Motivational and Environmental Factors Influencing Family Business: Evidence from a Study of Chinese-Filipino Entrepreneurs in the Philippines
Candy Lim Chiu and Emilyn Cabanda [1]
University of Santo Tomas
Submitting and Corresponding Authors:
Candy Lim Chiu, MBA
Associate Professor, Graduate School of Business
University of Santo Tomas
España St., Manila Philippines
Ph: (63-2) 731-5396; Fax: (63-2) 740-9732
Email: candyonthecover@yahoo.comEmilyn C. Cabanda, Ph. D.
Professor, Graduate School of Business
University of Santo Tomas
España St., Manila Philippines
Ph: (63-2) 731-5396; Fax: (63-2) 740-9732
Email: emilyn.cabanda@ustcc.ust.edu.ph
This paper analyzes motivational and environmental factors influencing family business by Chinese–Filipino entrepreneurs in the Philippines. The study was conducted in Binondo, Manila on a sample of 151 randomly selected Small and Medium-sized Enterprises (SMEs). The research instrument was a comprehensive questionnaire on motivational and environmental factors as well as characteristics of a family business. Findings were analyzed and validated, using statistical tools such as Pearson’s r, Spearman’s rho, and Kendall’s Coefficient of concordance. Interesting findings that emerged are: (1) there are no significant relationship between selected motivational or environmental factors and family business and (2) there are no significant differences in the perception of Chinese–Filipino entrepreneurs concerning the selected motivational or environmental factors that influence family business. These new findings are in contrast with the results obtained by previous studies indicating that those identified factors, when taken as a whole, had indeed not influenced the formation and the growth of Chinese–Filipino family businesses. As such, this study reports significant contributions to the field of entrepreneurship or family business in the Philippine context. This research suggests that possible areas in the future will examine in breadth the various factors (aside from motivational and environmental factors) behind entrepreneurship of Chinese–Filipino.
INTRODUCTION
In recent years, academic scholars have shown increased interest in the study of entrepreneurship, particularly the family business. According to Astrachan (2003:567), “The words “family business” occasionally appeared in the literature before the 1980s, but rarely. Early research was sparse and most articles were theoretical at best. Since that time, numerous scientific papers have been published and the quality of research in the field has improved dramatically.” Different aspects of family business inspired a growing number of studies in the field. In this study, family business has been defined as a family involvement in the management and ownership of the business.
The main focus of this study is on the Chinese-Filipino family businesses in Manila, particularly those concentrated in Binondo, Manila’s Chinatown, which is known today as one of the leading business and trade centers in the Philippines. This makes Binondo, then, an ideal case area for this present study. But who are the Chinese-Filipinos? Ocampo-Go (1999:91) defined that “the Chinese-Filipinos are a group of Filipinos of Chinese descent born in the Philippines after the Pacific War; belong to a relatively younger generation who are the Filipinos by birth and by heart. The Chinese-Filipinos identify with concern of the country, while simultaneously taking pride in the richness of their Chinese heritage.”
Chinese-Filipinos have established themselves as remarkable businessmen and entrepreneurs (Gavino et. al., 2001; and Lee, 2003). The growing number of Chinese-Filipino businessmen, traders, investors, and entrepreneurs has comprised the biggest and most significant share of the business sector throughout the Philippines (Chen, 2001). According to Ming Jer-Chen (2001:8), “the Philippines has the Chinese-Filipino population of three (3) percent, and that Chinese-Filipino manage to control seventy (70) percent of all businesses.” Their businesses are alleged to contribute to the growth of the Philippine economy in terms of the influx of goods and services (Ang-See, 1998). Chinese-Filipino family businesses are considered a strong economic unit as well as a major force in today’s global marketplace, and continue to survive the test of time and change (Gavino et. al., 2001). With their rational embrace of business opportunities and the beyond belief of customs and rituals, these Chinese-Filipino entrepreneurs have known to boost their business luck. Thus, we attempt to make a descriptive contribution to a limited developed research area in entrepreneurship particularly in the Philippines.
There is a vast amount of literature on family business entrepreneurship in which a variety of success factors have been identified. To many readers, these factors have been interesting for assessing to oneself that entrepreneurship is for everybody, yet this approach is likely to provide limited insights, given the fact that many attributes of family businesses, internal and external factors and ways of doing business co-exist (Leenders and Waarts, 2001).
The most peculiar difference of this study is in its main focus on selected motivational and environmental factors that influence the family business in the Philippine setting, wherein the Chinese-Filipino family business plays an important role in the study. Some of the identified factors used in this study, however, were also employed by previous studies that could serve as bases of analyses of the present investigation within its present scope. This study takes an important step towards increasing our understanding of Chinese-Filipino family businesses in a different perspective, given the importance of such businesses to most country economies like the Philippines. There are always important things that an individual or organization can borrow from others to be successful. However, much remains to be done.
OBJECTIVES
The nature of family business in Asia has been given significant attention in the literature by many scholars in different perspectives and countries, particularly the Chinese. But who are these Chinese? They are the people from Guangdong, Fujian and Hainan China and their main dialects are Cantonese, Hainanese, Hakka, Hokkien, Fuzhou and Teochiu (Limlingan, 1986; Palanca, 1995). There were also studies that had been done in the Philippines by local researchers focused more on the profile of the Chinese-Filipino businessmen, their culture and traditions, family succession, management and organization and corporate governance. Instead of focusing on the usual success factors, characteristics and business system, the purpose of this study is to answer five central objectives: First, to identify the profile of Chinese-Filipino family business as regards to gender, education, and size of the business; second, to determine how Chinese-Filipino entrepreneur’s rate selected (a) motivational and (b) environmental factors that have influenced the formation of their family business; third, to determine how Chinese-Filipino entrepreneurs rate the attributes of the family business; fourth, to examine whether selected motivational or environmental factors have significant relationships with the attributes of the family business, and lastly, to determine whether there are significant differences on the perceived selected motivational and environmental factors that influence the family business among Chinese-Filipino entrepreneurs in Manila.
Human motivation has been the study of many researchers throughout the decades. Traditional theories like Maslow’s Hierarchy of Needs Theory, McGregor’s Theory X and Theory Y, and Organizational Behavior are the basic foundations of the behavioral approaches applied in this research. The framework represents the profile of the Chinese-Filipino as regards to education and category of business that are valuable resources for a successful family business style of doing business. The study identified selected motivational and environmental factors that are considered to play a vital role in the successful business practices of entrepreneurs. The motivational factors include the following: attitude, experience, family background, money, philosophy, and values. The environmental factors are economics, education, political, technology, and socio-cultural. It is hypothesized that
H1: There are no significant relationships between selected motivational or environmental factors and family business management.
H2: There are no significant differences in the perception of entrepreneurs concerning selected motivational and environmental factors that influence family business management.
METHODOLOGY
Sample
The samples were taken from Binondo, Manila, Philippines. The respondents were all Chinese-Filipino entrepreneurs and were selected by using the stratified random sampling technique. The total population of Small and Medium businesses in Binondo was 536 businesses. Out of the total population, 234 were composed of Chinese-Filipino entrepreneurs. The sample size, which was equal to 151, was determined using a sampling formula.
The number of respondents for each category/strata (professional with small-scale business, professional with medium-scale business, non-professional with small-scale business, and non-professional with medium-scale business) was determined by using the proportional allocation method. After determining the number of respondents in each stratum, the researcher employed the fish bowl method of sampling. The size of business was based on the Department of Trade and Industry’s (DTI) business grouping as follows:
Table 1: Size of Business
TYPE |
NO. OF EMPLOYEES |
CAPITALIZATION |
SMALL |
10-99 |
(PHP) 3,000,001 – 15,000,000 |
MEDIUM |
100-199 |
(PHP) 15,000,001 – 100,000,000 |
(Value of assets, inclusive entity’s office, plant and equipment are situated) in Philippine Peso
Source: BSMED (Department of Trade and Industry) as of 16 January 2003
The Chinese-Filipino respondents’ sample size held a wide range of positions within their respective organizations, such as owner, president, manager, officer, and supervisor. Furthermore, the study focused on diversified small-and-medium sized enterprises, such as electronics, hardware, brokerage, textile, merchandising, hardware, retailing, insurance company, restaurant, bake shops, jewelries, drug stores, mini mart, etc., within the area of the study.
Measuring Instrument and Validation
The researcher designed two sets of questionnaires and distributed these to the respondents. The contents of Questionnaire A focused on selected motivational and environmental influence affecting the family business. Questionnaire B focused on the attributes or characteristics of the family business. Selected factors found in the questionnaires were based on reviewed previous studies. This questionnaire was translated into Chinese for persons who might prefer to have it in this language. There were changes made in the Chinese translation until three translators agreed upon the proper words to be used and meaning to be adopted. No matter how many languages were used in the questionnaires or other interviewing, the researchers chose to present their results in English. The Four-Point Likert Scale (Nho, 1999) was used to determine motivational and environmental factors and also for the attributes of the family business management as presented:
Table 2: Four-Point Likert Scale
SCALE |
VALUE |
PERCENTAGE |
NUMERICAL VALUE |
4 |
Strongly Agree |
76% to 100% |
4.00 |
3 |
Agree |
51% to 75% |
3.00-3.99 |
2 |
Disagree |
26% to 50% |
2.00-2.99 |
1 |
Strongly Disagree |
0% to 25% |
1.00-1.99 |
In order to provide more reliable and valid results, the researcher conducted pre-testing for the designed questionnaire on 20 samples of respondents, who were not included in the actual sample. The questionnaire used in the study was revised three times from 50 questions for each category, down to 35 questions and then to 25 comprehensive questions for the final research instrument. Furthermore, to validate the contents of the instrument, the questionnaire was shown to people who were experts in the area and could provide further comments and inputs.
In the final testing, the test-retest correlation using Pearson r was employed to establish the reliability coefficient of the questionnaire. The questionnaire yielded a reliability coefficient of 0.86. The validity coefficient of the questionnaire in this study was 0.93.
Informal interviews were conducted to crosscheck the answers in the questionnaires. Responses on the questionnaires were subjected to analysis. A 100 percent retrieval of the questionnaires was obtained.
Statistical Analysis
The data for this study were analyzed and interpreted, using statistical tests that include computation of frequencies, weighted means, percentages, rank, Pearson’s r, Spearman’s rho, and Kendall’s Coefficient of Concordance (W). The null hypotheses were tested at a 0.05 level of significance.
Pearson’s r (to shows the relationship between two sets of interval or ratio scaled variables) was used to test the reliability of the questionnaires. The Statistical Package for Social Sciences (SPSS) was used to derive accurate and reliable results for this study. Spearman’s rho (to measure the strength and direction of the relationship between variables in ordinal scale) was used to determine the relationships between motivational and environmental factors and family business management. Kendall’s Coefficient of Concordance W (a coefficient of agreement between different sets of rank orderings of the same set of things) was used to determine the relationships among the ratings of the four categories of respondents in this study.
RESULTS [2] AND DISCUSSIONS
Profile of Chinese-Filipino Entrepreneurs
The study is restricted to diversified small-and medium-scale enterprises (SMEs) in Binondo, Manila. These SMEs are owned by the second generation of Chinese-Filipino in the family, who were either born in the Philippines or are naturalized Filipino citizens. The profile of entrepreneur-respondents is separated into four categories: see Table 3. (1) Professional with Small-Scale Business, with a total number of eighty-one (81) Chinese-Filipino businesses; (2) Non-Professional with Small-Scale Business, with twenty-eight (28) Chinese-Filipino businesses; (3) Professional with Medium-Scale Business, with forty (40) Chinese-Filipino businesses; and (4) Non-Professional with Medium-Scale Business, with two (2) Chinese-Filipino businesses. A large portion of Chinese-Filipino family businesses falls under the classification of professional with a small-scale business. This category had a total of eighty-one (81) businesses, which are owned and managed by sixty-eight (68) male entrepreneurs and thirteen (13) female entrepreneurs. Likewise, the category of non-professional with a small-scale business had a total of forty (40) businesses, with thirty-seven (37) male entrepreneurs and three (3) female entrepreneurs. The two other classifications also constitute important sectors in which the Filipino-Chinese family businesses operate. Professional with a medium-scale business had a total of twenty-eight (28) businesses, composed of twenty-three (23) male entrepreneurs and five (5) female entrepreneurs. The smallest number of businesses was in the category of Non-professional, with a medium-scale business.
The Entrepreneurs Managing the Family Business
Based on the structure of the Chinese-Filipino family businesses in Binondo, most, if not all, businesses have existed from four (4) to nine (9) years in the field of doing business. It shows that they continue to cope with the change and trend of environment just to sustain the family and the business. Male members of the family occupied most of the top management positions. Ownership and management control gave more priority to male members of the family in assuming the family business interests. The way a person is assigned to a certain position in the Chinese family business reflects the traditional view that men take on the special position in the place of the rightful owner. This implies further that Chinese-Filipino business structure is male dominated, based on the Confucian philosophy. Traditionally, each son received an equal share of his father’s estate; the inheritance was patrimonialism, with the eldest son assuming control of the family’s business interest (Redding, 1990; and Chen, 1995). A variant on this was to give the eldest son half the estate and to divide the other half among the remaining sons. This accounts in part for traditional ethnic Chinese firms being of small to medium sizes, though a family’s combined wealth may be quite considerable. It is still a usual practice for control, but not necessarily a full ownership, of the family’s business interests to be passed on to a son.
Educational Background of the Entrepreneurs in Binondo, Manila
Most of Chinese-Filipino entrepreneurs in the study had completed college degrees or higher education. In this way, the family retains an ultimate control of the business but also applies modern Western management techniques learned from Western education.
Size of Businesses in Binondo, Manila
Business enterprises of Chinese-Filipino in Binondo operate on a small-scale basis, with a capitalization of PhP 3,000,001 to PhP15 Million, having 10 to 99 employees. Mostly, the businesses operating all throughout the area are small-sized enterprises, with diversified products and services to offer. This new finding affirms the importance of SME’s in economic development, which is receiving increased attention in the business world.
Motivational Factors that Influence the Family Business by Chinese-Filipino Entrepreneurs
Individuals differ in their basic motivational drive towards doing things. This motivational drive is concerned with the efforts of a person towards any goal. Underlying each of these selected motivational factors identified in this study is its influence on the family business management.
Table 4: Summary of the Ratings of Motivational Factors that Influence Family Business Management by Chinese-Filipino Entrepreneurs
MOTIVATIONAL FACTORS |
Weighted Average Rating |
GAR |
NV |
Remarks |
|||
PS |
PM |
NPS |
NPM |
||||
1. Attitude is influenced by those who we admire, respect or maybe even fear. |
2.85 |
2.96 |
2.68 |
3.50 |
3.00 |
3 |
Agree |
2. Attitude greatly affects one’s behavior toward success. |
2.98 |
2.89 |
3.00 |
2.50 |
2.84 |
3 |
Agree |
3. A happy person is a productive individual. |
3.01 |
3.14 |
3.08 |
3.50 |
3.18 |
3 |
Agree |
4. Attitude influences actions or decisions. |
3.10 |
3.00 |
2.83 |
1.00 |
2.48 |
2 |
Disagree |
5. Experience of working with others gives a great contribution to the operation of the business. |
3.32 |
3.93 |
3.83 |
4.00 |
3.77 |
4 |
Strongly Agree |
6. Experience is said to be the great teacher and foundation of oneself. |
3.78 |
3.36 |
3.25 |
3.50 |
3.47 |
3 |
Agree |
7. Experience is a cost saving that comes from learning by doing that has been observed in one’s life. |
3.56 |
3.25 |
2.85 |
3.00 |
3.16 |
3 |
Agree |
8. Childhood business experiences mold a person to engage in business. |
3.19 |
3.32 |
3.00 |
1.00 |
2.63 |
3 |
Agree |
9. Family traditions of business succession influence a person to engage in business. |
3.05 |
3.04 |
2.75 |
3.00 |
2.96 |
3 |
Agree |
10. Obedience to authority of the father is essential to maintain one’s direction. |
2.48 |
1.96 |
3.10 |
1.50 |
2.26 |
2 |
Disagree |
11. Responsibilities to one’s family motivate a person’s success. |
3.88 |
3.50 |
3.23 |
3.00 |
3.40 |
3 |
Agree |
12. Early childhood business experiences encourage children to view the family business as an attractive career option. |
2.95 |
3.86 |
3.48 |
3.50 |
3.45 |
3 |
Agree |
13. Money is very important for most people, as reflected by the attitude that the more money one has the better. |
3.27 |
3.57 |
3.25 |
2.00 |
3.02 |
3 |
Agree |
14. Money has the power to motivate people as well as generate worries and unhappiness to those who do not have it. |
3.56 |
3.29 |
3.03 |
2.00 |
2.97 |
3 |
Agree |
15. Money can earn a person’s respect in a community and it has a reflection of a person’s intelligence, ability and effort. |
3.04 |
2.00 |
2.63 |
1.00 |
2.17 |
2 |
Disagree |
16. Being highly materialistic is evidenced by hard work and the search for economic rewards. |
3.40 |
2.61 |
3.05 |
2.50 |
2.89 |
3 |
Agree |
17. The only reason you want to be in the business is to make money because money can purchase many things a person desire. |
3.20 |
3.18 |
3.20 |
3.50 |
3.27 |
3 |
Agree |
18. Mutual trust, a common language, and origin facilitate transaction. |
3.41 |
3.54 |
3.00 |
4.00 |
3.49 |
3 |
Agree |
19. Deep observance to Confucian philosophy contributes to one’s success and allows also to maintain good standing. |
2.65 |
1.71 |
3.25 |
4.00 |
2.90 |
3 |
Agree |
20. Take-risks. |
2.81 |
2.79 |
3.43 |
4.00 |
3.26 |
3 |
Agree |
21. It is better to become the leader than a follower. |
3.21 |
3.39 |
4.28 |
2.50 |
3.34 |
3 |
Agree |
22. It is good to have close family ties. |
3.74 |
3.21 |
3.03 |
2.00 |
3.00 |
3 |
Agree |
23. Respect for the father is absolutely observed by families. |
3.72 |
3.96 |
3.55 |
3.50 |
3.68 |
4 |
Strongly Agree |
24. Chinese-Filipino businessmen are noted by their thriftiness and hardworking traits. |
3.99 |
3.68 |
3.70 |
3.00 |
3.59 |
4 |
Strongly Agree |
25. Trust and loyalty are highly valued by Chinese-Filipino businessmen. |
3.52 |
3.75 |
3.50 |
3.50 |
3.57 |
4 |
Strongly Agree |
TOTAL |
3.27 |
3.16 |
3.20 |
2.82 |
3.11 |
3 |
Agree |
Attitude
Chinese-Filipino entrepreneurs in the sample agreed that attitude directs one’s behavior towards success. They begin modeling their attitudes after those they admire, respect, or maybe even fear. They observe the way family, friends, and others behave, and thus tend to shape their way of thinking and doing things after these people. For people, who are yearning for success and satisfaction, attitude plays an important role in one’s performance and goals. For example, respondents believed that a happy person is a productive individual, but they disagreed that attitude may not affect one’s decisions or actions. The Chinese-Filipino entrepreneurs somewhat believed that a purpose in life or the will of a person serves as a drive or affects their behavior in making one’s decision and actions. The purpose of fulfillment, career, family, happiness, and ambition reveals one’s behavior as reflected in the way Chinese-Filipino entrepreneurs perceived this matter. This new result shows a similarity with the findings of previous researchers who found that a person’s attitude influences that individual’s perception of business.
Experience
Experience is said to be the greatest teacher, and this is what Chinese-Filipino entrepreneurs demonstrated in this study, which supports the importance of experience in their chosen field. Chinese-Filipino entrepreneurs strongly agreed that experience of working with others in the past played an important role in forming their own businesses. The finding in this study showed that the perception of Chinese-Filipino entrepreneurs with regard to experience affirms the same assumption made in the existing literature that experience is still the greatest teacher.
Family Background
It was proven in this study, and is consistent with the results of previous studies, that business is always connected with family. Family traditions of business succession, responsibilities, and childhood’s business experience have encompassed a willingness to pursue an individual’s career with his/her family. Respondents disagreed that obedience to authority of the father is essential to maintain one’s direction. This implies that obedience to authority is set aside for the new generation of owners in the business. Chinese-Filipino entrepreneurs have changed, with their own sense of authority, which perhaps is due to their modern education and experiences, which may have influenced the kind of operation they are implementing in the business. On the other hand, there is always a place for family opinions and ideas to be put to work.
Businesses are run according to the vocation and support of the family and its kin. This is affirmed in the result of this study: all businesses in the Binondo area are family owned and are SMEs.
Money
The finding in this study is consistent with the empirical findings of Lee and Lim (2001) that money indeed matters, and that it equates to one’s level of achievement. Based on the present finding, Chinese-Filipino entrepreneurs agreed that money can make a person happy, and that it can motivate a person to work. However, they disagreed that “money can earn a person’s respect in a community”. As perceived by Chinese-Filipino entrepreneurs, money alone is not a measurement of respect in a community, where material and intellect must go together. Chinese-Filipino entrepreneurs perceived that money is only an idea; what is more important is wisdom about money.
Philosophy
The present study found that Chinese-Filipino entrepreneurs had applied different philosophies to their daily-life settings (whether in their family, business, etc.) due to their exposures to these beliefs for several decades. This finding further implies that Chinese-Filipino entrepreneurs are becoming somewhat Western in terms of intellectual business pursuit, but the importance of Chinese philosophies is not threatened by other ideals. Instead, they continue to be valued, learned, and sustained. These philosophies encompass the teachings of Confucianism, Sun Tzu, Guanxi, and other Chinese philosophies. They are preserved from one generation to another. Ang-See (1990), however, believes the eventual integration and Filipinization of the ethnic Chinese has led to losing their culture over the past 50 years. Further studies should be conducted to examine the similarities and differences of this belief.
Values
The findings showed that Chinese-Filipino entrepreneurs gave great importance to values, family, and relationships. They strongly agreed that each and every person is part of an extended household, where meaningful interactions take place. Values—such as respect, loyalty, hardwork, thriftiness, and trust—have prevailed despite the ever-changing environment and diverse influences that come and go in one’s life.
For Chinese-Filipino entrepreneurs, the overall general average rating of selected motivational factors was 3.11, where they agreed that these factors played an important role in influencing their family business management. The mindset for Chinese-Filipino entrepreneurs is leaning towards broadening their drive for success to cope with the changing opportunities from within. This result supports the argument of Bazargan et al. (1999) that after the birth of an entrepreneur (refers to mental readiness and motivation for entrepreneurship), an entrepreneur follows the entrepreneurial activity and growth.
Environmental Factors that Influence Family Business by Chinese-Filipino Entrepreneurs
Covin and Slevin (1989) found a systematic relationship between managerial orientation, strategic posture and firm performance under different environmental contexts. The world is undergoing tremendous changes (such as when new markets are created and ongoing market flourish); it depends on how the enterprise and the person managing it interact with the ever-changing forces of the environment. The environment has often been viewed as the source of resources, which is vital for survival and growth. Underlying each of these environmental factors identified in this study is its influence on the family business management.
Table 5: Summary of the Ratings of Environmental Factors that Influence Family Business Management by Chinese-Filipino Entrepreneurs
|
ENVIRONMENTAL FACTORS |
Weighted Average Rating |
GAR |
NV |
Remarks |
|||
PS |
PM |
NPS |
NPM |
||||
1. Financial insecurity, unemployment and increased cost of living encourage a person to engage in a stable career or promising business. |
3.57 |
3.32 |
3.15 |
4.00 |
3.51 |
4 |
Strongly Agree |
2. Foreign currency and inflation affect one’s search of material goal. |
3.56 |
2.82 |
3.28 |
1.50 |
2.79 |
3 |
Agree |
3. The number and types of occupation determines one’s financial stability. |
3.44 |
2.89 |
2.40 |
1.00 |
2.43 |
2 |
Disagree |
4. The quantity and quality of material possession reflect the economic status of a person. |
3.19 |
3.46 |
3.88 |
3.00 |
3.38 |
3 |
Agree |
5. The family income and expenditures determines the economic status of a person. |
3.11 |
3.82 |
3.65 |
3.00 |
3.40 |
3 |
Agree |
6. A person to be more competitive in the modern world should have a higher education. Such as Masters and/or Doctorate. |
3.30 |
3.89 |
2.63 |
2.00 |
2.95 |
3 |
Agree |
7. Education is considered to be a preparation for the business world. |
3.65 |
3.29 |
3.25 |
2.50 |
3.17 |
3 |
Agree |
8. Education improves performance result. |
3.48 |
3.50 |
2.88 |
1.00 |
2.71 |
3 |
Agree |
9. Education molds a person’s ability towards establishing a business. |
3.44 |
3.68 |
3.43 |
2.00 |
3.14 |
3 |
Agree |
10. Sometimes your chosen course is not applied in real life business situation. |
3.12 |
3.39 |
3.70 |
3.50 |
3.43 |
3 |
Agree |
11. Political disorder between the government and the non-government sectors affects business. |
3.32 |
3.43 |
2.98 |
3.00 |
3.18 |
3 |
Agree |
12. The absence of a solid and organized political center to support one’s livelihood may influence the growth of business. |
3.49 |
2.68 |
3.45 |
2.50 |
3.03 |
3 |
Agree |
13. The rise and fall of political parties may affect the business growth. |
3.09 |
3.39 |
3.33 |
3.50 |
3.33 |
3 |
Agree |
14. Graft and corruption and peace and order may influence the growth of the business. |
3.54 |
3.61 |
3.60 |
4.00 |
3.69 |
4 |
Strongly Agree |
15. Bureaucratic inefficiency results to unfriendliness and poverty of the people. |
3.25 |
3.32 |
3.43 |
2.00 |
3.00 |
3 |
Agree |
16. The rise of modern technologies promotes more computers and automation. |
3.41 |
3.50 |
3.40 |
4.00 |
3.58 |
4 |
Strongly Agree |
17. Technology creates the need towards higher technological growth in business. |
3.68 |
3.00 |
3.53 |
3.00 |
3.30 |
3 |
Agree |
18. Technology changes human total intellectual environment. |
3.30 |
3.64 |
3.53 |
1.50 |
2.99 |
3 |
Agree |
19. Innovation creates business. |
3.43 |
2.89 |
3.50 |
3.00 |
3.21 |
3 |
Agree |
20. The world is getting smaller due to the rise of technology. |
2.73 |
1.93 |
2.78 |
3.50 |
2.73 |
3 |
Agree |
21. New trends in food taste, fashion, art, ideas, consumption, and status symbol encourage people to establish new business. |
3.89 |
3.82 |
2.85 |
2.00 |
3.14 |
3 |
Agree |
22. Rise of networking relations of family and friends encourage the growth of business. |
3.58 |
3.07 |
3.35 |
3.50 |
3.38 |
3 |
Agree |
23. Growth of urban classes results in the rise of more businesses. |
3.23 |
2.96 |
3.20 |
2.00 |
2.85 |
3 |
Agree |
24. Roles of entrepreneurs cause the growth of business enterprises. |
2.80 |
2.82 |
2.85 |
4.00 |
3.12 |
3 |
Agree |
25. Changing values and practices in religion affect business. |
2.30 |
1.50 |
1.98 |
1.00 |
1.69 |
2 |
Disagree |
TOTAL |
3.32 |
3.19 |
3.20 |
2.64 |
3.08 |
3 |
Agree |
Economic
Chinese-Filipino entrepreneurs strongly agreed that the quantity and quality of material possession, family income, and expenditures determine the economic status of a person in a society. They believed that every person’s way of life portrays the wealth that individual has possessed. However, they disagreed that the number and types of occupation of an individual cannot determine one’s financial stability. The reason perhaps of the disagreement is that compensation or the amount of money they receive from their employers is not enough to satisfy one’s financial need. This finding supports the general findings of Ang et al.’s (2000) study in which most of the Southeast Asian nations were considered to be the fastest growing nations in the world, with better standard of living and more wealth than the generations before them. But, they argued further that the fortunes of many countries in the Southeast Asian region were reversed due to the financial crisis, which had affected an individual’s economic performance.
Education
The cultural habit of parents is to advice their children to “go to school, study hard and get a good job.” Chinese-Filipino entrepreneurs in this study understood that “what you know” is as important as “whom you know.” They believed that higher learning from school prepares them to face and improve their competence in their chosen field in line with the business. They agreed that sometimes a chosen profession cannot be applied in a real business situation, but education can assist a people to produce goods and services, to respond effectively and creatively to their world, and to satisfy their curiosity and aesthetic impulses.
Political
The existence of governments has usually been necessary to provide for the common defense of the community, to ensure its domestic tranquillity, and to promote the welfare of the people. Based on perceptions of Chinese-Filipino entrepreneurs in this study, politics truly influenced the growth of a business. This finding is similar with the findings of McVey (1992) and Carney and Gedajlovic (2002). The present finding reveals that Chinese-Filipino strongly agreed that political factors truly affect their business. They believe that political factors affect the relationship between business and government and could lead to rise or decline of a business.
Technology
This study confirmed that the Chinese-Filipino entrepreneur, traditionally, engaged in low-technology industries. However, they are currently shifting to high technology and have continued to increase their awareness to technological changes, because they strongly agreed that the rise of modern technologies promotes the use of more computers and automation. They also believed that the world is getting smaller due to technology, wherein access and speed are not a problem in this century of development. Respondents in this study agreed that technologies are needed to become competitive in the market and to achieve business growth. Furthermore, they agreed that innovation stimulates business, and only a person who can cope with this condition can survive in the business world of change. These findings support the claim that SME’s are better able to respond and be more flexible in adjusting to market condition and technological change than large organizations.
Socio-cultural
Thomas (2000) argued that from birth, a person is surrounded with a world of conventionalized objects that influence knowledge, beliefs, standards, values, behavior, and the way of thinking of individuals. Based on present findings, trends in consumer habits and the increase in purchasing power have encouraged people to put up a business. Furthermore, connections or networking and roles of entrepreneurs in the society have influenced a growth in business. However, they disagreed that changing values and practices in religion may not affect the business per se. This is because the new generation of Chinese-Filipino entrepreneurs has managed their businesses, with an open mind to the existence of religion and values within the family border as well as outside their surroundings. These present results may bring some similarities with the study of Thomas (2000) as mentioned above.
For Chinese-Filipino entrepreneurs, the overall general average rating of environmental factors was 3.08, where they agreed that selected environmental factors played an important role in influencing their family business management. These new reported findings affirm the conclusion of Carney and Gedajlovic (2002) that Asian’s diversified family business groups are both a product and a source of their environment. Indeed, these results bring into focus a similar perception between Chinese-Filipino family business and Asia’s diversified family business groups that recognized the day-to-day changes, trends, opportunities, and threats that might shape their business objectives.[3]
Family Business by Chinese-Filipino Entrepreneurs
Family businesses or business families are becoming more and more important as subjects for research, but not less prevalent in most industries around the globe. They capture the style of combining both identities in one’s enterprise personality. In examining the nature of family business management of Chinese-Filipino entrepreneurs, it is important to categorize what constitutes the family business.
Table 6: Summary of the Ratings of Family Business Management By Chinese-Filipino Entrepreneurs
FAMILY BUSINESS MANAGEMENT |
Weighted Average Rating |
GAR |
NV |
Remarks |
|||
PS |
PM |
NPS |
NPM |
||||
1. The owner of the business is considered also as the manager. |
3.09 |
3.21 |
3.10 |
3.00 |
3.10 |
3 |
Agree |
2. The father/key family member holds the most important position in management. |
3.31 |
3.89 |
3.48 |
3.00 |
3.42 |
3 |
Agree |
3. Family and business values overlap. |
3.57 |
3.43 |
2.95 |
3.00 |
3.24 |
3 |
Agree |
4. Family business provides employment opportunities to relatives in need and gives “allowances” for developmental needs. |
3.27 |
3.14 |
3.65 |
2.00 |
3.02 |
3 |
Agree |
5. The judgment of an incompetent relative in a family is more reliable than that of a competent stranger. |
2.41 |
2.96 |
1.95 |
3.50 |
2.71 |
3 |
Agree |
6. Business decisions are often based on emotions rather than on commercial considerations. |
2.70 |
3.25 |
2.35 |
2.00 |
2.58 |
3 |
Agree |
7. The goals of the business are often treated as an affair internal to the family. |
3.86 |
2.79 |
2.95 |
4.00 |
3.40 |
3 |
Agree |
8. The owner regards the business as a private property of the family and reluctant to share the ownership with others. |
3.09 |
2.71 |
2.65 |
1.50 |
2.49 |
3 |
Agree |
9. A single family is effectively controlling the business. |
3.12 |
2.75 |
2.70 |
4.00 |
3.14 |
3 |
Agree |
10. The family business should be preserved. |
3.65 |
3.14 |
3.80 |
2.00 |
3.15 |
3 |
Agree |
11. The business has a simple organizational structure. |
2.96 |
2.96 |
3.70 |
3.00 |
3.16 |
3 |
Agree |
12. The business considers the product of culture and tradition. |
3.32 |
3.50 |
1.48 |
2.00 |
2.57 |
3 |
Agree |
13. Multiple members of the families hold fifty percent or more of the ownership of the business. |
2.56 |
3.11 |
2.95 |
2.00 |
2.65 |
3 |
Agree |
14. Members of the senior management group are drawn from the same family. |
3.83 |
3.57 |
3.13 |
3.00 |
3.38 |
3 |
Agree |
15. Common characteristics of the family business are: small or medium scale, with connection network, deal making skills, reduced costs and labor intensive. |
3.89 |
3.00 |
2.93 |
2.00 |
2.95 |
3 |
Agree |
16. The business observes lifetime membership and unconditional acceptance of family members. |
3.20 |
3.75 |
3.68 |
2.00 |
3.16 |
3 |
Agree |
17. The business-making process is unplanned and speedy. |
2.70 |
2.82 |
2.45 |
3.00 |
2.74 |
3 |
Agree |
18. Children in the family experience early exposure in the business while growing up. |
3.01 |
3.39 |
3.50 |
4.00 |
3.48 |
3 |
Agree |
19. The business endeavors to establish ties of friendship and trust across the wider family and beyond the family in order to build network of social and commercial cooperation. |
3.23 |
2.93 |
2.45 |
4.00 |
3.15 |
3 |
Agree |
20. Two or more family members work in the business and have financial and managerial control. |
3.79 |
3.04 |
3.38 |
3.50 |
3.43 |
3 |
Agree |
21. All employees are expected to be involved in the main product or the services of the company. |
2.35 |
3.00 |
2.40 |
1.00 |
2.19 |
2 |
Disagree |
22. The employees are assigned to various jobs at the impulse of the business owner. |
3.30 |
3.18 |
3.15 |
1.00 |
2.66 |
3 |
Agree |
23. The growth of the business is mainly dependent on the person who puts up the business. |
2.70 |
3.25 |
2.35 |
2.00 |
2.58 |
3 |
Agree |
24. Management control in the company is based on loyalty and subjective assessment. |
3.19 |
2.82 |
3.00 |
3.50 |
3.13 |
3 |
Agree |
25. Loyalty, diligence, sincerity, and harmony are highly valued. |
3.57 |
3.75 |
4.48 |
4.00 |
3.95 |
4 |
Strongly Agree |
TOTAL |
3.19 |
3.17 |
2.98 |
2.72 |
3.02 |
3 |
Agree |
Family Norms
Family norms are a set of conduct that is shared by family members and guides their behavior. Based on the present findings, Chinese-Filipino entrepreneurs achieved a level of commitment with their norms. They valued the position of the owner, the key family members, and their relatives in their business. In most cases, family and business overlap in practice.
Family Practices
A family’s sense of pride and honor is as critical as economic success. When it comes to managing the business, Chinese-Filipino entrepreneurs in this study all agreed that a business decision and a goal of a business are based often on emotions rather than on commercial considerations, which include consulting others. It is a matter of pride that a family business should be preserved from generation to generation, because it is considered as a private property of the family. These findings support the previous finding of Gavino et al. (2001) that a single family should be effectively controlling the business.
Structure
The distribution of power and authority provides the business a sense of direction. This is entirely dependent on the kind of ownership, the size of the business, the management, who forms the business and its organizational structure. This study found that various types of business that Chinese-Filipino entrepreneurs established were normally SMEs, and thus, consistent with the findings of previous studies (Ang, 1998; and Gavino et al., 2001). The respondents in this study agreed that the family business has a simple organizational structure, where the top management is drawn from the same family. Moreover, multiple members held a fifty (50) percent share or more of the business, and they were considered the product of culture and tradition in forming the whole structure. These findings truly adhere to the description of a family business.
Business Practices
A business practice has different characteristics such as outward looking and task-based, unemotional dealings, and rewards for performance based on results (Gavino et al., 2001). The present result showed that Chinese-Filipino entrepreneurs observe lifetime membership and unconditional acceptance of the family members, where two or more family members have financial and managerial control. They also let their children have proper exposures to business. The business-making process is unplanned and speedy. Beyond the family, building network or connections of social and commercial cooperation is expanding.
Managerial System
Family members are interrelated parts that function as a whole to achieve the common purpose of its existence. Every member has its own value and role to play in a business, where everybody serves his/her aspiration. The managerial system’s main emphases are on loyalty, diligence, sincerity, and harmony. Chinese-Filipino entrepreneurs still continue to hold on to these values with their business, family, and friends. Chinese-Filipino entrepreneurs perceived the same managerial system as evidenced by these observations:
- The growth of the business is mainly dependent on the person, who puts up the business because he has the capability to manage.
- From the beginning, he/she knows possible opportunities and returns to the family as well as to the business.
Chinese-Filipino entrepreneurs disagreed that employees are expected to be involved in the main output of the company and are assigned to various jobs at the impulse of the business owner. They believed that everyone has a role to play in the business, but there is a limitation in the involvement of the employee. They believed there is always something that needs to be kept secret within the boundaries.
The overall general average rating was 3.02, where family-like behaviors come naturally to Chinese-Filipino entrepreneurs. This finding further implies that in establishing and nurturing a family business, everything should be in balance with the nature of the people, task, and objectives. A family’s business success reflects the glory or disgrace of the family in the society. The result showed that Chinese-Filipino entrepreneurs adhere to the family business management.
Significant Relationships between (a) Motivational Factors (MF) or (b) Environmental Factors (EF) and Family Business Management (FBM)
Table 7: Non-Parametric Correlation The Significant Relationship between Motivational Factors (MF) and Family Business Management (FBM) and Environmental Factors (EF) and Family Business Management (FBM)
VARIABLES |
CORRELATION COEFFICIENT (r) |
SIGNIFICANCE (2-Tailed) |
Between MF and FBM |
0.063 |
0.441 |
Between EF and FBM |
0.115 |
0.161 |
The result of Spearman rho test, as shown in Table 7, reveals that motivational factors are not significantly related to family business management. It yielded a correlation coefficient (r) of 0.063, which shows its level of significance was beyond the acceptance level of 0.05. The decision is to accept the null hypothesis 1 stating that there is no significant relationship between motivational factors and family business management.
The above result was surprising. The new result implies that when all selected motivational factors were grouped together, they yielded an insignificant result with the family business management. But taken individually, the respondents in each category of selected factors agreed that a specific motivational factor had influenced the formation of their own businesses. This reported finding calls for more refinement in the selection of other motivational factors for future studies of family business management. The same procedure was used in testing the significant relationship between environmental factors and family business management, using Spearman’s rho. It also reveals an insignificant result between environmental factors and family business management (Table 7). It yielded a correlation coefficient of 0.115, which is beyond the 0.05 level of acceptance. Thus, the null hypothesis 1 that there is no significant relationship between environmental skills and family business management is accepted.
Overall, the findings successfully support the first hypotheses that selected motivational and environmental factors, when grouped together, have no significant relationships for the formation of family business management as indicators. These were interesting results, conveyed by diversified Chinese-Filipino entrepreneurs in the sample, using Spearman’s rho. The present result is in contrast with the findings of previous studies. Previous empirical results were found contrary to the results of this study. These new findings imply that different subjects and different settings may yield different results. This present study showed that selected factor on motivations and environment did not have significant connections with the formation of family business management by Chinese-Filipino entrepreneurs in Binondo, Manila. In some other countries, with different environments and levels of economy, previous studies proved that there was a significant connection. However, responses of respondents for each of the individual factors identified revealed agreement among respondents on the influence of each factor cited on the family business. When all factors were grouped together, there was no significant relationship that was statistically verified.
Significant Differences on the Perceived Selected Motivational and Environmental Factors that Influence the Family Business Management among Chinese-Filipino Entrepreneurs in Manila
Table 8: Summary of the Ranking of Respondents by Categories Regarding Their Rating on Motivational Factors
Motivational Factors |
Professional with small -scale business |
Professional with medium -scale business |
Non-professional with small-scale business |
Non-professional with medium-scale business |
1 |
22 |
19 |
24 |
8 |
2 |
20 |
20 |
19 |
17 |
3 |
19 |
16 |
14 |
8 |
4 |
16 |
18 |
22 |
24 |
5 |
11 |
2 |
2 |
2.5 |
6 |
3 |
10 |
9 |
8 |
7 |
6.5 |
13 |
21 |
13.5 |
8 |
15 |
11 |
19 |
24 |
9 |
17 |
17 |
23 |
13.5 |
10 |
25 |
24 |
13 |
22 |
11 |
2 |
8 |
11 |
13.5 |
12 |
21 |
3 |
6 |
8 |
13 |
12 |
6 |
9 |
20 |
14 |
6.5 |
12 |
16.5 |
20 |
15 |
18 |
23 |
25 |
24 |
16 |
10 |
22 |
15 |
17 |
17 |
14 |
15 |
12 |
8 |
18 |
9 |
7 |
19 |
2.5 |
19 |
24 |
25 |
9 |
2.5 |
20 |
23 |
21 |
7 |
2.5 |
21 |
13 |
9 |
1 |
17 |
22 |
4 |
14 |
16.5 |
20 |
23 |
5 |
1 |
4 |
8 |
24 |
1 |
5 |
3 |
13.5 |
25 |
8 |
4 |
5 |
8 |
w=0.50 |
||||
Note: With m = 4 and n = 25, and at a = 0.05, the critical value of w = 0.10
At a = 0.01, the critical value of w = 0.15
Table 8 presents the ranking of Chinese-Filipino entrepreneurs in the sample per category as regards their rating on motivational factors presented. The results showed that the computed value of w = 0.50 was greater than the critical value (0.10 at a = 0.05 and 0.15 at a = 0.01). Hence, the decision is to reject the null hypothesis 2; that is, there is no significant difference on the perceived selected motivational factors that influence the family business management among Chinese-Filipino entrepreneurs in Manila.
Table 9: Summary of the Ranking of Respondents by Categories Regarding Their Rating on Environmental Factors
Environmental Factors |
Professional with small-scale business |
Professional with medium-scale business |
Non-professional with small-scale business |
Non-professional with medium-scale business |
1 |
5 |
13.5 |
17 |
2.5 |
2 |
6 |
21.5 |
14 |
21.5 |
3 |
10.5 |
19.5 |
24 |
24 |
4 |
19 |
9 |
1 |
11 |
5 |
21 |
2.5 |
3. |
11 |
6 |
15.5 |
1 |
23 |
18 |
7 |
3 |
15 |
15 |
14.5 |
8 |
9 |
7.5 |
19 |
24 |
9 |
10.5 |
4 |
9.5 |
18 |
10 |
20 |
11.5 |
2 |
6.5 |
11 |
14 |
10 |
18 |
11 |
12 |
8 |
23 |
8 |
14.5 |
13 |
22 |
11.5 |
13 |
6.5 |
14 |
7 |
6 |
4 |
2.5 |
15 |
17 |
13.5 |
9.5 |
18 |
16 |
13 |
7.5 |
11 |
2.5 |
17 |
2 |
17 |
5.5 |
11 |
18 |
15.5 |
5 |
5.5 |
21.5 |
19 |
12 |
19.5 |
7 |
11 |
20 |
24 |
24 |
22 |
6.5 |
21 |
1 |
2.5 |
20.5 |
18 |
22 |
4 |
16 |
12 |
6.5 |
23 |
18 |
18 |
16 |
18 |
24 |
23 |
21.5 |
20.5 |
2.5 |
25 |
25 |
25 |
25 |
24 |
w=0.34 |
||||
Note: With m = 4 and n = 25, and at a = 0.05, the critical value of w = 0.10
At a = 0.01, the critical value of w = 0.15
Table 9 shows the ranking of Chinese-Filipino respondents by categories regarding their rating on environmental factors. The results showed that the computed value of w = 0.34 was greater than the critical value (0.10 at a = 0.05 and 0.15 at a = 0.01). Hence, the decision is to reject the null hypothesis 2 that is there is no difference on the perceived selected environmental factors that influence the family business management among Chinese-Filipino entrepreneurs in Manila.
Table 10: Summary of the Ranking of Respondents by Categories Regarding Their Rating on Family Business Management
Family Business Management |
Professional with small-scale business |
Professional with medium-scale business |
Non-professional with small-scale business |
Non-professional with medium-scale business |
||
1 |
16.5 |
10 |
11 |
11.5 |
||
2 |
4 |
15 |
8 |
7 |
||
3 |
21 |
8.5 |
22.5 |
18.5 |
||
4 |
21 |
8.5 |
22.5 |
18.5 |
||
5 |
13 |
2.5 |
4 |
18.5 |
||
6 |
6.5 |
6 |
14 |
11.5 |
||
7 |
9 |
1 |
7 |
11.5 |
||
8 |
16.5 |
25 |
18 |
23 |
||
9 |
19 |
18.5 |
3 |
11.5 |
||
10 |
25 |
16.5 |
21 |
24.5 |
||
11 |
10 |
11 |
9 |
24.5 |
||
12 |
2 |
23 |
14 |
3 |
||
13 |
21 |
21.5 |
19.5 |
11.5 |
||
14 |
14 |
21.5 |
12 |
7 |
||
15 |
8 |
5 |
25 |
18.5 |
||
16 |
6.5 |
2.5 |
1 |
3 |
||
17 |
23 |
14 |
14 |
18.5 |
||
18 |
15 |
24 |
17 |
3 |
||
19 |
3 |
4 |
10 |
11.5 |
||
20 |
18 |
7 |
6 |
3 |
||
21 |
5 |
12.5 |
2 |
18.5 |
||
22 |
11 |
12.5 |
5 |
18.5 |
||
23 |
12 |
20 |
19.5 |
3 |
||
24 |
24 |
18.5 |
24 |
7 |
||
25 |
1 |
16.5 |
16 |
18.5 |
||
w=0.35 |
||||||
Note: With m = 4 and n = 25, and at a = 0.05, the critical value of w = 0.10
At a = 0.01, the critical value of w = 0.15.
Table 10 presents the ranking of Chinese-Filipino respondents by categories as relates to their rating on family business management. The results showed that the computed value of w = 0.35 was greater than the critical value (0.10 at a = 0.05 and 0.15 at a = 0.01). Hence, the decision is to reject null hypothesis 2 that is; there is no significant difference on the perception of family business management among Chinese-Filipino entrepreneurs in Manila.
The existence of an ever-changing environment may tend to defy the perception of the entrepreneurs with regards to the formation and management of the business. Based on the present findings, there are significant differences on the perceived selected motivational and environmental factors that influenced a family business management among Chinese-Filipino entrepreneurs in Manila. Entrepreneurs’ level of education, kinds of their businesses, purpose or even time are, perhaps, the reasons that present results yielded significant differences among the perceptions of the Chinese- Filipino entrepreneurs.
CONCLUSION
Based on the findings, we conclude that Chinese-Filipino family business is continually bound to tradition but is installing a modern business structure through the influence of education and experience. More of these business people are becoming more aware that “what you know” and “whom you know” are essential in doing a business. Chinese-Filipino businesses in Manila are in the form of SMEs and become part of the global Chinese business networks. These family businesses are becoming more and more visible in the Philippine economy. The family business by Chinese-Filipino entrepreneurs continues to reflect a family-oriented structure, where men of the family are assigned in place of honor of the father or founder of the company. This family model of business continues to defy the odds and thrives under the familial control for decade after decade.
The assumptions of behavioral theories were reflected from the ratings of Chinese- Filipino entrepreneurs of selected motivational and environmental factors. The selected factors were found to have influenced the formation of family business among Chinese-Filipino entrepreneurs in Binondo. These results affirm that the entrepreneurs’ behavioral character affects the individual’s perception about certain things.
Internal (motivational) and external (environmental) underlying factors influenced the formation of a family business by Chinese-Filipino entrepreneurs. Selected factors such as attitudes, experience, family background, money, philosophy, values, economy, education, politics, technology, and socio-cultural matters identified in this study were all found to continue to evolve and influence Chinese-Filipino businesses. However, the use of statistical measures like Spearman’s rho and Kendall’s coefficient yielded contradicting results when these factors were taken as a whole, affected growth and performance in different countries and perspectives. These new findings may actually challenge the conventional findings of some researchers in this field. These new results also add another different view that filled in the gap in the existing literature that claimed motivational and environmental factors have no significant effects on the family business, as evidenced by the Chinese-Filipino entrepreneurs in Binondo, Manila. However, it is important to note that the factors identified in the study were necessary and important in the formation of a family business, which was consistent with the findings of previous studies.
The researchers believe that there is a room for testing in future research other selected factors that are not explored in the study. The findings suggest the need for follow-up with intensively developed case studies in order to assess a number of selected factors and their relation to family business seems to have limited potential. Perhaps, by increasing the list of explanatory variables (business behavior, economic opportunities and constraints, entrepreneurial traits, social capital, etc.) would yield different results. A broader view is needed in order to extend our understanding about the factors influencing family business management.
Studying Chinese-Filipino family businesses involves not only finding information to prove the existence of facts but also aids in understanding that sometimes these findings differ from what we thought and from what other researches demonstrated. The researchers work may not be cosmopolitan to the whole Chinese-Filipino population in the Philippines or the whole world but this study will serve as an avenue for future studies on family business and for determining other factors involved that may have influenced the family business management. Furthermore, the sample of Chinese-Filipino entrepreneurs could be further extended to the whole Philippines and to also include large corporations or businesses. There is more possible research for future investigations out of the present findings of this study. Broadening the scope of the research by using a bigger and different sample, whether it perceives the same outcome or different, and validating qualitative and behavioral data will provide more extensive information, improvement, and wider application of the study. These possible areas of research could examine in breadth the various factors behind entrepreneurship of the Chinese-Filipino in order to establish family business successfully in the modern world of doing business.
FOOTNOTES
[1] We would like to acknowledge the financial support provided by the Graduate School of University of Santo Tomas in Manila, Philippines, especially to Dean Lilian Sison. The School provided also the financial assistance to present this study in the ASPAC 2004 Conference, held at the University of Oregon on June 18-19, 2004. Our special thanks to Lyle Brown for his proofreading assistance.
[2] All data and statistical results are readily available upon request to the author. Email address: candyonthecover@yahoo.com
[3] For detailed discussion of the Chinese-Filipino businesses in the Philippines with regards to environmental factors see (Chong-Cariño, T., 1998 and Rivera, C. and Koike, K., 1995).
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APPENDICES
Figure 1: Category of Chinese-Filipino Entrepreneurs
Professional with Small-Scale Business: College Graduate or above with 10-99 Employees with Capitalization of 3,000,001 M to 15 M Professional with Medium-Scale Business: College Graduate or above with 100-199 Employees with Capitalization of 15,000,001 M to 100 M Non-Professional with Small-Scale Business: College Level or below with 10-99 Employees with Capitalization of 3,000,001 M to 15 M Non-Professional with Medium-Scale Business: College Level or below with 100-199 Employees with Capitalization of 15,000,001 M to 100 M |
Table: 3 Profile of Chinese-Filipino Entrepreneurs
Chinese-Filipino Entrepreneurs |
Sex |
Form of Business |
|
Male |
Female |
||
Professional with Small-Scale Business |
68 |
13 |
81 |
Professional with Medium-Scale Business |
23 |
5 |
28 |
Non-Professional with Small-Scale Business |
37 |
3 |
40 |
Non-Professional with Medium-Scale Business |
1 |
1 |
2 |
Total |
129 |
22 |
151 |