Institutional Environment And The Transformation And Upgrading Of Private Enterprises

Since the reform and opening up,the private economy has played an increasingly important role in economic construction.Private enterprises play an irreplaceable role in developing the economy,improving people’s livelihood,increasing employment,and maintaining social stability.The private economy is the most energetic,vigorous,and innovative enterprise in my country,able to actively adapt to market changes and challenges.China’s private economy grew out of nothing,from small to large,from small to more,from weak to strong,and gradually stood up as the backbone of the private economy and even the market economy.However,as China’s economic development enters the "new normal",the country vigorously advocates independent innovation and industrial equipment upgrades,and the global economic downturn is a major challenge for private enterprises,as well as an opportunity.Promoting the transformation and upgrading of private enterprises is not only an urgent and important internal requirement,but also an inevitable choice for achieving sustainable economic development.This article follows the perspective of sociological institutional theory analysis,and collects first-hand data on the transformation and upgrading of private enterprises in Wuhan Economic Development Zone through interviews and surveys,and describes the current development status,transformation path and practical difficulties of the transformation and upgrading of private enterprises in Wuhan Economic Development Zone.It discusses how the macro system environment has an effect on the transformation and upgrading of private enterprises,and what is the interactive relationship between this mechanism and the enterprise’s action strategy.How does an enterprise act in an imperfect institutional environment,and what role does the main body of the enterprise play?The study found that the current transformation and upgrading of private enterprises are facing a series of problems such as heavy taxes and fees,financing difficulties,shortage of talents,and low willingness to innovate.In order to explain how enterprises transform and upgrade under existing problems,this article uses institutional theory as a tool to study how the institutional environment affects the strategic decision-making of enterprise transformation and upgrading around the two concepts of "institutional environment" and"cognition of corporate managers",and How do companies face pressure from different systems.Among them,the influence of regulatory pressure on enterprises is mandatory.The normative institutional pressure comes more from peers and consumers,and the cognitive system pressure comes more from the cognition of the main body of the enterprise.Different institutional pressures impose different pressures on enterprises..The study found that the transformation and upgrading of enterprises is affected by various institutional pressures,and this influence is regulated by the cognition of enterprise managers.The main body of the enterprise will process the pressure given by the external institutional environment and transmit it to the enterprise itself,and the main body of the enterprise plays the role of intermediate information provider,regulator,and actor with multiple identities.Therefore,this article believes that the transformation and upgrading of enterprises requires a two-way drive from external support and internal forces.These two forces promote each other,and the main body of the enterprise is the communicator and regulator of internal and external factors.Finally,based on this,corresponding countermeasures and suggestions are put forward for the transformation and upgrading of Chinese private enterprises.