The Hindrance to the Innovation of Family ——Enterprises System in China with a Case Study of Lanzhou Huanghe Co. Group

Through the tentative study of the segmenting between the family and the enterprise of Huanghe Group we can see, the main hindrance to the system innovation of family owned enterprises lies in that there is huge agent risk in the process of segmenting property right and control right, but the corresponding incentive, supervising, and restraining mechanism is severely lagged out. As for the family owned enterprises, in the condition that the establishment of the external mechanism is hard to achieve greatly, they can first establish and improve internal mechanism gradually so as to make preparations for the transformation of modern enterprises.