The Relationship Between Degree Of Family Members Involvement And Performance In Chinese Family Business

A remarkable characteristic of economics is the growing up of family business during the economic transition from plan economic system to market economic system in China. Family business is become one of the most important drives ensuring the economy sustained increase in China. But at present, modern firm theories pay little attention to family business, they insists that the family-controlling type is out of time, it will be replaced by manager-controlling type. However, some researches point out it is reasonable why family business prefer family member to involve in management, sometimes the performance of family business is better than non-family business. So, there are two different opinions about family business' performance.One of the most important features of family-controlling type is the degree of family members involvement. If family business is an ineffective classical enterprise organization, why will Chinese private enterprise commonly choose to voluntarily lock in this classical institution structure? The paper aims at the relationship between degree of family members involvement and family business' performance, and want to find out the effecting factors of enterprises' development. The core questions of this paper are as the follows: what is the impact of family member involvement on enterprise's performance. At the same time, we study the relationship between paternalistic leadership and the degree of family member involvement, which has the...