Abstract：This paper builds a theoretical model of the relation of institutional environment, core competence and growth path of private enterprises in China, as well as proposes related propositions and inferences. It proposes and verifies that in the environment mainly controlled by formal institution, private enterprises tend to develop core competence of “industry experts” type, therefore regional diversification is more probably to be chose; however, in where mainly controlled by informal institution, private enterprises are likely to enhance core competence of “social experts” type, then product diversification is more probably to be chosen.
2013, Vol. 10 
