Hebei Dawu Group: Building the First Family Business Constitution in China
(10 pages of text)
This case examines the family business constitution created by Dawu Group’s founder, Sun Dawu. It was the only such system in China to date, and made it possible for the group to survive near-fatal challenges. The case starts with problems Sun Dawu encountered, such as a salary-rise request from a recently elected board member; managers’ doubts about the constitution system; and the suspicion of external experts and journalists regarding the group’s elections. The case examines the history of Dawu Group, the family business constitution system, and the approach Sun Dawu took to address succession. One of the issues the family business owner faced was whether it was possible to solve the internal challenges and external doubts about family business succession and governance and, if so, how.
This case helps students understand the hybrid institutional infrastructures of the family business constitution and the challenges during the implementation, especially the cross-generational succession issue in the Chinese context. It is suitable for core and elective courses in business management, strategy, sustainability, corporate governance, and human resource management, as well as elective courses in family business management, Chinese business management, and entrepreneurship.
Agriculture, Forestry, Fishing and Hunting
China, Large, 1985-2008
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