A Research On Alibaba's "Combination Of Centralization And Decentralization" Mode Of Financial Management And Control

With the rapid development of economy,enterprises have shown the trend of collectivization across industries,regions and even countries.The scale of enterprises is expanding day by day,and the organizational structure is becoming more and more complex.Due to the existence of principal-agent problems,the management and control of collectivization,especially the scientific and effective problems of financial management and control,has become a prominent issue that affecting the healthy and sustainable development of enterprises.Control power is the core competitiveness of large enterprise groups.But there is a general problem of excessive centralization or excessive decentralization in the management of enterprise groups in China.A mode of finical management and control with moderate centralization or decentralization has become the fundamental guarantee for large enterprise groups to maintain their vigorous vitality.As a representative of the emerging internet enterprise group,Alibaba Group has a huge scale.It not only has to face the management problems that brought by the expansion of the enterprise,but also has to deal with the test of the uncertainty of the external environment,technological innovation and the variability of user's needs,which puts forward a higher requirement for the sicentificity and effectiveness of its mode of financial management and control.In order to meet these challenge,Alibaba's model of financial management and control has also experienced the distress of centralization and decentralization in its development process,until it put forward a combination of centralization and decentralization mode of financial management and control based on its "Big Middle office,Small Front Office" operation strategy.This paper chooses Alibaba as a case to study the mode of financial management and control of large enterprise groups and mainly uses the method of combination of the theory and case study.In the light of the theory of principal-agent and group financial management and control,this paper sorts the evolution process of its mode of financial management and control,and clarifies the centralization,decentralization and combination of centralization and decentralization of its finical management and control and the characteristics of these three phases,and emphatically summarizes the sicentificity and effectiveness of its combination of centralization and decentralization mode of financial management and control based on the "Big Middle Office,Small Front Office" : the "rotation" system of employees with innovative normality is an important prerequisite for Alibaba Group to implement the "combination of centralization and decentralization" mode of financial management and control;flexible,efficient,timely and reliable "Middle Office" not only meets the needs of rapid expansion of the group,but also brings advantages such as staff become mak-er,organization simplification,process standardization,means intellectualization,control precision and achieve significant results and so on.Algieba's combination of centralization and decentralization mode of financial management and control based on the integration of " Big Middle Office,Small Front Office " provides useful experience for the group development of other enterprises:enhance the competence of healthy and sustainable development of enterprises based on organizational reengineering,build the core competitiveness of enterprises based on the moderation of centralization and decentralization of financial management and control,and achieve the organizational transformation based on the full use of modern information technology.