A Study Of Inner Trust Problem Of China Family Enterprise

Family firms refer to those whose properties and shares (more than 50 percents of the policy-making rights) are under a family's control, the core position in administration is taken charge by a family, and the internal management is fully patterned in a family way. No matter in developed countries or in developing countries, family firms are stubbornly subsisting and developing, and become so important in economy of all countries (region). According to the (1998) study of scholars, such as Kelin E.Gersick, it is supposed that firms owned by a family or administrated by a family occupy at least 65 percents to 80 percents of total enterprises all over the world. During recent 20 years, most of the new firms born in China are family firms too.This paper is to be divided into five chapters. Chapter 1 is the foreword, and it mainly introduces the development history of domestically family businesses. Chapter 2 has one case description from stem to stern,through the concrete investigation of DaYang enterprises, the chapter describes the phenomenon of leading replacement and employees' demoralization that are caused by the senior officials' demission. Chapter 3 is the analysis of the case, and it is divided into two parts. To the analysis of case, the research focuses are the actions of leaders' individual fetish and power expansion, and the actions of professional managers' morality and the reasons that have caused them. Through the analysis above, the second part gives some suggestions to the existing problems of the enterprise. Chapter 4 is the analysis of the existing Chinese family business in means of consideration and elicitation, and it takes the time as the axis and applies the "tri-level developing mode" of family business. It adopts the relevant theoretical research combined with the examples of some overseas family businesses especially those overseas Chinese family businesses to research on the Credit System of Chinese family business. Hope that under the abnormal systems of domestic credit and family business management, that it can provide a research foundation for a good credit system, and provide the research suggestions to the trust relations between the owners of the enterprises and the professional managers. Chapter 5 is the conclusion of the above chapters, and it emphasizes the significance of great success and mightiness of family business. Furthermore, it gives some related suggestions.This paper hopes to enlighten all family firms in prosperity in China by combining theories about leadership, enterprise culture, administration mechanism, etc. with some successful experience, and with the studies on leadership mistakes, professional ethics, and trusting mechanism for each other.