Research On The Governance Model Of "Organizational Control" Of Internet Companies

The traditional corporate governance model and governance theory have been greatly impacted by the information technology revolution since the 1970 s.With the help of the development of information technology and Internet technology,some Internet companies have taken a place in the development of the world economy.Why do Internet companies rise rapidly and occupy a place in the market?This study attempts to analyze the reasons for the rapid rise of Internet companies from the perspective of corporate governance,and at the same time provide experience and reference for the improvement of China’s enterprise system and the corporate governance issues involved in the reform of mixed ownership of state-owned enterprises in China.The principal-agent theory and stakeholder theory are the main theories of corporate governance,which are based on the principle of maximizing shareholders’ interests.These two theories belong to market control theory,and their analytical paradigm is still the analytical paradigm of mainstream economics.Based on Mary O’Sullivan’s "Organizational Control Theory",this study applies innovation theory to analyze the governance structure and governance model of Internet companies,and to analyze how Internet companies achieve internal control and long-term strategy of innovative development.On the basis of a systematic review of corporate governance theories,this paper elaborates the practical explanatory power and limitations of these theories for the analysis of corporate governance structure and mode of the Internet.Internet company is a business ecosystem constructed by means of information technology.It has distinct characteristics from traditional company.This makes the organizational structure and corporate governance power structure of Internet company show its particularity.Internet companies generally adopt the "corporate partnership system".Its essence is to enhance team cohesion through the division of partnership human rights,responsibilities,benefits and unique incentive mechanism.It is a Dual-class share structures.In the enterprise partnership system,the organizational structure of the Internet company is embedded in the Partnership Committee on the basis of the traditional organizational structure "three meetings and one layer",forming a "four meetings and one layer" organizational structure with the partners committee,shareholders’ meeting,board of directors,board of supervisorsand management as the main authority,so that the control of the company is firmly controlled by the initiator and the combination.The characteristics of the rise of Internet companies lie in innovation.The rise of Internet companies is characterized by innovation.The reason why Internet companies can achieve stable innovation and development lies in the organization control structure and ownership structure design of Internet companies.Most of them implement the corporate partner system and realize the "internal people." Control,thus achieving the company’s control of the organization.Of course,the governance model of Internet companies has many advantages,such as leveraging small and medium-sized capital to enter the society quickly,fully mobilizing the enthusiasm of intangible assets and human resources,low-cost operation of light capital to achieve high efficiency,etc.However,from the overall development of the economy and society,there are still some disadvantages,such as:To some extent,it will inhibit the innovation behavior in the production field,not conducive to the development of the real economy,strengthen the trend of economic“financialization” and cause further expansion of the virtual economy,and intensify the company’s principal-agent problem,which needs to be improved or perfected.In the fifth chapter of this paper,the author puts forward some suggestions on the future development of Internet corporate governance model.Finally,this paper summarizes the research,draws conclusions and gives suggestions on the future research direction of Internet corporate governance model.