Numerous of Taiwanese companies have traits of "family business" and "traditional industry", which makes them difficult to avoid problems as family business succession or organizational change and the subsequent organizational problems as business philosophy conflict of two generations and the dilemma of organizational change strategy. As discussed in this case, organizational change behavior could easily be induced by family business succession. While the owner of the first generation insists on exploiting strategic benefit (exploitation innovation) and the second generation of successor on exploring alternative innovative strategy performance (exploration innovation), the differences of managerial viewpoints and organizational change between two generations would be blended and mixed up into the essence of the discrepancy. Lastly it expanded into an organizational conflict.
To be concluded, the introduction of external resources, internal family network and understanding the life history overlapped between two generations are contributed to the organizational conflict transformation, and emerged in the drive of organization improvement. As the factors promoting the coexistence of exploitation innovation and exploration innovation, it includes maintaining the independency between two cross-reign values and beliefs, accepting the functional conflict and emphasis on tacit learning. It is noteworthy that altruism and egoism weighting in the owner’s and the successor’s minds could interfere the business development process.
Family Business Succession, Organizational Change, Organizational Conflict, Exploratory Innovation, Exploitative Innovation