Pauline Yeung 楊寶蓮 ポーリーン∙ヤン 양보련

In the late 1980s, the late Harvard professor Joseph Nye coined the term “soft power” to describe the ability of nation-states to attract and persuade in international relations.  In contrast to hard power which leverages economic or military resources to have a coercive effect, Nye argued that soft power rests primarily on culture, political values, and foreign policies. As one of the first articles to apply the concept of “soft power” to family businesses, we adopt Tella’s definition of “soft power” as a non-state actor's ability to “influence the action, inaction, position, and behaviour of other actors through its non-coercion capability – including its philosophy, culture, values, and policies."

Drawing from 9 case studies in 8 jurisdictions, we argue that it is the opportunity for next generation family members to pursue their passions – whether within or outside the frameworks and boundaries of the inherited business – that not only preserves family wealth and family harmony but also contributes to family legacy and family “soft power.” Indeed, beyond the orderly transfer of family assets and the absence of family lawsuits or other forms of family conflict, family soft power is increasingly important for families – and not just states – to draw attraction and admiration in the domestic and international arenas.