Relationship Between Intellectual Capital And Our Country Private Enterprise Sustainable Growth Of Empirical Research

With the advent of knowledge economy, intellectual capital plays an increasingly important role in value creation. The organization that can control knowledge will be able to occupy a favorable position in the competition. Intellectual capital becomes an important strategic resource because of its characteristics, which are scarce, valuable, impossibility to be imitated and substituted. What’s more, the strategic resource of an enterprise is precisely the source that forms the core competitive advantage of the company. After having the core competitive advantage, the enterprise can achieve sustainable growth and becomes the evergreen tree in the market, if you make reasonable use of the internal and external resource. With the20years’development of private enterprise, it has become an important driving force to broaden employment channels, to stimulate economic growth, to optimize the structure of ownership and to promote the industrialization process. However, most private enterprises’ life is very short in our country, which is only an average of7.2years. It is much shorter than that of Japanese companies and U.S. companies whose average life is30or40years. The sustainable growth of Chinese private enterprises is becoming increasingly prominent, and has become an important issue of academics, politicians and the industry. Why do China’s private enterprises generally have high failure rate and easily getting the plight of bankruptcy? Are there any relationships between short-lived phenomenon of private enterprises and intellectual capital? What are the relationships? So it is necessary for us to launch a study on the relationships between intellectual capital and the ability of the sustainable growth of private enterprises. This study not only can perfect the theoretical system of intellectual capital, but also has an important strategic significance in promoting the sustainable growth of private enterprises under the new economic conditions. At the same time, it can help the private enterprises to know the driving factors of their own growth better, thus allocating various resources more effectively.This article mainly uses the method of combining theoretical analysis with empirical analysis in the study. After reviewing literatures on intellectual capital and corporate sustainable growth ability, we find that the present study has the following deficiencies:First, the connotation composition and measurement methods of intellectual capital have not reached a consensus. And there are many differences; Second, the study of intellectual capital starts from the industry classification view and mostly concentrates in computers and other high-tech industry, thus rarely get involved in other industries; Third, there are more researches on the relationship between intellectual capital and business performance. While very few literatures study the relationship between intelligence capital and sustainable growth ability of corporate. So, there are still many loopholes in the previous studies. This article is to explore the effects that intellectual capital, physical capital and the constituent elements of intellectual capital (human capital and structural capital) have on the sustainable growth ability of private enterprise respectively. The study is based on previous research, taking China’s private listed companies as the object, from the perspective of ownership. Data of the year2005to2010, the SPSS18.0value-added software and intellectual capital coefficient (VAIC) are used in this research.The results show that:the sustainable growth of private enterprises and intellectual capital is significantly and positively related. Physical capital and structural capital have a significant positive correlation with the sustainable growth of private enterprises. And the impact of physical capital on sustainable growth of private enterprises is far greater than that of structure capital. While human capital has a positively correlation with sustainable growth of private enterprises. In this paper, this empirical results have been systematically analyzed, combined with the characteristics of private enterprises. We conclude that private companies should step up the investment and management in human capital and structural capital, and improve the ability of sustainable growth of private enterprise through improving the intellectual capital.The main innovations of this paper are threefold:First, previous studies related to the concepts of intellectual capital, corporate growth have no systematic and clear definitions. In this paper, these concepts are discriminated; Second, previous studies of intellectual capital are from the view of the industry classification, and they are mainly concentrated in the computer-based high-tech industry. While our study is from the perspective of ownership and focused on China’s private enterprises; Third, the relationship between intellectual capital and business performance are often studied while relationship between the intellectual capital and corporate sustainable growth ability has been researched little. In this paper, the relationship between intellectual capital and sustainable growth ability of private enterprise is studied.