Analysis on the Development Way of China Family Firms under the Vision of Knowledge Innovations and Institutional Innovations

This article discussed the development path and the future trends of family firms under the vision of knowledge innovations and institutional innovations. Limited knowledge and limited rationality lead family firms to socialize and to open their shares, to employ professional managers, to introduce external funds and talents. Transferring from internal system to external system is the main way for family firms to breakthrough development bottleneck, to socialize and to establish a modern enterprise system. Family firms' internal system is mainly from the Chinese family traditional values and order patterns, while external system is mainly from the introduction of modern enterprise system. The article indicate that knowledge innovations and institutional innovations Plays a very important role for the development of family firms.