An Analysis On The Route Optimization Of "Father-to-son" Succession As A Mode Of The Chinese Family Business Intergenerational Transition

As one of worldwide universal existence form of business organization, the family business plays an irreplaceable role in social and economic development today. The Chinese family business is in a high cycle where the international transition is concerned after rapid development through more than thirty years, it is difficult to solve the question of "the rich but three generations" than imagined. Look from practice, of various succession modes of Chinese family business, the "father-to-son" succession is the common one. Based on this, it is important to the local economy development of China to analyze the choice and process of "father-to-son" which will guide the healthy development of the family business.This paper uses the research method of linking up theory with practice to summarizes the documents of family business international transition from home and abroad and analyzes the characters of the route of eastern and western family business "father-to-son" succession in the framework of firm life cycle, management and sociology. Then, from the angles of two generations, company ownership and right of administration, enterprise risk management, stakeholders etc, this paper carries on concrete analysis to the more important issues concerning "father-to-son" succession by multiple perspectives. Further more, a mode of route optimization of "father-to-son" succession as a mode of the Chinese family business intergenerational transition mode is proposed. At the same time, some advices are given about the route of Chinese family business "father-to-son" succession:in the whole process of mode "father-to-son" succession needs:assistant succession type as main one, positive mental rehearsing, formulating succession plan early and solving rights conflict, evaluating and training candidates throughout inheritance process, keep evaluating and controlling handover risk, handling contradiction among stakeholders throughout the whole process of inheritance and summarizing inheritance experience.Finally, the conclusion has been verified through analyzing the common issues and the ways of solving problems of two typical "father-to-son" succession cases of Shanghai LinJia group and zhejiang ACP group which has been selected out by certain standards.