Study On China’s Family Enterprise Internal Management Mode Selection And Optimization

As the combination of family and enterprises, family business create miracle of businessgrowth in the early years of the family enterprise. Why is the scale of family enterprisegrowing? The reason is the natural superiority of family business in the early period: internalhigh trust mechanism of family-based governance, the initial convenience of capital, theinternal factor such as enough human resource. All of these factors laid the cornerstone of thefamily business development in the early period. But along with the growth of familybusiness in the mid and late development of family enterprises, the strong desire and behaviorcontrol of the whole family enterprise limits the family enterprises’ absorption, integration anduse of social resources: family internal high trust is difficult to extend to the outside word, thelow efficiency of using external social capital: capital and human resource. It leads familyenterprises about internal talent, management resource and trust resource in the shortage inthe situation before mature of capital markets and the gradual development and professionalmanagers market, seriously restricting the sustainable development of family enterprises.Family enterprises leading the growth miracle is fading, three generations of familyenterprises become the family business destruction, causing many family companies introuble.So which internal governance modes family business choose are relatively suited,contributing to the family enterprises effective integration and utilization of initial trust,money, and the human capital, creating the growth miracle of family business in the earlystage; Also it is worthy of our exploration about what internal governance mode familyenterprises should adopt can inherit and continue healthy and rapid growth of the familybusiness at the early stage; If there is a universally applicable internal governance modeguaranteeing family businesses rapid development? Whether is the professional governancemode always superior to pure family-run management in the whole life cycle of the familyenterprise. Base on the relevant academic research on family business internal governancemode, analyzing the advantages of family businesses in the early stage. And later under thepremise of family enterprises lack of modern corporation management, from the perspectiveof complex internal and external environmental factors comprehensive consideration,supported by contingency theory, analyzing which is relatively suitable internal governancemode in different stages under combinations of different factors.At last we aim atoptimization analysis of internal governance mode choice at the perspective of game theory,making family firms better adapt to the internal and external environment at different stagesof internal governance models. Through the inheritance of familial trust mechanismadvantages system, at the same time the rational innovation, making up for the growthshortage of family enterprises, promoting the development of family businesses.Through argumentation and analysis we found that:(1) our country family enterpriseinternal governance mode choice comprehensive restricted by external environment factors:the mature degree of professional manager market, the breadth and depth of social trust, andexternal system perfect degree, etc.; At the same time constraint by internal factors: familyenterprise culture, family size, family enterprise development stage, and family characteristicsand other factors;(2) internal governance mode choice of family firms in China should followcontingency thought, integrating internal and external environmental factors and family enterprises particularity, going through the original family relationship governance, middlemanagement and professional management experience, and finally evolved into theprofessional governance made of family trust.It is one of the family enterprise internalgovernance mode choice path;(3)Considering the following contingency thought, familyfirms of different internal governance patterns include extremely flexible of different specificpattern choice, family enterprise should choose the proper benefits;(4) Chinese familyenterprises in the internal governance mode choice decision should enhance their enterpriseflexibility, improve enterprise flexibility, through inheritance and extends from the familytrust and system innovation, keeping the development of family businesses.