LAUSR

Abstract The unique cultural phenomenon of Asia and the growth of Asian enterprises have attracted considerable academic attention in this domain. Clan culture is a typical part of Asian culture and represents a new field in the cultural study of management. Based on the statistical data from China's Annual Census on Industrial Enterprises 2007, this article discusses the influence of clan culture on the financial and social performance of private-owned enterprises (POEs). The results of this study show that the strength of clan culture inhibits the financial performance of POEs and improves social performance—i.e., the welfare of their internal employees; in addition, the degree of regional marketization and social trust can moderate this relationship. In summary, we illuminate the institutional logic that clan protection affects POE performance.