A Study On The Corporate Failure And Prevent From A Corporate Cultural Perspective

In the background of economic globalization, corporate failure becomes a subject that many companies are reluctant to face but often have to face. With China’s accession to WTO, it greatly accelerated the process of China’s economy integrating into the international economic system Along with the accelerating pace of economic globalization,"internationalization of the domestic competition, localization of the international competition " has been or is being a reality in many industries. This kind of situation, intensified the fierce, cruel competition, and greatly exacerbated the enterprise’s survival pressure, worsening the enterprise’s survival environment. Facing the competition, of which the speed and strength are far more than any time before, the enterprise feels the impact more than ever and falls into threats frequently. How to deal with the crisis, and be away from the failure, it become an urgent and prevalent need of contemporary enterprise. Based on this, the core purpose of this study is to explore the root of corporate failure from a cultural perspective and to prevent the corporate failure from the root.Study of corporate failure can be from many view angles. But so far, there has been little research on corporate failure from the perspective of corporate culture in academia. In the1980’s, research on corporate culture has been beyond the business strategy and become the central theme of management theory and practice. It is generally accepted that the enterprise culture is the foundation of the enterprise, the development power, the criteria of behavior, the core of success. In the21st century, the phase of corporate competition has developed from traditional production competition, marketing, strategic development to cultural competition. There are many types of corporate failures. But no matter what kind of failure, we can always find the root at the level of enterprise value concept and basic assumptions, which is enterprise’s cultural gene. Therefore, the basic problems the thesis researchs is:the effects of enterprise culture on corporate failure, and what kind of enterprise culture lead to the corporate failure? In order to research the relationship between the enterprise culture and corporate failure, the effect that the morbid enterprise culture gene acts on corporate failure. This dissertation first puts forward the enterprise culture and corporate failure model. Then it divides corporate failure into seven types, and divides enterprise culture into six types. On this basis, the dissertation begins the study to lay the foundation for exploring effective methods of cultural intervention and revolution, and discussing how to prevent corporate failure.So far, it is a new try to make a system research on corporate failure from the perspective of corporate culture in academia. Theoretical significance of this study is that it makes a constructive complement to the current theory of corporate culture and corporate failures. Every enterprise pursues success, and dreams of evergreen, both of which mean to achieve sustainable development.However, the prerequisite of development is to survival first. So how to survive first, and to avoid the failure, is a more realistic subject than how to succeed. From this perspective, the practical significance of this study is to provide some more practical guidance and useful enlightenment for those enterprises who have been thinking about how to prevent the corporate failure from the cut-throat competitionThe full text is divided into six chapters. Major contents of each chapter are outlined as follows:Chapter1is the introduction, which introduces theoretical backgrounds, research objectives, the definition of the concept related to the research, the research methods and processes.Chapter2is the literature review, which provides a summary about the development of theory which includes corporate failure theory, and the relationship between the enterprise culture and corporate failure.Chapter3, in the light of the basic problem and subproblems of this research, builds relevant conceptual model and presents related research hypotheses.Chapter4is empirical research, which primarily tests the study hypotheses proposed in the previous chapter. First of all, in terms of the designation on questionnaire, data collection and measurement of variables, this chapter introduces the empirical research methods of this dissertation. And then it makes reliability and validity test for the samples. Finally, using structural equation modeling, this chapter individually tests the research hypotheses presented in Chapter3.Chapter5is based on CVM model to give an empirical testing on the effect of six type of enterprise culture on the six type of enterprises failure, find out the cultural genes behind six kinds of corporate failure, and put forward measures to prevent the corporate failure.Chapter6using case study method to discover culture intervention measure preventing enterprises failed. Give an answer to how to prevent corporate failure from a corporate cultural perspective.Chapter7sums up the research findings of this dissertation, and reports the illminations and limitations of the present study, and finally points out the direction for further research.This dissertation has drawed the following conclusions:1. Enterprise culture significantly influences the corporate failureThrough a large sample of the empirical research, this dissertation shows that, the enterprise culture has a significant influence on the corporate failure. From the result of empirical research on the influence of enterprise culture to corporate failure, the enterprise culture of five dimensions basically influence on the corporate failure significantly. This empirical study result is consistent with the study conclusion of current literature that enterprise culture influences on the enterprise performance and the core competitive force. That is to say, the enterprise culture influences the core competitive power of enterprise and the enterprise performance, but also it affects the failure of the enterprise. The practical significance of Enterprise culture’s nfluence on the corporate failure is providing the basis of the theoretical guidance and operational and practical path to help us exploring the root of corporate failure from the perspective of enterprise culture and prevent corporate failure from the source2. The truth that different types of enterprise cultures cause different types of corporate failure helps us to find the route to analyze the cultural genes hidden in enterprise failure.Through the data analysis and processing the following6points can be concluded:(1) the culture of motivation-combined obstacle type causes the inferior value type enterprise failure;(2) the culture of organization-combined obstacles type causes the low-value type enterprise failure (3) the culture of resources-combined obstacle causes the value-fractured type enterprise failure;(4) the culure of market-combined obstacle type causes the value-misplaced enterprises failure;(5) the culture of society-combined obstacle type causes the value-faithless type enterprise failure;(6) the culture of change-conbined obstacle type causes the change-disordered type enterprise failure. The empirical results from a cultural angle provided the basis of the theoretical guidance, operational and practical path to help us exploring the root of corporate failure from the perspective of enterprise culture and prevent corporate failure from the source. Since some corporate failure are mainly caused by some enterprise culture, therefore we can find enterprise after the failure culture gene; Now that the enterprise culture is the basic hypothesis by some that form a pattern, then we can through the influences and changes that lead to the failure of the enterprise sharing the basic hypothesis of intervention and transformation to enterprise culture, and thus adjust enterprise not fit with internal and external to adapt to the way, to prevent the purpose of failure.The study does research on corporate failure from the perspective of the systemic enterprise culture. It is a constructive supplement to the current theory of enterprise culture and corporate failure. Based on the conclution of related literature, the study presents an measure dimensionality of corporate failure based on reasons of failure which is specifically applied to the empirical research and reach a corresponding conclution. It enriches our understanding of corporate failure, and provides an example for the empirical analysis on corporate failureMeanwhile, this study abstracts seven types of corporate failure, and explores culture genes for the six types of corporate failure. It provides a theoretical guidance for the enterprise to prevent the failure of the main types from the sourceIn management science, some of the variables, such as enterprise culture, corporate failure, corporate strategy, are often difficult to measure directly and accurately. They need more explicit indicators to measure indirectly; this variable is called latent variables. Traditionally, the researcher often uses multiple regression methods to do the empirical research of relationship between latent variables. The methods make empirical research subject to many limitations, and conclusions drawn are not reliable. In this study, in order to arrive at a more reasonable conclusion, the author uses structural equation modeling to analyze the relationship between these latent variablesAs the author’s knowledge and ability is limited, there are still many deficiencies in the study research and servey methods, looking forward to the follow-up researchers to improve and perfect...