Research On The Endogenous Institution Of The Private Enterprise's Life Evolution In China

From the end of the 1970s, the planned economy system transits to the market economy system in China. The private enterprise has grown up rapidly. The growing of the private enterprise contributes much to the development of economy, and becomes the most beautiful scenery in the revolution and development of economy in China. But the private enterprise doesn't break away from the shadow of short life all alone. Many private enterprises slided away like meteors. It leaves us pity and no choice after instantaneous brilliance. So how to make the private enterprise of China break away from the shadow of short life, and realize the goal of sustainable development of the private enterprise is the aim of the thesis.From bionic angle, the development of the private enterprise is divided into four phase: embryonic phase, growing phase, decaying phase, spallating phase, and constructing the analytical structure on the basis of the theory of the endogenous institution. The thesis is divided into six chapters.Chapter I is introduction, the introduction mainly introduces the background, the significance of the research, the basic hypothesis, the way of research, and comment on the theory of enterprise lifecycle, and points out the defect of the present theory of enterprise lifecycle: Firstly , the aim of the research of present enterprise lifecycle is vague; Secondly, the orientation and research angle of the influence factors of present enterprise lifecycle is deliberate; Thirdly, the present enterprise lifecycle is theory afterwards, and it is difficulty to judge beforehand; Fourthly, the curve of the present enterprise lifecycle is puzzle; Fifthly, the theory of the present enterprise lifecycle bases on the general view, and it mainly studies on the product lifecycle, technology lifecycle and the enterprise isn't classified. Moreover, in the research of the enterprise lifecycle, the theory does not include the institutional factors of the history background of area, society culture, politics and law. Base on the theory of the endogenous institution, researching on the problem of evolution and lifecycle of the private enterprise by analyzing its regulation and relation with exogenous institution. The introduction summarizes the basic theory of endogenous institution such as the system of economy's analyzing and the using of enterprise, the analyzing of institutional game and the using of enterprise.Chapter II analyses the theoretical basis of the research on the endogenous institution of the life evolution of the private enterprise in China. This part makes comment on the theory of endogenous institution following vein of the Marxism political economy and the Western institutional economy, and compares the Marxism endogenous institution with the Western's, and points out the differences and mutual complements, especially mutual complements. The thesis summarizes as follows: Firstly, the mutual complements of research methods; Secondly, the mutual complements about the process of the endogenous institution's accumulation and evolution; Thirdly, the unanimous opinion on exogenous institution's limited role in institutional evolution. This part finally analyzes the theory of endogenous institutional evolution applied in the thesis, and points out that the theoretic basis and structure of endogenous institution applied in the paper which synthesizes the advantages of Marxism political economy and Western institutional economy.Chapter III analyses the endogenesis of the private property institution and the germination of the private enterprise in China. The chapter analyzes the germination of China's private enterprises with the endogenesis of property institution as the point of tangency, and the chapter is divided into five parts: Part one, the definition of endogenous private property institution. The thesis defines the endogenous property as a self-maintained endogenous institution, and it generates from customary property which is formed from the mutual effect among the persons who is selfish and reason-limited; Part two, the endogenesis and evolution of China's private property. The thesis points out that the private property engender against the backgrounds of the unstable exogenous private property and inefficient collective economy, and analyzes further the endogenous condition and direct cause; Part three, the part analyzes the typical pattern of the germination of China's private enterprises with the examples of attached operation in Wenzhou and the family gene's evolution of village and township enterprises in the south of Jiangsu province; Part three, the thesis analyzes the relative family customs of endogenous private property which shores up the germination of China's private enterprises; Part five, the thesis emphatically analyzes how China's private enterprises germinate in the process of coordination mutually between endogenous institution and exogenous institution.Chapterâ…£analyses the endogenesis of the industrial organization institution and the growth of the private enterpriser in China. The chapter analyses the growing of the private enterprise in China with the endogenesis of industrial organization institution as the point of tangency. The chapter is divided into 4 parts: Part one, the definition of the endogenous industrial organization institution. The thesis points out that the endogenous industrial organization institution originates from the balanced state of the game, and analyses further the basic power and conditions of endogenesis of the industrial organization institution in China; Part two, the thesis perceives the promotive role of the evolution of the endogenous industrial organization institution impacted on the growing process of the private enterprise in China; Part three, the thesis analyses the evolution in the coordination mutual of endogenous industrial organization institution and exogenous industrial organization institution from the angle of active coordination mutual and passive coordination mutual, which promotes the generation of the third party supervising mechanism acted by the chamber of commerce of private enterprise; Part four, on the arrival of the era of knowledge economy, the endogenous industrial organization institution and the endogenous family property institution coordinate mutually, and promotes jointly the growing of the private enterprise in China.Chapterâ…¤analyses the conflict of the endogenous institution and the decline of contemporary private enterprise in China. The existence base for the private enterprise in China is the institution. For the private enterprises in China, many of them declined when they are in the growing stage. Most of them are in the industries that are labour-concentrated or resource-concentrated, and it is easy for them to gain the technology. The current technology which lacks the support of enterprise institution leads to the decline of the private enterprise in China. It is the conflict of institution that leads to short-lived for the private enterprise in China. It mainly shows that the conflict of enterprise institution and industrial organization institution caused by the defects of the endogenous property institution and the endogenous industrial organization institution. Basing on the train of thought above, the chapter firstly reveals the short life of the private enterprise in China and analyses the main trouble of the short-lived private enterprise in China; Secondly, the chapter analyses the defects that lie in the process of self-evolution of endogenous family property institution and endogenous industrial organization institution; Finally, from the angle of the conflicts among enterprise institution, the chapter analyses the restricted factors of the enterprise's growing, which is in the endogenous governing mechanism of enterprise, the structure of the enterprise organization and the enterprise management institution. At the same time, the chapter expounds the passive influence caused by the endogenous industrial organization institution which hinders the escalation of the enterprise technology and institution innovation.Chapter VI expounds institutional analysis of the spallation of the private enterprise in China. As the organism, the enterprise doesn't exist in changeable condition without spallation. Only through continuous spallation during the evolution can the enterprise evolve thoroughly, and be reborn. Without exception, with the continuous growth, the enterprise begins to spallation propelled by the contradictions of the enterprise's institutional system and the contradiction between the laggard industrial organization institution and the growth of enterprise. However, in the process of spallation, the enterprises in China encounter the institutional obstacles, which is structural obstacle of the evolution of the endogenous institution of the private enterprise in China and the fixed obstacle evolved from the path dependence of the evolution of the endogenous institution of the private enterprise. Therefore, eradicating the institutional obstacles is the key factor to solve the decay of the private enterprise in China. On the basis of above, the chapter is divided into 4 parts: Part one, the difficulty spallation of the private enterprise in China. This part discusses the realistic questions encountered by the private enterprise in China in the process of the spallation; Part two, analyzing the structural obstacle of the evolution of the endogenous institution of the private enterprise in China. The thesis analyses the structural institutional obstacles in the process of the spallation of the private enterprise from the angle of the systematic structure view; Part three, analyzing the fixed obstacle and the path dependence of the evolution of the endogenous institution of the private enterprise. The thesis mainly expounds the fixed obstacle evolved from the institutional path dependence in the process of the spallation of the private enterprise in China from the angle of the institutional inertia; Part four: analyzing the solution to the repellent effect of the institution systemic structure and the passive effect of the fixed obstacle evolved from the institutional path dependence. In view of the systemic obstacle and the path dependent obstacle of institutional evolution during the spallation of the enterprise, the thesis put forward getting rid of the institutional obstacle of the enterprise's spallation in China by accelerating the cultural change coordinating institutional innovation.The innovations of the thesis:I. The innovation of the angle of the researchThe private enterprise is an outcome of the plan economic system transiting to the market economic system, which is from exogenous institutional change, while the developing process is the process of the change of the endogenous institution, so coordinating the endogenous institution and the exogenous institution will be a key factor determined by the fate of the private enterprise in China. There are few papers to analyze the private enterprise in China from the angle of coordinating the endogenous and the exogenous institution, and there is even few papers to analyze the growth of the private enterprise from the angle of combining the thought above and the bionics. So on the basis of the theory of the endogenous institution, the thesis studies the life evolution of the private enterprise in China from the angle of the bionics. This is one of the innovations of the thesis.II. Remedying the defects of the current theoryAccording to the feature of the evolution of the private enterprise in China, the thesis analyzes emphatically the institutional factor that plays a key role in every phase of the life cycle of the private enterprise. On one hand, combining the endogenous property institution and the germination of the private enterprise; on the other hand, combining the institution of the endogenous industrial organization and the growth of the private enterprise in China. Thus the thesis avoids to analyzing generally the growth of the private enterprise only from the aspects of enterprise technology, enterprise culture, etc as the previous theory of the life cycle of the enterprise, makes the theory of the life cycle more practical and applicable, substantiates the current theory of the life cycle of the enterprise, improves the explanation of the theory, and remedies the defects of the current theory.III. The innovation of the opinionFirstly, the thesis advances standpoint of maintaining of the evolving path of the institution which is base on inertia; Secondly, the thesis advances standpoint of applying systemic stabilization to analysis of the institution, and emphasizing on the excludability effect of institutional system; Thirdly, the thesis advances standpoint of the unsymmetrical institution resulted from the institution inertia and the stability of the institutional system, which is used to expound the key reason leading to the failure of the spallation of the private enterprise in China. The thought above is the significant innovation of the thesis. Fourthly, the thesis advances the way of acceleration evolvement of the culture to get rid of the inertia and systemic stabilization of the institution.IV. The thought of the coordination permeating the thesisFirstly, the coordination of the evolution of the endogenous property institution and the supply of the exogenous property institution produces the promotive effect on the germination of the private enterprise in China; Secondly, the coordination of the institution of the endogenous industrial organization and the endogenous property institution accelerates the growth of the private enterprise in China; Thirdly the coordination of the enterprise culture and the enterprise institution,the coordination of the institutional need of the modularity of the industrial organization and the supply of the industrial organization institution speed up the spallation of the private enterprise in China.