The Relationship Between Familial Factors And Performance

A remarkable characteristic of economics is growing up of family business during the economic transition from plan economic system to market economic system in China. Family business is becoming one of the most important drives ensuring the economy sustained increase in China. However, family business are regarded as a kind of backward enterprise system, and the relative theoretical research is very limited too.Li Xinchun (1998) point out that,lacking the understanding of family characteristic,it is hard to accurately grasp the development of Chinese economy, especially the enterprise organization. Most of the empirical research shows:the vicissitudes of performance largely depend on the uniqueness that family business is different from the other enterprises, named "familial factors".One of the most important features of family business is the involvement of family.It leads to "dual character",as familiness and business.The influence of familiness on the family business generates the behavior characteristic of three systems (enterprise,family,and individual) different from other enterprises.The interaction of each system forms a unique set of resources and competence, and called "familial factors".These factors influence the performance of enterprise by behaviors.Based on above analysis,first,we made interviews to determine the factors that mostly influence the family business, and made up a familial factors system which including four dimensions:familial culture dimension,learning communication dimension,organizational behavior dimension,the strategic decision dimension. Each dimension covers several familial factors.After the literature research and interview survey, we put forwarded the framework of the relationship between familial factors and enterprise performance,detailing the different effects of the various familial factors on enterprise performance, and then we raised the hypothesis of factors and performance. At last, through questionnaire survey,we obtained data of factors and performance to make relevant analysis,partial correlation analysis and regression analysis, in order to test hypotheses.Through empirical analysis,we get to the conclusion:In the family culture dimension, trust has a significant positive correlation with the enterprise performance.Opposite to trust, human orientation has a negative impact to performance.Leader's authority and particularism have no correlation with enterprise performance.In the learning communication dimension,learning training,mastery of the competitors information,communication of family members and non-family members have a positive correlation with the performance.In the organizational behavior dimension, professional manager mode has a positive correlation with the performance.Flexible management mode has a negative correlation, and employing mode has no correlation.In the strategic decision dimension,diversified management preference has negative impact,and risk preference and vision shared have positive impact to performance.