Research on the issues of management succession in Chinese family business should have a significant impact to the survival of small‐ to medium‐sized manufacturing enterprise (SME) in Hong Kong. One overlooked area in the study of SME is the continuity issue of management succession from one generation to the next generation in family‐owned businesses. The major emphasis is to delineate the difficulties, which the second‐generation owners encounter, in managing family businesses and propose a tripartite model for the second‐generation owners of SME to adopt in enhancing their abilities and re‐invent their family businesses to compete in the information age.
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