How Do Chinese Values Support Business Values?
The majority of Chinese enterprises, both on the mainland and overseas, are owned by families. A family business is a business where there is both significant family ownership and significant family involvement in management. A family business can be classified into Family Owned Enterprise (FOE) and Family Business Enterprise (FBE). FOEs are owned by family but managed by professionals. In the FOE, the family acts as the owner and assigns the responsibility of daily operations to professionals. With this separation of responsibilities, family members can optimize their role as supervisors. FBEs are owned and managed by the family members, who hold key positions in the enterprise. In the FBE, the family is involved in the company’s daily operations and strategy formulation. Most Chinese family businesses are FBEs, but there are some FOEs among them.
In Chinese society, both on the mainland and overseas, Chinese culture exerts its influence on every aspect of life, including the way Chinese people conduct business.
The Role of the Family in Chinese Culture
The fact that there are many family-owned Chinese enterprises is not surprising since family culture is a tradition embedded in Chinese culture. Family is the core of Chinese ethics, traditions, and social organizations. Individuals are members of the family. According to the traditional Chinese education, promoting family ethos is seen as the most outstanding glory for an ...