Study On The Influence Factors Of Professional Managers Inheritance In China’s Family Enterprises

Family business inheritance issues exit all over the world. Compared with professional manager mode in western countries, though family businesses in China have obtained considerable development since reform and opening up, however research on our heritage mode is still lagging behind due to a large number of inheritance issues. Currently in domestic theory and business circles, the doubt about how to use the professional manager inheritance mode is becoming increasingly prominent. There are also more challenges in theory and practice including how to effectively make business more professional and socialized and how to avoid the adverse impact that affects the inheritance of professional manager mode. This is because family business heritage is impacted not only by economy, but also by other aspects, such as institution and culture. Therefore, it not only ensures the successful heritage in our family business, but also directs our family business to the modern business to analyze the feasibility of professional manager mode in China, identify the influencing factors and study deeply its action mechanism.Firstly, this paper systematically reviews the relevant concepts and theoretical research on the family business heritage by analyzing historical articles and raises an overall research framework of professional manager mode heritage for family business in China on the basis of existing research.Secondly, using our family business as a research object, this paper sums up existing problems of our family business heritage in a scientific way. Then based on the correlation between the professional manager mode and existing problems, this paper raises the necessity of using professional manager mode in China, based of which a preliminary exploration is made.Finally, in order to identify the influencing factors of family business, this paper does microscopic theoretical analysis and realistic analysis of professional manager mode and identifies four influencing factors that impact professional manager mode in family businesses. Then the paper proceeds with an empirical analysis of these factors with the listed family firms in China as its research object and builds two dimensions of business and individual. The result shows that not all factors have significant effects on professional manager mode, and there is also different impact of each factor on this mode. According to the results of regression analysis, the age of the professional managers and business owners becomes the most important factor, which suggests professional manager heritage mode will become a trend as a result of the emerging generation of professional mangers and business owners. What’s more gratifying is that family businesses in China do not just treat the professional managers as firefighters any longer and there is no clear correlation between corporate performance and professional manager mode, which implies a stronger tendency for them to use modern business system and rely on professional managers.To further investigate the factors that affect the professional manager inheritance mode, this paper deeply studies the influencing factors from two aspects including business and individuals with specific cases on the basis of empirical analysis. The results show that the size and system of the business technically have significant effects on professional manager mode. The action mechanism of age which affects professional managers and business owners is mainly reflected in their value orientation and trust. So in order to adopt professional manager mode successfully from a long-term perspective, it is essential to improve enterprise system, cultivate common value orientation and build trust mechanism.The innovation points of this paper are listed as follows:Firstly, most domestic studies of family business are on a case-study basis and most empirical researches are limited to areas and done by questionnaires. This paper starts with listed family businesses and does case studies based on their available data. Secondly, this paper uses a binary logistic regression method to identify the influencing factor which has the biggest impact on the professional manager model of family business in China. Although the research method is not innovative, the conclusion is adaptive to most cases thanks to the listed family businesses used as samples in this study.Because the samples in the study mainly are listed family businesses and a large number of family businesses in China still are not listed, conclusions in this paper are not perfect to some extent and further research work is still required.