ABSTRACT
Having thoroughly examined the mechanism of transferring ownership, leadership and personal connections, we understand that in order to reduce internal conflict, many families may choose to divide their estate before the parents die. Other evidence also shows that most parents try to establish their heirs’ leadership before passing the baton on to them officially. Social networks and personal ties are also inculcated to ensure a smooth succession. In this chapter I will first summarize some of the key findings to examine the inheritance system and the dynamism of Chinese family business with a brief comparison between the studied Chaozhou families and the long-established families. Then, I will synthesize all the aforemetioned arguments by reexamining the intertwined relationship between inheritance, competition and business adaptation. After that, I will go a step further and explore the origin of the self-employment mentality and the unconventional developmental process of large Chinese family enterprises. Finally, I will also try to discuss the myth of the equal inheritance system and its implication in economic development.
