Open Journal of Business and Management

Volume 4, Issue 4 (October 2016)

ISSN Print: 2329-3284   ISSN Online: 2329-3292

Google-based Impact Factor: 1.02  Citations  

A Research on the Evolution of Politic-Business Network, Relational Embedded and Family Enterprise Value: Regarding SAMSUNG Group as Example

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DOI: 10.4236/ojbm.2016.44069    1,264 Downloads   1,739 Views  
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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].

Cite this paper

Huang, X. (2016) A Research on the Evolution of Politic-Business Network, Relational Embedded and Family Enterprise Value: Regarding SAMSUNG Group as Example. Open Journal of Business and Management, 4, 696-715. doi: 10.4236/ojbm.2016.44069.

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