Financial Performance Research On The Coopetition Relationship Between Actual Controllers And Professional Managers In Family Enterprises

With the rapid development of China’s social economy,family business,as an important form of organization,has made great contributions to China’s economic development.In order to adapt to the complex economic environment,the introduction of professional managers has become an important mode of inheritance for most family enterprises.However,many business owners cannot trust professional managers when it comes to the transfer of power of actual controllers in family enterprises,so there is competition and cooperation in the process of control transfer.At present,most scholars have studied the relationship between competition and cooperation among enterprises and the relationship between competition and cooperation outside enterprises,but few have focused on the inheritance of family enterprises.The inheritance process is a dynamic and mobile process,which will change with the different choices of both sides of the game and eventually lead to different results.Therefore,this paper chooses the coopetition relationship between the actual controller of family business and professional managers as the starting point to explore the influence of different selection of coopetition relationship on the performance of family business.This paper USES enterprise competition theory,game theory and principal-agent theory,based on the influence factors of family enterprise competition relations,namely the enterprise system and the environment as well as the main body characteristics were analyzed,and the actual control of the enterprise and professional managers may influence caused by the competition relations,and then combined with multiple dynamic game theory,put forward two assumptions,Analyze the financial performance of enterprises formed by different co-opetition relations under the influence of co-opetition balance,and draw the following conclusions: The actual controllers and professional managers of family enterprises usually form competitive equilibrium or cooperative equilibrium.When the two sides are in cooperative equilibrium,the financial performance of the enterprise is positively affected,while the two sides are in competitive equilibrium,the financial performance of the enterprise is negatively affected.Thus,a theoretical framework is constructed.Based on this,after Y company introduced professional managers,the coopetition behaviors of actual controllers and professional managers in different periods were reviewed for in-depth study.Firstly,the behavioral performance under the influence of different coopetition factors is discussed from the perspectives of actual controller and professional manager at different stages respectively.Then,the influence of different coopetition relations on the financial performance of enterprises is discussed through financial indicators such as profitability,growth capacity,operating capacity,cash flow status and share index.The hypotheses proposed in the theoretical framework are further verified by case analysis.Finally,this paper puts forward some suggestions: Family business inheritance has an important impact on the future development and performance of the enterprise.Internal actual controllers and professional managers can through creating a favorable business environment and culture,establish an effective compensation system,and give preference to enterprise internal members,improve the enterprise’s trust,establish a good succession plan,forms the enterprise of the concurrence of Shared vision and other measures to form a cooperative equilibrium relations,and thus enhance the personal wealth and reputation,Avoid conflicts of interest,strive to achieve long-term interests and values of the enterprise,and ultimately achieve a win-win situation.This can be used for reference to improve the contradiction between the actual controller and professional managers of family enterprises in China,and also provide some suggestions for the inheritance of family enterprises.