Tossapon Luechapattanaporn, Winai Wongsurawat
The purpose of this research was to investigate the cultural characteristics of Chinese family business in Thailand and to identify how these characteristics contribute to business performance. A qualitative-led mixed methods strategy was used, incorporating with a business questionnaire (n = 380) and interviews with owners and managers of firms (n = 5). There were three distinct types of practices and values that were identified as unique to Chinese family businesses, namely renqing (reciprocity), guanxi (network relationshisp), and Confucian values (benevolent leadership, prioritising family, and exchanging favours). These values enabled the firm to increase resource access and capacity, to focus on mutual benefit, to meet deadlines and production requirements, to improve internal trust and relationships, and to create long-term relationships. Such practices, however, may also contribute to corruption and poor management. Thus, these cultural factors do create competitive advantage, but must be used carefully.