Interaction between Chinese Family Business and Cultural Differences in Malaysia

Family business inheritance among the Chinese community is a tradition that is known by the business
community worldwide. Thus, a family business among the Chinese community in Malaysia is common. In fact,
the inheritance of this business provides a unique and exciting dimension to be investigated. The paper explores
the empirical evaluation on the influence of family business inheritance among the Chinese; who managed to
overcome obstacles and conflicts through discussions and negotiations. Using a correlation test to examine the
effect of inheritance in a family business among the Chinese, the study stress on the variables such as power
distance, uncertainty avoidance, and masculinity vs. femininity, individualism vs. collectivism, time orientation
and impact on value dimension. In addition, factor analysis and regression testing are also used to determine the
main determinant factor in the family business inheritance among the Chinese community. Primary data were
collected from August to October 2011 using questionnaires. Meanwhile, secondary data were gathered through
library research and interviews with Chinese traders on the East Coast of Malaysia. From the qualitative study, it
is found that the main reasons for refusal to inherit the family business among the younger Chinese generation is
due to jobs that offer the lucrative wages as compared to profits earned in the family business. Job status,
educational level and age are also the factors that influence the younger Chinese generation not to inherit the
family business