Internationalization through exploiting familiness: A case study of KWC from Hong

Kong

2012-11-22

KWC Introduction

• KWC(Kowloon Watch Company) is a watch retailing company with 60 years’ history based in Hong Kong. It has more than 300 employees and expanded to Mainland China and Middle East.

• KWC was founded by Wong Ho Hung in 1952 and has come to the transition stage from the second to the third generation.

Wong’s familyWong

Ho Hung

Wong Kam Shing

Wong Kam Zau

Wong Mou Git

Wong Zi Mei

Wong Bau Bau

Wong Kam Fai

Wong Kam Hou

Wong Aa Zi

WongGaa Leon

WongGaa Hang

Interview Portfolio

Interviewee Current Post of Interviewee Date Place Duration

Wong

Kam ShingManaging Director

2012-07-27

2012-08-08

2012-08-22

APIB at CUHK

APIB at CUHK

APIB at CUHK

60m

165m

172m

Wong Aa Zi Business Director 2012-09-15 KWC office 66m

Wong Bau Bau Executive Director 2012-09-15 KWC office 60m

Chau Ho yuen Branch manager 2012-09-15 KWC office 45

Chen Man fung Shop sales 2012-09-15 KWC office 45

KWC Business

• KWC-Hong kong• FTL-East and Middle Asia• Fatanni—Mainland China• KOCARS-Hong Kong & Macau

Watch supply chain

Customers

Retailers

Distributor/Brand

Importer

Factory

R&D

FTL

Fatanni(China)

Kocars(HK&Macau

)

KWC(HK)

STEP Framework

Entrepreneurial orientation

• Autonomy• Innovativeness• Risk taking• Proactiveness• Aggressivenss

Familiness Resource Pools

• Leadership• Networks• Capital• Decision making• Culture• Relationship• Governance• knowledge

cultural

Family

life st

age

Fam

ily in

volv

emen

t

envi

ronm

ent

industry

Entrepreneurial Performanc

e“The New”

• Financial • Entrepreneurial• Social

Transgenerational potential

Family involvement and Internationalization

KWC(HK)

Fatanni(China)

FTL

Kocars(HK&Macau

)

Wong Kam Shing

Wong Bau Bau

Wong Aa Zi

Wong Gaa Hung

Entrepreneurship pool

Family pool

Analysis• Case study – Interview Firm files Autobiography

Interviewee Current Post of Interviewee Date Place Duration

Wong

Kam ShingManaging Director

2012-07-27

2012-08-08

2012-08-22

APIB at CUHK

APIB at CUHK

APIB at CUHK

60m

165m

172m

Wong Aa Zi Business Director 2012-09-15 KWC office 66m

Wong Bau Bau Executive Director 2012-09-15 KWC office 60m

Chau Ho yuen Branch manager 2012-09-15 KWC office 45

Chen Man

fungShop sales 2012-09-15 KWC office 45

A succession model in practice

准许信任

人员

过程

完善

尊敬

+领导

优秀

卓越+知识

职位

意愿

新继任者(家族成员 )

企业(CEO工作 )

下一代(家族成员 )

导师

意愿

知识传承

导师 (5年 ) 顾问 放手

Succession model proposed by Dr. Wong

Findings

• Confucius family culture (especially filiality) promotes the entrance of family members into the family firm.

• Family firms could expand simultaneously in geographical diversification and supply chain extension.

• Slotted horses mode may be an feasible way for family business succession.

Next steps

• Does the proposed succession model will be successful? It needs time to prove.

• How to keep the intimate relationship between family members as more and more people are immigrating and living dispersively?