Modes of Value Transfer in Chinese Family Business in Malaysia

Abstract

The study examined the modes of value transfer from the founder to successors in Chinese family businesses. A case study was conducted involving interview with 19 members of 12 family businesses in business sectors including trading, shipping, timber, newspaper printing, entertainment, and construction. The results showed that value transfer begins even before the founder's descendants start full-time work in the family business, leading to internalization of values. When the founder's descendants begin working in the family business, explicit teaching and modeling of values occur, which reinforces values observed earlier. In some cases, values are reinforced through management policies that document the founder's values and best practices in conducting business. In most cases, the successors are scaffolded into how values guide business decisions when they work full-time in the family business. The findings offer novel information on the modes of value transfer in the Chinese family business.