The Dynamic Slection On The Focus Of System Innovation In Zhejiang Family Business

Most of Zhejiang family businesses are at the growth stage of life cycle, they have already finished Primitive accumulation. Due to the complicated and ever-changing market environment, as well as their own demand for transition to a higher level and greater development, family businesses are faced with a "second start". The key content of family businesses' "second start" is system innovation, that is, breaking family governance pattern, establishing a modern enterprise system.This paper holds that the enterprise system innovation is a dynamic process, considering the cost of system innovation and the restraint of system environment , the content of system innovation is different in different stage. This paper takes family business as an object of study, and collects 91 valid samples. Having done a relation study, aggression analysis and means analysis ,this paper concluded that: (1) system innovation and family business competitiveness have a significant positive correlation. (2)family business should focus on innovation of incentive system at the start-up period; at the growth stage, the innovation of incentive system have a major impact on the viability of enterprise , property system and organizational system contribute a lot to the follow-up development capacity of enterprise; at the mature stage,family business should pay attention to the property system and organizational system.(3)The family business competitiveness is not alike in different stages, with the advance of the life cycle, the competitiveness of enterprises is growing, and reach its peak before the recession period.(4) property system, organizational system and incentive system are different in different stage, the system is becoming more and more mature with the advance of the life cycle.In the end, this paper summarizes the key point of the system innovation at diffenent development stages, these would have some meaningful points to the realization of the most optimal distribution of production factors and to the sustainable development of enterprise.