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The Professionally Managed Family-Ruled Enterprise: Ethnic Chinese Business in Singapore
Abstract
This study identifies the change and continuity in the management structure of Singaporean Chinese family businesses before and after the Asian currency crisis based on an interpretive content analysis of oral history transcripts, personal interviews, documentary research and a historical analysis of Singapore's economy and society. It shows that large businesses shifted from being 'family-ruled and managed' to becoming 'professionally managed family-ruled' businesses before the crisis. Since the crisis, however, Chinese businesses in sectors that are under the watch of the developmental state, that face increasing competition from Western corporations, and lack offspring who are competent and interested in running family enterprises have loosened family rule. Businesses in sectors that are free from the direct intervention of the state, that seek survival in negative market situations, and have trusted and competent offspring to harness the advantage of the family enterprise have maintained family rule. Based on the findings, the author offers an explanatory and predictive model that takes into account the roles of markets, institutions (including culture and the state) and key corporate actors. The study concludes with suggestions for future research into the management structures of professionally managed family businesses and the role of the state. Copyright Blackwell Publishing Ltd 2004.
... Professional managers. Similarly, the hiring of professional managers has been proposed to: revitalize organizational resources (Gedajlovic et al., 2004;Zahra and Filatotchev, 2004;Zahra et al., 2009) with refined managerial skills and knowledge (Lin and Hu, 2007), aid professionalization attempts (Costa et al., 2021;Chittoor and Das, 2007;D'Angelo et al., 2016;Dekker et al., 2013;Dekker et al., 2015;Dyer, 1989;Hellmann and Puri, 2002;Polat, 2020;Tsui-Auch, 2004) and promote organizational innovation (Di eguez-Soto et al., 2016), especially if professional managers are graduates of elite institutions due to their specialized technical knowledge and strong social capital connections (Chang and Shim, 2015). Possessed knowledge, professional ethics, values, norms and continuous professional development have been proposed to define a professional manager (Polat, 2020). ...
... Organizational restraints have been proposed to include inertia (Chirico and Nordqvist, 2010), institutional pressure and family essence (Marett et al., 2020; see also Tsui-Auch, 2004), tensions (van Helvert-Beugels et al., 2020) and micropolitics (Chau and Wong, 2021), which may negatively influence the professionalization of SMEs. ...
... Investigating professionalization from a process perspective could thus provide a richer understanding of the micro-level dynamics in situated contexts help to understand the complex internal circumstancesespecially those related to inside-family firmsthat still, as suggested by Chang and Shim (2015), need further attention. It may also provide a means to clarify the professionalization timing (Chittoor and Das, 2007) and temporality in practices and processes diffusion and adoption (Raffaelli and Glynn, 2014); the mechanisms aimed at mitigating tensions, conflicts (Tsui-Auch, 2004); and the challenges of professionalization (Chittoor and Das, 2007), including the use of shared stories (Kammerlander et al., 2015), cultural competences (Hall and Nordqvist, 2008) and reasons only certain organizations survive through generations (Chirico and Nordqvist, 2010). ...
Purpose
This paper aims to provide a synthesis of theoretical and empirical work related to the professionalization of small- and medium-sized enterprises (SMEs) from a knowledge-based perspective.
Design/methodology/approach
A systematic literature review consisting of three major steps of planning, conducting and reporting is conducted. Papers are identified, selected and deductively coded. Quantitative and qualitative methods are used to analyze the papers. The finalized list includes 78 papers and 48 journals, with the oldest paper published in 1980 and the most recent papers published in 2022.
Findings
The findings showed that the empirical works ( n = 69) outnumbered the conceptual works ( n = 9). Most papers focused on the organizational level of analysis and identified causal conditions, modes, intervening conditions and consequences. A multidimensional characteristic of professionalization emerged inductively as an additional attribute.
Originality/value
This paper provides a synthesis of the current literature and offers a research agenda to academics and practitioners interested in the professionalization of SMEs from a knowledge-based perspective.
... For the sake of this discussion, I divide family firms into two main types-traditional and professional-along the dimension of professionalization, which refers to Bhiring full-time, non-family employees, particularly with the delegation of managerial authority^ (Stewart & Hitt, 2012: 59). Professionalization entails other aspects of management, such as the extent of formalization, merit-based appraisal system and promotion, organized training, and boards with the presence of independent directors (Chua, Chrisman, & Bergiel, 2009;Tsui-Auch, 2004). ...
... Most of the examples used in the discussion are Chinese family firms, drawn primarily from my two studies (Tsang, 2001(Tsang, , 2002b and Tsui-Auch's (2003, 2004. Although this type of family firm constitutes a dominant economic force in the Asia Pacific region, some of its unique characteristics may not be shared by other types of family firms, as illustrated by the aforementioned issue of trusting strangers. ...
... That said, the generational stage of a family is also a key factor here. For example, it is rather common that founders of Chinese family firms send their children to receive education in Western countries (Tsui-Auch, 2004). As such, the younger generation may be less reluctant to invest in countries with cultures that are dissimilar to the Chinese culture. ...
This paper presents an organizational learning perspective of family firms’ internationalization, an important yet neglected theoretical lens in this domain of research. The discussion is based on Huber’s (Organization Science, 2(1): 88–115, 1991) typology of learning processes, which includes knowledge acquisition (with five subprocesses: experiential learning, vicarious learning, congenital learning, searching and grafting), information distribution, information interpretation and organizational memory. Family firms exhibit different learning behaviors compared to their non-family counterparts. Moreover, there are differences between traditional and professional family firms. Theoretically-significant propositions can be derived from the differences among the three types of firms that may guide empirical research.
... There are internal and external pressures that demand an increasing inclusion of the non-kin in the governance and management of the group. The growth and diversification of FBGs can be considered as internal factors that call for professionalization (Finkelstein and Hambrick, 1996;Tsui-Auch, 2004), whereas normative institutional pressures on emerging economies to professionalize the management mostly by IMF, World Bank, capital market boards, business schools, and multinational corporations can be considered as external pressures (Selekler- Gökşen and Yıldırım-Öktem, 2009;Tsui-Auch, 2004). Families are expected to comply with the requirements of stock exchanges in order to gain legitimacy in the eyes of the regulatory authorities and their foreign partners (Tsui-Auch, 2004). ...
... There are internal and external pressures that demand an increasing inclusion of the non-kin in the governance and management of the group. The growth and diversification of FBGs can be considered as internal factors that call for professionalization (Finkelstein and Hambrick, 1996;Tsui-Auch, 2004), whereas normative institutional pressures on emerging economies to professionalize the management mostly by IMF, World Bank, capital market boards, business schools, and multinational corporations can be considered as external pressures (Selekler- Gökşen and Yıldırım-Öktem, 2009;Tsui-Auch, 2004). Families are expected to comply with the requirements of stock exchanges in order to gain legitimacy in the eyes of the regulatory authorities and their foreign partners (Tsui-Auch, 2004). ...
... The growth and diversification of FBGs can be considered as internal factors that call for professionalization (Finkelstein and Hambrick, 1996;Tsui-Auch, 2004), whereas normative institutional pressures on emerging economies to professionalize the management mostly by IMF, World Bank, capital market boards, business schools, and multinational corporations can be considered as external pressures (Selekler- Gökşen and Yıldırım-Öktem, 2009;Tsui-Auch, 2004). Families are expected to comply with the requirements of stock exchanges in order to gain legitimacy in the eyes of the regulatory authorities and their foreign partners (Tsui-Auch, 2004). However, research shows that demands for improved corporate governance are considered "quarrelsome interference" by the owning families (Jang and Kim, 2002: 103) and that families are often unable and unwilling to change (Jang and Kim, 2002). ...
... The second way in which narratives provide effective and meaningful data design (e.g., Reay and Zhang, 2014;Tsui-Auch, 2004) is in their ability to be more persuasive and memorable than statistical demonstrations of ideas and claims (Martin and Powers, 1983). This means that good narratives allow scholars to vicariously experience the relationships and ideas presented in their research design (Dyer and Wilkins, 1991). ...
... Several used heterogeneous samplings of sizes, ages, industries (e.g., Frank et al., 2017;Hamilton, 2006), or homogeneous sampling (e.g., Gherardi, 2015). In other studies, well-known lists were used (for example, Standard & Poor's 500) (e.g., Anglin et al., 2017;Gherardi, 2015;Tsui-Auch, 2004). Clearly, scholars use many sampling techniques. ...
... Coupled with its small size, this feature provides the state the advantage of quick, centralized policy implementation. In addition, the state's 'two-legged' policy of attracting foreign TNCs and cultivating its own GLCs has reduced its reliance on the domestic private sector during the immediate post-Independence decades (Tsui-Auch, 2004). Unlike the capital-and technology-intensive TNCs and GLCs, credit, organizing relevant trade activities, providing collective bargaining ability and reducing transaction costs. ...
... A masterstroke in economic strategy, this move helped bolster Singapore's presence in the economies adjacent to Singapore, especially China. It also enhanced Singapore's previously dominant two-legged policy by injecting entrepreneurship of the small-and medium-sized private firms into the commercial power of the TNCs and GLCs, a point raised by Dahles (2008) and Tsui-Auch (2004). More importantly, the above transformation demonstrates the flexibility of the 'networked state'. ...
... Coupled with its small size, this feature provides the state the advantage of quick, centralized policy implementation. In addition, the state's 'two-legged' policy of attracting foreign TNCs and cultivating its own GLCs has reduced its reliance on the domestic private sector during the immediate post-Independence decades (Tsui-Auch, 2004). Unlike the capital-and technology-intensive TNCs and GLCs, these firms were perceived to be 'dragging the economy down in terms of low productivity and intensive use of labor resources in the wake of severe labor shortage at that time' (Chan and Ng, 2000, 294). ...
... A masterstroke in economic strategy, this move helped bolster Singapore's presence in the economies adjacent to Singapore, especially China. It also enhanced Singapore's previously dominant two-legged policy by injecting entrepreneurship of the small-and medium-sized private firms into the commercial power of the TNCs and GLCs, a point raised by Dahles (2008) and Tsui-Auch (2004). More importantly, the above transformation demonstrates the flexibility of the 'networked state'. ...
This article argues that Singapore, courtesy of its strong state capacity and long-standing connections with China, has promoted effective polices and coordinated mutually reinforcing institutional mechanisms in engaging with the Belt and Road Initiative (BRI). While some of these institutions predate the BRI, they have been continuously enhanced or modified to meaningfully foster Singapore-China cooperation. In certain cases, new institutions have been created to fulfill specific demands the existing institutions cannot adequately serve. These two types of institutions not only complement each other but also promote cooperation between the bureaucrats, politicians, transnational corporations, government-linked corporations, small- and medium-sized private firms and business associations. The article also illustrates the flexibility of the ‘networked state’ in formulating collaborative ties linking key international and domestic actors, demonstrating how a small state like Singapore can partner China effectively and deepen its strategic importance to the BRI to enhance its own strategic and economic interests. Lastly, the article highlights the two key conditions in BRI-related nations for their successful engagement: the existence of mutual interests between China and a counterpart nation bolstered by conducive perceptions and policies, and the institutionalization of competent mechanisms to materialize and operationalize these interests.
... Meanwhile, from the Stewardship Theory's point of view, family owners with their reputations, family social standings, self-esteem, and self-concept could greatly enhance the performance of their firms (Tsui-Auch, 2004). Family members often have a deep emotional attachment to their investment as their family's fortune, assets, self-satisfaction, legacies, and public reputation are bound to the family business (Ward, 2016). ...
This is a comparative study on firm efficiency, a proxy for firm performance, between family-owned business (FOB) and non-family-owned business (non-FOB). This study aims to determine a firms' efficiency by comparing FOB and non-FOB in Southeast Asia countries. The efficiency ratios for five Southeast Asian countries were estimated using Data Envelopment Analysis (DEA), before a two-sample T-test to determine the differences between FOBs and non-FOBs. Hence, secondary data research techniques from each country from 2007 to 2016 were used to conduct the comparison. The data were gathered from various sources. The findings did not archive any comparison in performance among FOBs and non-FOBs. This finding is fundamental for the Board of Director (BOD), senior management of the firms, researchers, policymakers, scholastics, and the overall population., Ceteris paribus, both FOB and non-FOB, ought to work at a similar efficiency even out and have the option to produce comparative returns for their shareholders. Subsequently, stakeholders can compare treatments to assist in alleviating the dependency on two unique treatments or strategies when managing FOB and non- FOB. In short, it could expand the BOD and management efficiency.
... However, FBGs make extensive use of professional management at the operational level but rarely admit professional managers into the dominant coalition's inner circle (Carney, 2013;Tsui-Auch, 2004). The admitted few are likely to have prior social ties or have demonstrated loyalty and long service to the family. ...
Increased awareness about the climate emergency, social and environmental inequalities, and ecological degradation influence the adoption of sustainability by business groups worldwide, including business groups owned by family. The owning families of business groups develop awareness and strategies to pursue ecological, social, and ethical opportunities. Research at the interface of family, business groups, and corporate sustainability is important to advance our understanding of the owning family's influence on the sustainability approaches of the business group. Thus, in this chapter, we develop a conceptual framework that examines the commitment, control, and continuity of the owning family to its business group’s global corporate sustainability. We merge literature on family business, corporate sustainability, and sustainability science and develop a sustainability embeddedness perspective. Our proposed conceptual model on sustainability embeddedness offers insights to better understand diverse degrees and forms of involvement of the owning family leading to a variety of sustainability strategies, processes, and practices.
... Based on Dekker et al. (2013, p. 84), it can be synthesized that professionalization as a phenomenon cannot be limited to the recruitment of external managers but is accompanied by (1) the development of effective corporate governance systems such as the establishment of boards and councils (Songini, 2006;Flamholtz & Randle, 2007;Chrisman, Chua, De Massis, Minola, & Vismara, 2016;Howorth, Wright, Westhead, & Allcock, 2016), (2) management development as hiring external and non-family members (Songini, 2006;Lin & Hu, 2007;Yildirim-Öktem & Üsdiken, 2010;Stewart & Hitt, 2012) (3) delegating control as a management function and decentralizing authorities (Chua, Chrisman, & Bergiel, 2009), (4) developing formal financial control mechanisms (Songini, 2006;Flamholtz & Randle, 2007;Chua et al., 2009;Hiebl & Mayrleitner, 2019) and (5) the design of formal human resource systems (De Kok, Thurik & Uhlaner, 2006;Tsui-Auch, 2004;Dyer, 2006;Madison et al., 2018). ...
The amount of research on family businesses’ analysis has increased significantly in recent years, thus showing the high importance of the topic. In most countries, family businesses occupy a prominent place in contributing to the economy with the added value they produce. However, less attention has been paid to the professionalization of family businesses and the exploration and presentation of the related literature. The professionalization of family business is a significant research concern in the entrepreneurship and governance literature. In the context of family businesses, professionalization initially meant nothing more than hiring an outside, non-family manager. For today, the content of professionalization has expanded, and a multidimensional model has evolved: a broader, deeper understanding has evolved, which involves other vital aspects such as developing formal control and human resource systems, decentralization of authority, formal strategic planning, or top-level activeness. This study aims to present the essential international literature on professionalization and provide a comprehensive overview of the studies published. The literature review mainly summarizes the results of the last twenty years and closely related articles. The paper follows the next logic; in the first part, the definition of professionalization is introduced along with its benefits and challenges. Then, based on the research methodology presented, the related empirical and theoretical studies are examined. In the end, the review summarizes the key findings in a table.
... Based on Dekker et al. (2013, p. 84), it can be synthesized that professionalization as a phenomenon cannot be limited to the recruitment of external managers but is accompanied by (1) the development of effective corporate governance systems such as the establishment of boards and councils (Songini, 2006;Flamholtz & Randle, 2007;Chrisman, Chua, De Massis, Minola, & Vismara, 2016;Howorth, Wright, Westhead, & Allcock, 2016), (2) management development as hiring external and non-family members (Songini, 2006;Lin & Hu, 2007;Yildirim-Öktem & Üsdiken, 2010;Stewart & Hitt, 2012) (3) delegating control as a management function and decentralizing authorities (Chua, Chrisman, & Bergiel, 2009), (4) developing formal financial control mechanisms (Songini, 2006;Flamholtz & Randle, 2007;Chua et al., 2009;Hiebl & Mayrleitner, 2019) and (5) the design of formal human resource systems (De Kok, Thurik & Uhlaner, 2006;Tsui-Auch, 2004;Dyer, 2006;Madison et al., 2018). ...
Play is a deeply human constitutive activity of organizational life, which may manifest in several distinct processes. In the present study, the author compasses a particular culturally relative form of play, namely teasing in the workplace setting. Conducting a meta-synthesis of adjacent streams of literature, the author reframes the concept of teasing and inspects it through the analytical lens of play. The research unfolds how teasing behaviour may form an invisible meta-network in organizations, which may fundamentally affect group and organizational dynamics.
... Based on Dekker et al. (2013, p. 84), it can be synthesized that professionalization as a phenomenon cannot be limited to the recruitment of external managers but is accompanied by (1) the development of effective corporate governance systems such as the establishment of boards and councils (Songini, 2006;Flamholtz & Randle, 2007;Chrisman, Chua, De Massis, Minola, & Vismara, 2016;Howorth, Wright, Westhead, & Allcock, 2016), (2) management development as hiring external and non-family members (Songini, 2006;Lin & Hu, 2007;Yildirim-Öktem & Üsdiken, 2010;Stewart & Hitt, 2012) (3) delegating control as a management function and decentralizing authorities (Chua, Chrisman, & Bergiel, 2009), (4) developing formal financial control mechanisms (Songini, 2006;Flamholtz & Randle, 2007;Chua et al., 2009;Hiebl & Mayrleitner, 2019) and (5) the design of formal human resource systems (De Kok, Thurik & Uhlaner, 2006;Tsui-Auch, 2004;Dyer, 2006;Madison et al., 2018). ...
The amount of research on family businesses’ analysis has increased significantly in recent years, thus showing the high importance of the topic. In most countries, family businesses occupy a prominent place in contributing to the economy with the added value they produce. However, less attention has been paid to the professionalization of family businesses and the exploration and presentation of the related literature. The professionalization of family business is a significant research concern in the entrepreneurship and governance literature. In the context of family businesses, professionalization initially meant nothing more than hiring an outside, non-family manager. For today, the content of professionalization has expanded, and a multidimensional model has evolved: a broader, deeper understanding has evolved, which involves other vital aspects such as developing formal control and human resource systems, decentralization of authority, formal strategic planning, or top-level activeness. This study aims to present the essential international literature on professionalization and provide a comprehensive overview of the studies published. The literature review mainly summarizes the results of the last twenty years and closely related articles. The paper follows the next logic; in the first part, the definition of professionalization is introduced along with its benefits and challenges. Then, based on the research methodology presented, the related empirical and theoretical studies are examined. In the end, the review summarizes the key findings in a table.
... Family firms are supposed to go to great lengths to gain professional legitimacy, which offers them enhanced opportunities for learning and capability development, stronger market performance, higher employee commitment and a closer alignment of family values, expectations and goals (Gedajlovic et al., 2004;Hall and Nordqvist, 2008;Stewart and Hitt, 2012;Tsui-Auch, 2004). At the same time, they seem to devote considerably less effort and resources to the attainment of institutional legitimacy. ...
... Family firms are supposed to go to great lengths to gain professional legitimacy, which offers them enhanced opportunities for learning and capability development, stronger market performance, higher employee commitment and a closer alignment of family values, expectations and goals (Gedajlovic et al., 2004;Hall and Nordqvist, 2008;Stewart and Hitt, 2012;Tsui-Auch, 2004). At the same time, they seem to devote considerably less effort and resources to the attainment of institutional legitimacy. ...
... Until recently, the most common approach has been reducing the definition of professionalization to employing nonfamily board members or full time nonfamily professional managers with delegation of managerial authority in empirical studies (Stewart and Hitt, 2012). Nevertheless, as manifested in Dekker et al.'s (2013, p. 84) study, professionalization also embraces the establishment of effective governance structures like boards and councils (Flamholtz and Randle, 2007;Howorth et al., 2016;Songini, 2006;Stewart and Hitt, 2012;Waldkirch et al., 2017;Yıldırım-€ Oktem and € Usdiken, 2010), delegation and decentralization of authority (Chua et al., 2009;Hofer and Charan, 1984;Martin et al., 2016), use of formal financial control mechanisms (Chua et al., 2009;Flamholtz and Randle, 2007;Hieble and Mayrleitner, 2019;Howorth et al., 2016;Songini, 2006) and human resources control mechanisms (De Kok et al., 2006;Dyer, 2006;Flamholtz and Randle, 2007;Madison et al., 2018;Tsui-Auch, 2004) along with employing nonfamily professionals. In this paper, professionalization of family businesses has been defined as a value creating multidimensional transformation process which accommodates not only the tools and practices mentioned in the previous studies but also professionalization of employees, work environment and culture. ...
Advancing the multidimensional approach to family business professionalization
Abstract
Purpose – Although it has been implicitly or explicitly assumed that family business professionalization is indeed a multidimensional construct, there has been a tendency to confine it to the employment of nonfamily managers and delegating authority in academic research. Dekker et al. (2013) have made an impressive work in untangling the multidimensional structure of family business professionalization. This paper aims to introduce a more comprehensive multidimensional approach and a framework to understand and study family business
professionalization by identifying additional dimensions.
Design/methodology/approach – The conceptual framework relies on insights derived from the literature on family business professionalization, occupational professionalism and organizational professionalism to reveal the broader multidimensionality of family business professionalization.
Findings – The proposed framework extends the definition of family business professionalization and offers additional dimensions which were grouped under five overarching headings: professionalization of
management, professionalization of organizational structure, processes and operations, professionalization of family’s relationship with business, professionalization of employees and professionalization of work
environment and culture. Originality/value – This paper contributes to the literature by providing a wider approach for the
understanding of family business professionalization. It presents a new way of thinking about family business professionalization, underlining the importance of employees and organizational culture for the
professionalization process in family firms.
Keywords Family business, Family business professionalization, Dimensions of family business professionalization, Occupational professionalism, Organizational professionalism
Paper type Conceptual paper
... Some studies have found no correlation between professionalization of management and levels of education (Tsui-Auch 2004), while others have indicated that professionalization is not explicitly related to formal qualifications or objective goals based on the principle of merit . ...
This book addresses a selection of major topics in family businesses, namely ‘managerialization’ and ‘professionalization’, succession, internationalization, access to financial markets, and how governance and control systems can help family firms respond to common problems inherent in the business. Written by prominent experts, the respective chapters highlight the interactions between these topics in order to develop a systems view of the distinctive challenges, and of the potential roles that governance and control systems can play in these contexts. The book is divided into two main parts, the first of which reviews the current literature and develops a comprehensive theoretical framework. Based on these theoretical insights, the second part then interprets and discusses the empirical evidence, including case studies on family-run firms in Italy.
... al. (2003),Tsang (2002),Chittoor and Das (2007),Tsui-Auch (2004),Van Auken and Werbel (2006), der Heyden et al.(2005), Lee (2006), Sidani and Thornberry (2013), Fahed-Sreih and Djoundourian (2006), Young and Tsai (2008), Alpay et al. (2008), Dou and Li (2013), Hsu and Chang (2011), Wu et al. (2014), Ramos et al. (2014), Santiago (2011) 1 Chu (2009), Tsai et al. (2009), Yang (2010), Chu (2011), Lin and Hu (2007), Chang and Shim (2015), Kuan et al. (2011), Jiang et al. (2015), Saito (2008), Kuo et al. (2012), Huang et al. (2012), Shim and Okamuro (2011), Tsai et al. (2006) 2 Liu et al. (2012), Yildirim-Oktem and Usdiken (2010), Chen (2011), Wong et al. (2010), Tsao and Lien (2013), Ng and Roberts (2007), Cai et al. (2012), Sundarasen et al. (2016), Chung and Chan (2012), Liang et al. (2013), Villanueva and Sapienza (2009), Luo et al. (2013) Co-citation network of the 43 publications and the respective clusters ...
Purpose
Family firms have been the subject of various scientific studies. This interest derives not only from their unique characteristics in terms of their management but more specifically in terms of their succession in a dimension that does not impact on other companies in the same way. Hence, and as a complex field of research, this study seeks to map out and analyse the intellectual knowledge on research into family firms in Asian contexts.
Design/methodology/approach
As regards the statistical and analytical methods, the authors made recourse to the bibliometric, co-citation and cluster analysis techniques. In order to evaluate any potential patterns among the articles, the authors analysed the ways in which the articles are jointly cited. This furthermore applied hierarchical cluster analysis to the totality of the articles subject to co-citation analysis within the scope of grouping the interrelated articles into distinct sets. In order to graphically map the bibliographic co-citation analysis, the authors deployed the network and cluster determination theories.
Findings
The results enabled the identification and the classification of various theoretical perspectives on the domain of family firms into four main approaches: (1) family business behaviour; (2) family versus non-family CEOs; (3) business family performance; and (4) business family and people.
Originality/value
This study identifies, explores, analyses and summarises the main themes, contributing towards deepening the literature through the means of identifying the priority areas in relation to Asian family businesses able to guarantee international standards of excellence in comparison with their respective competitors.
... 92-93;Low et al. 2016); in the promotion of URI-industry research links through collaborations between key economic ministries, statutory bodies, academic institutions and GLCs (OECD 2013, pp. 240-247); and in the coordinated endeavours of the industry, manpower and education ministries and their subsidiary boards, institutes and councils to leverage labour and corporate reforms to strengthen employer-employee cooperation, managerial professionalism and technical training (Leggett 2011;Ritchie 2010;Tsui-Auch 2004). ...
This article suggests that variations in the dominant pattern of innovation policy coordination can be analysed and understood effectively by dividing innovation and other complementary socio-economic policies into low-complexity and high-complexity tasks.
The effective implementation of these two sets of policy tasks that differ in the extent, nature and intractability of collective action problems confronting the coordination process hinges on the strength of two sociopolitical institutions: bureaucratic organizational structures and interactive governing arrangements. While bureaucratic organizational structures are better suited to delivering low-complexity tasks, interactive governing arrangements are more effective in resolving high-complexity policy problems. They interact differently across political economies to structure the management of coordination challenges and thus give rise to divergent patterns of innovation policy-making. The comparative analysis of innovation policy coordination between Hong Kong and Singapore over the past two decades lends strong support to the central theoretical propositions of the article.
... As regards the creation of codes and categories, we inductively generated first-order codes from the deal announcements and compared these against the insights from existing theoretical perspectives and empirical studies (Campopiano & De Massis, 2015;Tsui-Auch, 2004), also in relation to acquisition goals (Angwin, 2007;Bower, 2001;Walter & Barney, 1990). Each clause was placed into one of the categories. ...
Despite the considerable body of research on acquisitions and their goals, we lack insights on how family firms differ from nonfamily firms in their acquisition goals, particularly in view of the characteristics that distinguish family businesses. Thus, to enhance current understanding, we examine firms’ disclosed goals in their deal announcements and find that firm ownership type is an important determinant of acquisition goals. Drawing on the content analysis of 558 deals from 393 firms, we identify seven goal categories. Our findings contextualize several differences in the goals of family and nonfamily firms, contributing to the family firm and acquisition literatures, offering implications for practice and potential avenues for future research.
... Some authors have argued that members of family firms are likely to have a unique stewardship perspective towards the organization, leading them to invest in the business as part of a family legacy (Miller, Le Breton-Miller, & Scholnick, 2008). In line with this, family-owned firms presumably seek to develop a community culture that results in loyal employees, and strong connections with other external stakeholders that may be especially critical during times of crises (Arregle, Hitt, Sirmon, & Very, 2007;Das & Teng, 1997;Davis & Greve, 1997;Tsui-Auch, 2004). Such an orientation is likely to contribute to the survival probabilities of ventures founded by family teams. ...
The authors propose a research agenda based on the premise that entrepreneurship can and should be viewed as an institution. This approach assumes that typical structures and processes involved in founding new businesses reflect common social understandings held by members of a group about the value of entrepreneurship and how it should be undertaken. It also assumes that these behavioral patterns and social understandings vary by geographic region and over time. An important task in furthering entrepreneurship research based on this approach is identifying key dimensions along which such institutional variation occurs. Here, the authors discuss two main dimensions that we argue merit more focused attention: modes of entry and modes of governance. Drawing on existing literature, they offer a number of hypotheses about conditions that are likely to be associated with group-level variation in each of these dimensions, and the impact of such variations on organizational outcomes.
... The succession process will typically be initiated when a rising generation family member is appointed to the inner circle (Chung & Luo, 2008;Dou & Li, 2013;Redding, 1990). Because of their size and the scope of their operations publicly listed FFs will rely upon on professional management at all levels in the organisation, however, FFs are likely to maintain the distinction between family insiders and professional outsiders, hence these firms have been described as professionally-managed but family-ruled enterprises (Tsui-Auch, 2004;Zhang & Ma, 2009). ...
The paper is motivated by recent findings about family firms (FFs) ability to ‘do more with less’ in the innovation process, which we dub ‘lean innovation’. We consider lean innovation patenting strategies in an emerging market context that is undergoing improvement in its intellectual property protection (IPP) regime. Grounded in upper echelons theory we expect that the initiation of an intra-family succession will lead to generational shift in a FFs approach to IPP, as evinced in its patenting strategy. Applying a difference in difference methodology we are able to compare FFs who have undertaken an intra-family succession with FFs who have not yet initiated a succession process. Further, we consider the second difference as a strategy change between the pre-and post-succession period thereby isolating the effects of the post-succession change on patenting strategy. We also distinguish between different patent types (invention, utility, and design), and consider FF propensity to patent, and patent conversion rates. Based on generational differences between founders and successors we find successors are significant adopters of lean innovation patenting strategies. We add to the sparse literature on succession in emerging market FFs and contribute to improved understandings of long-term FF strategic adaptation in a dynamic institutional landscape.
... This assumption is confirmed in contingency theory, highlighting how the size, but not the firm location, affects formal MC practices (e.g., performance measures and HRM practices) (Speckbacher and Wentges 2012;Giovannoni et al. 2011;Kim and Gao 2010). Larger FCBs would also be more likely to employ non-family managers to formalize and professionalise MC practices (Tsui-Auch 2004) and install separate MC units Neubauer et al. 2012). Although the number of studies focusing on FCB and MC has been steadily growing during the last few years, studies that incorporate an institutional perspective are still limited. ...
Family-controlled businesses (FCBs) are the dominant forms of business in most market-oriented economies and the driving sources behind global economic growth. Despite their relevance worldwide, the role of financial management practices has remained understudied although there are indications that these practices play a critical influence in the survivability, growth and successful succession of family businesses. Drawing on recent developments in institutional theory and the concepts of framing and frame alignment, we investigate how shareholder-oriented management controls (MCs) are adapted in a FCB case over a 15-year period. To analyze the features that drive family agent in supporting a frame alignment, we build our analysis on previous literature in family firms. We investigate the processes involved in the adoption and implementation of adapted shareholder-oriented MCs in this FCB characterized by permanence of the owners and top managers where these actors are following changes based on a new set of shareholder-oriented ideas. This case study research allows more fine-grained observations and theorizations in a protracted institutional context. It is interesting because it shows how a family organization tries to align its MC during a third generation company life. In particular, we contribute to analyze how such alignment processes lead to implement adapted financial MC practices, how different features of FCBs can influence MC practices, and the role of a family member as an institutional change agent aimed to discover a new frame that mobilizes organizational action.
... Chinese family capitalism is also strong in countries such as Malaysia, Indonesia, Thailand, and Philippines, where the Chinese are ethnic minorities (Bruton et al., 2003;Tsui-Auch, 2004). In Korea, almost all major private enterprises can be categorized as family firms. ...
... Relational business norms are strongly embedded in family firms in this institutional context and a firm is perceived as belonging to the founder and his or her family members (Redding, 1990). Family firms thus often depend on insiders such as family members and close associates to retain control ( Tsui-Auch, 2004). ...
... In addition, the few published studies on Chinese SMFEs are very narrow in focus and cover only a scattered range of areas such as the drivers/barriers to international growth (Ahlstrom, Young, Chan, & Bruton, 2004;Cardoza & Fornes, 2011a;Carney, 1998;Tsang, 2001;, the environment faced by Chinese SMFEs (Boisot & Meyer, 2008;Poutziouris, Wang, & Chan, 2002), the human resources practices (Zheng, O'Neill, & Morrison, 2009), the institutional barriers to innovation and growth (Carney & Gedajlovic, 2002;Zhu, Wittmann, & Peng, 2011), the marketing and IT capability performance (Siu, Fang, & Lin, 2004;Zhang, Sarker, & Sarker, 2008), the relation between entrepreneurship and internationalisation (Li, Zhao, Tan, & Liu, 2008;Liu, Xiao, & Huang, 2008;Yamakawa, Peng, & Deeds, 2008), the financing of high-tech SMFEs (Xiao, 2011), the relation between networks and international development (Chu, 1996;Tang, 2011;Zhou, Wu, & Luo, 2007), the organisation/performance of SMFEs overseas (Gebre-Egziabher, 2007;Rademakers, 1998;Tsang, 2002;Wai-chung Yeung, 2000;Weidenbaum, 1996), the historical evolution of SMFEs (Po-yin Chung, 2005;Poutziouris et al., 2002), the transition and professional management (Chung & Yuen, 2003;Tan & Fock, 2001;Tsui-Auch, 2004), or SMFEs and Dunning's OLI paradigm (Erdener & Shapiro, 2005). This limited number of published articles is far from constituting a strong body of literature on Chinese SMFEs in general and on their international expansion in particular. ...
Purpose: The paper critically analyses the relevant literature on the international expansion of China’s small and medium-sized family enterprises with the aim of highlighting the main topics analysed by scholars and identifying areas for future research.
Design: The paper reviews the works on the international growth of China’s SMFEs published in selected peer-reviewed English-language journals vis-à-vis what has been published on Chinese MNEs and Western SMFEs. It does this by, first, studying the literature at both firm and industry levels and, second, by analysing the specific characteristics of small business from China along with the particularities of the Chinese business environment.
... Additionally, pro-market reforms define a new competitive landscape with more emphasis on arm's length contracting and more competition from international companies, which drives family firms' professionalization (Lien, Teng, & Li, 2016;Zhang & Ma, 2009). Family owners in this new competitive landscape may decide to stay competitive by amplifying institutional reforms within their firms, reducing family involvement, and relinquishing control to professional managers voluntarily (Chung & Luo, 2008a;Tsui-Auch, 2004). However, in other cases, family owners may hire professional managers or fire family CEOs only to comply with legal requirements (Su & Lee, 2013;Zhang et al., 2013). ...
Examination of family firms’ interactions with institutional contexts has been a major research stream within family business scholarship. This study reviews three decades of research at the intersection of family firms and institutional contexts. Our review sample includes 124 articles published in 24 top-level journals across several disciplines. We adopt an institutional theory lens to synthesize this literature and explicate main understandings about how family firm behaviors/outcomes are influenced by or may influence formal and informal institutions in their institutional contexts. Moreover, we discuss major research gaps and unproductive biases in this research area and provide directions for future research.
Why should models and theories that have set images and boundaries of the internationalization process in the past remain constant over time within International Business research? Despite a recent emphasis on its nonlinear nature, many still view internationalization as a forward-moving process, overlooking its dynamic nature involving enter, re-enter, and exit decisions during the process. To discuss this issue, this paper rethinks the existing International Business literature to retain its explanatory power as an essential discipline by developing a circular framework to capture firms’ non-linear internationalization process. The authors propose a circular framework with the decision-making process as the unit of analysis and four statuses: Enter, De-Internationalization, Re-Internationalization, and Operation Internationalized. The decision-making process guides firms through the statuses simultaneously or individually, in the same or a diverse temporal dimension. With this circular framework, the authors wish to contribute to future International Business research; research that can keep up with the “real” world.
Family firms face significant challenges in professionalizing their management, while the professionalization effects on the firms’ performance are unclear. Drawing on stewardship and agency theories, we theorize and test the effects of family ownership and professionalization on firms’ financial performance and sustainability (environmental, social and governance) reputation. Using a large-scale management practices dataset of both public and private companies in the US, UK, Germany, and France, we find that family firms outperform nonfamily ones in terms of both financial performance and sustainability reputation, and professionalization helps strengthen such positive effects. We theorize that this is because professionalization can address agent opportunistic behaviors, while enhancing steward behaviors unique to family firms. The findings contribute to the literature on family business governance and professionalization.
La presente investigación busca comprender la relación entre las dimensiones relevantes
de la profesionalización y el desempeño de la empresa familiar en un grupo de empresas del sector
textil.
Se escogió el estudio de empresas familiares por poseer características diferentes a las no
familiares y por tener una notoria importancia en la economía de nuestro país, ya que generan el
75 % del PBI del país (Dyer, 2013). Por otro lado, diversos autores mencionan que la
profesionalización es un elemento clave en el éxito de la empresa familiar, por ello es importante
conocer cuál sería su relación con el desempeño de la empresa. Así también, la profesionalización
es un proceso que resulta estratégico de ser desarrollado, debido a que posibilita mayores
oportunidades en el mercado.
La presente investigación tiene un alcance exploratorio descriptivo, con un enfoque
cualitativo, basado en un estudio de casos múltiple, que tiene como objetivo determinar las
dimensiones de la profesionalización en el desempeño de la empresa familiar. Se hizo uso de
entrevistas semi-estructuradas a los fundadores y administrativos de un grupo de empresas
familiares, así también a especialistas en el tema de la profesionalización, de manera que se
contrastó la teoría con la opinión de expertos y los casos de estudio. Asimismo, esta investigación
tiene como fin que sirva como referencia, para posteriores investigaciones a niveles de teorización
más profundos.
De acuerdo con la teoría, existe una relación entre la profesionalización y el desempeño
de una empresa familiar, si bien esta es financiera, no existe suficiente información sobre su
relación con el desempeño no financiero. Sin embargo, a partir de los resultados de esta
investigación se encontró que existen dimensiones de la profesionalización que también guardan
relación con el desempeño no financiero, definido como la teoría de la riqueza socioemocional.
Finalmente, se muestra las conclusiones y recomendaciones de la investigación.
This paper explores how Guanxi shapes different levels of entrepreneurial behaviour of family businesses in China. Extant research draws on network theory, suggesting that firms focusing on less intimate social relationships are more entrepreneurial than those focusing on intimate social networks. However, this notion of networks neglects Guanxi’s indigenous cultural roots that promote intimacy in social relationships, thus limiting our understanding of why some firms in China demonstrate a higher level of entrepreneurial behaviour than others. Through an in‐depth multi‐case study analysis of eight family firms in China, we find that Guanxi is a multi‐dimensional concept that can only be effective through intimate relationship building. This study contributes to the social network literature on entrepreneurial behaviour by incorporating the gift exchange theoretical perspective and demonstrating that political Guanxi in China can only facilitate entrepreneurial behaviour when it is built around a significant level of intimacy. We also contribute to family business research by demonstrating that family ties are multi‐dimensional. Different cultural values may inform different dimensions of family ties via differences in family business governance structures, which can give rise to different levels of entrepreneurial outcomes. This study offers theoretical and practical implications alongside avenues for future research.
Time plays an integral role in understanding International Business (IB) phenomena, and so does qualitative inquiry. Despite this, time has received little attention in qualitative IB research. To rectify this, we engage in a qualitative content analysis of qualitative articles published from 1999 until 2020 in the Journal of World Business, Journal of International Business Studies, as well as the Academy of Management Journal, and Journal of Management Studies. Our findings suggest four temporal theorizing styles, namely temporal variation, temporal accumulation, temporal evolution, and temporal story. We add further granularity by distinguishing for each how time (i.e., snapshots, incremental, evolutionary, discursive), and context (detached context, descriptive context, contextual specificity, intertwined context), generate different theorizing outputs (variation, staged process, evolutionary process, (process) story). Our paper contributes by offering researchers a rich vocabulary and conceptual building blocks to engage with different temporal theorizing styles in qualitative IB research.
No Family Company Without Family: The Professionalization of a Chinese Family Business in Hong Kong
Purpose
This paper aims to investigate the expatriate adjustment experiences of “biculturals”, defined here as individuals who have internalised at least two cultural profiles, in a host-country setting that is itself also culturally diverse.
Design/methodology/approach
A qualitative approach was adopted, involving semi-structured interviews with a small number of bicultural expatriates working in Malaysia.
Findings
The findings here echo previous studies in demonstrating bicultural expatriates’ ability (and tendency) to switch cultural frames as part of their adjustment. Despite this, however, their professional and social networks appear to still be shaped by cultural factors, with expatriates drawn towards networks whose members mainly comprise certain ethnic groups whose values and norms are perceived as being more closely aligned with those of the expatriate.
Originality/value
Though the literature on bicultural expatriates continues to grow, little emphasis has been given to a host-country setting that is itself culturally diverse. The findings here suggest that in such a setting, professional and social networks serve as an aid in the adjustment. Importantly, however, these networks, rather than being culturally impartial, as it were, may primarily comprise certain ethnic groups who are considered culturally “closer” to the expatriate in question.
A családi vállalkozások elemzéséről szóló szakirodalmak száma az elmúlt években jelentősen megnövekedett, ezzel is mutatva a téma kiemelt jelentőségét. Egy nemzetgazdaság életében a családi vállalkozások előkelő helyet foglalnak el, mind a gazdasághoz való hozzájárulásukat, mind pedig az általuk megtermelt hozzáadott értéket tekintve. Kevesebb figyelem fordult azonban eddig a családi vállalkozások professzionalizálódására, és az ezzel kapcsolatos szakirodalom feltárására és bemutatására. A családi vállalkozások kontextusában a professzionalizálódás kezdetben nem jelentett mást, mint egy külső, nem családtag vezető felvételét. Azonban mára a professzionalizálódás jelentéstartalma kibővült, és egy multidi- menzionális modellé fejlődött. A tanulmány célja, hogy bemutassa a professzionalizálódással kapcsolatosan megjelent legfontosabb nemzetközi szakirodalmakat, és egy széles körű áttekintést adjon az eddig megjelent tanulmányokról. A szakirodalmi áttekintés elsősorban az elmúlt húsz évben és a hozzájuk szorosan kapcsolódó cikkek eredményeit összegzi.
A családi vállalkozások elemzéséről szóló szakirodalmak száma az elmúlt években jelentősen megnövekedett, ezzel is mu-tatva a téma kiemelt jelentőségét. Egy nemzetgazdaság életében a családi vállalkozások előkelő helyet foglalnak el, mind a gazdasághoz való hozzájárulásukat, mind pedig az általuk megtermelt hozzáadott értéket tekintve. Kevesebb figyelem fordult azonban eddig a családi vállalkozások professzionalizálódására, és az ezzel kapcsolatos szakirodalom feltárására és bemutatására. A családi vállalkozások kontextusában a professzionalizálódás kezdetben nem jelentett mást, mint egy külső, nem családtag vezető felvételét. Azonban mára a professzionalizálódás jelentéstartalma kibővült, és egy multidi-menzionális modellé fejlődött. A tanulmány célja, hogy bemutassa a professzionalizálódással kapcsolatosan megjelent legfontosabb nemzetközi szakirodalmakat, és egy széles körű áttekintést adjon az eddig megjelent tanulmányokról. A szakirodalmi áttekintés elsősorban az elmúlt húsz évben és a hozzájuk szorosan kapcsolódó cikkek eredményeit összegzi
The study examines organization citizenship behavior (OCB) as a mediating variable between instrumental work values (IWVs) and organizational performance; and group differences between family manager and non family manager for integrated models in family hotels. Data were collected from 189 hotels (n= 921) ranging from budget to three-star family hotels in Ghana using questionnaire administered conveniently. Data were analyzed using structural equation modeling. Work value positively influences OCB and organizational performance of family hotels. OCB mediates the relationship between work values and organizational performance. The study also found significant support for group differences between family and non family firms for IWVs and mediating effect of OCB on the relationship between IWVs and performance.
This chapter reviews the extant literature on managerialization and professionalization, highlighting the main and overlapping differences between the two concepts. Professionalization and managerialization are viewed as business challenges as they need to be dealt with for the family business to survive. These challenges are discussed, and their determinants and effects in terms of organizational performance are examined. Published case studies on professionalization and managerialization are investigated using the theoretical perspectives most often considered in the literature. The chapter uses a systemic view approach to emphasize the need to tackle the above challenges.
A good monitoring that reduces agency conflicts can help in developing structured policies in code of ethics to help the social information processing for employees. The objective of this research is to investigate whether the corporate governance characteristics, such as duality, board of directors' size and independence as measures of monitor capacity are related to workers' communication policies disclosed in code of ethics. Based on a content analysis of code of ethics to define the latter polices and on regression analyses on 808 firm‐year observations, our results show that board of directors' independence is positively related to code of ethics policies related to communication with employees. Independence of the board is expression of supervising, supporting transparency and aiming to safeguard the best interests of all stakeholders, including employees.
Die Inhaltsanalyse (Content Analysis) als eine Methode empirischer Forschung hat ihren Ursprung im Wesentlichen in den Kommunikations- und Medienwissenschaften (vgl. hierzu und im Folgenden Krippendorff 2004, S. 3 ff.; Merten 1995, S. 35 ff.; Neuendorf 2002, S. 27 ff.). Sieht man von möglichen historischen Vorläuferformen ab (wie etwa der Textanalyse schwedischer Kleriker Mitte des 18. Jahrhunderts, vgl. Früh 2007), so ist ihre Entwicklung zu einer eigenständigen wissenschaftlichen Mastertechnik einerseits stark durch das Aufkommen der empirischen Sozialwissenschaften, verbunden mit einer positivistisch-behavioristischen Denktradition, anderseits durch die explosionsartige Vermehrung symbolischen Materials im Laufe der ersten Hälfte des 20. Jahrhunderts bestimmt worden. In den 1950er und -60er Jahren wurden insbesondere in den USA verstärkt Bemühungen unternommen, die Mastertechnik als solche zu konsolidieren. Seitdem hat sich das Interesse an der Weiterentwicklung der Mastertechnik zum einen verstärkt auf computergestützte Verfahren bezogen, zum anderen wurden nachhaltig Bemühungen unternommen, die – vor dem Hintergrund ihrer Entwicklung genuin quantitative – Inhaltsanalyse auch für stärker qualitative Überlegungen zu öffnen.
Continuing the institutional analytical framework of discursive institutionalism and variety of capitalisms on the study of corporate governance in banking organizations, this chapter offers an in-depth analysis on the legitimacy discourses of bank governance in Chinese institutional context.
In recent years, non-family managers (NFMs) in family firms have received increased scholarly attention, and numerous papers related to this topic have been published. Since the last academic review of NFMs in family firms (Klein and Bell 2007) was published a decade ago, an increasing number of relevant papers have been published. However, an integrative understanding of NFMs in family firms is still missing. An updated review in this area is useful for assessing the current state of the literature and for proposing fruitful directions for further research. For these reasons, this paper systematically reviews 118 papers relevant to the study of NFMs in family firms. The findings from the sample are organized, synthesized and analyzed with the help of an integrative 2 framework we developed based on Gersick et al.'s (1997) three-circle model separated into nine different clusters. In addition, we identify a broad array of important future research avenues.
Against the background of the current rapidly changing business environment, the article examines the organizational change management behaviour of the owner-managers of small and medium sized enterprises (SMEs) in Singapore. The analysis of survey data is aimed at ascertaining whether there are any differences between Chinese and English educated small (ethnic Chinese) businessmen in terms of Change Management (CM), a dichotomy that is of great historical and politico-cultural significance in Singapore. The survey data show that there are indeed differences between the subgroups (eg with regard to the
initiation of a more participatory people management style) but these variations turned out to be far less pronounced than expected. Access to information and actionable managerial knowledge appears to be a key precursor to the various change management approaches used by both groups. Chinese educated businessmen in particular seem to be somewhat disadvantaged in this respect, as modern change management literature is still largely only published in English.
Keywords: Ethnic Chinese, small and medium-sized enterprises (SME), Republic of Singapore, organizational change management.
Organizational human capital (OHC) is considered a source of sustainable competitive advantage. However, research has scarcely analyzed what drives its development in family firms. We analyze the effect of formal human resource (HR) practices for family and non-family employees-namely, skill-enhancing practices (entry requirements and training programs) and motivational practices (internal promotion systems and compensation and incentive plans)-on family firms' OHC. Further, generational stage is one important source of heterogeneity among family firms. We contribute to the literature on heterogeneity among family firms by testing the moderating role of generational stage in the relationship between HR practices and OHC. We analyze 707 unlisted Spanish family firms and conclude that both family and non-family employees' skill- and motivation-enhancing practices have a positive effect on their OHC. Our results also show that the positive influence of motivational HR practices for family employees on OHC is more intense as generations advance.
This article summarizes the common characteristics of ethnic Chinese businesses, and acknowledges that they are rapidly evolving entities in response to economic globalization. Increasingly, ethnic Chinese business elites in Asia are both local and traditional in their cultural norms and globalizing in their business approaches. In general, large ethnic Chinese businesses have developed a form of hybrid capitalism combines family control and professional management, as well as personal relationship-based and contract-based employment and business relations.
This study examines the role of professional associations in a changing, highly institutionalized organizational field and suggests that they play a significant role in legitimating change. A model of institutional change is outlined, of which a key stage is "theorization," the process whereby organizational failings are conceptualized and linked to potential solutions. Regulatory agencies, such as professional associations, play an important role in theorizing change, endorsing local innovations and shaping their diffusion.
In an era of far-reaching changes, issues of Organizational Learning are high on the agenda of social scientists, managers and consultants worldwide as they seek to adapt to new environments. The Handbook of Organizational Learning and Knowledge provides a comprehensive overview of how the concept of Organizational Learning emerged, how it has been used and debated, and where it may be going. It summarizes the state of the art and provides a full account of the diverse approaches, themes, issues, and debates of the field. The handbook unites a distinguished team of international authors, who examine both the central themes and emerging issues. The coverage extends beyond the American tradition to include the experiences of Europe, Asia and the Middle East. The book opens with chapters drawing insights from various social science approaches. The following Sections examine fundamental issues concerning the external triggers, factors and conditions, agents, and processes of Organizational Learning. Subsequent chapters review the subject within a global context, looking in particular at inter-organizational collaboration. The next sections examine the development of learning practices and provides case studies to illustrate Organizational Learning and knowledge creation. The book concludes with an analysis of the state of the art and an agenda for the future. This handbook will be an invaluable reference tool for scholars and students in the social sciences, as well as for professionals involved in organizational development, learning, and change.
Written in non-technical terms, this book explains how the dynamics of big business have influenced national and international economies. A path-breaking study, it provides the first systematic treatment of big business in advanced, emerging, and centrally-planned economies from the late nineteenth century, when big businesses first appeared in American and West European manufacturing, to the present. Large industrial enterprises play a vital role in developing new technologies and commercializing new products in all of the major countries. How such firms emerged and evolved in different economic, political, and social settings constitutes a significant part of twentieth-century world history. This historical review of big business is particularly valuable today, when the viability of large enterprises is being challenged by small firms, networks, and alliances. These essays, written by internationally-known historians and economists, help one understand the essential role and functions of big business.
Written in non-technical terms, this book explains how the dynamics of big business have influenced national and international economies. A path-breaking study, it provides the first systematic treatment of big business in advanced, emerging, and centrally-planned economies from the late nineteenth century, when big businesses first appeared in American and West European manufacturing, to the present. Large industrial enterprises play a vital role in developing new technologies and commercializing new products in all of the major countries. How such firms emerged and evolved in different economic, political, and social settings constitutes a significant part of twentieth-century world history. This historical review of big business is particularly valuable today, when the viability of large enterprises is being challenged by small firms, networks, and alliances. These essays, written by internationally-known historians and economists, help one understand the essential role and functions of big business.
- This paper describes the process of inducting theory using case studies from specifying the research questions to reaching closure. Some features of the process, such as problem definition and construct validation, are similar to hypothesis-testing research. Others, such as within-case analysis and replication logic, are unique to the inductive, case-oriented process. Overall, the process described here is highly iterative and tightly linked to data. This research approach is especially appropriate in new topic areas. The resultant theory is often novel, testable, and empirically valid. Finally, framebreaking insights, the tests of good theory (e.g., parsimony, logical coherence), and convincing grounding in the evidence are the key criteria for evaluating this type of research.
Examines the developments in business education in Singapore and directions for its development. Post-graduate programs; Status of management education at universities; Broadening of education in Singapore universities.
This paper questions the effectiveness of economic development policies and programs which fail to differentiate family from non-family enterprises in the UK small and medium-sized firms sector. Published evidence is reviewed and findings from workshops and interviews with 10 Scottish family enterprises demonstrate that family enterprises differ, and in some economically significant ways, from non-family enterprises. It is suggested that the lack of provision for family enterprises hinders their business activity. The aim is to begin an argument for recognition of a “family business sector” in the UK in order to promote business activity in this economically significant group of firms, and to achieve a better payoff for governments from investment in economic development in small and medium-sized enterprises (SMEs).
There is a very considerable secondary literature on Singapore. This literature has some major lacunae, mostly the consequence of the fact that serious independent social science research-on political attitudes, class formation, and elite circulation, amongst other topics-cannot be conducted. But the most significant events in the history of the city-state are now well known. Christopher Tremewan’s new book does not fill in any of the blank parts of the Singapore social science map, since its main task is to recount (largely on the basis of the secondary literature) the record of regime policy in four major areas: public housing, education, political institutions, and the legal regime. The argument here is that with respect to policies in each of these areas, the objective of social control has been paramount.
There is considerable definitional confusion concerning the term family business. This chapter addresses this issue through two complementary approaches: a structure-based approach, which considers family involvement infirm ownership and management, and an intention-based approach, which focuses on the realized and unrealized value preferences of the organization's upper echelons.
This article summarizes the findings of a qualitative study of twenty large family businesses (above $100 million) from the United States, Europe, and Latin America. The study focuses on family businesses that have successfully completed the transition from founder to professional management, and it identifies many of the emotional and managerial dilemmas that arise as companies move from one generation to the next. The author outlines the specific steps these companies have taken in order to constructively manage succession and continuity.
The lack of succession planning has been identified as one of the most important reasons why many first-generation family firms do not survive their founders. This paper explores some of the factors that interfere with succession planning and suggests ways in which these barriers can be constructively managed.
Both the proponents and critics of Asian economic organization have been preoccupied with the ideal-typical management models of family businesses, and have rarely identified their changing management structures. We, instead, identify the change and continuity in these management structures through an analysis of family-controlled business groups in Singapore and South Korea before and after the Asian currency crisis. In our view, these business groups professionalized their management, but retained family control and corporate rule before the crisis. The crisis, however, increased the pressure on such groups to relinquish family control and corporate rule. Singaporean Chinese business groups tended to loosen their tight grip on corporate rule by absorbing more professional managers into their upper echelons. The surviving Korean chaebol, however, intensified family control. Only a few chaebol, which were on the brink of bankruptcy, relinquished corporate rule to professional managers. We argue that other than the market, cultural, and institutional factors as suggested in the existing literature, state capacities and strategies do matter in shaping the changing management structures of business groups. Drawing on our analysis, researchers will be able to conduct comparative studies of family businesses across East Asian societies, of organizational imitation, and of the role of the state in influencing management models.
This article shows that economic organization has independent and direct effects on the course of economic development. Most existing theories of economic development ignore the dynamic role of inter-firm interactions and, instead, stress state policies and macro-economic forces as the decisive factors creating a country's industrial structure. Our research shows that developing economies have emergent organizational dimensions that, once they become going concerns, create momentum and trajectory. Using South Korea and Taiwan as case studies, this article demonstrates that the divergent economic outcomes of these two countries can best be explained by emerging differences in the organization of economies.
Property in transition (Book I, chapter 1) …The typical business unit of the 19th century was owned by individuals or small groups; was managed by them or their appointees; and was, in the main, limited in size by the personal wealth of the individuals in control. These units have been supplanted in ever greater measure by great aggregations in which tens and even hundreds of thousands of workers and property worth hundreds of millions of dollars, belonging to tens or even hundreds of thousands of individuals, are combined through the corporate mechanism into a single producing organization under unified control and management.… Such an organization of economic activity rests upon two developments, each of which has made possible an extension of the area under unified control. The factory system, the basis of the industrial revolution, brought an increasingly large number of workers directly under a single management. Then, the modern corporation, equally revolutionary in its effect, placed the wealth of innumerable individuals under the same central control. By each of these changes the power of those in control was immensely enlarged and the status of those involved, worker or property owner, was radically changed. The independent worker who entered the factory became a wage laborer surrendering the direction of his labor to his industrial master. The property owner who invests in a modern corporation so far surrenders his wealth to those in control of the corporation that he has exchanged the position of independent owner for one in which he may become merely recipient of the wages of capital.
This review highlights the relevance of argumentation and narration for organizational communication, which is the exchange of information among organizational participants from which meaning is inferred. The links between argument and organizational rationality and between the narrative paradigm and organizational storytelling are discussed. Organizational and communication variables are viewed as mutually relevant. As the mixtures of argumentation and narration change, interaction changes, and different organizational structures are created. These processes have implications for both scholars and practicing managers.
Three frameworks purport to explain industrial arrangements and practices: a market approach that emphasizes economic characteristics, a cultural approach that sees organization as the expression of patterned values, and an authority approach that explains organization as a historically developed structure of domination. The efficacy of each approach is tested in explaining the organizational structures of three rapidly growing East Asian economies: Japan, South Korea, and Taiwan. The paper argues through comparative analysis that organizational growth is best explained by market and cultural factors but that authority patterns and legitimation strategies best explain organizational structure.
The Chinese people constitute more than a quarter of the world's population, yet until now there has been no single volume that summarizes and integrates the wealth of data available, in English and Chinese, on the psychological functioning of Chinese people. "The Psychology of the Chinese People" fulfils this role, emphasizing the prime areas of research, both past and present, the theoretical models used to integrate these findings, and areas for future research. The book also provides a cross-cultural comparative perspective on the data. The authors are all scholars who are major contributors to the theoretical and factual basis of their disciplines. The topics covered include socialization, psychopathology, social behaviour, and organization. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
This article attempts to blend the insights of development economics and political economy in order to analyse industrial policy in Hong Kong. It describes the lack of industrial upgrading, the process of de-industrialization, and the over-reliance on the service sector, and examines the political economy of the functional industrial policy practised in Hong Kong, as well as its limitation. The author suggests that the political change from a colony to a special administrative region of China provides a context for Hong Kong State to undertake a more interventionist, industry-specific policy, the success of which will depend on a combination of two factors: state autonomy against the excessive influence of Beijing, and state capacity to guard against corruption and to enhance a mutually-beneficial regional co-operation in the South China region.