Still a Chinese family business? The role of tacit knowledge and innovation in Malaysian food industry

Lee, Kean Yew (2021) Still a Chinese family business? The role of tacit knowledge and innovation in Malaysian food industry. Journal of Chinese Overseas, 17 (2, SI). pp. 399-418. DOI https://doi.org/10.1163/17932548-12341450.

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Abstract

Success in Chinese family business (CFB) does not automatically transfer from founder to the next generation. CFB in the first generation is situational and dependent on the previous history of the tacit knowledge required to sustain the business. CFB is known for its association with family alliances, habitual ownership practices and embedded networks. Consequently, a firm that has enjoyed success under its founder may not survive into the next generation. In this study, I identified exceptional CFB cases wherein firms successfully codified the tacit knowledge during the ``generational change'' phase. The findings shed some light on how CFBS in the Malaysian food industry evolved by innovating their products to fit a larger market. My contributions are as follow. First, this study qualitatively demonstrates an ``edge'' case not seen in the family business literature by leveraging on a uniquely diverse institutional environment (i.e. Malaysia). Specifically, this study suggests that CFBS evolved and emerged as globally competitive firms by codifying tacit knowledge. Second, I demonstrate that this process of transformative learning is central to innovation and competition within the context of succession planning for family business in general, not just CFBS.

Item Type: Article
Funders: UNSPECIFIED
Uncontrolled Keywords: Chinese family business; Generation; Tacit knowledge; Innovation; Malaysia
Subjects: G Geography. Anthropology. Recreation > GN Anthropology
Divisions: Faculty of Arts and Social Sciences > Institute of China Studies
Depositing User: Ms Zaharah Ramly
Date Deposited: 09 Sep 2022 00:28
Last Modified: 09 Sep 2022 00:28
URI: http://eprints.um.edu.my/id/eprint/35106

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