Study On The Influence Of The Party Organization Governance In State-owned Enterprises On The Non-market Strategy

Generally,the right of proprietorship of state-owned enterprises belongs to the state and the people.As a special institutional arrangement and organizational form of enterprises,their own development has multiple functions in items of political,economic,social aspects and so on.Compared with other ownership enterprises,state-owned enterprises do not only aim to maximize profits,but also to serve non market goals.Strengthening the social responsibility performance of state-owned enterprises is one of the highlights of deepening the reform of state-owned enterprises,which requires state-owned enterprises to set an example for consciously performing social responsibility,maximize the comprehensive value of economy,society and environment,and play an important strategic value in promoting the healthy and stable development of economy and society.The Party’s leadership system for state-owned enterprises is formed and developed under the background of the socialist market economic system and the deepening reform of state-owned enterprises.With the continuous acceleration of the reform process of state-owned enterprises,the leading and political core position of the party organization in state-owned enterprises has become increasingly prominent: from the early factory director responsibility system under the leadership of the Party committee and the joint committee to the pre research and discussion mechanism of major issues of the party organization after the reform of state-owned enterprises,as well as the leadership mechanism of "two-way entry and cross appointment",etc.,all of these embody the leadership of the party organization to the state-owned enterprises.They are the active exploration and innovation of adhering to the unified leadership of the party to the state-owned enterprises.It is of practical significance in building a modern state-owned enterprise system with Chinese characteristics,promoting the deepening reform of state-owned enterprises,and promoting the standardized development of state-owned enterprises.With the continuous acceleration of the reform process of state-owned enterprises,the leading and political core position of the party organization in state-owned enterprises has become increasingly prominent.Based on the organic combination of management theory and governance practice of state-owned enterprises,this study selects the party organization’s participation in governance of state-owned enterprises with Chinese characteristics as the starting point,analyzes how the party organization’s participation in governance affects the choice and implementation of non market strategy of enterprises,opens the "black box" of its internal influence mechanism from the perspective of managers’ value cognition,and puts the internal and external environmental factors into the analysis framework.By combing the existing research results and policy evolution,this paper summarizes the development context and institutional background of the party organizations’ participation in governance of state-owned enterprises,and analyzes the special connotation of non market strategy of state-owned enterprises in combination with the spirit of the 19 th National Congress of the Communist Party of China,the 14 th five year plan,the long-term goal of 2035,the special mission and functional orientation of state-owned enterprises.Based on the party theory,organizational legitimacy theory,stakeholder theory,high-level echelon theory,attention based view,etc.,using text analysis and empirical research methods,this paper makes a multi angle empirical analysis on the relationship between the party organization’s participation in governance and non market strategy of state-owned enterprises by crawling the enterprise annual report and using GTAFE data.At the same time,this paper takes managers’ value cognition as the intermediary bridge to open the "black box" of the influence mechanism of the party organization’s participation in governance on non market strategy in state-owned enterprises.Starting from the internal and external environmental factors of enterprises,this paper analyzes the regulatory role of the political background characteristics of enterprise management,the construction of Party style,media supervision,local government intervention and other influencing factors.This paper further discusses the influence of non market strategy of state-owned enterprises on enterprise value,the difference of the influence of different levels of state-owned enterprises’ Party organizations’ participation in governance on non market strategy,and the difference of the influence of different ownership enterprises’ Party organizations’ participation in governance on non market strategy.This paper draws the following conclusions: the participation of Party organizations in governance of state-owned enterprises has a positive role in promoting non market strategy.Through the leadership system of "two-way entry and cross appointment",the party organization of state-owned enterprises can play the political core function,strengthen the logic of the administrative system of state-owned enterprises,and internalize the political and social objectives of state-owned enterprises into the organizational objectives of enterprises,promote enterprises to implement non market strategy in order to maintain social stability,improve people’s livelihood,and realize the political and social functions of the party and the government.Managers’ value cognition plays a mediating role between the party organization’s participation in governance and non market strategy.In a word,members of the party organization should enter the board of directors and management of the enterprise through the leadership system of "two-way entry and cross appointment",represent the spiritual will of the party and the government,actively play the power of cultural communication in the management team,promote the formation of good core values,improve managers’ cognitive level of environment,society and the public,urge enterprise managers to allocate their limited attention to complete the political mission,and take on more social and political responsibilities to enhance social welfare,support public welfare,relieve employment pressure,and improve the ecological environment.Undoubtedly,the political background characteristics,policy supervision,media supervision and institutional environment pressure of state-owned enterprise managers play a regulatory mechanism effect between the party organization’s participation in governance and non market strategy.Managers with political background of representative committee members have higher core values and spiritual pursuit of serving the society and the public,and tend to encourage enterprises to choose non market strategic behaviors such as expanding employment,environmental protection and charitable donation in decision-making;The influence of policy supervision power on the political sub strategy of non market strategy is more obvious,and the "eight regulations" is based on the construction of Party style.As a kind of policy pressure,it carries on the comprehensive transmission in the enterprise organization hierarchy system,effectively restricts the self-interest behavior and the invisible corruption behavior of the enterprise senior management Party members.In the decision-making,it is more inclined to the enterprise to make actions and measures to drive the local economic development.At the same time,the Party style construction advocates simplification,which has a restraining effect on the redundant employees of the enterprise;Media supervision plays a more significant role in promoting the social sub strategy of non market strategy.The public can grasp the performance of corporate social responsibility through news media reports,exert pressure on enterprises through public opinion,and influence enterprise activities through reputation mechanism.Compared with the political responsibility of enterprises,the public pays more attention to the contribution and feedback of enterprises to society,such as the charitable donation of enterprises and the awareness of green environmental protection of enterprises;Institutional environmental pressure has a positive effect on non market strategy of enterprises.The greater the institutional environmental pressure is,the more state-owned enterprises pay attention to employment expansion,environmental protection,people’s livelihood and other issues.This study extends the research perspective from market behavior such as business performance to non market behavior such as political activities and social activities,explores the realization mechanism of non market strategy of state-owned enterprises,supplements the influence scope and effect of Party organizations’ participation in corporate governance,expands and enriches the research boundary of traditional corporate governance model and governance mechanism,and provides reference for relevant research on Party organizations’ participation in corporate governance It provides a new research direction.Combined with China’s basic national conditions and system characteristics,this paper focuses on the analysis of the Era Connotation of strengthening the party organization’s participation in governance of state-owned enterprises,and explores the internal relationship between the party’s purpose,goal and the function orientation and mission of state-owned enterprises,so as to deduce the important role of party organization’s participation in governance in non market strategy,and prove that the party organization’s participation in governance of state-owned enterprises is an important part of state-owned enterprises,which plays an indispensable role in the operation and development of enterprises.At present,most researches on non-market strategy mostly focus on the interactive relationship and behavior between enterprises and external stakeholders,aiming to build the "rationality" of enterprises in society,and ultimately improve the economic performance of enterprises through effective relationship management.Combined with China’s basic national conditions and social system characteristics,based on previous studies,this study complements and improves the connotation and measurement of non market strategy of state-owned enterprises,provides new ideas and directions for non market strategy related research,and expands the research perspective from "strategy performance" level to "cognition strategy" level.