The Impact Of Overcapacity On The Enterprise Transformation

In the planned economy period,demand exceeds supply,but with the development of China's reform and opening up process,the supply exceeds the demand.Overcapacity has a serious impact on the long-term sustainable development of China's economy.First is the impact of China's traditional industries,as early as 2005,55 large iron and steel enterprises in China,about half of them have a loss,and about 45% of the Cement industry enterprises have a loss.This will directly affect the cornerstone of China's industry.On the other hand,because of overcapacity in China's domestic demand and foreign demand tightening,while the Chinese government has issued policies to stimulate demand for materials,which leads to the contradiction between supply and demand in china.Although China's enterprises face the situation of excess capacity,these enterprises still the lack of quality products.This paper first summarizes the relevant theory and literature of China's enterprises overcapacity and business transformation,mainly including the concept,our country enterprise motivation,restriction factors,transformation modes and paths and transition performance.What's more,this paper also discusses the concept of excess capacity,measurement,causes and treatment.On the one hand,this paper argues that in the background of overcapacity,enterprises need to develop itself according to their own situation and social demand,adjust its product type and industry structure,and the change of social demand structure and level,to achieve their own transformation and upgrading.On the other hand,it is also the focus of this paper.This paper argues that the input of technological innovation has an important impact on the transformation of enterprises,and will affect the relationship between corporate transformation and overcapacity.Enterprises need to innovate behavior,especially technology innovation,to promote the realization of industrial transformation and ease the current situation of excess capacity.Specifically,the enterprise technology innovation is not only the work of R & D department,but is closely related to the production and operation of enterprises,and it will influence the direction of enterprise strategic,and it also becomes the main way for enterprises to get their own competitive advantage,and it is the important influence factors in the process of enterprise transformation.On the basis of theoretical analysis,the establishment of a panel data econometric model,setting up the related variables,mainly use the data of 213 listed companies in 2010 to 2015,the data was analyzed by eviews7.2 software.Through theoretical analysis and empirical test,we make some results.As China's steel,coal,photovoltaic and other industries to increase the degree of excess capacity,corporate resources can not be fully utilized,resulting in idle social assets,is not conducive to the long-term development of the national economy.In order to alleviate the current situation of excess capacity,to achieve the transformation and upgrading of enterprises,through technological innovation,improve labor productivity,and reduce the cost of enterprises.And because of the increase of investment in technological innovation,enterprises can take industrial transfer,factor replacement,industrial transformation,and other ways to adjust the industry,and then to the role of enterprise transformation.Finally,on the basis of the above analysis,this paper puts forward some relevant policy suggestions on how to make the enterprise transformation,and to use this opportunity to ease the current situation of China's excess capacity.Emphasizing the important influence of excess capacity on enterprise transformation,the enterprise innovation behavior represented by technological innovation is becoming more and more important in the development of the enterprise.