Characteristics of a Typical Asian Family Firm
Sika Nsiah-Poku
INTB 1203
Case 5: Family Business Succession in Asia (Richard Ivey School of Business)
Characteristics of a typical Asian Family firm.
The Wang Group exhibits many characteristics of a typical Asian family firm. Their kinship relationship, succession plan, business continuity and family members hire are all similar. The Wang Group is first and foremost a family-owned business group, which has been active for four generations who carried the business tradition to the next generation. Therefore, the management of the Wang Group is cultured by the family dominance. The internal network of the firm consists of family members who work in the top positions of the company. This is exhibited by the positioning of Wang family members in the firm. This begins with Alfred Wang who established the firm and in 1995, Charles Wang succeeded his father as chairman of the firm; his siblings are also involved in the firm. Charles Wang’s children as well are about to join the family business (Biography p.68).
Similar to many Asian family groups, the Wang Group wanted to preserve their legacy and ensure that their business survives indefinitely. They also have their own values that have been shaped by their cultural background and experiences as a family, which has been intertwined with their firm, much like other Asian family groups. An example is the Wang Group’s belief in constant change, refraining from borrowing too much, following the motto “greed is the source of failures” and viewing business strategies as temporary plans. The Wang Group’s business practices also relate to the typical Asian family firm such that they work collectively putting the family interests first. The Wang family is as much as a “business family” as other Chinese organizations. Due to family obligations, the company cannot be sold and must stay in the family and the members must work to add to the success of their ancestors ("Inside Chinese Business."). This is exhibited by
INTB 1203
Case 5: Family Business Succession in Asia (Richard Ivey School of Business)
Characteristics of a typical Asian Family firm.
The Wang Group exhibits many characteristics of a typical Asian family firm. Their kinship relationship, succession plan, business continuity and family members hire are all similar. The Wang Group is first and foremost a family-owned business group, which has been active for four generations who carried the business tradition to the next generation. Therefore, the management of the Wang Group is cultured by the family dominance. The internal network of the firm consists of family members who work in the top positions of the company. This is exhibited by the positioning of Wang family members in the firm. This begins with Alfred Wang who established the firm and in 1995, Charles Wang succeeded his father as chairman of the firm; his siblings are also involved in the firm. Charles Wang’s children as well are about to join the family business (Biography p.68).
Similar to many Asian family groups, the Wang Group wanted to preserve their legacy and ensure that their business survives indefinitely. They also have their own values that have been shaped by their cultural background and experiences as a family, which has been intertwined with their firm, much like other Asian family groups. An example is the Wang Group’s belief in constant change, refraining from borrowing too much, following the motto “greed is the source of failures” and viewing business strategies as temporary plans. The Wang Group’s business practices also relate to the typical Asian family firm such that they work collectively putting the family interests first. The Wang family is as much as a “business family” as other Chinese organizations. Due to family obligations, the company cannot be sold and must stay in the family and the members must work to add to the success of their ancestors ("Inside Chinese Business."). This is exhibited by