The role of manager's Locus of Control between perceived guanxi and leadership behavior in family business

The special and historical relationship network in Chinese societies is based on blood ties or family emotional connection, in which family business appears the best representative. With the specialty of corporate structure, power and leadership between superiors and subordinates are the critical issues for research, where managers' personality is particularly emphasized. We combine guanxi in Chinese societies, power, influence tactics, and locus of control in the research model, 147 family business in Taiwan are proceeded the questionnaire survey, and 332 valid copies are retrieved. With hierarchical regression analysis, the findings show the close relations between managers' power, perceived guanxi and leadership behavior, in which managers' locus of control play a critical role. It is therefore suggested that the assignation of managers in such type of enterprises should be more cautious; in addition to the communication with the subordinates, the fitness with personality and competence should be concerned in order to maintain the favorable work efficiency and the relations between superiors and subordinates.