As firms are facing the critical point of transformation or on the start- up stage of company establishment, the assessment on the capital that they own is essential. Nowadays, entrepreneurs, companies are not only seeking tangible capital, such as cash, equipment or tools , factories and land ,they also evaluate their intangible capital , such as knowledge, know-how, the patent portfolio and the human capital to make the right decision for their firms. Whether the relational network also called” guanxi” in Chinese, is one of the forms of intangible capital included in the planning? Guanxi has been long considered a subtle capital in Chinese society. However, it is also embedded with a negative notation. This research will review the value of guanxi and try to correct the stereotype of guanxi. From the study of founders’ relational networks to how companies construct social network as intangible capital during the transformation or diversification period, the interesting phenomenon was found that the big firms in the high-tech industry are more peer-oriented when they first started, unlike the majority family business in other industries. Also, high-tech firms at their transformation stage are likely to construct the social network. The social network change from family dominated to peer oriented proved that its high influence on industry and the role of social capital is important for business.

As firms are facing the critical point of transformation or on the start- up stage of company establishment, the assessment on the capital that they own is essential. Nowadays, entrepreneurs, companies are not only seeking tangible capital, such as cash, equipment or tools , factories and land ,they also evaluate their intangible capital , such as knowledge, know-how, the patent portfolio and the human capital to make the right decision for their firms. Whether the relational network also called” guanxi” in Chinese, is one of the forms of intangible capital included in the planning? Guanxi has been long considered a subtle capital in Chinese society. However, it is also embedded with a negative notation. This research will review the value of guanxi and try to correct the stereotype of guanxi. From the study of founders’ relational networks to how companies construct social network as intangible capital during the transformation or diversification period, the interesting phenomenon was found that the big firms in the high-tech industry are more peer-oriented when they first started, unlike the majority family business in other industries. Also, high-tech firms at their transformation stage are likely to construct the social network. The social network change from family dominated to peer oriented proved that its high influence on industry and the role of social capital is important for business.

English:
Bourdieu, P. 1983.”The Forms of Capital” In Handbook of Theory and Research for the Sociology of Education, ed. J G. Richardson 241-58.
Burt, R.S. 1982. Toward a Structural Theory of Action: Network Models of Social Structure, Perception, and Action.
Chen, C. H., “Constructed Network as Social Capital.” Contexts of Social Capital,7: pp.139-159.
Colman, J.S. 1990. Foundation of Social Theory. Cambridge, MA: Harvard University Press.
Field, J. 2008 Social Capital. Routledge press pp.1-44
Florida, R., Martin, K. 1988.” Venture Capital and High Technology Entrepreneurship.” Journal of Business Venturing, 3:301-319
Granovetter, M, 1973. “The Strength of Weak Ties.” American Journal of Sociology, 78:1360-80
-----.1985, “Economic Action and Social Structure: The Problem of Embeddedness.” American Journal of Sociology, 91: 481-510
Hamilton, Gary, and Kao, Cheng-Shu, 1990,”The Institutional Foundation of Chinese Business the Family Firm in Taiwan” pp.135-151
Lin, N.2002 Social Capital: A theory of Social and Action. New York: Cambridge University Press.
Putnam, R. 2000.” Bowling Along. The Collapses and Revival of American Community. New York: Simon and Schuster.
Porter, M.(1979)”How Competitive Forces Shape strategy”, Harvard Business Review, March/April 1979.
Williamson, O.E. 1975. The Markets and Hierarchies: Analysis and Antitrust Implications. New York: The Free Press.
---- 1994.” Transaction Cost Economics and Organization Theory.” In the Handbook of Economic Sociology, eds. N. J. Smelser and R. Swedberg, 77-107 Princeton, NJ: Princeton University Press.
Yeh, Y. H. et al.2001, “Family Control and Corporate Governance: Evidence from Taiwan.” International Review of Finance, 2(1/2): 21-48.

Chinese:
1. 巫木誠 2001<邁向世界第一的晶圓專製業>頁172-192,台北:時報
2. 王振寰.溫肇東編2011<家族企業還重要嗎?>台北:巨流
3. 王振寰.溫肇東編2011<百年企業,產業百年-台灣企業發展史>台北:巨流
4. 陳東生2008<積體網路>台北:群學
5. 陳介玄 1994<協立生產網路與生活結構-台灣中小企業的社會經濟分析>台北:聯經
6. 羅家德 2003<企業關係處理>台北聯經
7. 許福財 1996<創投V.C. (上) :臺灣創業投資與高科技產業現況>台北財訊
8. 林南. 張磊譯2005<社會資本>上海:世紀
9. 郭毅. 羅家德編 2007<社會資本與管理學>上海:華東理工大學出版
10. 啟動接班<天下雜誌>492:120-140

Internet
1. Acer, available at www.acer.com.tw (last visited May 30, 2012)
2. Asus, available at www.asus.com (last visited May 30, 2012)
3. Campal, available at www.campal.com (last visited May 30, 2012)
4. HTC, available at www.htc.com.tw(lasts visited May 30, 2012)
5. Inventech, available at www.inventech.com (last visited May 30, 2012)
6. Kinpo, available atwww.kinpo.com.tw(last visited May 30, 2012)
7. Knowledge Sharing, available at http://en.wikipedia.org/wiki/Knowledge_sharing(last visited May 20, 2012)
8. Motech, available at www.motechsolar.com(last visited May30, 2012)
9. National Chiao Tung University, available at www.nctu.edu.tw (last visited May 30, 2012)
10. National Taiwan University, available at www.ntu.edu.tw (last visited May 30, 2012)
11. Quanta Computer, available atwww.quantatw.com(last visited May20, 2012)
12. Social Capital, available at www.socialcapitalgateway.org (Last visited on May 30, 2012)
13. Social Network, available at http://en.wikipedia.org/wiki/Social_network(last visited May 27, 2012)
14. TSMC, available at, www.tsmc.com(last visited May30, 2012)
15. Venture Capital as a Policy Tool, available at http://www.tvca.org.tw/en/policy.php(last visited May 20, 2012)