A Study On The Development Of Business Social Relation Network

The study of social relation network was long in the field of new economic sociology, its basic theoretic analysis tool is based on the theory of social relation network of the 50s --- 60s of last century. Social relation network has been greatly emphasized and been a hot field of business study since the 90s, which involves complicated net work of different social relations such as investors, runners, employees, consumers, creditors, the government, suppliers, distributors, groups of special interest and the community. Although much has been done on social relation network in new economy sociology and organizational behavorism, it is a brand new subject in the field of economics to study the constitution, the content, the change and function of social relation network.The dissertation falls into five parts. In Introduction part, the connotation and types of social relation network is discussed on the basis of explaining its meanings. The methodology, the structure and new ideas are mentioned. The second part, the first chapter, evaluates different theories related to the topic. The third part is the second and the third chapters. The second chapter discusses the core of social relation network - trust. In the third chapter, economic function of social relation network of social business capital is studied. The fourth part involves chapter 4,5, 6, 7, and 8. The evolution of social relation network is studied dynamically in chapter 4.Chapter 5 and 6 involves the relation network within a business, while the inter-relation of businesses is discussed in chapter 7, and the relation between government and business is studied in chapter 8. In part S - chapter 9, the purposes and conclusion are made and the way o create a harmonic social relation network is explored.The dissertation thoroughly explains theories on social relation network, social capital, structural hole, related beneficial bodies and business net, redefines concepts of social relation network, trust, social capital from perspective of economics The author analyzes complicated intra and inter -relations of businesses statically, studies changes of the network dynamically, analyzes different sources of the trust as the key to social relation network and the mechanism of business trust, explains economic function of the network as the business social capital, and tries to provide a systematic analyzing framework for the accumulating mechanism of social capital. The dissertation also explores related bodies within a business and their influence to the development of the business system. It also probes the change and evolution trend of the network structure of state-owned businesses in the transitional period in China, analyzes the complicated relation network among businesses through study of different types of modern business network, and gives special emphasis on different patterns and mutual functions of small and medium businesses. By tracing back the history between government and businesses, the paper discusses the abnormal relation between government and businesses, and the measures to rebuild a normal relation in the transitional period of economy. Tthe practical value of the paper lies in its conclusion of building a harmonious intra- and inter- relation network of businesses.The author holds that when defining business social relation network, we should consider both the content and the pattern, which is also another focus of the dissertation.. In terms of the content, the main body of business social relation network is different benefit related parts such as investors, runners, employees, consumers, creditors, the government, suppliers, distributors, groups of special interest and the community. The key to such network is trust, whose biggest value isto be used as social capital of the business. In terms of the pattern, it includes inter and intra- relations. The intra-relation involves relations among investors, operators, and employees while the inter- relation includes the relation between businesses, business and its suppliesr or customers, businesses and research institutes, businesses and government and community.The author emphasizes that the key to business social relation is trust, whose history and origin are elaborated. Factors which determined trust in business such as surplus control, exclusiveness, extra-profit, scale of relation-specified investment, business achievement and efficiency, business scale and degree of competition, speed of economic growth, and social cultural tradition. With the progress of economic reform, the trust in business is in the process of change from the trust of individuals to the trust of businesses.The greatest value of business social network lies in its function as social capitals of the business. Its differences and connections with material capital and labor as capital are discussed. Business social relation network as business social capital is very important for businesses to obtain financial resources, to improve efficiency in management, to increase the intangible assets, and to promote establishment of modern systems.From the history of business social relation, it has been experiencing the change from junior social relation based on the relation of family and friends to the contract social relation based on formal system. We call present business social relation as compound social relation with mainly contract social relation supplemented with junior social relations. Business social relation network is studied dynamically. Historically, in pre-capitalist society, social relation changed from the form of " identity to contract" because businesses in real sense did not emerge until in the capitalist society. After its emergence, business developed from individual proprietors to the form of partnership and to the modern corporation. It is the central relations of business such as the government, investors, runners, and the personnel that basically determines the development of business system, which reflects the process of complexity, distribution of business social relation, and how such benefit centeredrelation develops into the form of contract and system. As far Chinese state owned businesses are concerned, before the economic reform and open to the outside world, the structure of Chinese business social relation network shifted from different patterns to unit business system; after the reform and open to the outside world, it has been experiencing from a recessive contract (soft restriction from the unit) to a formal contract (legislative compulsory restriction), while the state owned businesses in the transitional period belong to a " compound contracting system".For social relation network in the business, the dissertation emphasizes three key bodies, the relation among the investor, the runner, and the personnel. Two key symbols of the evolution from traditional business to modern one - the separation between ownership and management, the formation and development of the level management system in the business—exert great importance to the development of social relation in a business. From this point, the dissertation explores the commission relation among investors, runners, and the personnel vertically, the their responsibility and coordination horizontally. The author holds that the separation between ownership and management makes the intra-relation of business complicated, and forms a vertical commission chain - a multi-level commission among different relations in the business. The formation and development of the level management structure in the business - coordination among different functional departments, and the emergence and development of vertical management—deeply influence the type and development of the social relation network in the business. In the time of technological economy, the organizational structure of business is becoming flat, and small. Internet and other new technologies and information are used in business. Co-operation has never been so important before. In the mean while,, business relation network is developing in the direction of high standard, flexibility and short term. The dissertation discusses position of the three key relations in different economic times. The "relation position" is defined as the position of different relation bodies in the business such as the investor, the runner, and the personnel in the background of different economic times and business system. The classical business position in industrialized time is the capitalist centered capital employment labor relation (the"labor" refers to ordinary workers, while in modern management theory, "labor" is specified as runners). The relation position in modern business is compound ( a relation emphasis on shares, human resources, or benefit balance position in coordination management theory). However, the business relation of technological pattern in new economy is intelligence employs capital, and labor. The dissertation studies the connotation and classification of human relation in the business, explores the trend of human relation in Chinese business in economic transitional period. The dissertation also analyzes factors that influence intra human relation of a business such as human resource capital, fair organization and psychological contract.In terms of historical development of business, the relation between labor and capital is the basic relation inside a business. Through analyzing labor-capital relation theory (labor-capital conflicting theory and labor-capital coordination theory), the author holds that capital-labor relation is both conflicting and co-operating. The defects of this relation in transitional period lie in the right of human resources and capital, the right of organizational labor, and withdrawal mechanism. The establishment of coordination labor-capital relation should focus on establishment of product right, shift of adjustment mechanism, creation of adjustment means.In the dissertation, the relation network outside a business is divided as horizontal relation( business network) and vertical network (government-business relation). Business relation includes the complicated network among customers, suppliers, competitors, universities, research institutes, consulting agencies. Such relations can be the relation of business, coordination and loaning. A comprehensive analysis relation is established from division of labor, effect of network, save on transaction fee, and fulfillment of scale economy. Types of modern business network are emphasized - business group, operation network chain, suppliment network organization, invented business, strategic union, and business gatherings.The dissertation studied different government and business relations from perspectives of different historical periods, different stages of economy, different social systems, and different nations with emphasis on government ~ business relation on different stages of economy. In many transitional countries, theabnormal relation between government and business manifests in the form of state capture, business capture, and involvement of the party, the government, or the army in business activities. "State capture" refers to the attempts made by interest groups to influence government (including administrative authorities and judicial organs) policy process or manipulate government activities through illegal or private transactions (such as providing benefits to government officials) for seeking benefits. On the other hand, the author calls the order and manipulation made by administrative authorities to business activities under government plan economy as business capture. The author holds the relation between government and business, the way the government interferes with the business directly influence the effect of government administration over businesses. The goal of government administration should be positive improvement. The government greatly promotes social capital benefiting the success of the system through institutional reform and standardization of the government behavior. The author points out proposals for reestablishment of government-business relation.The purpose of this dissertation is to establish a harmonious social relation, which has the special significant for the economic system and the reform of the state-owned business in transitional period. The following measures are suggested in order to establish a harmonious social relation within a business: strengthening the trust and cooperation among different departments and personnel of a business, establishing business credit, developing business culture, cultivating "trust ability" of business, coordinating the relation between labor and capital, stimulating initiative entrepreneurs, and setting up their authorities. Trust and commitment are needed to maintain harmonious relations among businesses. Relation network can be strengthened through continuous coordination and credit accumulation of the business. Such measures as standardizing business behavior, promoting trust and credit network, strengthening self discipline of business, dissolving the factors blocking competition, establishing channel for information distribution, contribute to promotion of trust and credit in business. Property right is the basis of accumulation of business social capital. As a result, the government must increase its ability andeffectiveness of definition and protection of property right. At present, it is the urgent for the government to standardize it behavior, to create a trust environment, to enhance credit and legislation construction, to maintain and promote social capital of the business.