Research On The Organization Growth And System Transition Of Family Enterprise

As a special kind economic phenomenon, the family enterprises are discussed by lots of students. From 1980th, the system transition of family enterprises becomes the research focus overseas. In China, after the Reform and opening-up policy, the family enterprises are bigger and bigger. Some of them confront some problems. Therefore, the discussion about the system form is becoming hot. This paper takes the XinXin Company as an example, which studies the organization growth and system transition of the family enterprises. What factors make the system transition of the family enterprises? How do the factors interact with each other? Which kind of system do these interactions make the companies go to?This paper has described the process of a family enterprise's growth history and system transition. The XinXin Company become a big company which have 15 million output value a year and was the third in this field after 10 years. It also has a broad sales network all over the country. However, the family management system restricts the further development of the company. We will discuss what problems the company confronts and what measures the company has taken. Also, we will analysis which measures are working, which are not and which are changed. Through the comparisons, we will find what factors cause the system transition of family enterprise.I integrate several valuable perspectives which are useful for explaining the questions. On the one hand, I introduce political-custom perspective which is proposed by Neil Fligstein. This perspective tries to integrate the structure's view and actor's view. On the other hand, I introduce the new institutionalism which gives the"environment"with a wild definition. This definition make the Fligstein's theory is more useful in explaining the reality.Based on different views and perspectives, the writer proposed three factors which caused the system transition of the family enterprises: the outside environments, the power struggle inside the family enterprises, and the economic ethics of the entrepreneurs. The outside environment can give some systems with legitimacy. On the one hand, the enterprise will use these systems for getting more resources. On the other hand, the legitimacy has constructed the entrepreneur's cognitive structure. Therefore, the actors will use these systems as"naturally". However, there are lots of systems which have this kind of legitimacy. Fligstein said there are several conceptions of control. Which one will become the choice of family enterprises? We should consider the factors of entrepreneur's economic ethics and the power struggle inside the family enterprises. From the case, we can find the system transition is the result of three factors'interaction. When we analysis the system of a specific family enterprise, we should integrate the three factors and analysis which conception of control is on domination.