Contingent Research On The Governance Model Of Chinese Family Business

Through 20 years' fast development, Chinese family business have become one of the important power of Chinese economy grow and structure adjust At present, the lack of many family businesses which falling into difficult positions are not capital, market and technology but system base which can ensure enterprises' safe and sound. The governance transform of family business has come into corner. This paper begins from two different views of governance transform: retain family management style and draw into modern corporations' governance model overall. Then the author put forward contingent governance idea and construct a contingent continuous flowing model based on Chinese practical situations.For convenience of analysis, the author divided all the patterns into three typical types: proprietor governance pattern, compromise governance pattern and benefit-related people governance pattern. Through applying the contingent continuous flow model to the system analysis of Chinese business, we put forward that proprietor governance pattern is effect in definite scope and it will be the barrier of enterprises if it is out of the efficiency boundary. Now most Chinese family business adopts this kind of pattern. Benefit-related people governance pattern is the transform direction of Chinese family business. But the adoption of this pattern exist a serious of logical barriers. Only few large family businesses have the transform condition and motive power. Compromise governance pattern is the realistic choice of many Chinese businesses. By the way, this paper explored the internal governance and outside governance.