Transformation Of Family Business Governance Model In Fujian

In this paper, based on the enterprise theory of economics and management, and combinedwith the development experience of Fujian family business, we summarize some general rules ofits development, and try to explore if there is the optimal governance structure in family business.After we have investigated the present situation, we would give some advices to solve theproblems they are facing now.Fujian opened earlier than other areas, and has superior geographical location. After thirtyyears of development, there have been a number of well-known family firms in the province, andmany of them have been listed in the market at home and abroad. Their development paths aresimilar to each other, with most of them growing up from small private enterprises. The havereached the present scale through the efforts of the first generation entrepreneurs, and most ofthem have already been in the second undertaking. Secondly, family enterprises in Fujianprovince have similar advantages and disadvantages, and mostly concentrate in the sameindustry.We can find that the development track of family enterprises correspond with the changes intheir governance styles. We do not think there is a universal form of governance style for familyfirms with different scales in different development stages. Compare the governanceperformance of different governance styles and development experiences in different areas, wegive some recommendations to family firms in different development level, and analyze how toimprove the performance of the stakeholders.This paper is divided into five chapters; the first introductory chapter is to introduce thetopics of the paper, research purposes, and research methods. In second chapter, we reviewprevious studies about family business governance, clarify the related concepts, reviewprogresses and shortcomings of relevant researches at home and abroad, and illustrate the issuesthis paper attempt to discuss and resolve. The third chapter is an overview about the status quo offamily business governance in Fujian. We introduced its evolution history in details, and focuson the governance’s change path of well-known family business. Chapter IV is an analysis aboutthe evolution of family business governance in Fujian. We try to find out some disciplines bycomparing family business in Fujian with that at home and aboard. There are conclusions andpolicy proposals in Chapter V. We draw the basic conclusion of this paper and analyze positiveactions that enterprise and government could take.