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Intergration of Asian Countries
There is a process of transformation that pushes the Asian countries to integrate and bring together the Asian countries towards the Anglo American model that has been prevailing in the world wide scale. Several features mark this transformation process.
As more and more CFBs choose to be listed companies in the stock market to enjoy the resourceful capital market, the cost is that they need to be more transparent to the shareholder such as the release of the annual financial report and so on to make some information transparent to the market to attract investment which used to be available only within the level of top management. What is more the nowadays hyper competition within the industry and market also require the CFBs to open more information to the employees to assist them to get the big picture of the company with which the employees could do a better job in their positions because as we know people don’t like to be fooled and work like a robot.
Less family control
Many CFBs have enlarged their shareholders scale in order to grow faster and bigger, the problem arises with this phenomenon is to some extent the loss of control over the companies. Decisions need to be make under the consensus of the major shareholders rather just several family key members. The reducing family control could also be seen the more power delegation especially with the growing of the size of the companies and the specialization of the high technical industries and the increasing competitions which together force the companies to delegate its centralized control power to the subordinates and professionals.
As development of the trend of professionalization in some industries, it becomes pretty difficult for the companies in such industries to provide sufficient talents from inside the family and Quanxi network to keep the companies running normally and faster. So more there are more and more companies turn to the outside human resources to hire professional talents to fill the companies’ vacancies some of which are top or senior positions.
Keeping the best of the tradition
In convergence to AA model, there is no need to deny the whole Chinese family business system fundamentally like Vuttichai Wanglee, a managing director of the family’s banking sector, said “What belonged to our family 100 years ago still belongs to us”. And there are a lot of successful cases in which the family business make a balance between Chinese tradition and westernization. For example, Victor and William Fung, brothers from a family business and graduated from Harvard, throughout a lot of efforts successfully took the company public in 1995. But as they later comment: there is a family feeling in the company that’s difficult to describe. And with more and more CFBs undergo the modernization process, at least one thing that will be sustained, the culture of the companies.