Table of Contents

Acknowledgments ix Introduction xi Chapter 1 Revealing Fast-Growing Overseas Chinese Family Businesses 1 Assimilation 3 Discrimination 4 Background of the Overseas Chinese Family Business (OCFB) 5 Overseas Chinese Family Businesses in Southeast Asia 6 Overseas Chinese Family Businesses in Other Regions 18 Chapter 2 How Do Chinese Values Support Business Values? 21 The Role of the Family in Chinese Culture 22 Confucian Values 23 Filial Piety 24 Guanxi 25 Characteristics of Chinese Family Businesses 26 Challenges Facing Overseas Chinese Family Businesses 41 Chapter 3 Combining Modern Management and Chinese Traditional Values 45 Family Businesses around the World: An Overview 45 Family Businesses: The Strengths 47 Family Businesses: The Weaknesses 49 Modernizing Overseas Chinese Family Businesses 51 Chapter 4 Anatomy of Conflict Management 67 The Story of Nyonya Meneer 68 The Story of Yeo Hiap Seng (YHS) 73 The Origins of Conflicts in Overseas Chinese Family Businesses 78 Conflict Management 84 Chapter 5 The Succession Conundrums 91 Succession Planning Conundrums 92 Succession in Overseas Chinese Family Businesses: Influence of Confucian Values 96 Preparing the Next Generation of Leaders in Overseas Chinese Family Businesses 100 The Next Generations: Dealing with Challenges 105 Chapter 6 The Role of the Wife in Overseas Chinese Family Businesses 115 Wife as the Balance of the Husband 117 Wife as Complement and Driver 119 Wife as the Secretary 120 Wife as the Most Important Figure Following Her Husband's Death 121 The Role of a Wife: A Breaker or a Binder? 122 Chapter 7 Leadership Styles of Overseas Chinese Family Businesses 125 From Dictatorship to Democracy 126 Yearning for a Patriarch 131 Chapter 8 The Importance of Social Organization in Chinese Family Businesses 135 Evolution of the Bamboo Network 135 Founder's Activities for Retirement 141 Chapter 9 Dealing with Risk 147 How Do Chinese Family Businesses Deal with Risk? 148 Risk Attitude among Younger Generations in Chinese Family Businesses 152 Chapter 10 Issues on Sustainability in Family Businesses 155 Phases of Growth in a Family Business 155 Challenges in Maintaining Sustainability 157 Chapter 11 Suggestions for Developing Chinese Family Businesses 169 Implementing Corporate Governance 170 Creating a New Business Paradigm, Strategy, Structure, and System 172 Enhancing Education and Competence for Family Members 174 Recruiting Non-Family Executive Professional Managers 175 Analyzing Corporate Life Cycle 177 Promoting Fair Remuneration and Equal Treatment among Members 178 Influencing with the Right Leadership 179 Reformulating Strategy and Renewing Business 180 Promoting Ethical Behavior 181 Promoting Corporate Social Responsibility 183 Developing Estate Planning 185 Chapter 12 The Future of Overseas Chinese Family Businesses: Toward a More Global Management Style 189 About the Authors 195 Bibliography 197 Index 203

About the Author

A.B. Susanto serves as Chairman of The Jakarta Consulting Group, a leading management consultant firm in Indonesia. He is also known as one of the foremost family business consultants in Indonesia. Susanto is Dean of the Faculty of Economics at President University in Indonesia. He obtained his bachelor's degree and master's degree from the University of Indonesia and his doctorate degree from the University of Dusseldorf, Germany. PATRICIA SUSANTO is the current CEO of the The Jakarta Consulting Group. She graduated with a bachelor's degree from the University of Southern California in 1999 and continues her studies in psychology and human resources at the University of Indonesia and Griffith University, Australia. For the past ten years, she has taken an active interest in family business studies and research. As part of The Jakarta Consulting Group, Susanto has been involved in developing governance for family business in Indonesia.