Research On The Relationship Between The Change Of Power Struture And The Performance Of State-owned Enterprises

In the new era,faced with new demands,state-owned enterprises need to further deepen reform.According to the theory of corporate governance,the healthy development of an enterprise is inseparable from a good power structure arrangement.However,due to the special nature of the state-owned enterprise,the power structure arrangement of an enterprise cannot achieve the expected results under traditional constraints such as shareholding ratio.Therefore,how to provide effective internal power structure arrangements for state-owned enterprises has become the breakthrough for further deepening the reform of state-owned enterprises.The Tianjin Dreding Co.has undergone different institutional arrangements in the planned economy.Its internal power structure has been adjusted accordingly with the country’s unified production arrangement,and the difference in production performance significantly reflects the final effect of different internal power structures of the enterprise.Therefore,the power structure model that is suitable for the healthy development of state-owned enterprises which was obtained by studying the correlation between the changes in the power structure of Tianjin Dreding Co.and it’s performance during the planned economy period can provide an empirical reference for the further deepening of the reform of contemporary state-owned enterprises in China.This paper clarifies that the check-and-balance power structure is an effective power structure,and selects total factor productivity as the performance index of state-owned enterprises.In terms of specific research,this paper has following practices.According to the study of the historical data,this paper analyzes the changes in the power structure of Tianjing Dreding Co.during the planned economy period.And then it discusses how the power structure affect the performance.Furthermore,through the empirical research and the interpretation of the result to analyze the correlation between the power structure of Tianjin Dreding Co.and it’s performance in different periods of the planned economy.Finally,combined with the problems existing in the reform of contemporary state-owned enterprises,some relevant opinions and suggestions are put forward.The study results show that the changes in power structure of Tianjin Dreding Co.has mainly in three parts that is in institutional affiliation,in internal organizational system,and in production management systems.These three are all adjusted according to the overall national management system during the planned economy period.The core of the adjustment is to balance the power among four factions: political work cadres,administrative cadres,technical cadres and workers.According to the theoretical analysis results,the effective power structure can significantly enhance the rationality of enterprise decision making through the effective technological progress and the reduction of agency cost.Through the two paths of improving the effectiveness of execution and the enthusiasm of labor,the effective power structure can improve the execution ability of enterprises in specific affairs.At the same time,the effective power structure can also help the enterprise to build the active supervision mechanism and the management decision insurance mechanism,and improve the supervision system of the enterprise.Besides,the empirical results show that the effective power structure is positively correlated with corporate performance.This paper believes that the contemporary state-owned enterprise reform should fully apply an effective power structure,that is the check-and-balance power structure.Those reforming enterprises should use the power structure arrangement of the Tianjin Dreding Co.in accordance with their own characteristics.While the check-and-balance power structure plays an incentive role and an insurance function to the state-owned enterprises,it can also guarantee the effectiveness of technological progress.