Construction And Practice Of Formal System In The Family Business

Under the country’s macroeconomic policy and the market economy promote jointly,the transition of family business system became a necessary road. For which familybusiness for institutional transformation is positive, the construction and practice offormal system and informal institutions can be main research questions.In this thesis, the author took Y colliery (an anonymous deal) from Chongqing as aspecial-case study. Through participant observation, in-depth interviews and literaturedata collection methods in local colliery, the paper mainly researched family businesssystem transformation. It shows how the formal systems embed in the strong formalsystem and weak relations of formal system.The thesis can depart into two parts, one is that how formal system built under theinfluence of government and the market, and why the colliery established a modernenterprise system, the other part is that how the modern enterprise system executed.Based on concrete practice and case executed of institution, we found that the purposewhich the enterprise reformed its systems and rules for a legal market status.Finally, we believe that the survival and development of coal mining enterprises wasdeeply affected by the country’s macroeconomic systems and policies. Secondly, Modernmanagement practices within the enterprise system come from the effects of both thegovernment and the market. Lastly, practice is the operation of the system and the processof family business strategy chosen subject of capital.Based on the study, it shows such asthe Y colliery as a family business’ formal system path of transition, also it expands thetheory researches of family system construction and practice.