Approaches to Succession in East Asian Business Organizations

1991 ◽  
Vol 4 (2) ◽  
pp. 161-179 ◽  
Author(s):  
Theodora Ting Chau
Keyword(s):  
Family Business ◽  
East Asian ◽  
Family Businesses ◽  
Chinese Family ◽  
Overseas Chinese ◽  
Business Organizations ◽  
Social Functions ◽  
Japanese Firms ◽  
Relevant Point ◽  
To Come

By concentrating on the approaches to succession in Japanese and overseas Chinese family businesses, this article attempts to come to terms with the question of why Japanese firms enjoy corporate longevity while overseas Chinese firms do not. Succession in the overseas Chinese family (coparcenary) is different from succession in Japanese families (primogeniture) at every relevant point, and these differences have important consequences for overseas Chinese family business. The article also discusses economic, historical, and social functions of the two inheritance systems.

Institutional complexity and family business development: a case study of the Charoen Pokphand group

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bo Wang ◽  
Qiang Liang ◽  
Lihong Song ◽  
Erming Xu
Keyword(s):  
Family Business ◽  
Family Values ◽  
Family Businesses ◽  
Chinese Family ◽  
Overseas Chinese ◽  
Institutional Complexity ◽  
Content Type ◽  
Equal Importance ◽  
Decision Making Processes ◽  
Dominant Period

Purpose With features of both “family” and “business,” family businesses must seek a balance between the emotional aspect of “family” and the economic aspect of “business” in its organizational and decision-making processes to ensure the sustainability of the family’s entrepreneurship. This study aims to focus on how internal institutional complexity combined evolves alongside the growth of the family business. Design/methodology/approach The research looks, from the perspective of institutional logic, into the Charoen Pokphand Group, which is an epitome of overseas Chinese family businesses and proceeds to build a model of family business growth in the context of institutional complexity. Findings The research finds that as a family business grows, institutional complexity inside the organization would change from aligned period to sustaining period and then to dominant period. Then further elucidates the process of proactive response in different stages of the development of a family business. Attaching equal importance to the cultivation of entrepreneurship and to the continuation of family values and culture is the crucial mechanism by which Chinese family businesses seek a balance between family logic and business logic. Originality/value This paper unveils the change of institutional complexity in the evolution of family businesses and the process of action of its agency as an organization, and simultaneously partly reveals the features of entrepreneurship that overseas Chinese family businesses have as they grew, which is of positive significance for exploring and building a path of growth unique to Chinese family businesses.

scholarly journals Over the Weberian Wall: Chinese Family Businesses in Singapore

2008 ◽  
Vol 25 ◽  
pp. 99-125
Author(s):  
Barry Wilkinson ◽  
Siew Tong Fock
Keyword(s):  
Case Studies ◽  
Family Business ◽  
Chinese Culture ◽  
Family Businesses ◽  
Business Leaders ◽  
Chinese Family ◽  
Cultural Environment ◽  
Overseas Chinese ◽  
Doing Business

Abstract Overseas Chinese businesses have been characterized as possessing unique cultural attributes or being embedded in specific institutional environments that constrict their growth and lead to them taking on limited economic roles. Familism, particularism, nepotism and the lack of state support (among other cultural and institutional features) it is argued, stand in the way of the emergence of large, successful and enduring firms, and problems of inter-generation transition frequently lead to their demise. This paper argues that such a fatalistic prognosis is misplaced, and uses case studies of successful Chinese family businesses in Singapore to demonstrate how business leaders, as agents, can incorporate, defy, or re-combine elements from the socio-cultural environment in ways that enable continuity and growth. Additionally, this paper highlights the role of a proactive state at play in promoting a specific Chinese mode of doing business based on notions of so-called Confucian capitalism, which despite its culturalist associations, is based on capitalist practices. Keywords: Chinese family business, inter-generation transition, Chinese culture, entrepreneurial agency.

Family Business Governance

2021 ◽  
pp. 24-40
Author(s):  
Reena Agrawal ◽  
Ganga Bhavani
Keyword(s):  
Corporate Governance ◽  
Best Practices ◽  
Family Business ◽  
Family Businesses ◽  
Business Strategies ◽  
Business Organizations ◽  
Substantial Portion ◽  
Advantages And Disadvantages ◽  
The World

Corporate governance is a significant tool to build strong and long relationships among various stakeholders in kinds of business organizations. Family businesses are not an exception to this. Like any other businesses, family businesses also need to have governance in place and practice to achieve the business strategies and to have long-term succession. Family-owned businesses are the backbone of many countries' economies in the world contributing substantial portion of GDP. Considering these, it is important to know the best practices of governance in family owned business organizations and the role played by governance to improve the strengths of these businesses. The chapter throws light on family business governance and explores various important practices highlighting their advantages and disadvantages in detail.

Cultural values and their implications to family business succession

2019 ◽  
Vol 10 (4) ◽  
pp. 281-292 ◽  
Author(s):  
Grisna Anggadwita ◽  
Werda Bagus Profityo ◽  
Dini Turipanam Alamanda ◽  
Anggraeni Permatasari
Keyword(s):  
Cultural Values ◽  
Family Business ◽  
Family Businesses ◽  
Chinese Family ◽  
Content Type ◽  
The Family ◽  
Succession Process ◽  
Business Succession ◽  
Family Business Succession ◽  
Practical Implications

Purpose The family business is one of the business entities that contribute to the economy of a country. Succession in the family business occupies a strategic position, especially in maintaining the company’s sustainability. The Chinese family business has unique characteristics in maintaining and growing its business with the cultural values that underlie how their business. The purpose of this paper is to discuss the cultural values of Chinese ethnic and their implications in the succession process in small family businesses in Bandung, Indonesia. Design/methodology/approach This research uses a qualitative method with the in-depth interview method as a data collection technique. The sampling technique uses purposive sampling, while to test the validity of research data using a triangulation technique. A total of four small Chinese-owned family businesses participated as informants in this study. The study will identify the stage of succession process in the Chinese family business. Findings There are several stages identified in the succession planning of small Chinese-owned family business in Bandung which include succession antecedents, succession activities and desired outcomes. The results showed that small Chinese-owned family business in Bandung has not applied the rules and procedures in the succession process. Most of the Chinese family business in this research still holds Confucianism culture; they prioritize boys as business successors, who have a greater responsibility rather than successor with other gender. Practical implications Several implications are discussed. One of them is the Chinese family business holding cultural values in the process of family business succession. Originality/value This research is expected to provide theoretical and practical implications for academics and family companies with similar cases.

Linking psychological ownership to employee extra-role behaviours in small overseas Chinese family businesses

2015 ◽  
Vol 7 (2) ◽  
pp. 129-147 ◽  
Author(s):  
Michael Mustafa ◽  
Hazel Melanie Ramos ◽  
Thomas Wing Yan Man
Keyword(s):  
Family Firms ◽  
Two Dimensions ◽  
Family Businesses ◽  
Psychological Ownership ◽  
Business Success ◽  
Chinese Family ◽  
Overseas Chinese ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to examine the impact of psychological ownership (both job and organisational based) on extra-role behaviours among family and non-family employees in small overseas Chinese family businesses. Design/methodology/approach – Empirical evidence was drawn from a survey of 80 family owners/managers and non-family employees from 40 small overseas Chinese family businesses from the transport industry in Malaysia. All proposed hypothesis were tested using hierarchical moderated regression analyses. Findings – Job-based psychological ownership was found to significantly predict both types of extra-role behaviours. Organisational-based psychological ownership, however, was only a significant predictor of voice extra-role behaviour. Interestingly enough, no significant moderating effects on the relationships between the two dimensions of psychological ownership and two types of extra-role behaviour were found. Originality/value – Having a dedicated workforce of both family and non-family employees who are willing to display extra-role behaviours may be considered as an essential component of business success and long-term continuity for many family firms around the world. This particular paper represents one of the few empirical efforts to examine the extra-role behaviours of employees in family firms from emerging economies.

Next-generation leadership development: a management succession perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Joseph Kie Kuong Tang ◽  
Wan Sabri Hussin
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Family Businesses ◽  
Chinese Family ◽  
Next Generation ◽  
Content Type ◽  
The Family ◽  
Management Succession ◽  
Inclusive Approach ◽  
Malaysian Chinese

PurposeThis research study focusses on the succession challenges in small-medium outboard marine businesses of Malaysian Chinese family ownership. The founder-owners face challenges in convincing the next-generation members to establish their careers within the family business and to ensure successions are in place to safeguard the family's wealth. A gap exists in the research literatures concerning such family business owners; and their experiences would provide valuable information to other Malaysian Chinese family businesses planning to start the succession journey.Design/methodology/approachAn exploratory case study methodology to research five Malaysian Chinese family businesses cases in Klang Valley, Selangor, Malaysia, is used in this study. The primary qualitative data were obtained through in-depth, semi-structured interviews and observations. The research data lead to the identification of the following themes: generational change affects the survival of small-medium Malaysian Chinese family-owned businesses; the founder-owners' intention and desire for business to pass to the next generation give rise to the imperative of succession; the founder-owners' motive and goals, family context and the business nature would determine a large part to how the succession plans are carried out and the upbringing, expectation and obligations would determine how the next generations of children would view the prospect of taking over the family business. From this, a succession model that detailed an inclusive approach to succession planning process between the two generations is established.Research limitations/implicationsA small purposive sample is included, and it is recommended that a larger and more diverse sample be collected in future studies. This study follows a nuclear family structure of parents and children. If more Chinese family businesses are selected based on a wider set of family members such as uncles and cousins, the findings may differ.Social implicationsThis research study could also facilitate other Malaysian family businesses to rethink and refocus on the importance of undertaking an inclusive approach to succession planning and also help potential next-generation successors in understanding and working towards attaining the qualities that family firms look for in future leaders.Originality/valueThe researcher summarizes the study findings into a management succession model. An inclusive succession approach is needed to overcome these challenges and would enable sustainability, continuity and longevity of the family business. This would help the family business to understand that succession is not a single event but a process that needs to be planned together with the next-generation family members over a certain period of time.

scholarly journals Research on Chinese Family Businesses: Perspectives

2015 ◽  
Vol 11 (4) ◽  
pp. 579-597 ◽  
Author(s):  
Xin Chun Li ◽  
Ling Chen ◽  
Jess H. Chua ◽  
Bradley L. Kirkman ◽  
Sara Rynes-Weller ◽  
...  
Keyword(s):  
Family Firms ◽  
Extended Family ◽  
Family Businesses ◽  
Dark Side ◽  
Chinese Family ◽  
Business Organizations ◽  
Business Studies ◽  
Political Networks ◽  
Future Challenges ◽  
China’S Economy

ABSTRACTThis introduction traces the disappearance of Chinese family businesses from 1949 to 1978, their revival since then, and their future challenges. It then summarizes the three papers included in this Special Issue and proposes an agenda for family business studies in China. The article first focuses on the nonmarket social and political network strategies that these family-centered business organizations have had to adopt in order to overcome the difficulties they faced in accessing opportunities and resources as a result of Chinese culture's traditional low esteem for merchants and the government's continuing preference for a state-dominated economy. Family firms have so far been able to grow disproportionately rapidly in China's economy because, by leveraging the shared interests and dedication of immediate and extended family members, they have been able to achieve lower cost and higher efficiency, respond quickly to market changes, and expand social and political networks. These nonmarket strategies, however, also have a dark side. Furthermore, as the liberalization of China's economy deepens, competition must rely critically on market strategies such as innovation, alliances, and internationalization. The proposed research agenda addresses these future challenges as well as some research questions unique to Chinese family businesses.

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