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The Impact of Family Involvement on Outsourcing Decisions: Manufacturing Evidence from China |
ZHOU Li xin,LI Zhong yun |
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Abstract Family involvement has an important impact on outsourcing decisions of enterprises. Therefore, outsourcing decisions of family firms are significantly different from those of non-family firms. The purpose of this paper is to empirically test the relationship between family involvement and the propensity toward outsourcing in Chinese private enterprises. A random survey was conducted among 467 manufacturing private enterprises in Zhejiang and Chongqing of China, and 418 valid samples of private enterprises were selected. Multiple regression analysis was performed for the purpose of this study. Our results indicated that Chinese family firms are more likely to engage in outsourcing than non-family firms. Our results also showed that family management and family generation leading the firm are significantly and positively associated with the propensity toward outsourcing in Chinese family firms, whereas family trust or pan-family trust is significantly and negatively associated with the p
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Received: 14 November 2012
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Corresponding Authors:
ZHOU Li xin
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