TITLE:
A Research on the Evolution of Politic-Business Network, Relational Embedded and Family Enterprise Value: Regarding SAMSUNG Group as Example
AUTHORS:
Xiaoxia Huang
KEYWORDS:
Politic-Business Network, Family Business, Dynamic Evolution, “Inverted U” Mode
JOURNAL NAME:
Open Journal of Business and Management,
Vol.4 No.4,
September
30,
2016
ABSTRACT: Globally, it is very common that many companies are keen to embed in the center of
political-business (abbreviations with P-B) network [1]. The influence of government
on enterprise is greatly important for it controls a large numbers of scarce and key
resources and holds the power of approval on market access’s qualification and
making regulations [2]. Then can close political-business network always bring positive
benefits for enterprises value? Based on this, the paper takes the typicality and
representative of cases as the standard and selects the case of SUMSANG to analyze
the evolution relationship between P-B network, relational embedded and family
business value. This paper puts forward that it is unreasonable to illustrate the positive
correlation or negative correlation between them. The relationship between politics
and business network is not simple or static, but is dynamic and nonlinear. The
value of the enterprise is constantly changing with the degree of embedding in P-B
network. There is a reasonable embedded threshold. Before reaching the “embedding
threshold”, the value is increasing with the deepening of embedding degree; after the
“embedding threshold”, the value is decreasing with the deepening of embedding
degree. This is “inverted U” model of Uzzi [3].