Research on Institutional Innovation of State-Owned Sole Proprietorship Companies in Monopolistic Industries

Author: Shi Lei
Publisher:
Publish Date: 2006-04-01
Features: The research object of this paper is state-owned or state-controlled enterprises in monopolistic industries, primarily state-owned investment companies. This involves the issue of identification and classification of state-owned enterprises in monopolistic industries in China. China's state-owned or state-controlled companies can be roughly divided into two types: one is the state-controlled holding companies formed on the basis of former large state-owned enterprises, such as China Petroleum, China Petrochemical, China Mobile, China Unicom, and Baosteel Group. A common feature of this type of company is that many of them are listed companies and no longer purely state-owned enterprises, thus losing their representative status as state-owned enterprises. Therefore, this book focuses on state-owned investment companies as the primary research object. The basic approach of this book is to start with the key factors that constrain the reform and development of state-owned investment companies. Based on foreign theories related to property rights, strategic management, governance structures, and the experience of managing state-owned enterprises through holding company models, the book studies a specific issue of state-owned companies to identify the key factors that constrain their development. Through an analysis of the fundamental characteristics of state-owned companies, especially their core competitiveness, the book proposes that state-owned companies should address two key factors—self-positioning and changing the existing organizational structure—to overcome existing problems and further leverage their core competitiveness. This will be achieved by using strategic management of holding companies as a vehicle and institutional innovation as a means to comprehensively transform the investment company, including organizational structure, management functions, human resource management, corporate governance structure, and property composition form, in order to achieve better development.