| Intergenerational Transition is one of the most popular themes in the field of family business research. In China, many family business founded in the early 1980 s, which are still thriving today, have entered into the second-generation transition stage. However, the young entrepreneurs in that time are already seventy years of age today, companies should continue to develop, and entrepreneurs are no longer young. Inevitably, the problem of intergenerational transmission has become the primary problem. Intergenerational transition issues are intertwined with corporate governance structure, professional manager equity incentive and other issues, and become a major bottleneck which affects sustainable development. Therefore, research in the field has much direct practical significance.In this paper, A Company, one company located in Ninghai County, Zhejiang Province, will be subjected to the research of intergenerational transition. A company has contributed the county’s most corporate tax for several years and is among the top three in the domestic hardware industry since 2000 s. However, the company was once in chaos, production and market share is falling sharply, which is mostly caused by the reason of what we want to study in the issue of family business heritage in this paper.This paper can be logically divided into three parts:The first is theoretical preparation section. Based on the literature study, we will depict the background of this study, define the meaning of the family business and the concept of intergenerational transmission. And also we will discuss several intergenerational transition models.Secondly, we will share the main course of development and governance of this company, and how the founder entrepreneur trains, checks and selects a successor during the actual management process, and what he does to achieve a smooth transfer of corporate control.Finally, we will summarize company’s success and shortcomings during the actual transition process of A Company to make a preliminary exploratory analysis of the specific implementation path which maybe will be applicable for Chinese family business intergenerational transition. |
