The Analysis on Financial Cooperative Controlling Mechanism of Enterprise Group

Ziqin Feng

doi:10.4236/ib.2010.24053

Abstract

As the core of modern market economy, enterprise group is an advanced form of organization after productive forces reached to a certain stage. For the reason of complexity and specificity of organizational form of enterprise group, the issue of financial cooperative control has been widespread concerned by theorists. Although many researches have been done, but there are still lacking of systematic research results especially in the fields of mechanism of financial cooperative control. After exploring the relationship of value effect and financial control, this paper puts forword a system model of financial cooperative control. It also gives a system analysis including system hierarchy analysis, synergy analysis and coupling analysis. All of these can provide a decision making support for the collaborative mana- gement of enterprise group.

Highlights

With the rapid progress of modern science and management techniques, the management of enterprise group [1,2] is facing with multiple challenges including internal control to inter-organizational collaboration, single communication to multi-dimensional information transfer and fixed value process to flexible value process conversion, which make internal-external collaboration [3] of enterprise group and coordination of industrial chain becoming increasingly important
Management coordination is a fundamental means for enterprise group to play its overall advantages, the essential requirement of which is to achieve complementary advantages and function multiply to ensure the generation of value effect under the joint action of various elements [5]
In this paper the author analyzes the mechanism of financial cooperative control of enterprise group

Summary

Introduction

With the rapid progress of modern science and management techniques, the management of enterprise group [1,2] is facing with multiple challenges including internal control to inter-organizational collaboration, single communication to multi-dimensional information transfer and fixed value process to flexible value process conversion, which make internal-external collaboration [3] of enterprise group and coordination of industrial chain becoming increasingly important. We can find that the research perspectives of enterprise group are mainly focused on connotations [8] and causes [9] of enterprise group, group governance [10], financial control [11] and management synergy effect etc., but not yet in the point of view of financial cooperative control These researches have been supported by many relevant evidences which can provide theoretical guidance for strategic management of enterprise group, but it is the basic requirement of multidimensional and complex characteristics forming in the process of cooperative and competitive evolution to study the problem of enterprise group from dynamic and multi-dimensional perspective combining with modern theory and techniques. All of these can provide a decision making support for the collaborative management of enterprise group

Relationship between Value Effect and Financial Control

Result

System Hierarchy of Financial Cooperative Control

Synergy Analysis of Financial Cooperative Controlling System

Conclusions