A Study On The Economic Consequences Of The Introduction Of Professional Managers Into Family Businesses In China

With the development of the society,professional managers are more and more frequently mentioned in family business issues.As one of the ways to break through the development dilemma of family business,its appearance helps family business to complete the transformation of governance system from family workshop to modern management.But not all family businesses are suitable for introducing professional managers.The role that professional managers can play in family businesses is influenced by family business environment and other aspects.Therefore,it is necessary to introduce professional managers into family enterprises.Based on the importance of professional managers to the development of family business,this paper takes Huiyuan Juice as the research object,which is a typical family business in China.By using literature research method and case analysis method,this paper defines the concept of family business and professional managers,and studies the governance model of family business and the introduction of professional managers.Summary of research,as well as the principal-agent theory,relationship governance and contract governance theory,resource dependence theory and other theoretical research.Through the analysis of the motivation of Huiyuan fruit juice business owners to introduce professional managers and the economic consequences of introducing professional managers,it is found that in the case of family enterprises failing to realize the modernization of internal mechanism,professional managers have many obstacles to enter the enterprise,even though family enterprises are managed,the final result is not satisfactory.Finally,this paper draws the following conclusions: Firstly,although professional managers are part of the factor market,the role of professional managers in enterprises also needs the cooperation of the internal system of enterprises,and it is difficult to play its role only by introducing and authorizing them;secondly,although the current market system of professional managers still exists imperfections,if reasonable contracts have been set up in enterprises.With incentive measures,professional managers can be used as an effective measure to improve the performance and management of enterprises.In addition,before introducing professional managers,it is necessary to establish an open ownership structure to check and balance professional managers and family members at the same time.In view of the introduction of professional managers in family enterprises,this paper proposes:(1)to reform professional managers in accordance with the actual situation of family enterprises;(2)to establish a sound incentive mechanism;(3)to open part of the equity outside the family core holding to increase the management diversity of enterprises.It is expected that this study will contribute to the introduction of professional managers into family enterprises.