2020
Journal Article
Economics and Business Development › Family Businesses and Business Mentalities
Zheng, V., & Wan, P. S. (2020). Chinese culture and banyan-tree style family businesses: The enterprising family of Lo Ying-shek in Hong Kong. Business History. https://doi.org/10.1080/00076791.2020.1727448
Business Development Chinese Family Businesses Family Division Inheritance Succession
Abstract
This article argues that culture and physical environment shape the patterns and development of family businesses, and determine their operational logic and controlling mechanism. The geography, religious beliefs, socio-cultural contexts, as well as family ideals, relationships, and inheritance systems of China differ from those of Japan and Britain. Thus, one can expect that the patterns and development paths of Chinese family businesses would also differ. A case in Hong Kong was selected for a multi-dimensional examination. It was found that geographical and socio-cultural factors matter in the development of family businesses. In the Chinese context a family business can grow like a banyan tree—with luxuriant aerial roots and intertwining branches, reflecting competition as well as support between family members. The study contributes insights to the understudied subject of the special development patterns of Chinese family businesses from the angles of business principles, socio-cultural contexts, and the environment.