Corporate Governance in Family-Owned Businesses: Balancing Tradition and Innovation for Long-term Growth in China

This study explores corporate governance in family-owned businesses (FOBs) in China, focusing on balancing traditional governance structures and adopting modern, innovation-driven practices to ensure long-term growth and sustainability. As China's economy becomes increasingly globalized and competitive, family businesses face challenges maintaining familial control while adapting to changing market dynamics. Through qualitative research, including semi-structured interviews and document analysis, this study examines Chinese family businesses' governance practices, succession planning, and decision-making processes. The findings reveal that while many family businesses rely on traditional governance models rooted in family control and Confucian values, there is a growing shift toward professionalization and integrating external governance practices. The research highlights the importance of balancing tradition with innovation, particularly in leadership succession, governance structure, and strategic planning. The study offers practical insights for family business owners seeking to optimize their governance practices for long-term success, emphasizing the need for professional management, clear succession planning, and a strategic approach to innovation.