The Influence of Knowledge Cost on the Selection of Control Mode for Longitudinal Branches——Based on State Owned Groups with Pyramidal Structure in Shanghai
The Influence of Knowledge Cost on the Selection of Control Mode for Longitudinal Branches——Based on State Owned Groups with Pyramidal Structure in Shanghai
LI Ying-qi, LI Jing
Shanghai Lixin University of Accounting and Finance, Shanghai 201620, China
Abstract This paper analyzes the influence of knowledge cost on the choice of proper control modes within enterprise groups. Taking the state-owned groups with pyramidal structure in Shanghai as our sample, stripping away the agency costs which is another factor on the control cost of vertical branches management, we firstly decompose the knowledge cost into two parts: knowledge stock and knowledge transfer, then analyze the effects of them each separately and the relationship between them on levels of different longitudinal control chains. According to the analysis, we propose three corresponding modes with different centralization degrees and costs that can be applied to different longitudinal branches control, and summarize the specific management and control means for each mode.
LI Ying-Qi,LI Jing. The Influence of Knowledge Cost on the Selection of Control Mode for Longitudinal Branches——Based on State Owned Groups with Pyramidal Structure in Shanghai. Economic Survey, 2017, 34(1): 0106.
2017, Vol. 34 
