The Dragon Network: Inside Stories of the Most Successful Chinese Family Businesses

Chapter 4

Anatomy of Conflict Management

History has shown us that many family businesses can last for many generations. For example, in Indonesia, many family businesses have lasted for almost a century. Their leaders possess the strong entrepreneurial spirit that makes them resilient and able to cope with many challenges. Take the herb industry, for example. Many herb companies in Indonesia started their business from a small home industry. At the beginning, they practiced traditional management and used traditional technology. However, as time went by, they were able to combine the ancient philosophy of herbs and medicine with modern science and technology. In anticipating changes in consumer preference, they develop research-based products, supported with money, facility, and professional manpower. Many of these herb companies are owned by Indonesian Chinese.

The existence of family businesses is often threatened by internal instead of external factors, such as bitter family conflict. Bitter family conflict causes disruption to the company’s activities, decreasing performance and causing lower employee morale, physical and mental fatigue, divided attention, and a loss in synergy.

The Story of Nyonya Meneer

Conflict at Nyonya Meneer, one of the biggest herb companies in Indonesia, is widely known. Charles Saerang, the current president director and a third-generation Nyonya Meneer family member, has to deal with three conflicts.

Nyonya Meneer started her herb business to support ...