The Study Of Family Firm Growth Based On Enterprise Network

With the globalization of the world economy development and the deepening of enterprises specialized division of labor, the cooperation between enterprises become more and more closely. Competitions among enterprises gradually evolve into the competition between enterprise networks. Enterprise network which is deemed to be an organization between pure market and enterprise hierarchy has many unique advantages in the allocation of resources. How do family firms the most common business organization grow through enterprise network becomes an urgent problem of the practice. So it's necessary to study the growth of family firms based on enterprise network.Our research mainly uses normative and qualitative method. The article has reviewed the theory of enterprise network and firm growth, analyzed how enterprise network helps firms acquire resources and improve their abilities. On the grounds of Penrose's theory of firm growth, we utilize the logic of "resources-—capabilities—firm growth" to analyze the growth mechanism of family firms in enterprise network. Firstly, since the enterprise network expands the way how family firms acquire resources, we analyze separately the new ways for family firms in enterprise network to acquire financial resources, human resources, material resources and organizational resources. Secondly, we analyze separately the mechanism of how enterprise network helps family firms improve their abilities in management and innovation. Finally, we propose the theoretical framework of firm growth in enterprise network dependent on above analyze and give some policies and advice accordingly. And the paper concludes help family firms realize the way how family firms acquire resources and heighten abilities in enterprise network and choose right strategy to grow rapidly.