Taiwan’s big firms’ succession issue

4 Aug

A lot of large successful companies in Taiwan are family-owned and managed, but a lot of the original founders have stayed on and retained control. This leads to the obvious problem of what happens when the founder passes away or retires. The main issue is that these founders often like to keep control of their companies, reigning over all affairs and micromanaging. For instance, take Foxconn or Hon Hai, the world’s largest contract electronic goods maker, and its owner Terry Gou:

Some years ago, Mr Gou enlisted the help of a group of academics, including Mr Tang, to develop a successor training plan. The plan was later disbanded after it became clear that no-one would be able to take over from Mr Gou until he started to delegate more.

“He can pick up [the] phone and call Steve Jobs or Bill Gates,” says Mr Tang.

“How can he transfer [these kind of] connections to his successor?”

 

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