A Study On Influential Factors Of Performance Differences Among Public Companies In Minority Regions

In China,the problem of unbalanced economic development is serious,as there is a great difference in economic development among the east,the middle and the west of China,especially the economic development is at troughs in minority regions.This situation is fully manifested by the regional difference of public companies' performance,and so the study on performance of public companies in minority regions not only can reveal those public companies' problems in development,but also can provide an indicator of the economic development.This study takes public companies in Tibet as samples,by investigating the influential factors of these companies performance,so as to reveal a series of problems of Tibetan public companies and regional economic development,and accordingly,puts forwards countermeasures and suggestions for improving company performance.This study starts with document research,giving a literature review on theories of company performance,researches on company performance in minority regions and public company performance in Tibet.Through literature review,this author has found that there is an obvious regional difference in performance among public companies,and this difference between companies in minority regions and those of other regions is more remarkable.In Tibet,the difference in public companies' performance is regionally typical.On the basis of literature review,this author has systemized the theories of company performance,and laid emphasis on the paradigm of “structure-behavior-performance”,Core competence theory,Dynamic capability theory and BSD(balanced score card)etc.The author has also explored,from theoretical perspective,the connotation of company performance,influential factors of company performance,and performance evaluation index,highlighting the hierarchy of influential factors of company performance and the mechanism model,which has established a theoretical basis for following-up study.According to the Tibetan public companies' financial reports,enterprises' public information,the existing research result,materials of enterprises' investigation and survey from 2010 to 2014,this author has evaluated the financial performance and management performance of Tibetan public companies.For fully explaining the situation of the financial performance of these public companies,this author has selected medical public companies,whose vertical financial index is comparatively better,and compared the annual financial indicators of companies in the industry.The evaluation of performance has showed that the performance of five public companies(Tibetan Pharmaceutical Factory,Qizheng Tibetan Medicine,Haisike Pharmaceutical Tibet 5100 Lingkang Pharmaceutical Factory)is relatively good.Based on scientific performance evaluation and observation,the research direction and the key problem were decided.Dual weighting method has been used to find out four key influential factors of company performance: technology and innovation,regional environment,human capital and enterprise culture.Combining document research and on-site investigation,this study has analyzed the particularity of the key influential factors mentioned above,especially the particularity of the regional environment and that of performance in development.In this process,this study has divided the key influential factors into different hierarchy,researched their mechanism of influence factors,and formed a single factor mechanism model.On the basis of the comprehensive analysis,the study has generalized three levels of influential factors of performance of Tibetan public companies(level I,II,III),and integrated analyses on the particularity of different levels,and then put forwards a hypothesis about the relationship between influential factors and company performance,while constructing a mechanism model of key influential factors of public companies in Tibet.Because of the reality that the amount of samples of public companies in Tibet is small and the difference between samples is large,this study has used case analysis method.The cases are chosen from medical public companies that have high industrial aggregation and small sample difference.Through these cases,the conclusion is produced.First,by testifying the relationship between all different influential factors and company performance,the study correlates the previous study on particularity of company performance's key influential factors.Second,there is an interaction among influential factors of all levels.The influence of government action is of strong particularity and strong effect on other factors.Therefore,government action is classified as factor level II.Third,the characteristics of the mechanism of influential factors have been found,and these factors change,interact,and work together all the time.Fourth,on the basis of hypothesis testing and research conclusions,this study has amended hypothesis model and improved the mechanism model of influential factors of Tibetan public companies.There are two paths where the factors work.One is the core capability of enterprise which is composed of technology,innovation and human capital.The other is enterprise culture that has effects on individual behaviors of members of companies,and then affects company performance.At the same time,technology,innovation,human capital and enterprise culture are all affected by the regional environment of Tibet.Fifth,study reveals the reasons for the regional performance differences of Public Companies in Minority Regions,the regional environment is the decisive influential factor.technology and innovation,human capital and enterprise culture are the Important key influential factors.Based on the analysis of influential factors and case study,this study has summarized problems of the enterprise development and performance of public companies in Tibet.The “externalization” of enterprises is serious.The regional difference of company performance is obvious.Core competence of enterprises is weak.Enterprise culture lags behind.The management level of company performance is low.To solve these problems,some useful suggestions are put forwards in this study to improve companies' performance and development.From government and enterprise perspectives,this study put forwards macroscopic strategies and microscopic advices.Macroscopically government should play a very important role in promoting enterprise' development.What government needs to do is to improve and reinforce the regional environmental construction such as human resources,financing,marketplace,technology and innovation,cultivating a good growth environment for public companies.Government's industrial policies can also guarantee public companies' sustainable development.Microscopically,what public companies need to do is to strengthen core competence and enterprise culture,to cultivate competitive advantages such as human capital,technology development and innovation.With the help of industrial policies in Tibet,local public companies can have a characteristic development.The typicality and regional characteristics of Tibet are obvious.The regional difference of public companies' performance is notable.The case study about public companies in Tibet can reveal the phenomena about the difference of company performance and the prominent problems of enterprise development in minority regions.In the light of the problems and countermeasures in this study,local enterprises are advised to analyze the influential factors related to company performance,to find out the core problems causing regional difference of company performance on the perspectives of particularity of influential factors and their mechanism,to set definite goals,to improve company performance effectively,and to reinforce the core competence,in order to achieve a sustainable economic development and promote economic and social development.