The Analysis Of Culture In The Succession Process Of Chinese Family Controlled Enterprises

Numerous family enterprises of our country have developed rapidly in the 20 years of reform and opening up. At present the forerunners are gradually entering the declining years of their lives, and many family enterprises have entered the important juncture of succession. By the influence of traditional family culture of China, the ownership of family business is generally family hereditary, and like the sub-contractor. It is also a major feature of the family enterprises succession that the business management is handed on in the form of inheriting in order to form a deep-rooted"family control".For the enterprise growth, the son succession but not the worthy person succession has many limitations. Whether family enterprises can make a sustainable development entirely depends on the quality of their heirs and the decision-making circle of family members. In the process of succession, there may be many problems such as the redistribute and balance of the interests and power between family members. If there is not a scheme given early and availably, various latent crises shall emerge easily. Furthermore, the smooth transmission of family enterprise in our country is also seriously hampered by the parental authoritarian rule and the prevalence rule of man-management. In a sense, the dilemma and plight faced in the current family enterprises succession highlight the culture conflicts between the traditional family culture of China and the contemporary business management culture of the West, especially reflecting the missing of institutional culture and entrepreneurial spirit.In the crucial period of transmission, the family business is in an urgent need to innovate and transform its traditional corporate culture according to its actual situation, so as to foster a positive family enterprise culture. The reconstruction of new generation entrepreneurial spirit and the transformation of institution are the most critical. These two aspects are not only effective ways to construct the enterprise culture, but also the relative lack in the current succession planning of family enterprises. On one hand, family enterprises should actively accelerate the institution construction while coaching successors. By establishing and improving the succession mechanism of enterprises (including the transfer planning of both ownership and the power of management), management systems and governance mechanisms, it shall effectively defuse potential succession disputes, and also gradually weaken parental authority and the man-management rule, accordingly to provide powerful protection for the successful succession. On the other hand, the greatest challenge in family enterprises succession lies in the successors. The new generation of entrepreneurs must have a new style of leadership to undertake new historic missions. Therefore they should pay more attention to the molding of their own entrepreneurial spirit. They can guide the family enterprise to establish a positive corporate culture by their leading and demonstration in person to all staff. At the same time, they also need to direct a clear direction for further development of the enterprise. The final aim is to ensure the successful transmission and sustainable development of their family enterprises under their leadership.