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The main purpose of this study is to analyze the relationship of consensus and faction (clique) in the Taiwan family enter- prises. Under the influence of Confucian culture and self- interest in human nature , Chinese pay much attentions to power, affection, and shame. And managerial style of entrepreneur contains "attat -ching importance to authority", "trust network", and " harmony of group" under the charcacter of familism. Traditional Chinese organizations are "family- approach" de- signed to emphasize vertical and horizontal interpersonal re- lationship. And authoritarian leadership and Guan-Xism are important characteristics in this kind of organization. The consensus which the leader concerns and tries to build is " peace and harmony in one big family." This consensus must be carefully sustained by authoritarian leadership, it is beyond any form of challenge under the circumstances of hurting lead- er''s ego and "face." The consensus of peace and harmony, there- fore, is the utmost common symbol to the organization. Authoritarian leadership depends heavily upon absolute power ,organization leaders of this kinds will try their best to keep the discretion power and set the "buffer structure" in order to build their impression management and authoritarian leader- ship, however, this action will increase organizational members'' uncertaity. Those members will reveal some rational responses which include "enhancing personal loyalty" to one of the leaders ,and "establishing or enlarging faction(clique)" to control human/ power resources. The methodolody of this research based on formal theory and qualitative logic reasoning approach which emphasizes "concepts and deductive propositions" to do the logic reasoning job in the context of domestic culture.
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