Research On The Relationships Of Family Involvement, Intellectual Capital And Growth Performance In Family Business

At Knowledge Economic Age, knowledge begin to challenge material resources which areemphasized in the traditional resource-based theory, intellectual capital is even going to replace physical capital and play an irreplaceable role in corporate governance. However, therole of intellectual capital has not been overlooked, until it was found that the market value ofsome enterprises is much higher than the book value., Especially in family business.Thereofore, this study puts forward three questions under the background of family business.How is the structure of intellectual capital in family business? How is the relationshipbetween intellectual capital and growth performance in family business? Whether does familyInvolvement play a moderating effect between intellectual capital and family?On the basis of the the oretical literature which I have read, this study puts forward atheoretical model and several related assumptions, which are related to independent variablesintellectual capital (human capital, structure capital, customer capital and social capital),dependent variable growth performance (growth efficience and growth rate), and adjustingvariable family involvement (level of family involvement and structure of familyinvolvement). This study uses quantitative empirical analysis, which can be mainly dividedinto three steps, to verify those hypothesis. At the first, this study designs measures and formsthe index system;Then, descriptive statistics method is applied for a systematic analysis on206listed family firms and factor analysis method is applied for a verification on the structureof intellectual capital and growth performance. Finally, some research hypothesis areconfirmed by using multiple regression method. Besides, this study also chooses three typicalcases for a case analysis.The main research conclusions as fallows: Firstly, intellectual capital in family business hasfour different elements including human capital, structure capital, customer capital and socialcapital. Secondly, elements of intellectual capital in family business have different impact ongrowth performance. Human capital, structure capital, customer capital has a positive impacton growth efficiency, and social capital has a positive impact on growth rate. Thirtly, level offamily involvement has a positive impact on the growth rate infamily business, and plays asignificant modering effect between structure capital, customer capital and growthperformance. Lastly, structure of family involvement (separation of two rights) has a negativeimpact on growth efficiency, and plays a negative modering effect between structure capital, customer capital and growth performance. Although the conclusion from case study is notidentical with the conclusion from quantitative empirical research, case study still helps us totest the hypothesis again. In the long run, intellectual capital plays a positive role to keep thefamily enterprise developing sustainably, and higher family involvement is conducive tomaintaining intellectual capital as a better role. The experience of3hundred familybusinesses also tells us that separation of two rights is not conducive to the growth ofenterprises.On the basis of the conclution of this study, we put forward a few suggestions to improvegrowth performance of family business, we also have a discussion on the research methods,the tools and the direction for future studies.