The Analysis Of The Internal Clash Mechanism In Chinese Family Enterprises

During the development of Chinese family enterprises, there have been a lot of internal clashes confronting them, such as, family member clash, succession clash, professionalism clash and so on. Many researchers have analyzed and discussed in depth these clashes from the aspects of relational contract, family business characteristic and altruism, which however can not provide appropriate explanation for some questions. Based on the theoretical assumption of family intellectuality, the thesis attempts to elucidate the internal clash mechanism from the aspect of altruism between family profit and enterprise profit.The thesis is structured into five chapters. The first chapter first elaborates the background and the significance of the research, the definition of family enterprise, social capital, family enterprise and family enterprise clash, then gives the research scope, outline and methodology. Based upon family intellectuality, the second chapter provides analysis and discussion about the duality of family enterprises' characteristics and altruism theory. Following the second chapter, three hypotheses have been put forward in chapter3 with the discussion of the three clashes (family member clash, succession clash and trust clash) and the provision of a corresponding governing structural model. Two demonstrating cases are provided in chapter 4 to validate the model in chapter 3. Chapter 5 summarizes the whole thesis and puts forward some points for further research.The thesis is concluded with the following points. 1) Both family and enterprise profit have the duality of profit and non-profit. The family members judge the relation between family profit and enterprise profit based on the general altruism, namely benefiting others is equal to benefiting oneself, and vice versa. 2) Thought there exists general altruism between family profit and enterprise profit, an objective result is frequently contrary to its subjective wish, that is "family members want to maximize the family profit and enterprise profit subjectively, and choose profit bias and control their behavior and authority according to family intellectuality supposition, but outcome is that family profit and enterprise profit will be suffered objectively. 3) Family members clash mainly origins from the difference of profit bias. If one side prefers to family profit but another prefers to enterprise profit, then it will result in the clash in their ideology and behavior. The existence of family intellectuality and general altruism makes the clash more complicated. 4) There are three choices related to the succession of family enterprises, namely, take over, carve out and professionalism. Based on the balance of family profit and enterprise profit, family enterprises should make different choice under different condition, carve out plus professionalism is one of the succession patterns which conform to family enterprises' long-term development. 5) The trust clash between family members and professional managers comes from the difference of profit bias, which presents position and authority which do not match each other naturally and cause ability trust clash and moral trust clash. General altruism amplifies the both clashes. From pan-family to professionalism is the effective way to get grid of the professionalism trust clash from family enterprises.