Chinese Family Business Inheritance Patterns Of The Combined Effects Of The Development Strategy

Since the opening and reform, a large number of family businesses have grown up and have been playing a more and more important role in China's national economy growth. Even from a long-term view, family business cannot be ignored in China's market-oriented economy. Their growth and inheritance issues are not only related to China's economic competitiveness, but also have an impact on the development of its society and culture. Such issues have attracted many Chinese researchers and practitioners, and many important research fields have been explored.Based on the idea of fit theory, our research focus on the fit between the successor and incumbent, family business' succession pattern, the composite effect between the succession pattern and development strategy, and the effectiveness of the succession.In study I, 29 top managers in familiy businesses in different districts and industries were investigated via semi-structured interview. The result indicated that four succession patterns existed in Chinese family businesses. They are diversity, reproduction, new venture and business star successing. The result also indicated that there are four development strategies in Chinese family businesses. They are ability developing, business familiarizing, business familiarizing and network structure. The result estabilished a preparatory construct framework for following studies as well.Based on the idea of fit theory, Study II analyzes the influence of fit between successor and incumbent on the succession pattern. This research indicated that (1) the fit between successor and incumbent is positively related to the pattern of reproduction; the fit between successor and incumbent is negatively related to the pattern of new venture. (2) the industry is a variable moderator between the relationship between fitness and succession pattern. (3) The culture of the family business moderate the relationship between social relationship and the pattern of business star successing, as well as the relationship between open system and the pattern of reproduction.Study III explores the composite effect between the succession pattern and development strategy, and the succession effectiveness. Adopting the questionnaire method, we analyze 152 family enterprises, the result show that (1) the composite effect between succession pattern and development strategy. In the patterns of diversity and new venture, there is no best development strategy. In the reproduction pattern, the best development strategy is the ability developing and business familiarizing; The best development strategy in the pattern of business star successing is business familiarizing and network structure. (2) the effectiveness of family business succession depends on succession pattern & successor development strategy. The succession pattern have no positive influence on the satisfaction of succession process. The performance of business star successing is significant better than the performance of diversity,new venture patterns. The development strategy has a positive influence on the firm performance and satisfaction of succession. And we also find that the performance of ability developing strategy is significant better than the performance of new team building strategy. The satisfaction of succession process in the business familiarizing strategy is significant better than the satisfaction of new team building strategy. The culture of the family enterprise also has an influence on the succession performance and satisfaction.Adopting case study, Study IV analyzies the dynamic composite effect between the succession patterns and the development strategies. We do some research on four Chinese family business, analyze their succession patterns, the composite effect between the succession patterns and the development strategies. This research indicated that there are different development strategies. In the pattern of diversity, the main development strategies are network structure, ability developing and new team building; In the pattern of reproduction, the main development strategy is ability developing and business familiarizing; In the pattern of business star successing, the main development strategies are business familiarizing, network structure and ability developing. And in the pattern of new venture, the main development strategies are business familiarizing, network structure and new team building.Finally, the main conclusions of this paper were summarized. The theoretical developments and practical implications were discussed, as well as the limitations of the present study and the directions for further research .