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2009 11 Chinese Jour nal o f M anag ement N ov . 2009

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: C936: A: 1672-884X( 2009) 11-1492-09

Authority System in Family Firms and Trans-generational Succession


YAN G Xueru Z HU Hang L I Xi nchun
( Sun Ya t-Sen U niv ersit y, Guang zhou, China)
Abstract: Thi s study a rg ues that f amily fi rm leader 's autho ri t y is a n eff ectiv e g ov erna nce st ruc-
ture of th e incom plet e cont ract who se center cont racto r i s the l eader , a nd the aut hori t y sy stem of fam-
ily fi rms contains th ree di mensi ons based o n dif ferent origi ns, w hi ch are legal authorit y f rom ow ner-
ship, charming autho ri ty f rom capabi li ties a nd characteri stics and f amily aut horit y f rom cla n based on
the cont ract t heo ry and the Three -circle M ode. It also a rg ues that duri ng the successio n, legal autho r-
it y can be succeeded im medi at ely by stock t ra nsf er and manag ement appoint ment, w hi le the o ther tw o
can no t be succeeded, which fi nally causes successi on puzzle . Thi s study furt her tests the dif ference
betw een f ami ly autho ri ty a nd charmi ng authorit y and fi nally em phasizes the i mpo rta nce o f autho ri ty
successi on in family firm 's succession by analy zi ng t ypical cases o f Ho ng dou Group and Haixi n Group.
Key words: pow er; leg al autho ri ty; cha rmi ng autho ri ty; f amily autho ri ty; successio n

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