Trust Governance Model of Family Enterprises Based on Corporate Life-Cycle Theory

From the perspective of family corporate lifecycle, this paper explores family enterprise cost model and game model of the trust governance in different enterprise life stages. Due to the traditional Chinese cultural values and reality constraints, Chinese family enterprises exert greater emphasis on trust on the family level than on the social level. However, over-emphasis on trust on the family level actually hinders the sustainable development of Chinese family enterprises. Confronted with fierce market competition, they must take new perspectives to construct new trust mechanism models and to strive for trust between family enterprises and professional executives. They are to ensure long-term competitiveness and gain win-win results between shareholders and employees.