If one thinks of Indian companies, the immediate names coming to mind are: Birla, TATA, Reliance, Godrej, Bajaj, etc. All family-owned companies.
Why are family-owned companies in India so famous and succesful and others like MNCs, private-public partnerships not so? Some answers could be found by analyzing the cultural dimension first.
With families, business is discussed around the dinner tables, thus grooming the next generation of leaders from childbirth - hence, a stronger, more dedicated management.
Also, families are much more careful with their finances and have the ability to take much more longer term bets with their money, than other companies who have to constantly fight for shareholder approvals, etc, since a dip in short-term revenues/profits may slam the brakes on any longer-term venture.
I also think the close-knit "connections" which influential families have with the administrators, could help drive legislation, bend the rules, and remove impediments to business faster than going down the legal route.
And when it comes to diversification, families easily transfer skills across the enterprise, since it's the "big picture" they are concerned with, rather than other companies where turf-wars, politics at the workplace, and "whats-in-it-for-me" attitudes restrict flexibility.
Maybe more reasons are there, and it needs to be given some thought... Hmm....
