Allocation Of Authority In Creative Enterprise

As new industries developed under the background of knowledge economy,creative industries encourage innovation, value individual creativity, andemphasize great impacts which cultural arts make on economic developmentand the adjustment of industrial structure. With current growing trend ofglobalization and the increasingly fierce international competition, the creativeindustries increase in the daily rate of more than5%, setting off a powerfulwave of creative economic development. Behind the dazzling economic data ofcreative industries, all of the illusory idea, maverick artists, as well as theirrejection of physical capital, provide an exciting researching direction for themodern theory of the firm.As a creative vector, Creative enterprise is not just a simple economicorganization to produce creation but also the important institution thatcoordinate the relationship of interests among creative talents. It is extremelynecessary to build efficient power configuration to ensure the high efficiencyresult by co-specialization among the creative talents in enterprises,simultaneously, to avoid unnecessary rent dissipation caused by theinconsistency between individual goals of creative talents and the whole goal ofthe creative enterpriseThe paper explores the authority structure within creative enterprises to tryto build a normative analysis framework about the allocation in the creativeenterprises in a lot of ways of management science, contract economics,property economics, transaction-cost economics and human capital theory.First, we give emphasis to high-risk nature of creative enterprises, thenon-quantifiable output, the non-supervisory process and inseparabilitybetween human capital and their vector. At the same time, we take account ofthe conflict between happy idea of creative talents and the hypothesis ofrational economic man. In this basis, according to the element owners’ featureof maintaining the value of their assets, we have a consistent logical deductionthat creative enterprises will adopt the partnership structure. Especially, weindicate that partnership structure is the Pareto efficient choice in pure creative talents enterprise by combining the lack of material capital as risk mortgage increative enterprises with the limited wealth of creative talents.Then, we conduct further study on authority structure by analyzing thedistribution of decision-making power. In the next, after defining thedecision-making power, we introduce the classical model about the distributionof decision-making power in enterprises which put forward by Jensen&Meckling. Moreover, we point out the possible theoretical defects and discussthe ideal configuration of decision-making power where knowledge and abilityare variables. Then the paper refer to the bargaining power of creative talentsand the real distribution of decision-making power caused by power desirethrough Nash bargaining theory, just after which we point out that it isnecessary to restrain the individual bargaining and the desire for power throughcollective ration for the sake of the effective distribution of decision-makingpower.Finally, our theory has a preliminary empirical test by the analysis of thecase of Crystal Stone.