This book is written using simple concepts, supplemented by relevant illustration so that it is easier to be understood. The strengths, weaknesses, opportunities, and threats facing overseas Chinese family businesses are discussed.

1. © THE JAKARTA CONSULTING GROUP

2. What are the secrets behind the success of
overseas Chinese family businesses around
the world? To answer this question, we
must look back at the history?
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3. In the past, Chinese people in the mainland
China had to leave their homeland due to
political instability, poverty, wars, and rampant
corruption.
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4. Most of them migrated to the South East Asia Region.
Only small number of them went to the western
countries such as The United States (US), Europe, and
Australia. Location proximity might be the main
reason why these Chinese people chose South East
Asia as their destination.
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5. When arriving at the new places, most of
them were in a poor condition and without
any skills. To make matters worse, the new
places were not better. These Chinese
immigrants had to struggle to survive, as well
as had to face discrimination from the host
nations. © THE JAKARTA CONSULTING GROUP

6. Such difficult situation, nevertheless, has helped them
strengthened their solidarity. They were willing to help
each other. This was the beginning of what latter known
as Guanxi.
These overseas Chinese still adhered to their old tradition.
The most widely known was the family relationships.
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7. The value, which takes family interests to be the
most important end, is known as familism. Familism
has had a long history and has become the ethical
standard in judging right or wrong, good or bad.
Chinese Society always prioritizes the welfare of the
family. They are ready to work diligently and live
frugally for the family. This is the main reason why
most of businesses founded by overseas Chinese
are family-owned.
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8. In addition to familism, overseas Chinese also
adhere to Confucian values, which include
humaneness, righteousness, justice, ethics,
knowledge, harmony, trust, solidarity, trust,
integrity, loyalty, honesty, and bravery. Confucius
also identified four important qualities, namely
education, commitment, collective responsibility,
and mutuality and respect.
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9. Other teaching that has a great influence is filial
piety, in which one must respect, obey, and be kind
to older people and ancestors. Filial Piety doesn’t
mean that parents exploit their children without
giving them anything in return. Children must show
obedience and give support to the parents. In return,
parents must take care of the children, give children
the best education, and leave the children with a
good name and reputation.
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10. Familism, Confucianism, and Filial Piety have greatly influenced
the characteristics of Overseas Chinese Business, such as more
cordial relationship among employees. In managing human
resources, seniority and trust are more importance than
performance.
Many overseas Chinese family businesses still don’t have clear
organization structure, job description, work procedures, and
reporting relationships. Strategies and decisions are made based
on experience and intuition. © THE JAKARTA CONSULTING GROUP

11. The role of founder is very dominant. He
becomes the fatherly figure not only for his
family but also for the employees as well.
He has the final say in terms of company’s
policies. This ensures stability in the
business.
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12. There are many characteristics of overseas
Chinese family business that are not in line
with modern management principles.
Nevertheless, many of overseas Chinese family
businesses were successful thanks to their
innovative products. They also have high
entrepreneurial spirit.
The founders of overseas Chinese family
businesses care so much about their children’s
education. These children are expected to take
control of the businesses from their parents
someday. Therefore, these children are sent to
study in prestigious universities around the
world.
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13. As the time go by and the environment change
rapidly, the traditional practices of overseas
Chinese family businesses face serious
challenges. High entrepreneurial spirit alone is no
longer enough. Modern management practices
should be applied. With their better education
and experience outside the family business, the
younger generation could be the pioneer in this
regard.
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14. Succession becomes one of the most critical
issues facing a family business. Overseas
Chinese family businesses are no exception.
Succession planning becomes very important.
After handing over the business to the
younger generations, many founders involve
themselves in social activities. Most of them
are successful.
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15. Succession is a matter that must be addressed
seriously since it could spark conflict among
family members, particularly after the founder
is no longer at the helm. Many family
businesses have collapsed because of conflict.
Therefore, conflict should be anticipated as
early as possible.
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