The Basis of Competition (Institutional Choice -- Analysis and Construction of the Enterprise System)

Author: Xie Zhihua
Publisher:
Publish Date: 2003-04-01
Features: The history of corporate transformation is the history of institutional change; the process of corporate competition is the process of institutional comparison and competition; the outcome of corporate survival of the fittest is the result of institutional selection. Only excellent institutions can create excellent enterprises and entrepreneurs. Backward institutions, even if they once had successful enterprises, will be eliminated. Whether it is state-owned enterprises or private enterprises, despite differences in their starting points, as long as they implement the separation of ownership and control, they face issues such as the construction of representatives of property rights and the establishment of incentive and restraint mechanisms for investors in managing operators. Only by establishing a set of effective corporate institutions can the success and sustainable development of enterprises be guaranteed.