THE DEVELOPMENT AND CONTINUITY OF LARGE AND SUCCESSFUL CHINESE FAMILY-OWNED ENTREPRENEURSHIPS IN SINGAPORE

Abstract

This exploratory study attempts to understand the key success factors responsible for the development and continuity of large and successful Chinese family-owned entrepreneurships in Singapore. The important entrepreneurial role involved in this development process which has been handed down from the first generation immigrant family founders to the succeeding second generation family entrepreneurs is discussed at length. An entrepreneur is defined as "the driving force behind the establishment, development and success of a growing business, who is required to have the creativity, courage, determination, the managerial competence and technical skills in undertaking risks to meet and maximise continually changing and newly identified business opportunities and needs." Using the "stages-of-growth" model approach, the success factors for four identified stages of growth of Chinese family-owned entrepreneurships in Singapore are analysed. The analysis also focuses on whether there are certain aspects of familism and "Chinese'' cultural values that tend to inhibit or encourage the different stages of growth as these Chinese family-owned enterprises are transformed from their modest beginnings established by the first generation immigrant family founders to today's large and successful family-owned entrepreneurships. The study includes five identified case studies of large and successful Chinese family-owned entrepreneurships to illustrate the conceptual framework of analysis established in this thesis. In-depth interviews conducted with the five second generation family entrepreneurs revealed that while they are no less committed to family and "Chinese" cultural values, their exposure to modem business theories of management through higher education and first-hand experiences working for, or strategic alliances with multinational corporations, has changed their view of the relationship between the family and business. They have adapted the use of these family and cultural values that laid the foundation for the humble beginnings of their family-controlled enterprises in the development of their family businesses into professionally managed and yet family-controlled multinational conglomerates. In fact, this second generation of Chinese entrepreneurs have professionalised and developed their family-owned enterprises beyond the limitations of Chinese family business described by Gordon Redding and others and in ways never anticipated by their founders. While they have developed a keen entrepreneurial sensitivity in spotting new business opportunities and market niches, they have not abandoned the prudent management policy of their family's first generation founders, as they choose to expand their family-controlled business incrementally first in Singapore before seeking new business joint-ventures in the region. To fund their business expansion, they are favourably disposed to be listed on the Stock Exchange of Singapore. Even though the five case studies discussed in this thesis may not be representative of all Chinese family-owned entrepreneurships in Singapore, this study is an attempt to facilitate a better understanding of the factors involved in the development and continuity of large and successful Chinese family-owned entrepreneurships in Singapore - a topic which is worthy of further extensive research and which has significant implications on Singapore's continued economic growth and her regional economic development.