Research on the Trans-Regional Integration of Chinese Family Enterprise Based on the Perspective of Organizational Trust and Control
—A Case Study of Hope Group
—A Case Study of Hope Group
Affiliation(s)
School of Business Administration, South China University of Technology, Guangzhou, China.
School of Business Administration, South China University of Technology, Guangzhou, China.
ABSTRACT
Under the background of Chinese Regional Market Segmentation and Familism Dilemma, this article deeply analyses Hope Group with the method of case study and then demonstrates the relationship between the trans-regional market scope, organizational trust and control. The result shows that, on the one hand, the market scope influences the way of control directly, that is, with the expansion of the market, family enterprise tends to adopt formal control rather than informal control. On the other hand, the scope of trans-regional market integration affects the way of organizational control indirectly by having an influence on organizational trust. With the enlargement of market scope, the evolution of organization trust helps to optimize control mode and finally achieve the integration of formal control and informal control in China’s family enterprise.
Under the background of Chinese Regional Market Segmentation and Familism Dilemma, this article deeply analyses Hope Group with the method of case study and then demonstrates the relationship between the trans-regional market scope, organizational trust and control. The result shows that, on the one hand, the market scope influences the way of control directly, that is, with the expansion of the market, family enterprise tends to adopt formal control rather than informal control. On the other hand, the scope of trans-regional market integration affects the way of organizational control indirectly by having an influence on organizational trust. With the enlargement of market scope, the evolution of organization trust helps to optimize control mode and finally achieve the integration of formal control and informal control in China’s family enterprise.
Cite this paper
Xu, S. and Huang, X. (2015) Research on the Trans-Regional Integration of Chinese Family Enterprise Based on the Perspective of Organizational Trust and Control
—A Case Study of Hope Group. Open Journal of Social Sciences, 3, 80-92. doi: 10.4236/jss.2015.312009.
Xu, S. and Huang, X. (2015) Research on the Trans-Regional Integration of Chinese Family Enterprise Based on the Perspective of Organizational Trust and Control
—A Case Study of Hope Group. Open Journal of Social Sciences, 3, 80-92. doi: 10.4236/jss.2015.312009.
References
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[29] Ling, Y. and Kellermanns, F.W. (2010) The Effects of Family Firm Specific Sources of TMT Diversity: The Moderating Role of Information Exchange Frequency. Journal of Management Studies, 47, 322-344. http://dx.doi.org/10.1111/j.1467-6486.2009.00893.x [30] Yu, X.Q., Zhang, Z.T. and Zhang, Y.L. (2013) The Tacit Knowledge of the Entrepreneur, the Succession Willingness and the Intergenerational Succession in Family Business. Management World, No. 11, 77-88. [31] Xu, Y.B. and Hu, N.N. (2013) Analysis on Impetus of Emotional Value to Family Firm Trans-Generation. Accounting Research, No. 7, 77-81. [32] Blumentritt, T., Mathews, T. and Marchisio, G. (2013) Game Theory and Family Enterprise Succession: An Introduction. Family Enterprise Review, 26, 51-67. http://dx.doi.org/10.1177/0894486512447811 [33] Huybrechts, J., Voordeckers, W. and Lybaert, N. (2012) Entrepreneurial Risk Taking of Private Family Firms: The Influence of a Nonfamily CEO and the Moderating Effect of CEO Tenure. Family Enterprise Review, 2012, 1-19. [34] Tomkins, C. (2001) Interdependencies, Trust and Information in Relationships, Alliances and Networks. Accounting, Organizations and Society, 26, 161-191. http://dx.doi.org/10.1016/S0361-3682(00)00018-0 [35] Li, X.C. (2002) Trust, Loyal and Clannishness in Familism Dilemma. Management World, No. 6, 87-93. [36] Chun, X.P. and Li, H.Z. (2003) Trust and Family Enterprises Growth. Management World, No. 6, 98-104. [37] Miller, F. (2011) Using Formal and Informal Controls to Limit Opportunism: Review and Classification of Remedies to Hold-Ups. Journal of Accounting Literature, Forthcoming.
[1] He, X. and Li, X.-C. (2014) Moderate Rationality and the Stock Right Allocation of Family Firm in China. Journal of Industrial Engineering and Engineering Management, 28, 1-9. [2] Wei, M.H., Huang, Q.Y. and Cheng, M.Y. (2013) The Role of Related Large Shareholders in Family Firms: A Study from the Perspetive of Connected Transaction. Management World, No. 3, 133-147. [3] Pavelin, S. (2000) The Geographical Diversification of Leading Firms in the EU. Department of Economics, University College Dublin, Dublin. [4] Davies, S.W., Rondi, L. and Sembenelli, A. (2001) Are Multinationality and Diversification Complementary or Substitute Strategies?: An Empirical Analysis on European Leading Firms. International Journal of Industrial Organization, 19, 1315-1346. http://dx.doi.org/10.1016/S0167-7187(00)00063-1 [5] Lan, H.L., Wang, X.Q., Wu, X.J. and Song, T.B. (2010) Research on Market Entry Mode Selection Based on Institution-based View: Developing Theoretical Framework and the Propositions. Nankai Business Review, 13, 77-90. [6] Ye, G.Y., Lan, H.L. and Li, T.Y. (2012) Managerial Mode of Horizontal Integration in Chinese Enterprise: A Theory Model. Chinese Journal of Management, 9, 499-506. [7] Lin, Y.F. and Liu, P.L. (2004) Local Protection and Market Segmentation: From the Perspective of Development Strategy. Peking University Chinese Economy Research Center, Beijing. [8] Ye, G.Y. and Huang, X.J. (2013) Institutional Status, Cognition and Horizontal Integration Management Mode. Chinese Journal of Management, 10, 1291-1300. [9] He, Y. and Li, X.C. (2000) The Preliminary Research on the Enterprise Trans-regional Expansion Strategy. Management World, No. 6, 106-204. [10] Wang, J.C. (2008) Study on Geographical Expansion Strategy of Chinese Enterprises—An Empirical Analysis Based on Chinese Listed Companies. Management Review, 20, 39-44. [11] Misztal, B. (2013) Trust in Modern Societies: The Search for the Bases of Social Order. John Wiley & Sons, New York. [12] Liu, X. and Gao, J.Y. (2010) The Comments of Foreign Latest Organizational Trust Restoration Model. Foreign Economics & Management, No. 4, 25-30. [13] Li, W.M. and Liang, Y.C. (2002) Particular Trust and Universal Trust: Trust’s Structure and Characteristics of Chinese People. Sociological Research, No. 3, 11-22. [14] Ansari, S. (2004) Teaching Note: Systems Theory and Management Control. Retrieved January, No. 20, 1-9. [15] Morris, M.H., Allen, J., Schindehutte, M., et al. (2006) Balanced Management Control Systems as a Mechanism for Achieving Corporate Entrepreneurship. Journal of Managerial Issues, 18, 468-493. [16] Wang, X.Y. and Li, M.H. (2006) Trust and Control in Family Business. Fujian Tribune (The Humanities & Social Sciences Monthly), No. 6, 26-30. [17] Das, T.K. and Teng, B.S. (2001) Trust, Control, and Risk in Strategic Alliances: An Integrated Framework. Organization Studies, 22, 251-283. http://dx.doi.org/10.1177/0170840601222004 [18] Li, H.Z. (2000) Management Research Methodology. Xi’An Jiaotong University Press, Xi’An. [19] Yuan, H.Q. and Zhang, S.H. (2010) Research of Multiple Equalization Governance in Chinese Family Business in Complex Environment. Management World, No. 9, 180-181. [20] Huang, L.Y. and Carraher, S. (2009) International Expansion of Family Firms: An Integrative Framework Using Taiwanese Manufacturers. Academy of Entrepreneurship Journal, 15, 25-42. [21] Wang, X. (2000) Chinese Economists Should Attention to Relationship Problems. Research on Financial and Economic Problems, No. 6, 3-11. [22] Zhu, H., Ye, Q.X. and Li, X.C. (2013) Socioemotional Wealth Theory and Its Breakthrough in the Study of Family Business. Foreign Economics & Management, 34, 56-62. [23] Chu, W. (2011) Family Ownership and Firm Performance: Influence of Family Management, Family Control, and Firm Size. Asia Pacific Journal of Management, 28, 833-851. http://dx.doi.org/10.1007/s10490-009-9180-1 [24] Ge, Y.S. and Zhang, P.C. (2013) Resources Restriction of Family Business, Outside Investor and Contract Surplus. Nankai Business Review, 16, 57-68. [25] Berle, A. and Means, G. (1932) Private Property and the Modern Corporation. Macmillan, New York. [26] Ross, S.A. (1973) The Economic Theory of Agency: The Principal’s Problem. American Economic Review, 63, 134- 139. [27] Meckling, W.H. and Jensen, M.C. (1976) Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Finical Economies, 3, 305-360. http://dx.doi.org/10.1016/0304-405X(76)90026-X [28] Zellweger, T.M., Eddleston, K.A. and Kellermanns, F.W. (2010) Exploring the Concept of Familiness: Introducing Family Firm Identity. Journal of Family Enterprise Strategy, 1, 54-63. [29] Ling, Y. and Kellermanns, F.W. (2010) The Effects of Family Firm Specific Sources of TMT Diversity: The Moderating Role of Information Exchange Frequency. Journal of Management Studies, 47, 322-344. http://dx.doi.org/10.1111/j.1467-6486.2009.00893.x [30] Yu, X.Q., Zhang, Z.T. and Zhang, Y.L. (2013) The Tacit Knowledge of the Entrepreneur, the Succession Willingness and the Intergenerational Succession in Family Business. Management World, No. 11, 77-88. [31] Xu, Y.B. and Hu, N.N. (2013) Analysis on Impetus of Emotional Value to Family Firm Trans-Generation. Accounting Research, No. 7, 77-81. [32] Blumentritt, T., Mathews, T. and Marchisio, G. (2013) Game Theory and Family Enterprise Succession: An Introduction. Family Enterprise Review, 26, 51-67. http://dx.doi.org/10.1177/0894486512447811 [33] Huybrechts, J., Voordeckers, W. and Lybaert, N. (2012) Entrepreneurial Risk Taking of Private Family Firms: The Influence of a Nonfamily CEO and the Moderating Effect of CEO Tenure. Family Enterprise Review, 2012, 1-19. [34] Tomkins, C. (2001) Interdependencies, Trust and Information in Relationships, Alliances and Networks. Accounting, Organizations and Society, 26, 161-191. http://dx.doi.org/10.1016/S0361-3682(00)00018-0 [35] Li, X.C. (2002) Trust, Loyal and Clannishness in Familism Dilemma. Management World, No. 6, 87-93. [36] Chun, X.P. and Li, H.Z. (2003) Trust and Family Enterprises Growth. Management World, No. 6, 98-104. [37] Miller, F. (2011) Using Formal and Informal Controls to Limit Opportunism: Review and Classification of Remedies to Hold-Ups. Journal of Accounting Literature, Forthcoming.