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Limits to the growth of family-owned business?
It has become conventional wisdom in management literature that family-owned business is restricted by its management practices and, therefore, cannot grow beyond a certain size. In the case of Chinese family firms, these practices are related to paternalism, nepotism, personalism, and fragmentatio...
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| Format: | Article |
| Language: | English |
| Published: |
2000
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| Summary: | It has become conventional wisdom in management literature that family-owned business is restricted by its management practices and, therefore, cannot grow beyond a certain size. In the case of Chinese family firms, these practices are related to paternalism, nepotism, personalism, and fragmentation. This paper examines three detailed qualitative case studies of Chinese family firms from Hong Kong that have relentlessly pursued growth through internationalization. It argues that venturing into foreign markets and transnational operations has become an effective means for Chinese family firms to expand beyond the limits of domestic markets and centripetal management structures. International business strategies enable Chinese family firms to socialize trusted members into the corporate family, provide a training ground for the future heir to the patriarch, and consolidate networks of personal and business relationships. There are, therefore, no a priori reasons to support the alleged limits to the growth of Chinese family firms in their international context. |
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| Physical Description: | 55 - 70 |