The Analysis of Trust Conflicts Inside Family Firms on the Basis of "Family Rationality" and General Altrusim

Since openning up and reforming in China, family firms have been facing a amount of conflicts in the process of rapid development. For example, some family firms require professional managers, but do not take in these talents. The reason of this is mainly because these firms fear their interests may be occupied by professional managers and some conflicts may emerge between them. Many researchers explore the reasons of these conflicts in terms of culture and contract. This essay tries to put ´family retionality´ as a theory hypothesis, and analyzes the machanism of trust conflicts inside family firms, relating to generalized altruism between family firms and family interests.