Founder Resignation?Network Ties And Coporation Socail Capital Maintenance

In today's Chinese corporate governance,There are countless cases that corporation founders were kicked out,due to contests in power of control.The cases,in which the founders who fail to keep dominance of shares undermine corporation's decision-making by using social capital related to the company,are even more concern-provoking.The use of social capital in the competition for control of enterprises often undermines the implementation of the formal system of the enterprise.How to avoid this risk becomes the core of this paper.Existing researches about social capital that get involved in the competition for control of enterprises have done by analyzing from the following aspects: pattern of contest,driving factors,influencing factors,internal mechanism and results as well,which have had remarkable outcomes.However,there are few researches on the principle and relation between the specific behaviors and social capital changes.The shortage of relevant researches has leaded to the lack of theoretical guidance for actions for companies to maintain social capital and to avoid the risk.The article is based on the prospect of business owners and aims at the typical event of founders' leaving.By viewing existing literature,the author analyzed the key factors which influence corporate social capital,and identified corresponding solutions for regulating social capital,and then established theoretical model for maintaining social capital.The paper takes NVC Lighting,a listed private enterprise,as research case.The founder of the company has resigned for three times and returned twice,and the social capital play a key role during his process of return,therefore it is a rare case of single enterprise comparison.This paper conceptualizes the measures taken by investors who have the majority of ownership of enterprises in three games,combined with the changes in the level of available corporate social capital and their causes..And then verifies the effectiveness of corporate social capital maintenance theory model.The research of this paper shows that: at the time when founders complete for power of control by using social capital,(1)The network joint strength determines the enterprise social capital maintainence.(2)Making structural holes between the founders and the corporate social capital is conducive to maintaining the social capital of the enterprise.(3)Establishing institutionalized contracts between enterprises and stakeholders is conducive tomaintaining the social capital of enterprises.(4)The disclosure of information about corporation's behaviors which are beneficial for or against the benefit of stakeholders can maintain the social capital of enterprises.