Legitimacy coupling of enterprise organizations and authority of professional managers in Chinese family businesses

Jie Lu, Yanxia Chen, Mengyun Wu and Xuge Zhang

Applied Economics Letters, 2025, vol. 32, issue 12, 1746-1751

Abstract: Chinese family businesses are currently undergoing a crucial period of transformation, innovation, and leadership transition. One central question arises: is there effective ‘coupling’ or ineffective ‘decoupling’ between the organizational legitimacy and the legitimate authority of professional managers in these businesses? These dynamics are significant factors influencing the strategic decision-making processes of family enterprises. The coupling model is utilized to analyze the degree of coupling and the evolution of coherence between the organizational legitimacy and the legitimate authority of professional managers from 2017 to 2021. Key findings include: (1) The relationship between the organizational legitimacy of family businesses and the legitimate authority of professional managers exhibits a dynamic characteristic of borderline disorder, with the legitimacy of enterprise organizations lagging relatively; (2) The degree and coherence of the legitimacy system show noticeable temporal fluctuations; (3) Discrepancies between legitimate subsystems significantly hinder coupling and coordinated development. The research also proposes relevant countermeasures and suggestions to promote effective legitimacy coupling between enterprise organizations and the authority of professional managers in Chinese family businesses. These measures aim to foster the high-quality development of family enterprises and the private economy.

Date: 2025
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DOI: 10.1080/13504851.2024.2317864

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