Family-Owned Firms Asia Boost Performance with Clearer Outsider Divide

A new CUHK Business School study finds that family-owned firms Asia perform better when there are clear divides between family and non-family executives. Examining 262 Chinese family companies, the research showed that differences in age, education, and background between the groups improved decision-making speed and strategic creativity. This dynamic—described as dominance and knowledge complementarity—allows family managers to set direction while professional outsiders inject fresh insights. However, the benefits for family-owned firms Asia fade if non-family managers face bias or if support systems such as auditors and consultants are weak. The study recommends prioritising complementary skills when hiring external executives.