coordinate between parent-subsidiary corporate governance mechanisms of promoting the generation of subsidiary innovation behavior becomes the problem that practice needs to solve. While the theory about parent-subsidiary companies’relstional governance effecting subsidiary corporate entrepreneurship is weak, lack of particular theory research. Based on this, this paper is on the basis of research about parent-subsidiary relationship and corporate entrepreneurship, combine with the actual situation of parent-subsidiary companies’ relational governance and subsidiary corporate entrepreneurship of Baosteel Group, adopt the method of combining case study, literature research and in-depth interview, systematically extract the nature mechanism of the impact of parent-subsidary companies’ relational governance on subsidiary corporate entrepreneurship, put forward the main propositions, and buid the theory model.Around the research content, this paper gets the following conclusions:First, it is beneficial to master the strategic intent of the parent companies and get support of parent companies that sending directors to subsidiary companies from parent companies. It provide conveniences for entrepreneurial behavior; Second, the diversity and internation of the independent director in the board of directors of the subsidiary companies help subsidiary companies get more heterogeneous resources and market information, promoting the development and extension of new business; Third, the network embeddedness and structure hole between parent-subsidiary companies are good for subsidiary companies getting entrepreneurship resources, improving the entrepreneurial opportunities of subsidiary companies. In the process of network embeddedness affects subsidiary companies entrepreneurship, joint value creation and value grab plays an intermediary role,while trust mechanism, subsidiary autonomy, interests support and elastic limit play regulatory role.This study not only expand and enrich the parent-subsidiary relationship governance and corporate entrepreneurship research field, but also make certain guidance to promote the innovative entrepreneurial practice of subsidiary companies. However, this paper has also certain limitations. First of all, this paper focuses on the characteristics of board governance, for the other dimensions of corporate governance has not been considered; Secondly, due to the limitation of data source, the measure of the concept of network embeddedness, entrepreneurship strength is relatively simple; Finally, this paper don’t consider the difference governance of different subsidiary companies, demonstrate the convenience, without considering the subsidiary of their governance, there is a hard to avoid can have error on the results.