Personalism and Paternalism in Chinese Business

Chee Kiong Tong () and Pit Kee Yong
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Chee Kiong Tong: Universiti Brunei Darussalam
Pit Kee Yong: National University of Singapore

Chapter Chapter 4 in Chinese Business, 2014, pp 63-76 from Springer

Abstract: Abstract Using case studies of companies, particularly the Lee Rubber Group of Companies, this chapter explores the intricate and complicated inner workings of Chinese family business. The chapter traces the life history of the firm: from its initial establishment, gradual growth, and finally into a large multinational conglomerate. In the process, the chapter demonstrates the processes of personalism, paternalism, and ownership patterns at work in a Chinese family firm. The chapter examines the concept of “fissioning”, where due to the highly centralized authority structures, ownership patterns, and family politics, there is a tendency for Chinese firms to fission. Capable employees or disgruntled family members often leave and start their own companies due to the perception of a “glass ceiling”. It also details the bifurcation of Chinese firms, separating ownership (limited to family members and close kin) from management (by professional managers).

Keywords: Family Business; Chinese Firm; Family Ownership; Chinese Business; Confucian Tradition (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-4451-85-7_4

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DOI: 10.1007/978-981-4451-85-7_4

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