Abstract
Family businesses play an important role in the global economic environment. In China, more than 90% of them use family management or family organization. This shows that family-owned companies are playing a decisive role in China’s economy. However, with regard to the current development situation, the development status of family-owned enterprises is not optimistic, and the average life expectancy is only 5 years. Facts have proved that internal governance is the key point for the steady development of family-owned enterprises. Internal governance supervision, as an important component of the five elements of internal control, is related to whether the internal management of a family-owned company can be implemented steadily and effectively. Therefore, a sound internal governance supervision system is the key point for whether the family business can survive in the modern economic competitive environment. This review points out the disadvantages of the family business and points out the new direction for the follow-up family business research that applies to the internal governance supervision model of the family business.
Highlights
Family businesses have played an indispensable role in companies around the world
This review points out the disadvantages of the family business and points out the new direction for the follow-up family business research that applies to the internal governance supervision model of the family business
After the family enterprises choose relatively more consistent internal governance mode, through adapting to the internal and external environment, the author puts forward some suggestions on the effective inheritance and organization system innovation of the early advantageous resources of family enterprises, which can continuously optimize the internal governance mode selected in different stages and help the family business develop better
Summary
Family businesses have played an indispensable role in companies around the world. The introduction of the “Basic Norms for Corporate Internal Control” has eased the market demand for internal control norms On this basis, this paper combined with the characteristics of China’s family-owned enterprises, and established a new internal management supervision model applicable to family-owned enterprises. 1) The Work foundation of this research is more solid First, this paper is related to the family enterprise internal governance model selection decision, as a management college in reading students, combined with professional theory, can be systematic and professional use of the internal control framework theory for the review and analysis; Secondly, the institute needs data. After the family enterprises choose relatively more consistent internal governance mode, through adapting to the internal and external environment, the author puts forward some suggestions on the effective inheritance and organization system innovation of the early advantageous resources of family enterprises, which can continuously optimize the internal governance mode selected in different stages and help the family business develop better
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