NVC Lighting Technology Corporation's Control Authority Contests: The Game Of Financial Capital And Relational Capital

According to the principle of "one share, one vote", the equity capital of the company should control the authority.But in real life, control configuration is restricted by many factors, including relationship capital which plays an important role.Relationship capital as herein defined refers to the relationship channel controlled and owed actually by founders,which made up by dealers, suppliers and employees suppliers and employees.With the establishment and development of enterprises,this channel resources as the key resources to participate in corporate control negotiations,even produce a "rip-off" risk.Equity capital is the main form of financial capital,external investors dominated the equity capital,contented with the relationship capital, competed for actual authority.The NVC case provided an opportunity for research the game between relationship capital and financial capital,the three conflicts for authority of the NVC occured were the game between relationship capital which headed by founder and financial capital which based equity capital essentially.The channel resources become a key for Wu Changjiang struggle for the authority, but the nature of this channel is relationship capital.Relationship asset itself is a kind of social capital, capital appears in the form of assets.In the second incident of the founder deportation and return,financial capital and relational capital out of touch, which the latter is controlled by founder and out of control.Financial capital side did not only recognize the importance of the relationship capital,but also did not follow the movement of relationship capital,therefore Wu Changjiang was successfully regain control authority by relationship capital.In the third incident of the founder deportation and return,equity investors paid utmost attention to the importance of the relationship capital,followed by the gradual reconstruction of enterprise relationship capital,and gradually weaken the scarcity of relationship capital,which is Wu Changjiang rely on,to enable enterprises get rid of dependence of the original relationship capital successfully,and win the contest finally. Wu Changjiang owed the relationship capital so that he could change danger into safety before the previous contests. However the failure of third contest relates to these channels losing.After analysis and discussion, we found the following conclusions:because therelationship capital has characteristic of long-term irreplaceable and short-term alternative,it is difficult to institutionalization.Meanwhile Wu Changjiang has been illegal to transaction,accelerating reconstruction of the relationship capital chain.Human resource has always been the case throughout,reduced the importance of the founder gradually.With the gradual rationalization of corporate equity and corporate governance,gradual degradation of human capital is no longer a key resource.Improper use of "hostage" mechanism also accelerated the failure.