Strategic planning and family business sustainability: the moderating role of advisory role
Family businesses have emerged as a crucial role in China's economic development and continue to be a dominant force in the country's business landscape. Strategic planning plays a crucial role in ensuring the sustainability and long-term success of a family business. While family business...
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| Main Authors: | , , , |
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| Format: | Article |
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Human Resource Management Academic Research Society
2023
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| Online Access: | http://psasir.upm.edu.my/id/eprint/110521/ https://hrmars.com/index.php/IJARBSS/article/view/17758/Strategic-Planning-and-Family-Business-Sustainability-The-Moderating-Role-of-Advisory-Role |
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| Summary: | Family businesses have emerged as a crucial role in China's economic development and continue to be a dominant force in the country's business landscape. Strategic planning plays a crucial role in ensuring the sustainability and long-term success of a family business. While family businesses offer unique advantages such as shared values, close-knit relationships, and a strong commitment to legacy, they also face distinct challenges that can be effectively addressed through strategic planning. However, the extant literature unclear to highlight the role of strategic planning in family business sustainability context. Underpinned by RBV theory, this research presents an extensive empirically evidence on strategic planning and family business sustainability perspective. Also, the moderating role of advisor role is applied between the nexus of strategic planning and family business sustainability. By using non probability convenience sampling technique, the sample of 387 was collected from three major business province namely Gangdong, Jiangsu and Shandong province of China. These cities are most economically developed provinces and is known for being a hub of entrepreneurship and family businesses. These cities are particularly renowned for its role in fostering numerous successful family-owned enterprises. The results revealed that family businesses in China exhibit unique characteristics shaped by cultural, institutional, and economic factors. The study provide significant insight to several challenges faced by family businesses in China are identified, including succession planning difficulties, professionalization dilemmas, conflicts between family and business interests, and the need for effective corporate governance structures. The findings of the study revealed that strategic planning helps articulate a clear vision and direction for the family business in China. It establishes the long-term goals and objectives of the business, ensuring that family members are aligned and working towards a common purpose. This clarity of vision guides decision-making and minimizes conflicts by providing a roadmap for future growth. The research further investigates the strategies employed by Chinese family businesses to overcome these challenges, such as adopting modern management practices, promoting external talent, and embracing technology and innovation. |
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