Abstract
In this chapter, we investigate characteristics of entrepreneurial family firms across three East Asian countries (Korea, China, and Japan), and suggest that these firms exhibit heterogeneous characteristics depending on the unique combination of the formal and informal institutional constraints surrounding each country. Further, we assess the effects of Confucianism on the role of the family in the process of their firm creation, and identify hierarchical relationships, paternalism, seniority, and preservation of group harmony as common characteristics of entrepreneurial family firms across the three countries. Several management issues they face are discussed.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Aghion, P., and P. Bolton. 1992. An incomplete contracts approach to financial contracting. Review of Economic Studies 59(3): 473–94.
Ahlstorm, D., M.N. Young, E.S. Chan, and G.D. Bruton. 2004. Facing constraints to growth? Overseas Chinese entrepreneurs and traditional business practices in East Asia. Asia Pacific Journal of Management 21(3): 263–85.
Aldrich, H.E. 2003. Entrepreneurship. In Handbook of Economic Sociology ed. N. Smelser and R. Swedberg. Princeton, NJ: Princeton University Press.
Aldrich, H.E., and M.C. Fiol. 1994. Fools rush in? The institutional context of industry creation. Academy of Management Review 19: 645–70.
Bae, J.S., and C. Rowley. 2001. The impact of globalization on HRM: The case of South Korea. Journal of World Business 36(4): 402–29.
Barney, J.B. 1991. Firm resources and sustainable competitive advantage. Journal of Management 17: 29–47.
Bastos, P. 2001. Inter-firm collaboration and learning: The case of the Japanese automobile industry. Asia Pacific Journal of Management 18(4): 423–41.
Blanchflower, D.G., and A.J. Oswald. 1998. What makes an entrepreneur? Journal of Labor Economics 16(1): 26–60.
Butler, J.E., B. Brown, and W. Chamornmarn. 2003. Informational networks, entrepreneurial action and performance. Asia Pacific Journal of Management 20(2): 151–74.
Carney, M., and E. Gedajlovic. 2002. The co-evolution of institutional environments and organizational strategies: The rise of family business groups in the ASEAN region. Organization Studies 23(1): 1–29.
Carney, M., and E. Gedajlovic. 2003. Strategic innovation and administrative heritage of East Asian family business groups. Asia Pacific Journal of Management 20(1): 5–26.
Chang, S.J. 2006. Business groups in East Asia: Post-crisis restructuring and new growth. Asia Pacific Journal of Management 23: 407–17.
Chang, S.J., and J. Hong. 2000. Economic performance of group-affiliated companies in Korea: Intragroup resource sharing and internal business transactions. Academy of Management Journal 43(3): 429–48.
Chen, M. 2004. Asian Management Systems. London: Thomson.
Chen, M. 1995. Thailand—Overseas Chinese family business: A case study. East Asian Executive Reports 17(11): 8–21.
Chen, M.J. 2001. Inside Chinese Business. Boston: Harvard Business School Press.
Chung, K.H., H.C. Lee, and K.H. Jung. 1997. Korean Management: Global Strategy and Cultural Transformation. Berlin/New York: Walter de Gruyter.
Coase, R.H. 1937. The nature of the firm. Economica 4: 366–405.
Darby, M.R., and L. Zucker. 1999. Local academic science driving organizational change: The adoption of biotechnology by Japanese firms. NBER Working paper, 7248. Cambridge, MA: National Bureau of Economic Research.
Deeds, D.L., and C.W. Hill. 1998. An examination of opportunistic action with research alliances: Evidence from the biotechnology industry. Journal of Business Venturing 14: 141–63.
Dieleman, M., and W. Sachs. 2006. Oscillating between a relationship-based and a market-based model: The Salim Group. Asia Pacific Journal of Management 23: 521–36.
Dyer, J.H., and K. Nobeoka. 2000. Creating and managing a high-performance knowledge-sharing network: The Toyota case. Strategic Management Journal 21(3): 345–67.
Flynn, N. 1999. Miracle to Meltdown in Asia: Business, Government, and Society. Oxford: Oxford University Press.
Fukuyama, F. 1995. Trust: The Social Virtues and the Creation of Prosperity. New York: Free Press.
Gartner, W.B. 1989. “Who is an entrepreneur?” is the wrong question. Entrepreneurship Theory and Practice 12(4): 11–32.
Gartner, W.B. 1990. What are we talking about when we talk about entrepreneurship? Journal of Business Venturing 5(1): 15–28.
Gartner, W.B. 2001. Is there an elephant in entrepreneurship? Blind assumptions in theory development. Entrepreneurship Theory and Practice 25(4): 27–40.
Granovetter, M. 1973. The strength of weak ties. American Journal of Sociology 78: 1360–80.
Granovetter, M. 1985. Economic action and social structure: A theory of embed-dedness. American Journal of Sociology 91: 481–510.
Hofstede, G. 1991. Cultures and Organizations: Software of the Mind. London: McGraw-Hill.
Hofstede, G., V. Deusen, C. Mueller, T. Charles, and Business Goals Network. 2002. What goals do business leaders pursue? Journal of International Business Studies 33: 785–803.
Ibata-Arens, K.C. 2004. Alternatives to hierarchy in Japan: Business networks and civic entrepreneurship. Asian Business & Management 3: 315–35.
Johnson, S., P. Boone, A. Breach, and E. Friedman. 2000. Corporate governance in the Asian financial crisis, Journal of Financial Economics 58: 141–86.
Karra, N., P. Tracey, and N. Phillips. 2006. Altruism and agency in the family firm: Exploring the role of family, kinship, and ethnicity. Entrepreneurship Theory and Practice 30(6): 861–77.
Kim, N.H., D.W. Sohn, and J.A. Wall Jr. 1999. Korean leaders’ (and subordinates’) conflict management. International Journal of Conflict Management 10(2): 130
King, A.Y.C., and M.H. Bond. 1985. The Confucian paradigm of man: A sociological view. In Chinese Culture and Mental Health, ed. D.Y.H. Wu, pp. 29–45. New York: Academic Press.
Lang, L.H.P., and R.M. Stulz. 1994. Tobin’s q, corporate diversification, and firm performance. Journal of Political Economy 102: 1248–80.
Lee, D. Y, and E.W.K. Tsang. 2001. The effects of entrepreneurial personality, background and network activities on venture growth. Journal of Management Studies 38(4): 583–602.
Lee, H.C. 1998. Transformation of employment practices in Korean businesses, International Studies of Management and Organization 28(4): 26.
Lee, S.H. 2000. Argument of Asiatic value and the future of Confucian culture. In Korean Identity in the New Millennium (5 Section), pp. 12–27. Seoul: The Academy of Korean Studies.
Liao, D., and P. Sohmen. 2001. The development of modern entrepreneurship in China. Stanford Journal of East Asian Affairs 1: 27–33.
Lins, K.V. 2003. Equity ownership and firm value in emerging markets. Journal of Financial and Quantitative Analysis, 38: 159–84.
Lucas, L. 2007. A new generation of family firm. Financial Times, London (UK), March 10, 2007, p. 12.
Lynn, L.H., and R. Kishida. 2004. Changing paradigms for Japanese technology policy: SMEs, universities, and biotechnology. Asian Business & Management 3: 459–78.
Masuda, T. 2006. The determinants of latent entrepreneurship in Japan. Small Business Economics 26: 227–40.
McConaughy, D., C. Matthews, and A. Fialko. 2001. Founding family controlled firms: Performance, risk, and value. Journal of Small Business Management 39(1): 31–49.
McConaughy, D., M. Walker, G. Henderson, and C. Mishra. 1998. Founding family controlled firms: Efficiency and value. Review of Financial Economics 7: 1–19.
North, D.C. 1990. Institutions, Institutional Change, and Economic Performance. Cambridge, MA: Harvard University Press.
Oh, T.K., and E.S. Kim. 2002. The impact of Confucianism on East Asian Business Enterprises. In Korean Business and Management: The Reality and the Vision, ed. Zusun Rhee and Eunmi Chang. New Jersey: Hollym International Corp.
Oliver, C. 1997. Sustainable competitive advantage: Combining institutional and resource-based view. Strategic Management Journal 18(9): 679–713.
Paik, Y.S., and J.H. Sohn. 1998. Confucius in Mexico: Korean MNCs and the Maquiladoras. Business Horizons 41(6): 25–33.
Peng, M.W. 2000. Business Strategies in Transition Economies. Thousand Oaks, CA: Sage.
Peng, M.W. 2002. Toward an institution-based view of business strategy. Asia Pacific Journal of Management 19(2–3): 251–67.
Peng, M.W. 2003. Institutional transitions and strategic choices. Academy of Management Review 28(2): 275–86.
Peng, M.W., and P.S. Heath. 1996. The growth of the firm in planned economies in transition: Institutions, organizations, and strategic choice. Academy of Management Review 21(2): 492–528.
Peng, M.W., and J.Q. Zhou. 2005. How network strategies and institutional transitions evolve in Asia. Asia Pacific Journal of Management 22(4): 321–36.
Peng, M.W., D.Y.L. Wang, and Y Jiang. 2008. An institution-based view of international business strategy: A focus on emerging economies. Journal of International Business Studies 39(5): 920–36.
Porter, M.E. 1980. Competitive Strategy. New York: Free Press.
Powell, W. 1990. Neither market nor hierarchy: Network forms of organization. Research in Organizational Behavior 12: 295–336.
Redding, S.G., and M. Hsiao. 1995. An empirical study of overseas Chinese managerial ideology. In International Cultural Differences, Ed. S.G. Redding, pp. 183–96. Aldershot and Brookfield, VT: Dartmouth.
Reeder, J. 1987. “When West meets East: Cultural Aspects of Doing Business in Asia,” Business Horizons, January-February, 69–74.
Rowen, H.S., and A.M. Toyoda. 2002. From Keiretsu to Start-Ups: Japan’s Push for High Tech Entrepreneurship. Stanford: Stanford University.
Scott, W.R. 1995. Institutions and Organization. Thousand Oaks, CA: Sage.
Studwell, J. 2007. Ties that bind: Crony capitalism is stunning Southeast Asia. Newsweek (International ed.), New York, July 23, 2007.
Sung, T.K., D.V. Gibson, and B.S. Kang. 2003. Characteristics of technology transfer in business ventures: The case of Daejeon, Korea. Technological Forecasting & Social Change 70: 449–66.
Teece, D.J., G. Pisano, and A. Shuen. 1997. Dynamic capabilities and strategic management. Strategic Management Journal 18(7): 509–33.
Venkataraman, S. 1997. The distinctive domain of entrepreneurship research: An editor’s perspective. In Advances in Entrepreneurship, Firm Emergence, and Growth, ed. J. Katz and R. Brockhaus, Vol. 3, pp. 119–38. Greenwich, CT: JAI Press.
Wernerfelt, B. 1984. A resource-based view of the firm. Strategic Management Journal 5: 171–80.
Williamson, O.E. 1973. Markets and hierarchies: Some elementary considerations. American Economic Review 63: 316–25.
Yang, J.Y., and J. Li. 2008. The development of entrepreneurship in China. Asia Pacific Journal of Management 25: 335–59.
Yeung, H.W. 2002. Entrepreneurship in international business: An institutional perspective. Asia Pacific Journal of Management 19(1): 29–61.
Yoshikawa, T., and J. McGuire. 2008. Change and continuity in Japanese corporate governance. Asia Pacific Journal of Management 25: 5–24.
Yum, J.O. 1994. The impact of Confucianism on interpersonal relationships and communication patterns in East Asia. In Intercultural Communication: A Reader, ed. L.A. Samovar and R.E. Porter, pp. 75–86. Belmont: International Thomson Publishing.
Zimmerman, M.A., and G.J. Zeitz. 2002. Beyond survival: Achieving new venture growth by building legitimacy. Academy of Management Review 27(3): 414–31.
Editor information
Copyright information
© 2010 T. Youn-ja Shim (Theresa Y. Shim)
About this chapter
Cite this chapter
Lee, I.H., Paik, Y. (2010). The Effects of Family Values on Entrepreneurship in East Asian Countries. In: Shim, T.Yj. (eds) Korean Entrepreneurship. Palgrave Macmillan, New York. https://doi.org/10.1057/9780230115507_5
Download citation
DOI: https://doi.org/10.1057/9780230115507_5
Publisher Name: Palgrave Macmillan, New York
Print ISBN: 978-1-349-29057-4
Online ISBN: 978-0-230-11550-7
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)