Study On Sustainable Development Strategy Of Township Family Business

Township family business is a kind of organizational form of enterprises locatedin township area. Family members set up the organization as major investors andexercise control rights over it. Sustainable development of township family businessis the continuity and sustained status and trends of business activities. Property rightssystem and arrangements, rigid family benefits structural, human resources andhuman capital, and traditional family culture are the major factors affecting thesustainable development of township family business.Sustainable development strategy of township family business aims to maintainthe continuity of business growth and achieve sustainable development of enterprises.The whole strategy for sustainable development is formed by institutional innovationstrategy, capacity building strategy and enterprise alliance strategy. Throughinstitutional innovation strategy, enterprise resources can be effectively allocated andintegrated. On this basis, by means of increasingly accumulated and sophisticatedresources structural system, and innovation on enterprise system and managementmechanism, a series of unique business complementary knowledge, skills,information and other resources can be combined into company’s core capabilities.Following the continuous consolidation and promotion of core competencies, theenterprises can beyond the traditional physical resources and the original abilityboundary. Through capacity building strategy, the heterogeneity and irreplaceablecore ability can be constructed to effectively expand the development boundaries ofenterprises. Also, no enterprise can monopolize the industry chain system and allscarce resources, even if she has the irreplaceable core ability, that is, even with astrong competitive ability, the enterprises’ internal resources are also scarce. Alsobecause of the scarcity of resources, the enterprises with their own heterogeneityresources and capabilities embedded the industrial chain and build networks andstrategic alliances. Through organizational structure of strategic alliances, townshipfamily business organically embedded the enterprise subsystem into the wholeindustry and society system, rising to the sustainable development state withoutborders. According to their inner logic, institutional innovation strategy, capacitybuilding strategy and corporate alliance strategy combined organically into the overallsustainable development strategy model of township family business. The internallogic of overall strategy model are: enterprise system and its innovationsimultaneously influences and determines resource allocation structure, resourcesboundaries, ability improving and ability boundaries transcending; businessimprovement fundamentally decisions and promotes enterprises to beyond theestablished ability boundaries and achieve borderless sustainable development;business strategic alliance based on ability building strategies and core competenciesconstantly expand enterprises’ development borders, promoting to achieve borderlesssustainable development.Institutional innovation of township family business was formed by propertyrights system innovation, enterprise system innovation and governance mechanisminnovation, etc. One property rights system innovation model of township familybusiness is from the patriarchal and entrepreneurs highly centralized property rights system arrangements to family members decentralized property rights systemarrangements; the second is from family business owners, partners and other naturalproperty rights arrangements to corporate legal of property rights systemarrangements. Township family enterprise system innovation has two models: First isstock cooperative system model; second is modern corporate system model.Governance mechanism innovation of township family business requires consideringcompany’s operating rules, family ethics and supervision of stakeholders, to buildorganically combined governance mechanisms with distinctive corporate governance,family governance and stakeholder supervision.Innovation and enhancement strategy of township family business sustainabledevelopment has its inherent evolution model. The basic paths of improvingsustainable development ability of township family business are: promoting theintegrate innovation of enterprise’ internal structure system, creating the competitiveadvantage of human capital, promoting innovation on technology development modeland technology portfolio management, establishing and implementing brandingstrategy, promoting transformation and innovation of family business culture.Township family business strategic alliances are important ways of enhancingenterprises’ sustainable development capacity. Based on the characteristics, theorganizational model of township family business’ strategic alliance should becontractual strategic alliance, the types of alliances including: cooperative researchand development alliance, joint production alliance, marketing and developmentalliance, knowledge dissemination alliance, etc. Building of strategic alliances enablestownship family business beyond the original resources and capacity boundary, whichcan greatly promote sustainable development of township family business.