Introduction of professional managers in family businesses

Abstract

The objective of this study is to identify differences between a family-owned and managed firm, and a family-owned but professionally-managed firm. Areas of particular interests are firm's age, firm's size, firm's performance and growth strategies pursued by the firms. Founders/Owners' views on the reasons for and against introduction of professional managers are also studied. For founders/owners who have introduced professional managers into their firms, the timing and method of introduction, as well as the qualities of professional managers and the roles they played are identified. For firms without professional managers, reasons why they are not introduced and intention of introducing them are determined. By studying these areas, we could raise founders/owners' awareness on the benefits and problems associated with the introduction of professional managers into family businesses. We believe this research will spark off interests in this area of study, particularly in Singapore, since many local businesses are family-run.