Mechanism Research On Institutional Change And Performance Of Family Enterprises

As a widespread and growing form business organization in the world, the family enterprise’s characteristics in the modern enterprises group is:the earliest time, the largest number, the most complex structure and diversification development model. The family enterprises of China that have developed after the reform and opening up development plays an important role in the national economy. But due to the impact of China’s special historical and cultural, China’s family enterprises are facing with many development problems, such as short development process, small scale, confusion internal structures, backward technology and so on.1980s,the domestic and foreign scholars began to study the issue of family business institutional changes. But the relationship between institutional change and the growth of family business performance is fuzzy, and the existing research both at home and abroad have also come to the contradictory conclusions. On the one hand, some scholars think that the imperfect institutional environment makes family businesses can use family financial capital, human capital and social capital, thus enjoy gaining advantage resources. At the same time, the mutual unification of ownership and managerial authority reduces the agency cost. On the other hand, some scholars think that the improvement of the institutional environment promotes the protection of private property rights, make family firms get into the legitimacy of the monopoly industries, to find new business opportunities, thus promoting the improvement of the family business growth performance.In this paper, on the basis of existing research theory builds a SCP theoretical model of family enterprises and institutional change. Driven by using theory of case study method, choose Tata Groups as the research object that have146-year history and heritage of the successful implementation of four generations. By exploring favorable case facts to verify and develop the relationship of institutional change and family enterprises. Institutional change is measured by market access, trade and tariff policies, monetary and personnel circulation, family enterprise by changing the form of political association, governance structure and management pattern to adapt to the changes of the system, so as to realize the continued growth of family businesses.The article is structured as follows. The first chapter is the introduction. The second chapter is literature review. The third chapter is the building of SCP theory model, mainly includes the basic thought of research and the construction process of SCP theory model. The fourth chapter is case analysis and SCP model test. The fourth chapter case analysis and SCP model test. First, have a review and comb about the institutional environment and the development of Tata. Then analyze the development process of the Tata group, the mechanism of institutional change and family business growth performance to verify the theory of SCP model that have put forward. In the end, get the enlightenment to the development of family enterprises in China based on the analysis of Tata group. The fifth chapter is conclusion.