A Study of Enterprises' Methods of Accessing Production Resources

Abstract

There are three methods by which enterprises can access production resources, namely government arrangements, market transactions, and social networks. The author discovers that market transactions are the most important method of accessing resources for enterprises in China today, followed by social networks and then government arrangements. The nature of ownership, as well as the scope of the enterprises and the philosophy of their proprietors, all have an impact on the methods that enterprises use to access resources. Comparatively speaking, the proportion of resource access through government arrangement in state-owned enterprises is greater than that in other enterprises, and their proportion of resource access through market transactions and social networks is smaller than that of other enterprises. The proportion of resource access through the market in private enterprises is smaller than that in other enterprises, but their proportion of resource access through social networks is greater than other enterprises. The proportion of resource access through government arrangements in large-scale enterprises is greater than that of enterprises of other scales. Enterprises run by proprietors with overseas educations or working experience rely more on the market but less on social networks than other enterprises for resource access. The study indicates that the marketization process in China awaits further development and the environment for the development of non-state-owned enterprises and medium or small-scale enterprises has yet to be improved.