Why Family Firms in East Asia Struggle with Succession

Nowhere are these challenges more acute than in the Asia-Pacific region, where family businesses represent more than half of large corporations (plus many more smaller firms) and account for a significant percentage of employment and economic development.  Many of these organizations are still run by their founders, so will soon be facing leadership successions for the first time.  If these critical transitions are mishandled, it could put many of them at risk, destroying economic value and severely handicapping a region that currently accounts for more than a third of the world’s GDP and an even larger proportion of global growth.

There is a great future ahead for Asian family businesses when they realize that it is not only the operations and strategy that one needs to carefully manage, but also governance, talent development, and leadership transitions.


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