Research On The Impact Of "de-familization" Of Family Enterprises On Enterprise Innovation Performance

Since its reform and opening-up,China has achieved remarkable economic success.Family businesses are an integral part of the market economy,which plays a decisive role in creating wealth,stimulating employment and economic growth.However,in the ever-changing external market environment,the defects of the traditional family business governance model of the integration of the two rights are gradually revealed,and it is urgent to carry out institutionalization and professional transformation to realize the evergreen family foundation.At this time,family enterprises can not only choose the traditional second-generation succession mode limited to kinship relationship,but also "de-familization" by introducing professional managers and changing actual controllers,so as to gradually separate management rights and ownership and move closer to modern enterprises.However,how to deal with the relationship between "de-familization" and innovative development of family enterprises is very important.At present,the advantage of cheap labor brought by the "demographic dividend" is gradually fading,and the internal and external environment is undergoing profound changes.In the face of new economic patterns and new challenges,to achieve a smooth transition of the Chinese economy,we must focus on human resource development and innovation,and through these drive China’s high-quality development.The formulation of talent and innovation strategic goals at the national macro level is gradually realized by numerous micro enterprises.The family enterprises occupy a significant proportion of more than 70% in the main body of private enterprises,and their talent cultivation and innovation ability have a non-negligible impact on the completion of high-quality transformation of Chinese economy.The 18 th National Congress mentioned innovation-driven development,the 5th Plenary Session of the 19 th Central Committee pointed out that innovation should be placed at the core,and the 20 th National Congress made building an innovative country an ambitious development goal.In such an environment,the question of how to guarantee the capacity for innovation and performance of family businesses while "de-familization" has become a new research topic.Based on the domestic and foreign research literature,this paper firstly reviews the definition of family business and the way of "de-familization",as well as how "de-familization" affects the innovation performance of enterprises and other related literature.On this basis,This article analyzes the current status of research on the topic of "de-familization" of family firms,clarifies the areas that are still not covered or not deepened.And combined with the enterprise life cycle theory,principal-agent theory,labor market theory,incentive theory and so on to clarify the research ideas of this paper.Secondly,This article analyzes and summarizes the mechanisms that influence the innovation performance of family firms by different ways of "de-familization",and constructs an innovation performance evaluation model of input-output-efficiency.Again,Everwin Precision,a case company in the consumer electronics industry,is selected to analyze the motivation of Everwin Precision’s "de-familization" and to clarify the process of introducing professional managers and the path of its "de-familization" to influence corporate innovation performance.Then,with the introduction of professional managers in 2015 as the node,the changes of innovation input,output and efficiency in the five years before and after "family removal" are compared and analyzed from both vertical and horizontal aspects,based on which the influence of "family removal" on innovation performance of Everwin Precision is evaluated.The study found that: according to the characteristics of the industry in which the company operates,the introduction of professional managers with R&D background to "de-family" has optimized the senior management team,improved the incentive mechanism and talent training system,stimulated the innovation energy of employees,integrated the innovation resources of the company,improved the efficiency of the allocation of innovation resources,and promoted the innovation input,output and efficiency of company.Finally,based on the above research findings,three insights are obtained: introducing professional managers according to the characteristics of enterprises,improving the incentive and restrain mechanisms of enterprises,and reasonably increasing the investment in R&D.This expands and enriches the study of family business governance models,and provides empirical references for family enterprises that are "de-familizing" or intend to "de-familize" in China.