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A Study of the Problems in Implementing Entrepreneurship in State-Owned Enterprises

In the phases of Taiwan¡¦s economic growth, state-owned enterprises were playing important roles in accelerating economic development, so as to satisfy the needs to downstream industries. State-owned enterprises had successfully played a key role as the ¡§locomotive of Taiwan¡¦s economy¡¨. But after the 1980s, liberalization of economy, free competition and privatization were the thoughts that became the central theme of government¡¦s economic development. Hence, how to improve the operation of state-owned enterprises and remove restricting regulations, so as to improve the operation performance and bring about synergetic results of state-owned enterprises, soon became the main objective of state-owned enterprises business management. Entrepreneurship is the fundamental criteria in management of every business. But, what problems have state-owned enterprises encountered in implementing entrepreneurship in its management? Why, after many years of effort, state-owned business still could not unleash itself of the image that ¡§state-owned business = poor operations performance¡¨. This background motivated the study of the problems in entrepreneurship in state-owned enterprises. It is hoped that the study of this problem will result in finding ways to tackle the problem.
State-owned enterprises that are suitable for free market competition are the subject of this study. External limitations and internal worries faced by state-owned enterprises were investigated. Furthermore, the study looked at the problems and barriers encountered by state-owned enterprises in improving its operating efficiency. With reference to modern management theory on corporate environment and behavior between organization and members, interview questions were developed. Middle to senior management personnel whose work was related to entrepreneurship development of state-owned enterprises were interviewed. Written records of the interview were maintained, interviewers were asked to check the description for any inconsistency with their expressions. Then, the content of the interview were cross-analyzed with the extent of influence of various internal and external stakeholders in state-owned enterprises in implementing entrepreneurship. The process attempted to clarify the best response to problems faced by state-owned enterprises in promoting entrepreneurship.
It is found from the analysis, ¡§free market competition mechanism¡¨ is the source of energy for state-owned enterprises in implementing entrepreneurship. However, the factors that influence this program not only include ¡§restriction by unnecessary regulations¡¨ and ¡§passive state serviceman mindset¡¨, as discussed often in related studies, the other three important forces are: government decision and execution, practicality of leadership, and redefining the role of unions.
Because state-owned enterprises must operate in balanced-power network consisting of leadership level, government, shareholder, consumer, civilian representatives, union, employee, supplier, and, competing suppliers, the aforementioned 5 influencing factors may seem independent in affecting the extent of state-owned enterprise in implementing entrepreneurship, but in reality they are highly interactive. This situation stagnate state-owned enterprises, stalling them to catch up with private businesses. Since entrepreneurship is the basis of business management, state-owned enterprises can only through its own strength and effort, do away the influence of this invisible balanced-power. Only by doing so, can state-owned enterprises break out of its limitations and show real revolutionary change.
Date20 July 2007
CreatorsLu, Feng-Chou
ContributorsYi-Min Tu, Hueimei Liang, Chin-Tarn Lee, Chi-Jeng Wang
Source SetsNSYSU Electronic Thesis and Dissertation Archive
Detected LanguageEnglish
Rightsunrestricted, Copyright information available at source archive

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