Strategic Choices of Large Enterprises

Author: Ding Zhiming Ding Xiaoqin Duan Yulan
Publisher:
Publish Date: 2004-05-01
Features: Strategic Choices of Large Enterprises: An Economic Perspective, which primarily analyzes the inherent rationality of decision-makers' behavior in the process of corporate strategic choice from an economic perspective. The book is authored by Ding Zhiming. Ding Xiaoqin and Duan Yulan are postdoctoral researchers and Ph.D. students at Shanghai University of Finance and Economics. Among them, Ding Xiaoqin and Duan Yulan hold Ph.D. degrees in Political Economy and have a deep understanding of theoretical economics. Ding Zhiming is currently conducting postdoctoral research and has long been engaged in corporate management practice. In this book, the three of them attempt to analyze corporate strategic decision-making behavior using several different branches of economic theory, which is considered an innovative research in both China's economics and management academia. Analyzing corporate strategic decision-making behavior can be approached from both internal influencing factors and external constraint factors. From an internal perspective, the preferences and goals pursued by corporate decision-makers are the foundation of strategic choice. Whether corporate decision-makers treat corporate value maximization as the ultimate goal will lead to different evaluations of the value of a given strategic set; the extent to which decision-making preferences are influenced by specific sociocultural factors is directly reflected in variables such as corporate size, structure, and culture. Examining corporate strategic choice from the perspective of the relationships among internal decision-makers requires studying the impact of the distribution and balance of authority and responsibility on strategic choice. This book employs economic theories such as the hypothesis of the rational man, the hypothesis of the social man, principal-agent theory, transaction cost theory, and others to analyze the internal factors influencing corporate decision-makers' strategic decisions, offering a novel perspective that highlights humanistic research and the vitality of principal-agent theory and other economic theories in analyzing corporate management activities. From an external constraint perspective, the efficiency goals pursued by enterprises are inevitably influenced by the amount of information costs and the nature of the market structure; the amount of information costs and the nature of the market structure are, in turn, dependent on the institutional supply provided by the government. The efficiency of institutional implementation by the government, of course, the institutional constraint on corporate behavior is a comprehensive project, with property rights institutions being its core. This book analyzes China's property rights institutions in the context of current corporate strategic choice preferences, undoubtedly deepening people's understanding of the reform of state-owned enterprises. Since the government has a significant impact on market competition, property rights definition, the provision of public information, and the maintenance of fairness, ensuring efficient institutional supply should become the main theme of China's future political and economic system reforms. This is also the conclusion drawn from the book's use of microeconomic theories such as market theory, game theory, information economics, and new institutional economics to analyze corporate strategic decision-making from multiple perspectives.