The family business literature in developing countries suggests that their organizational features inhibit innovations that create niche products. In industrializing Malaysia, where family small- and medium-scale enterprises (SMEs) are undergoing a generational shift, there is little research on their capacity to develop the tacit knowledge of the founding generation. This assessment of 29 thriving family SMEs in plastics and food manufacturing evaluates how a new generation has nurtured innovative management, manufacturing, and marketing techniques. By adopting a business history approach that appraises the development of tacit knowledge, this study validates the need for family SMEs to institute organizational reforms to codify knowledge and therefore ensure long-term sustainability.
Southeast Asia with its historical concentration of ethnic Chinese remains an important economic hub encouraging cross-disciplinary inquiries on themes relating to businesses. In industrialising Malaysia, there is little research on their capacity to develop tacit knowledge of the founding generation mostly inherited from China, before starting a business in Malaysia. This assessment of four thriving Malaysian Chinese family SMEs in food production evaluates how a new generational change has innovated their traditional food products. Interestingly, tradition may enable these Malaysian Chinese firms to innovate by building on more reliable knowledge and resources, extensively validated over time, and hence reduce development and utilisation costs. The well-trained second and third generations have been innovating tacit knowledge to elicit strong and positive feelings of ‘Chinese’ identity, increasing the value of new products through R&D by embedding past knowledge and facilitating the legitimacy of innovative functionalities and obtaining market acceptance.
The emergence of the novel Coronavirus disease (Covid-19) has changed our norms and lifestyles. In facing this crisis, businesses in general are often struggling to sustain their livelihood and legacy. For Chinese family dynasties that are in their third generations, i.e. YTL Corporation Berhad in Malaysia and Lippo Group in Indonesia, they are able to apply Christian ethics and xinyong “信用” virtues that enable longevity and fostering workplace innovation during the Covid-19 crisis. Christianity business ethics and xinyong practices can be connected through routine applications of Christ-centered decision-makings that are evident in business environments and social impacts. Nevertheless, integrating cultural norms and Chinese confucion virtues such as xinyong in family businesses can be challenging in ensuring the CFBs sustainability. Hence, this chapter sheds light on the journey of the two families' Chinese dynasties, as they apply Christian faith and xinyong along with impactful actions to develop new solutions leading to longevity.
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