A New Perspective of China Family-owned Business System innovation:Based on Pan-Society Credit System
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A well-recognized academic view on the family-owned businesses (FOBs) management is: In its start-up stage, family style management enables the firm to reduce transaction and motivation costs, thus FOBs became economically efficient organizations. Nevertheless structural defects emerge whilst the firms expand, such as being unable to attract outside financial resources and excellent managers, etc. It seems too idealistic to solve the issue by simply focusing on one side of the multi-dimension dilemma. Hence socialize solutions are widely accepted as reasonable. Unfortunately in the context of poor social credit circumstances，the probability to push forward the process is rare. This study proposes a systematic strategy to innovate FOBs on the base of Pan-Society Credit System, in which all closely related systems are integrated as a whole unit to ease the case.
Abstract
A well-recognized academic view on the family-owned businesses (FOBs) management is: In its start-up stage, family style management enables the firm to reduce transaction and motivation costs, thus FOBs became economically efficient organizations. Nevertheless structural defects emerge whilst the firms expand, such as being unable to attract outside financial resources and excellent managers, etc. It seems too idealistic to solve the issue by simply focusing on one side of the multi-dimension dilemma. Hence socialize solutions are widely accepted as reasonable. Unfortunately in the context of poor social credit circumstances，the probability to push forward the process is rare. This study proposes a systematic strategy to innovate FOBs on the base of Pan-Society Credit System, in which all closely related systems are integrated as a whole unit to ease the case.
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