Power Transfer, Cultural Integration, And Professionalization in Family Business Succession: A Comparative Study of Metersbonwe and Youngor

Abstract

Family firms face unique challenges in the process of intergenerational succession, particularly in balancing power between family members and professional managers. This study examines the succession cases of two well-known Chinese family firms, Metersbonwe and Younger, through a “small-N” comparative research method. The comparison reveals the distinct strategies of the two firms in terms of power transfer, management coordination, and the integration of family culture with modern business practices. Metersbonwe transferred control directly to the founder's daughter without fully involving professional managers, leading to reduced market adaptability and missed opportunities for innovation. In contrast, Youngor introduced professional managers while gradually transferring power to more seamlessly integrate family values with modern management. This approach helped the company remain competitive and promote continuous innovation. By analyzing these cases, this study highlights the importance of dynamic power distribution, building trust, and strategic management in the succession process. Family firms can achieve long-term sustainability by integrating family traditions with innovative professional management, ensuring both cultural continuity and business flexibility. This study offers valuable insights and practical guidance for improving succession planning, governance, and innovation in family businesses.