Impacts Of Founder Management On The Operational Efficiency Of Enterprises In Different Regions In China

As the global economic environment deteriorates,China is currently facing a challenging and ongoing transformation process.The outbreak of COVID-19 has made the current economic situation increasingly precarious.Therefore,how an enterprise maintains high operational efficiency is especially important.Since the reform and opening,China has continued to improve its economic competitiveness by fostering private investment,improving the business environment and innovation,which has contributed to rapid economic growth and structural adjustment.However,the corporate governance of these companies is facing unprecedented challenges and requires more effective management and oversight.The most important of these is how the founders should manage the company.On the one hand,founders tend to have a stronger entrepreneurial spirit because companies are built by the founders themselves,and more likely by generations.On the other hand,the founder’s ability to receive new knowledge and to judge the market may no longer fit the current environment as his age and his personal vision narrows.At this time,should the founder continue to serve as the company? What about key management positions(such as chairman or general manager)? The answer to this question will not only explain the key role of founders in the development of private enterprises from a theoretical level,but also provide ideas for private enterprises to formulate relevant corporate policies.The purpose of this paper is to explore the mechanism of the impact of founder management on the enterprise operational efficiency,using data from private companies listed on the Shanghai and Shenzhen stock exchanges from 2015-2021.The study found that,compared with non-founder-managed companies,founder-managed companies can promote the improvement of business operation efficiency.At the same time,as the current economic disparity between the western region and the central and eastern regions has not been significantly improved,and this economic disparity will directly affect the development of private enterprises in the western region.Therefore,this paper compares the western region with the non-western region,and concludes that compared with the non-western region,the enterprises managed by the founders in the western region reduce the positive effect of founder management on the operational efficiency of the enterprise.The research of this paper consists of 6 parts: the first part is the introduction.It mainly includes the research background,research purpose,research significance,and literature review.The second part is the definition of the main concepts and the theoretical basis of the study.This part mainly conceptualizes the two main variables of founder management and business operation efficiency,and elaborates the upper echelons theory,information asymmetry theory and comparative advantage theory that need to be used in this paper.The third part is the theoretical analysis and research hypothesis.The fourth part is the empirical research design.The fifth part is the empirical test section.In the fifth part,firstly,the statistical and characteristic analysis is conducted for the operational efficiency of firms under different regional characteristics by selecting and processing the data.Then,through empirical analysis,in order to test the impact of founder management on enterprise operation efficiency.The sixth part is the conclusion and recommendation.