Our Family Business Governance Model Transformation Research

Family business is a class of enterprises that an entrepreneur or a descendant operators and more family members through active participation of enterprises'ownership and management to influence its development, and in all developed and developing countries they are the largest number and occupy an important status. At present, the family business developed more than 30 years since China's reform and opening up, it has made outstanding contributions to the growth of the national economy. Family business is gradually entering the first generation shift to the second one, and family entrepreneurs are actively considering how to ensure that these enterprises can develop healthy and stably in the long term. If we look inside and outside the continent, then the overseas Chinese family businesses also subject the troubles of "the rich, but three generations". Say, how to make the family business to Built to Last is always a major problem for Chinese family enterprise growth. In the new situation, whether Chinese family business can break the spell and explore a kind of management model which ensure family business to grow everlasting, it asks the business community and academia to work together.Based on breaking the main difficult line of the sustainable development of family business, we apply theoretical analysis, comparative analysis and case analysis methods, on the basis of reviewing domestic and abroad family enterprise and its governance models, making use of the loan principal-agent theory, the life cycle theory and trust theory as the theoretical basis to family business research, and then analyze focusing on the family business governance transformation model. Firstly, we introduce the family business and its associated governance theory; followed by analysis of the status of family business and its causes, then compared our family business model and the modern public company governance model; then analyzes the transformation status of developed countries, family business to provide reference for our family business; finally, based on earlier analysis we put forward the target model of the sustainable development and transition path, our family business should adopt the"double strength"governance model of the strong relational governance and strong contractual governance, not only pay attention to the influence affect between family business owners and professional managers, but also combine the modern enterprise system into family business. End of the paper with China famous enterprise Zhejiang Universal Group as a case, further demonstrate the view of the full text, in order to ensure our family business grow and achieve sustainable development, turning to the modern transformation of public company governance is inevitable trend for family enterprise's development.