Family Management Of Private Enterprises - Shenzhen A Group Management Research

The purpose of this paper is to offer a more comprehensive concept of the family owned business in China. In China, most of private companies are family owned firms, their success is the most remarkable event in China, but their management pattern gets the different appraisement. Modern management theory believes that firm is a profit maximizer but the operation of family firm is base on the benefit of the family members, so it will damage the value of shareholder. But the truth is that: most of the private firms in China are run or managed by family members, we can find a lot of successful stories among them. Why family owned businesses are so successful in China, can we refuse such management method only because we believe that it is not so "modern" as it is mentioned by some management theorists? This paper will try to find the answer to it.