Suggestions for Developing Chinese Family Businesses
Values such as strong family relationships, trustworthiness, hard work, and frugality have been the foundation of success for many Chinese family businesses. However, that will not be enough. Like any other business, Chinese family businesses need to implement the right management techniques and principles, particularly as the business grows and develops. Therefore, modernization is inevitable. Succession plans should be developed. Estate planning should be developed. Conflict management and resolution must be implemented. However, modernization, succession plans, conflict management, and conflict resolution will not succeed without good corporate governance, the right business paradigm, strategy, structure, and system, as well as competent family members, qualified professional managers, fair remuneration, equal treatment, the right leadership, strong commitment, and strategy renewal. Ethical behavior and corporate social responsibility should also be promoted.
Implementing Corporate Governance
Successful overseas Chinese family businesses (OCFBs) implement good corporate governance. Corporate governance directs the company’s attention toward the improvement of performance through supervision and monitoring. It also ensures the accountability of management to the company’s stakeholders. Corporate governance can also motivate management to enhance its effectiveness and control the behavior of managers so that they ...