Research On The Relationship Among Founder Control,Strategic Change And Firm Performance

Under the background of the increasingly fierce competition between founders and investors about the actual control for private enterprises,how to effectively protect and entirely develop founder control power still needs to be focused.With China's economy entering a new normal stage of development,external environment uncertainty of enterprise gradually becomes obvious.Facing the dynamic and complicated environment,for the founder,how to effectively use the corporate control,clear the resistance of change,make the natural adjustment and implementation strategy of enterprises,so as to effectively identify opportunities and avoid risks,therefore maintaining performance improvement is an imminent as well as urgent.The study based on incomplete contract theory,resource based theory and dynamic ability theory,takes 173 private listed companies on GEM form year2010-2016 as the research object,uses dynamic panel GMM model to analyze the conduction mechanism,effect mechanism as well as the moderating effect of environment uncertainty on founder control and strategic change,strategic change and performance,the main conclusions shows as follows:(1)Founder control and enterprise performance presents a significantly positive U relationship,exceeding the minimum point(4.65),founder control will show the positive,sustained growing effect on performance.As for the dimensions of founder control,founder position power,operation power both have a significantly negative effect on performance,founder expert power,ownership power both have a significantly positive effect on performance.There are differences in direction and intensity of the dimensions of founder control on the performance.The influence strength of each dimension of founder control on performance is ranked as follows:ownership>resource operation>expert power>position power.(2)Strategic change and firm performance presents a significantly positive U relationship,the critical point of strategic inertia is 0.90,when strategic change is less than the strategic inertia,strategic change restrains performance improving;when strategic change is over strategic inertia,strategic change significantly promoteperformance improving.(3)Strategic change acts as the "conductor" between founder control and firm performance,which plays a nonlinear U type partial mediating effect on founder control and performance,when the two variables act on performance at the same time,the effect intensity of founder control on performance has weakened,while that of strategic change on performance has enhanced greatly,the mediating effect of strategic change accounts for the proportion of total effect is 0.17%,1.4%.(4)Environment complexity and environment dynamism both play a significantly moderating effect on the relationship between founder control and strategic change.Environment complexity has a significant positive U effects on the relationship between the two variables,the minimum point of moderating effect is0.008,When environment complexity is during [4.65,+ ? ],it will enhance the promoting effect between founder control and strategic change,which is beneficial for founder to use control power to carry out strategic change.Environment dynamism has a significant negative U effect on the relationship between the two variables,the maximum point is 0.50,when environment dynamism is during [0.50,4.65],the suppressing effect of founder control on strategic change will be weakened.(5)Environment complexity and environment dynamism both play a significantly moderating effect on the relationship between strategic change and performance.Environment complexity has a significant positive U effect on the relationship between the two variables,the minimum point of moderating effect is0.73,when environment complexity is during[0.90,+?],it strengthens the promotion of strategic change on performance,making the positive effect more prominent.Environment dynamism has a significant negative U effect on the relationship between the two variables,the maximum point is 1.11,when environment dynamism is during[0.90,1.11],it strengthens the promotion of strategic change on performance.According to the conclusions,the study gives some suggestions for firm performance improving,for example,creating equity system,adopting to carry out strategic change and focusing on the match of environment and strategy.