This study examines the relationship between the nature of the Chinese Family Business (CFB) and the business strategies adopted, in the setting of the Hong Kong watch industry. The nature of the CFB is conceptualized and measured as a set of sub-dimensions, represented by continuous variables. It is hypothesized that ‘ CFBness’ is positively associated with ‘traditional’ business strategies, but inhibitive of ‘upgrading’. The results show that the hypotheses are partially supported. While the findings support the view that firms’ strategic choices are constrained by material and ideational influences in their environment, only a small proportion of the variation in business strategies is accounted for by ‘CFB-ness’, leaving ample room for human agency. Overall, the results support a ‘middle view’ between the deterministic and voluntaristic perspectives, whereby firms exercise strategic choice within an environment that predisposes, but does not fix, their behaviour.
Get full access to this article
View all access options for this article.
References
1.
Advisory Committee on Diversification 1979 Report of the Advisory Committee on Diversification. Hong Kong: Hong Kong Government .
2.
Aharoni, Yair 1966 The foreign investment decision process. Boston, MA: Harvard University Press .
3.
Armstrong, J. Scott, and Terry S. Overton 1977 ‘Estimating non-response bias in mail surveys’ . Journal of Marketing Research, August, 14: 396–402 .
4.
Astley, Graham W., and Andrew H. Van de Ven 1983 ‘Central perspectives and debates in organization theory’ . Administrative Science Quarterly28: 245–273 .
5.
Berger, Suzanne, and Richard Lester 1997 Made by Hong Kong. Hong Kong: Oxford University Press .
6.
Bhalla, Gaurav, and Lynn Lin 1987 ‘Cross cultural marketing research: A discussion of equivalence issues and management strategies’ . Psychology and Marketing4/4: 275–285 .
7.
Brislin, Richard 1970 ‘Back-translation for cross-cultural research’ . Journal of Applied Psychology1: 185–216 .
8.
Buzzell, Robert D., and Bradley T. Gayle 1987 The PIMS principles: Linking strategy to performance. New York: Free Press .
9.
Carney, Mick 1998a ‘The competitiveness of networked production: The role of asset specificity and trust’ . Journal of Management Studies35/4: 457–479 .
10.
Carney, Mick 1998b ‘A management capacity constraint? Obstacles to the development of the overseas Chinese family business’ . Asia Pacific Journal of Management15: 137–162 .
11.
Carney, Mick, and Howard Davies 1999 ‘From entrepot to entrepot via merchant manufacturing: Organizational capabilities and the structure of the Hong Kong economy’ . Asia Pacific Business Review, autumn: 11–27 .
12.
Castrogiovanni, Gary J. 1991 ‘Environmental munificence: A theoretical assessment’ . Academy of Management Review16: 542–565 .
13.
Census and Statistics Department 1998 Employment and vacancies statistics, series C (industrial sectors). Hong Kong Special Administrative Region, People’s Republic of China .
14.
Child, John 1972 ‘Organizational structure, environment and performance: The role of strategic choice’ . Sociology, January, 6: 1–22 .
15.
Child, John 1997 ‘Strategic choice in the analysis of action, structure, organizations and environment: Retrospect and prospect’ . Organization Studies18/1: 43–76 .
Davies, Howard 1998 ‘The persistence of key capabilities in flexible production networks: The watch industry in Switzerland and Hong Kong/China’ in Trade and investment in China: The European experience. R. Strange, J. Slater and L. Wang (eds), 166–187. London: Routledge .
18.
Davies, Howard 1999 ‘Why high-technology manufacturing will prove to be a myth’ in Return to China: Management and labour in Hong Kong. P. Fosh, E. Snape and A. Chan (eds), 43–58. London: Routledge .
19.
Davies, Howard, and Paul Ellis 2000 ‘Porter’s “Competitive Advantage of Nations”: Time for a final judgement?’ . Journal of Management Studies, December, 37/8: 1189–1213 .
20.
Davies, Howard, and Catherine Ma 2000 ‘Do “up-grading” strategies improve the performance of Hong Kong manufacturing firms? An empirical analysis of the watchmaking industry’ . Paper presented to the International Conference on Global Economic Transformation after the Asian Economic Crisis. Chinese University of Hong Kong, 26–28 May.
21.
Davies, Howard, and Peter Walters forthcoming ‘Strategy, environment and performance in China: An empirical analysis of Shanghai enterprises’ . Journal of Business Research.
22.
Deshpande, Rohit, John U. Farley, and Frederick E. Webster 1993 ‘Corporate culture, customer orientation and innovativeness in Japanese firms: A quadrad analysis’ . Journal of Marketing, January, 57: 23–27 .
23.
Dess, Gregory, and Peter S. Davis 1984 ‘Porter’s (1980) generic strategies as determinants of strategic group membership and organizational performance’ . Academy of Management Journal27: 467–488 .
24.
Dillman, Don 1978 The total design method. New York: Wiley .
25.
DiMaggio, Paul, and Walter W. Powell 1983 ‘The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields’ . American Sociological Review48: 147–160 .
26.
Donaldson, Lex 1996 ‘The normal science of structural contingency theory’ in Handbook of organization studies. S. Clegg, C. Hardy and W. Nord (eds), 57–76. London: Sage .
27.
Doty, Harold, William Glick, and Gary Huber 1993 ‘Fit, equifinality and organizational effectiveness: A test of two configurational theories’ . Academy of Management Journal36/6: 1196–1250 .
28.
Ellis, Paul, and Antony Pecotich 2001 ‘Social factors influencing export initiation in small and mediumsized enterprises’ . Journal of Marketing Research, February, 38: 119–130 .
29.
Enright, Michael, David Dodwell, and Edith Scott 1997 The Hong Kong advantage. London: Oxford University Press .
30.
Fryxell, Gerald 1990 ‘Business-level process R&D: Patterns and returns under different generic strategic orientations’ . International Journal of Technology Management5/1: 41–63 .
31.
Fukuyama, Francis 1995 Trust: The social virtues and the creation of prosperity. New York: Free Press .
32.
Fung, Victor 1996 ‘Hong Kong competing into the 21st century’. Speech to the Hong Kong Management Association, Hong Kong , 4 July.
33.
Glasmeier, Amy 1994 ‘Flexibility and adjustment: The Hong Kong watch industry and global change’ . Growth and Change25/2: 223–246 .
34.
Hair, Joseph, Rolph E. Anderson, Ronald Tatham, and William Black 1998 Multivariate Data Analysis, 5th edn. Englewood Cliffs, NJ: Prentice Hall .
35.
Hamilton, Gary, editor 1991 Business networks and economic development in East and South East Asia. Hong Kong: Centre for Asian Studies, University of Hong Kong .
36.
Hamilton, Gary, and Nicole Biggart 1988 ‘Market, culture and authority: A comparative analysis of management and organization in the Far East’ . American Journal of Sociology94, supplement: 552–594 .
37.
Harjani, Harsha 1999 ‘A comparison of small Chinese and Indian trading businesses in Hong Kong: An empirical study based on the concept of the Chinese family business’. Hong Kong: Department of Business Studies, The Hong Kong Polytechnic University .
38.
Hobday, Michael 1995 ‘East Asian latecomer firms: Learning the technology of electronics’ . World Development23: 1171–1193 .
39.
Hong Kong Trade Development Council (HKTDC) 1998 Hong Kong’s manufacturing industries: Current status and future prospects. Hong Kong: Research Department, HKTDC .
40.
Hrebiniak, Lawrence G., and William F. Joyce 1985 ‘Organizational adaptation: Strategic choice and environmental determinism’ . Administrative Science Quarterly30: 336–349 .
41.
Kienzle, Rene, and Mark Shadur 1997 ‘Developments in business networks in East Asia’ . Management Decision35/1: 23–32 .
42.
King, Ambrose Y. C., and Davy H. K. Leung 1975 The Chinese touch in small industrial organizations. Hong Kong: Social Research Centre, Chinese University of Hong Kong .
43.
Klein, Jill Gabrielle, Richard Ettenson, and Marlene Morris 1998 ‘The animosity model of foreign product purchase: An empirical test in the People’s Republic of China’ . Journal of Marketing62/1: 89–100 .
44.
Kohli, Ajay, and Bernard Jaworski 1990 ‘Market orientation: The construct, research propositions and managerial implications’ . Journal of Marketing, April, 54: 1–18 .
45.
Lazerson, Mark 1995 ‘A new phoenix: Modern puttingout in the Modena knitwear industry’ . Administrative Science Quarterly40: 34–59 .
46.
Lee, Jean 1996 ‘Culture and management: A study of small Chinese family business in Singapore’ . Journal of Small Business Management34/3: 63–67 .
47.
Mathews, John A. 1997 ‘A Silicon Valley of the East: Creating Taiwan’s semiconductor industry’ . California Management Review39: 26–54 .
48.
Mathews, John A. 1999 ‘A Silicon island of the East: Creating a semi-conductor industry in Singapore’ . California Management Review41: 55–78 .
49.
Miles, Raymond E., and Charles C. Snow 1978 Organizational strategy, structure and performance. New York: McGraw Hill .
50.
Miller, Danny 1988 ‘Relating Porter’s business strategies to environment and structure: Analysis and performance implications’ . Academy of Management Journal31/2: 280–308 .
51.
Myrdal, Gunnar 1968 Asian drama: An inquiry into the poverty of nations. London: Pantheon .
52.
Numazaki, Ichiro 1991 ‘The role of personal networks in the making of Taiwan’s guanxiqiye’ in Business networks and economic development in East and South East Asia. G. Hamilton (ed.), 77–93. Hong Kong: Centre for Asian Studies, University of Hong Kong .
53.
Nunnally, Jum 1978 Psychometric theory. New York: McGraw Hill .
54.
Orru, Marco, Nicole Woolsey Biggart, and Gary G. Hamilton 1997 ‘Organizational isomorphism in East Asia’ in The economic organization of East Asian capitalism. M. Orru, N. W. Biggart and G. G. Hamilton (eds), 151–187. London: Sage .
55.
Poix, Michel 1999 ‘The outlook of European markets for Hong Kong made watches’. Speech to the Asian Watch Industry Conference, Hong Kong .
56.
Porter, Michael 1985 Competitive advantage: Creating and sustaining superior performance. New York: Free Press .
57.
Porter, Michael 1990 The competitive advantage of nations. London: Macmillan .
58.
Redding, S. Gordon 1987 ‘The study of managerial ideology amongst overseas Chinese ownermanagers’ . Asia-Pacific Journal of Management, May: 167–177 .
59.
Redding, S. Gordon 1990 The spirit of Chinese capitalism. New York: De Gruyter .
60.
Redding, S. Gordon 1991 ‘Weak organizations and strong linkages: Managerial ideology and Chinese family business networks’ in Business networks and economic development in East and South East Asia. G. Hamilton (ed.), 30–47. Hong Kong: Centre for Asian Studies, University of Hong Kong .
61.
Redding, S. Gordon 1992 ‘Capitalist cooking lessons’ . Asian Business28/11: 50–52 .
62.
Redding, S. Gordon 1995 ‘Overseas Chinese networks: Understanding the enigma’ . Long Range Planning28/1: 61–69 .
63.
Redding, S. Gordon, and D. S. Pugh 1986 ‘The formal and the informal: Japanese and Chinese organization structures’ in The enterprise and management in East Asia. S. Clegg, S. Dunphy and S. G. Redding (eds), 153–168. Hong Kong: Centre for Asian Studies, University of Hong Kong .
64.
Reuters 2002 ‘SAR stalwarts cling to home-base edge’ South China Morning Post, 24 August 2002, Business Post: 4.
65.
Ryan, Edward 1961 The value system of a Chinese community in Java. PhD dissertation, Harvard University.
66.
Sabel, Charles 1989 ‘Flexible specialization and the reemergence of regional economies’ in Reversing industrial decline? Industrial structure and policy in Britain and her competitors. P. Hirst and J. Zeitlin (eds), 17–70. Oxford: Berg .
67.
Scherer, Frederick 1980 Industrial market structure and economic performance, 2nd edn. New York: Houghton Mifflin .
68.
Tong, Chee Kiong 1991 ‘Centripetal authority, differentiated networks: The social organization of Chinese firms in Singapore’ in Business networks and economic development in East and South East Asia. G. Hamilton (ed.), 176–200. Hong Kong: Centre for Asian Studies, University of Hong Kong .
69.
Tu, I-Ching 1991 ‘Family enterprises in Taiwan’ in Business networks and economic development in East and South East Asia. G. Hamilton (ed.), 114–125. Hong Kong: Centre for Asian Studies, University of Hong Kong .
70.
Uzzi, Brian 1997 ‘Social structure and competition in inter-firm networks: The paradox of embeddedness’ . Administrative Science Quarterly42: 35–67 .
71.
Warr, Peter G. 1994 ‘Comparative and competitive advantage’ . Asia-Pacific Economic Literature8/2: 1–14 .
72.
Weber, Max 1951 The religion of China: Confucianism and Taoism. Glencoe, IL: Free Press .
73.
Weidenbaum, Murray 1996 ‘The Chinese family business enterprise’ . California Management Review38/4: 141–156 .
74.
Whitley, Richard 1990 ‘Eastern Asian enterprise structures and the comparative analysis of forms of business organization’ . Organization Studies11/1: 47–74 .
75.
Whitley, Richard 1991 ‘The social construction of business systems in East Asia’ . Organization Studies12/1: 1–28 .
76.
Whitley, Richard 1992 Business systems in East Asia: Markets, firms and societies. London: Sage .
77.
Wong, Gilbert 1991 ‘Business groups in a dynamic environment: Hong Kong 1976–86’ in Business networks and economic development in East and South East Asia. G. Hamilton (ed.), 126–154. Hong Kong: Centre for Asian Studies, University of Hong Kong .
78.
Wong, Siu-Lun 1985 ‘The Chinese family firm: A model’ . The British Journal of Sociology366/1: 58–72 .
79.
Wong, Siu-Lun 1991 ‘Chinese entrepreneurs and business trust’ in Business networks and economic development in East and South East Asia. G. Hamilton (ed.), 13–29. Hong Kong: Centre for Asian Studies, University of Hong Kong .
80.
Wong, Siu-Lun 1995 ‘Business networks, cultural values and the state in Hong Kong and Singapore’ in Chinese business enterprise in Asia. R. Brown (ed.), 136–153. London: Routledge .
81.
Yeung, Henry W-C. 1994 ‘Hong Kong firms in the ASEAN region: Transnational corporations and foreign direct investment’ . Environment and Planning A26: 1931–1956 .
82.
Yeung, Henry W-C. 1997 ‘Business networks and transnational corporations: A study of Hong Kong firms in the ASEAN region’ . Economic Geography73/1: 1–25 .
83.
Yu, Tony Fu-Lai 1997 Entrepreneurship and economic development in Hong Kong. London: Routledge .
84.
Zahra, Shaker, and Jeffrey Covin 1993 ‘Business strategy, technology policy and firm performance’ . Strategic Management Journal14: 451–478 .
