Manager's Psychological Ownership, Risk Prevention And Growth Of Family Business

Family business prevalent in almost all countries in the world, in different countries, they face the different issues of the development. In China, after reform and opening up, family business got rapid development. However, compared to the practice, the fiery world of Chinese scholars to study family businesses is lagging behind. In China, the growing up of family business has become increasingly prominent, in order to change this situation, theory and practice of community support enterprises introducing social capital, in particular human capital factor, that is managers. However, in practice, after the introduction of managers, family business faced difficulties in its development, such as managers have left, phenomenon of agency risk, these problems are seriously hampering the growth of the business; theory and practitioners mainly due these issues to the unethical managers. However, since Pierce (1991) proposing the concept of psychological ownership, the scholars have verified psychological ownership is positive to employee behavior. By the review of Psychological ownership in domestic and international literature, the author found that not only psychological ownership affects the behavior of employees, does satisfying of also affect their behavior; and the research in employees' psychological ownership of family business is few, and that of managers is even fewer. Therefore, from the point of manager's satisfying of psychological ownership, researching how their actions affect the family business growth is a valuable subject. Based on the routes and motivations of psychological ownership, this paper studies behavior choices of managers though analyzing their satisfying of psychological ownership, that is, feeling of realizing the expected controlling over the target. That enriches the home and abroad research of psychological ownership; by analyzing the influence of the managers' satisfying of psychological ownership on their behavior choices, it provides reference for the internal design of better incentives, and provides some guidance for the promotion of development and growth of family enterprises.The full text includes the three parts:introduction, the core (Chapter 2,3,4,5) and references. The outline is as follows:Chapter 1 is Introduction. This section describes the research background, significance, status and the basic framework of the paper, and points out that the innovation of this paper, and the approach to the study, so that readers could have a general understanding.Chapter 2 is Summary of Psychological Ownership Theory. This section is the theoretical basis of this article. Psychological ownership of the system introduced the background, motives, means and its impact on the organization, so that readers of this article have a theoretical basis for comprehensive understanding.Chapter 3 is satisfaction of managers' psychological ownership and growth of family businesses. This part based on the theory of psychological ownership, defines the concept of satisfaction of managers' psychological ownership; defines the concept of the manager, and explains the factors that affect on the satisfaction of managers' psychological ownership. Mainly studies the level of satisfaction of managers' psychological ownership how to affect their behaviors choose, and then demonstrates the behaviors of managers choose how to affect business growth. Chapter 4 is the manager of psychological ownership satisfaction and risk prevention. This section, based on the principal-agent theory, analyses risk prevention by the incentive model of psychological ownership satisfaction, and constructs the incentives of psychological ownership satisfaction, then make measures for family business to make managers work hard.Chapter 5 is Conclusions and deficiencies. This part is the summary of this study, also pointed out the shortcomings of this article.Using game theory, cost-benefit comparison and case analysis, and this paper finds that managers have more right of control; the satisfaction degree of their psychological ownership is higher, then their acts are more favorable to the development of family enterprises. At the same time, satisfying of psychological ownership also has the incentive, that is, the satisfying degree of psychological ownership is higher, the more efforts managers make. Thus, order to address the agency risk effectively, to promote the development of the business, family business owners should take measures to improve the satisfying degree of psychological ownership.Innovation of this paper lies in two aspects:first, from the point of manager's satisfaction of psychological ownership, analyze the growth of family businesses, which enriches the research on growth of the family business; second, extending the meaning of psychological ownership, proposing satisfaction of psychological ownership, which enriches research on psychological ownership.Since the research experience, ability and time constraints, there are still some deficiencies in this article. Only from the dimension in the control area, does it research the satisfaction of psychological ownership, thus, the conclusion has some limitations.