The Influence Of Founder's Social Capital On Firm Performance

In today's market,the battle for control is common,and the founders are sometimes driven out by the companies that are founded.Under this background,this paper studies the meaning of the founder.When the founder actually controls the enterprise,through their own social capital embedded in the enterprise development,the founder's efforts to support the development of the enterprise show the influence of the founder's social capital on the enterprise performance.The founder's identity makes it possible to have an impact on the performance of the firm,while the founder's control of the firm and the founder's personal social capital provides the feasibility to make influence.This paper will divide founder's personal social capital into bonding social capital and bridging social capital.From internal and external aspect,this paper will analyze the reason why social capital of the founder will influence the corporate performance,and the specific impact on effect.Bonding social capital has three aspects,entrepreneurial founding team,employee and peer competitors.The of bridging social capital is divided into three aspects:suppliers,customers and government,banks,industry and other key resources.Social capital will have impact on business cost,income,working capital and other aspects,then influencing the enterprises performance.The conclusion shows that Founder's social capital has positive effect on enterprise performance,but if the founder's control is too deep and lack of supervision,it may appear unfavorable to the performance of the enterprise.Then,this paper introduces the NVC as an example to analyze the social capital of Wu Changjiang,the founder of NVC,and the impact on business performance.This paper will introduce the reason why Wu Changjiang's personal social capital will affect the performance of enterprises NVC.Research shows that during the period of 2010-2014,the NVC performance is closely related to Wu Changjiang,Wu Changjiang was forced to leave the NVC,then the performance decline;back to the NVC after performance rebound.We find that NVC is highly dependent on Wu Changjiang's individual social capital,which shows strong embeddedness.But in 2015,after Wu Changjiang completely left the NVC,NVC did not continue to decline,the performance continued to rise;the turning point appeared.NVC is no longer dependent on the social capital of founder,finding a path of independent development.From the perspective of Wu Changjiang's expulsion,the negative impact and positive impact of Wu Changjiang's individual social capital on enterprise performance in the joint effect,the negative impact gradually emerged.Finally summed up,the positive influence and the negative effect of the founder's social capital on enterprise performance is developing together.In early period,positive impact is far greater than the negative influence,totally showing a positive relationship.But when control is too deep,the negative influence is growing,after a critical point,the negative influence is higher than the positive impact.And on the overall,it shows negative influence.