Chinese Family Business Case Study

1255 Words 6 Pages
Introduction
1.1 Background and Research Objectives
Family business, the oldest and most universal type of business, has the important position in the development of economy. In the all companies in the world, more than 65 percentages of them are family business companies. Furthermore, in top 500 companies of the world, 40% are owned or operated by a family. (1998) At the same time, family enterprises has made significant contributions in their national economy.(Dawson,2012) According to the statistics data which is given by Mandl (2008), the family business which occupies 70%-80% of all enterprises provided about half of the employment in Europe.

Not only developed countries such as Europe and the US, but also developing country such as China,
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It’s a statistical fact that the relationship between Chinese family business and professional managers could keep over two years and keep a good condition only occupied 5% of all the Chinese family business which has employed professional managers. (Wang, 2010) In China, the steps of relationship between family business owners and professional managers can be often described as the followings: the period of “honeymoon”, the period of “dispute” and the period of “separate”. (Zhao, 2006) At the beginning of using professional managers, the relationship between family members and professional managers were very well. After some time, many professional managers and family business emerged different level of crisis of confidence. This unhealthy relationships often bring the outcome which is the professional managers depart the family business and the family business come back to the way of family management. Furthermore, after distrust some disputes were caused between family business owners and professional managers, even confront at …show more content…
The following will introduce the five parts.

In Chapter 1, the background of Chinese family business and the relationship will be introduced. Furthermore, the research objectives will be given in this part. The purpose of this part mainly explains why the topic is important, and then raises the analysis of other parts.

In Chapter 2, the literature review will be given. The definition, relationship, and barriers of family business owners and professional managers will be focused.

In Chapter 3, the research methodology will be given. It will have the sequence of research which is research philosophy, research approach, research method and research practice. The purpose of this part mainly proves the reasonable of the research method of chapter 4.

In Chapter 4, the analysis of the influence factors and barriers of relationship between will be given. And in Chapter 5, it is the conclusion of the whole paper. Furthermore, the implication of Chinese family business owners & professional managers, government and researchers should be given in this part. At last the limitation of this paper and future research direction will be

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