Family-owned companies in Asia have new hurdles to overcome given the rapid pace of change in technology and markets. With the significance of family connections and customer loyalty diminishing, executives must acknowledge the pressing need to change their ways of doing business.
A new study by The Economist Intelligence Unit (EIU), assesses the readiness of family businesses across Asia-Pacific to address future challenges to their operations. “Planning for prosperity: assessing family business future-readiness in South and South-east Asia”, sponsored by SAP, is based on the findings of a survey of 300 family business executives across eight countries in the Asia-Pacific region: Bangladesh, India, Indonesia, Malaysia, the Philippines, Singapore, Sri Lanka and Thailand. The barometer rates business confidence across four categories: people, technology, processes and environment.
Key findings from the research include:
- Executives show high confidence in their abilities to meet future challenges, although expert testimony suggests they are more vulnerable than they admit
- Seven in ten executives admit that their companies will need to change in order to successfully overcome the challenges of the next three years
- Nearly 100% of executives say their organisations have a clear plan for succession, though experts suggest succession planning may be little more than a notional exercise that will be trumped by tradition and culture
