Chinese Journal of Sociology

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Where Efficiency Comes from: An Examination of the Development of PrivatelyOwned Enterprises in Wenzhou

 Li Pei, Department of Sociology, Fudan University     

  1. Li Pei, Department of Sociology, Fudan University  
  • Online:2010-11-24 Published:2010-11-24
  • Contact: Li Pei, Department of Sociology, Fudan University E-mail:081045013@fudan.edu.cn
  • About author:Li Pei, Department of Sociology, Fudan University

Abstract:

This paper focuses on the origin of the mechanism for the efficiency in running the privatelyowned enterprises that are after the “Wenzhou Model” since the inception of the open policy and reform. There have been two explanations for that—the organization’s internal management policy improvement or the supportive resources provided by the local 〖JP2〗government and the local market. This paper examines the power of each explanation in the enterprises of different sizes, and sees no competition between the two. Their respective applicability varies with varying sizes of the organizations. The paper also reports some new insights upon the property relationship of institutionalism, familymodel business management, rational business operation, and the actual impact of governmental support on the enterprises.

Key words: Wenzhou model , privatelyowned enterprises , mechanism for efficiency