1、Asian Social Science;Vol.9,No.4;2013 ISSN 1911-2017 E-ISSN 1911-2025 Published by Canadian Center of Science and Education 51 Chinese Private Enterprises Management Innovation Ri Nan1 1 Tianjin University of Commerce,Tianjin,China Correspondence:Ri Nan,Tianjin University of Commerce,Tianjin 300134,C
2、hina.Tel:86-136-8219-7910.E-mail: Received:January 11,2013 Accepted:February 5,2013 Online Published:March 28,2013 doi:10.5539/ass.v9n4p51 URL:http:/dx.doi.org/10.5539/ass.v9n4p51 Abstract Since the reform and opening,private enterprises of China have got a rapid development,and have done a great co
3、ntribution to the continual development of national economy.However,with the change of external and internal situations,private enterprise management appears to be defective,sometimes it even does harm to the development of the enterprises.This reports aims to present of the problem of private enter
4、prises in China.In order to solve this problem,Chinese private enterprises should accelerate the management innovation.We analyzed the necessities of enterprises management innovation,the motivation of management innovation,obstacles to management innovation.Finally,it puts forward the countermeasur
5、es to solve the problems.Keywords:private enterprise,China,innovation 1.Introduction After more than three decades of rapid development,we see the emergence of a very strong private sector in China.Indeed,private enterprises have grown rapidly over the years and become an integral part of the Chines
6、e economy.The Bank of Communications of China published a report regarding the wealth creation and management of Chinas private enterprises on May 16 2011.The report shows that while the private enterprises of China continue to make contributions to the GDP and create jobs,their wealth is also incre
7、asing rapidly.Private Chinese enterprises exported goods worth$481.3 billion in 2010,a jump of 223 percent compared with 2005,said a report by the All-China Federation of Industry&Commerce(ACFIC).The number of private enterprises in China exceeds 8.4 million after a yearly increase of 14.3 percent o
8、n average over the past five years.They account for more than 74 percent of Chinas total enterprises.However,Chinas private enterprises face increasing pressure from price hikes in raw materials,rising labor costs,financing difficulties,and a heavy tax burden.In order to do a good job,private enterp
9、rises have to implement management innovation.In this paper,we intend to discuss the necessities of implement management innovation,the motivation of management innovation,the obstacles to management innovation,and gave some suggestions on how to promote the management innovation.2.Relevant Literatu
10、re Review There is a considerable literature regarding the Chinese private enterprises.Most of the Chinese private enterprises are family business.Family business is generally viewed as the most common form of business structure.There is also a lack of the precise definition of private business.Whil
11、e some researchers avoid the use of clear definitions,others apply the definitions that most suit their researches.The definitional problem is compounded when the controversy emerges about whether it should include all blood relations and in-laws.Fahed-Sreh(2009)explains a family firm as any busines
12、s that is controlled or influenced by a single family and which is also intended to remain in family.Brrdthistle&Fleming(2005)and Birdthistle(2008)operate their studies on definition of family business,which regards it as any form of business association that is classified as an SME(less than 250 em
13、ployees)and where the majority ownership is held by the family/family members in the family business and/or the family is represented on the board of Directors.This definition seems to ignore the succession issue,which is considered as a major focus of family business.But within the context of China
14、,the family business is undeveloped compared to those in developed countries and exist only for a very short period.Most family businesses are still within the control of first-generation.The definition of family business here just emphasizes on the majority control of ownership held by the family/f
15、amily members.In regard to the researches on family business,many people address the differences between family and non-family businesses.Harris et al.(2004)conclude that family-owed establishments are less likely to allow www.ccsenet.org/ass Asian Social Science Vol.9,No.4;2013 52 workforce engagem
16、ent via a range of communication approaches in comparison to non-family firms.Others also explore issues on family business in terms of varied perspectives and emphases.Birdthistle and Fleming(2005)investigate the creation of a learning organization within the framework of family SMEs and conclude that small and medium-sized family firms display some of the characteristics of a learning organization.In relation to the development of growth strategy,Kreiser et al.(2006)suggest that family firms t
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