Significant challenges of Filipino-Chinese family businesses during the succession process

• Main Authors: Hernandez, Patrick, Hsu, Jeffrey, Ouyang, Jan Keven, Tanhui, Jervis
• Format: text
• Language: English
• Published: Animo Repository 2013
• Subjects: Family corporations > Management; Family-owned business enterprises > Succession; Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/11483
• Institution: De La Salle University

The Filipino-Chinese culture is known for keeping the family business within the family, but only a small fraction of them have been observed to successfully survived the transition of a business from one generation to another. Understanding the factors affecting the transition phase is important for the successful survival of these family businesses. Four companies were chosen as respondents, namely Hobee Packaging Corporation, Amazon Manufacturing Corporation, Champion Glue Incorporated, and Robert Brown Wear Corporation. Personal interviews and survey were used for collection of data while case method was use for the analysis of them. Results showed that pressure was the most prevalent challenge faced by these companies during the succession process, issues on control and communications came in second and third place respectively, while conflicts of interest was found to be the fourth most prevalent challenges. Each of these challenges had different impacts in terms of the familiness, ownership, and management of a family business. A succession planning model was produced in order to guide future family businesses who might experience the same kind of succession dilemmas. This step by step recommendation will help ensure that these family businesses are on the right track towards a successful management transition.