The Dragon Network E-Book

A. B. Susanto

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: Bloomberg
• Sprache: Englisch

Seitenzahl: 310

Veröffentlichungsjahr: 2013

Beschreibung

What's driving the burgeoning global Chinese family businesses? Chinese family businesses are the driving force behind Asia's economic prosperity. As the world becomes more global they have had to adapt to the new environment. This timely book draws on an extensive regional survey to reveal the key players and the strategies that will drive their success going forward. The book discusses and analyzes the business life and achievements of some prominent overseas Chinese family businesses in Asia and reveals their life philosophies, their business journey, and their family role in business. * Includes analysis regarding how the senior Chinese generations prepare their children to run the business in the future * Reveals that flexibility, ability to adapt to changing business environments, and resilience contribute to the success of many overseas Chinese family businesses * Offers illustrative examples of successful family businesses from Malaysia, Indonesia, The Philippines, and China Based in solid research and filled with illustrative examples, The Dragon Network offers an inside look at how family businesses succeed and thrive in Asia.

Leseprobe

Contents

Acknowledgments

Introduction

Chapter 1: Revealing Fast-Growing Overseas Chinese Family Businesses

Assimilation

Discrimination

Background of the Overseas Chinese Family Business (OCFB)

Overseas Chinese Family Businesses in Southeast Asia

Overseas Chinese Family Businesses in Other Regions

Chapter 2: How Do Chinese Values Support Business Values?

The Role of the Family in Chinese Culture

Confucian Values

Filial Piety

Guanxi

Characteristics of Chinese Family Businesses

Challenges Facing Overseas Chinese Family Businesses

Chapter 3: Combining Modern Management and Chinese Traditional Values

Family Businesses around the World: An Overview

Family Businesses: The Strengths

Family Businesses: The Weaknesses

Modernizing Overseas Chinese Family Businesses

Chapter 4: Anatomy of Conflict Management

The Story of Nyonya Meneer

The Story of Yeo Hiap Seng (YHS)

The Origins of Conflicts in Overseas Chinese Family Businesses

Conflict Management

Chapter 5: The Succession Conundrums

Succession Planning Conundrums

Succession in Overseas Chinese Family Businesses: Influence of Confucian Values

Preparing the Next Generation of Leaders in Overseas Chinese Family Businesses

The Next Generations: Dealing with Challenges

Chapter 6: The Role of the Wife in Overseas Chinese Family Businesses

Wife as the Balance of the Husband

Wife as Complement and Driver

Wife as the Secretary

Wife as the Most Important Figure Following Her Husband’s Death

The Role of a Wife: A Breaker or a Binder?

Chapter 7: Leadership Styles of Overseas Chinese Family Businesses

From Dictatorship to Democracy

Yearning for a Patriarch

Chapter 8: The Importance of Social Organization in Chinese Family Businesses

Evolution of the Bamboo Network

Founder’s Activities for Retirement

Chapter 9: Dealing with Risk

How Do Chinese Family Businesses Deal with Risk?

Risk Attitude among Younger Generations in Chinese Family Businesses

Chapter 10: Issues on Sustainability in Family Businesses

Phases of Growth in a Family Business

Challenges in Maintaining Sustainability

Chapter 11: Suggestions for Developing Chinese Family Businesses

Implementing Corporate Governance

Creating a New Business Paradigm, Strategy, Structure, and System

Enhancing Education and Competence for Family Members

Recruiting Non-Family Executive Professional Managers

Analyzing Corporate Life Cycle

Promoting Fair Remuneration and Equal Treatment among Members

Influencing with the Right Leadership

Reformulating Strategy and Renewing Business

Promoting Ethical Behavior

Promoting Corporate Social Responsibility

Developing Estate Planning

Chapter 12: The Future of Overseas Chinese Family Businesses: Toward a More Global Management Style

About the Authors

Bibliography

Index

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Acknowledgments

I would like to express our gratitude to all of our family who have taken the time to meet with us and share their story and impart their wisdom and knowledge of life; the experience itself is nothing short of extraordinary. We have also appreciated the support from the Indonesia Chinese community, who have given their time to be interviewed, helping us go deeper into the roots of our Chinese heritage.

Thanks go to our team, especially Himawan Wijanarko and Hariadi Suripto, who have dedicated their time to conducting extensive research, holding discussions, and writing this book, and to the team at John Wiley & Sons, who have made an idea come true.

Introduction

Overseas Chinese family businesses (OCFBs) have played an important role in the Southeast Asian economies of Indonesia, Thailand, Malaysia, Singapore, and the Philippines. In other parts of the world, such as Australia and North America, we can also find successful family businesses founded by Chinese citizens, although their number and size are smaller than those in the Southeast Asia region.

As most Chinese family businesses come from the Southeast Asia region it is important to know some of the reasons. First, countries such as Indonesia, Thailand, Malaysia, and the Philippines are emerging markets—nations with social or business activity in the process of rapid growth and industrialization. The role of these emerging markets, together with other quickly growing markets from other countries such as Brazil, India, and China, are expected to be increasingly important in the upcoming decades. To support this rapid growth and industrialization, the contribution of these Chinese-owned businesses cannot be ignored.

Second, all countries in the Southeast Asia region are members of the Association of Southeast Asian Nations (ASEAN). ASEAN covers a land area of 4.46 million km2, which is 3 percent of the total land area of Earth, and has a population of approximately 600 million people, which is 8.8 percent of the world’s population. In 2010, its combined nominal GDP had grown to US$1.8 trillion. If ASEAN were a single entity, it would rank as the ninth largest economy in the world, behind the United States, China, Japan, Germany, France, Brazil, the United Kingdom, and Italy. ASEAN will make much progress in economic integration by creating an ASEAN Economic Community (AEC) by 2015. Overseas Chinese family businesses, already known for their ability to identify and capitalize on business opportunities, surely do not want to miss the chance to tap into this large and potential market.

Third is the signing of the ASEAN–China Free Trade Area (ACFTA). ACFTA is a free-trade area among the ten member nations of the ASEAN plus China. This free-trade area came into effect on January 1, 2010. ACFTA is the largest free-trade area in terms of population and third largest in terms of nominal GDP. It also has the third largest trade volume after the European Economic Area and the North American Free Trade Area (NAFTA). China had already overtaken the United States as the third largest trading partner of ASEAN, after Japan and the European Union, when the free-trade area came into effect. China is also the world’s largest exporter, so Chinese-owned businesses can be expected to seek opportunities to increase their business value.

The rapid growth and development of the Chinese economy has drawn attention from people around the world. They want to learn about the characteristics of the Chinese economy, including how Chinese businesspeople run their companies. Since the economic reform and the integration into world society of China, the number of non-state businesses has increased and many of them are family owned. Today, Chinese family companies control a portion of Asia’s economic wealth that is larger than their relative share in population (Lee, 2006). This development will attract more people to research Chinese family businesses. And to make the learning process easier, people outside mainland China will likely observe family businesses founded by ethnic Chinese in their home countries, since these businesses are considered to have many similarities with family businesses in mainland China.

Economic development in the ASEAN and mainland China, as well as success stories of ethnic Chinese entrepreneurs in other regions such as North America and Australia, are the reason why learning about OCFBs is needed. Most ethnic Chinese businesses are family owned since family is the foundation of Chinese organizations, including businesses. We need to learn their management style, for example, how business organization is structured, how family relationship affects business management, and how Chinese traditional values influence family business practices. It is also interesting to learn about the challenges facing Chinese family businesses in a rapidly changing environment, and whether these family businesses will be able to survive and thrive in future generations.

Chapter 1

Revealing Fast-Growing Overseas Chinese Family Businesses

In every country or region, there are always people who move and live outside their area for many reasons. Chinese people are no exception. Many of them have left and then lived outside of China. These people are known as overseas Chinese. The word “China” as denoted here includes the People’s Republic of China (also known as mainland China), Taiwan, Hong Kong, and Macau. Hong Kong and Macau are part of the People’s Republic of China, while the status of Taiwan as a state is still disputed.

Many Chinese people migrated to various regions in Southeast Asia, North America, Australia, Europe, Latin America, and Africa. These people then created a community in every place in which they settled. Many Chinese people left their home country due to political instability, wars, starvation, poverty, and rampant corruption. Most of them were poor, were poorly educated, and were illiterate. Many of them worked as a laborer for low wages.

Between 1840 and 1940, about 20 to 22 million Chinese people left their country to live in other regions, according to McKeown (2010). Southeast Asian countries such as Malaysia, Singapore, Indonesia, Thailand, Vietnam, and the Philippines became their main destinations. Most of these people found work in mines and on plantations. About 75 percent of them then went back to China once their contracts had expired, while the rest stayed and started to build small family businesses. These businesses served as the middlemen in export and import activities, connecting local markets, as well as Southeast Asians.