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Centripetal Authority, Differentiated Networks: The Social Organization of Chinese Firms in Singapore

In: Chinese Business

Author

Listed:
  • Chee Kiong Tong

    (Universiti Brunei Darussalam
    National University of Singapore)

Abstract

This chapter examines Chinese family firms’ internal dynamics; organizational structure, particularly ownership patterns; authority structures; division of labour; and the principles of inheritance. Using case studies of large-scale Chinese firms such as the Hong Leong Group of Companies, it argues that Chinese businesses retain a highly centralized authority structure despite firm size. The paper also explores the definition of a family firm and suggests that a combination of effective control and ownership and the interplay of the two are a defining feature. The paper also deals with the problematic overlap between the family as a household unit and the firm as a business enterprise. Thus, a firm is governed both by formal structures as a business and the informal structures under a household patriarch. Finally, the paper details the “centripetal tendencies” of Chinese family firms, with strong desires to retain control and ownership even as a family business grows and diversifies.

Suggested Citation

  • Chee Kiong Tong, 2014. "Centripetal Authority, Differentiated Networks: The Social Organization of Chinese Firms in Singapore," Springer Books, in: Chee-Kiong Tong (ed.), Chinese Business, edition 127, chapter 0, pages 21-40, Springer.
    • Handle: RePEc:spr:sprchp:978-981-4451-85-7_2
    DOI: 10.1007/978-981-4451-85-7_2
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