The Professionally Managed Family‐ruled Enterprise: Ethnic Chinese Business in Singapore

ABSTRACT This study identifies the change and continuity in the management structure of Singaporean Chinese family businesses before and after the Asian currency crisis based on an interpretive content analysis of oral history transcripts, personal interviews, documentary research and a historical analysis of Singapore's economy and society. It shows that large businesses shifted from being ‘family‐ruled and managed’ to becoming ‘professionally managed family‐ruled’ businesses before the crisis. Since the crisis, however, Chinese businesses in sectors that are under the watch of the developmental state, that face increasing competition from Western corporations, and lack offspring who are competent and interested in running family enterprises have loosened family rule. Businesses in sectors that are free from the direct intervention of the state, that seek survival in negative market situations, and have trusted and competent offspring to harness the advantage of the family enterprise have maintained family rule. Based on the findings, the author offers an explanatory and predictive model that takes into account the roles of markets, institutions (including culture and the state) and key corporate actors. The study concludes with suggestions for future research into the management structures of professionally managed family businesses and the role of the state.