Family firms taking surprising risks: building success on conservative values

2019 ◽  
Vol 40 (5) ◽  
pp. 21-27 ◽  
Author(s):  
Mark Lehrer ◽  
Stefan Schmid
Keyword(s):  
Risk Taking ◽  
Design Methodology ◽  
Family Firms ◽  
Risk Mitigation ◽  
Content Type ◽  
Substantial Risk ◽  
Conservative Values ◽  
Major Facilitator ◽  
Open Question ◽  
Practical Implications

Purpose This paper aims to explore hidden wellsprings of risk-taking in family firms. Design/methodology/approach The high tolerance for risk shown repeatedly by the famous family firm Hipp of Germany is documented. Three major risk-taking episodes at Hipp are examined. Findings Counterintuitively, conservative values were actually a major facilitator of risk-taking at Hipp. Research limitations/implications The ramifications for other family firms, especially in Germany’s so-called Mittelstand, are examined. An open question is whether the relevant scope of the foregoing analysis may be confined to national contexts like German Mittelstand with its highly developed sector of family firms. Practical implications Contrary to received wisdom, family firms with conservative values may actually have certain advantages in their capacity not only to assume certain types of risks but also to mitigate such risks. Especially the communitarian embeddedness of such values may provide a layer of risk mitigation. Social implications At least in some countries, such as Germany, family firms are indeed willing to engage in substantial risk-taking. With their approach of combining conservative values and risk-taking, they contribute to considerable wealth and societal development. Originality/value Conservatism in management and risk-taking propensity are usually thought of as antipodes. However, it is necessary to distinguish between conservatism (which usually equates to risk aversion) and conservative values (which, as shown, may be highly compatible with a willingness to engage and succeed in risky undertakings).

A family-enterprise collective certification trademark: consumer insight

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anna Maria Nikodemska-Wolowik ◽  
Piotr Zientara ◽  
Anna Zamojska
Keyword(s):  
Family Business ◽  
Design Methodology ◽  
Family Firms ◽  
Research Work ◽  
Strong Relationship ◽  
Content Type ◽  
Family Enterprise ◽  
Negative Perceptions ◽  
Consumer Insight ◽  
Practical Implications

PurposeThe purpose of this study is to find out how consumers respond to a proposed family-enterprise collective certification trademark and how they perceive family firms in general.Design/methodology/approachThe paper employs a quantitative approach. It draws on a questionnaire survey conducted among 1,091 Polish consumers in January 2018. Statistical methods, such as exploratory factor analysis, were applied.FindingsPolish consumers responded positively to the proposed trademark. It also turned out that those who pay attention to the producer or the brand owner in a given sector also pay attention to the symbols placed on products or services from these sectors. There was a strong relationship between consumers' positive perceptions of family firms and their assessments of the proposed trademark. This did not extend to negative perceptions. The findings from this study may be generalisable to other post-communist societies.Practical implicationsFamily firms should redouble their efforts to introduce a family-enterprise collective certification trademark (not only in Poland, but also in those countries where such a trademark is non-existent). This should be handled by umbrella bodies for family business.Originality/valueLittle research work, based on a large and representative sample, has so far focussed on the issue of how consumers respond to a family-enterprise identity. The value of this study lies in deepening understanding of the processes and mechanisms that underlie the organisation–consumer relationship within the context of family-enterprise operation.

Risky business and the boards who play that way

2016 ◽  
Vol 32 (8) ◽  
pp. 21-23
Keyword(s):  
Risk Taking ◽  
Design Methodology ◽  
Firm Risk ◽  
Content Type ◽  
Women On Boards ◽  
Board Directors ◽  
Pertinent Information ◽  
Equity Ownership ◽  
Risky Business ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Examines data from 260 companies on the UK’s FTSE 350 market to consider the extent to which risk-taking in businesses is related to the composition of boards. Establishes that there are board attributes that are significantly related to firm risk. In particular, these boards might be small in size, have high equity ownership among executive board directors and also have high institutional investor ownership. There is some lesser evidence that a greater number of women on boards might lead to a decrease in risk-taking. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

A contingency framework on partnership risk

2014 ◽  
Vol 27 (4) ◽  
pp. 317-333 ◽  
Author(s):  
Tobias Krause
Keyword(s):  
Design Methodology ◽  
Risk Mitigation ◽  
Mitigation Strategies ◽  
Role Conflicts ◽  
Content Type ◽  
Risk Mitigation Strategies ◽  
Shared Equity ◽  
Relational Accountability ◽  
Agency Capture ◽  
Practical Implications

Purpose – The purpose of this paper is to analyze and compare the specific contingencies of partnership risk in shared equity public-private partnerships (PPPs) with the contingencies of privately held, loose related PPPs. Design/methodology/approach – Drawing on instrumental and relational accountability perspectives, the author formulates theoretical propositions on partnership risk. Findings – The author conclude that loose related PPPs are characterized by high expertise and a higher risk of contract incompleteness by reason of opportunism. Shared ownership PPPs are characterized by lower opportunism but stronger goal ambiguities and role conflicts. These relationships are threatened by political micromanagement, agency capture and bailout problems. Research limitations/implications – The study offers an analytical frame of propositions and provides avenues for further research on partnership risk. Practical implications – The author suggest risk mitigation strategies for tight and loose related PPPs. Originality/value – Identifying crucial contingencies from both an instrumental and a relational perspective, the study makes a contribution to cooperation research in PPPs.

The auditor as consigliere in family firm

2017 ◽  
Vol 7 (1) ◽  
pp. 2-20 ◽  
Author(s):  
Sven-Olof Yrjö Collin ◽  
Jenny Ahlberg ◽  
Karin Berg ◽  
Pernilla Broberg ◽  
Amelie Karlsson
Keyword(s):  
Design Methodology ◽  
Family Firms ◽  
Response Rate ◽  
Family Firm ◽  
Social Implications ◽  
Content Type ◽  
The Family ◽  
Professional Independence ◽  
Practical Implications

Purpose The purpose of this paper is to develop and test a concept of auditor as consigliere in family firms, that captures additional functions to monitoring, those of advice, mediating, and conveying. Design/methodology/approach The concept is tested through a survey conducted on 309 Swedish auditors. Findings The data indicate that the consigliere role is generally not emphasized, indicating that auditors primarily perform the monitoring role of the audit. However, the authors do find indications of the auditor performing the consigliere role, through performing the advisory and mediating functions and, to a smaller degree, the conveying function. Research limitations/implications The survey is limited in response rate and in separating governance situations from consigliere functions. Practical implications With reservation for professional independence, the auditor as consigliere could be part of the governance of the family firm, but should be trained for this activity. Social implications Regulators should pay attention to the consigliere role when, for example, stipulating compulsory rotation of auditors. Originality/value The paper shows that the auditor is more than a monitor in family firms. The consigliere role, even if not at all dominating, has to be considered, at least in family firms.

A reflection on survey research in hospitality

2018 ◽  
Vol 30 (11) ◽  
pp. 3412-3422 ◽  
Author(s):  
Sara Dolnicar
Keyword(s):  
Social Sciences ◽  
Survey Research ◽  
Risk Mitigation ◽  
Mitigation Measures ◽  
Content Type ◽  
The Social ◽  
Wide Range ◽  
Substantial Risk ◽  
Research Questions ◽  
Practical Implications

Purpose Survey research has developed to become the default empirical approach to answering research questions in the field of hospitality (and many other fields of research within the social sciences). This paper aims to reflect on the use of survey research in hospitality and offers recommendations for improvement. Design/methodology/approach First, known dangers to validity associated with survey research are discussed. Next, a sample of studies recently published in leading hospitality journals is assessed in view of these known dangers. Finally, recommendations are offered for editors, reviewers, readers and authors to mitigate the risk of drawing invalid conclusions based on survey research. Findings Survey research is very common in hospitality research and is used to investigate a wide range of research questions and constructs under study. The nature of constructs studied, the answer scales used and the nature of the samples point to a substantial risk to the validity of conclusions drawn. Practical implications A number of risk mitigation measures are proposed that can help authors minimise the risks to validity arising from known dangers associated with survey research. These same risk mitigation measures can be used by editors and reviewers in the assessment of manuscripts and by readers to evaluate the validity of conclusions drawn in already published work. Originality/value The value of this study lies in reflecting from a distance on how the survey research is conducted in the social sciences in general and in hospitality research in specific. The paper reveals that some routine approaches particularly prone to undermining the validity of conclusions may have been adopted and offers a few suggestions how this risk can be mitigated.

Overcoming the collaborative challenge: commitment as a super-ordinate enabler of value co-creation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stanley E. Fawcett ◽  
Amydee M. Fawcett ◽  
August Michael Knemeyer ◽  
Sebastian Brockhaus ◽  
G. Scott Webb
Keyword(s):  
Supply Chain ◽  
Competitive Advantage ◽  
Design Methodology ◽  
Risk Mitigation ◽  
Supply Chain Collaboration ◽  
Supply Chain Risk ◽  
Content Type ◽  
Collaborative Advantage ◽  
Collaborative Capabilities ◽  
Practical Implications

PurposeDespite over 30 years of focus on supply chain collaboration, companies continue to struggle to achieve collaborative advantage. To better understand why some companies are able to collaborate for competitive advantage and others can't, the authors explore how managerial commitment enables collaborative capabilities.Design/methodology/approachThe authors employed a longitudinal inductive study, interviewing companies with reputations for intense supply chain collaboration at four different times over 20 years.FindingsThe authors identified managerial commitment as a super-ordinate enabler. They describe the dynamics of commitment development and explore three types of commitment: instrumental, normative and transformative. The authors document key antecedents and outcomes of each type of commitment.Research limitations/implicationsTheory regarding the antecedents to commitment to collaborative capability is underdeveloped. The authors elaborate these antecedents and the dynamics that enable or undermine the commitment necessary to build effective collaboration capabilities.Practical implicationsThe authors provide insight (i.e. a practical and actionable roadmap) into the process companies use to cultivate commitment to collaboration and value co-creation.Originality/valueCollaboration is critical to value co-creation, including effective supply chain risk mitigation and lasting sustainability efforts. The authors elaborate a theory of commitment dynamics that explains why most companies never go beyond basic levels of collaboration. At the same time, the authors provide a roadmap for deep, transformative collaboration.

Product platforms and market segmentation

2017 ◽  
Vol 33 (4) ◽  
pp. 28-31
Keyword(s):  
Market Segmentation ◽  
Design Methodology ◽  
Reading Time ◽  
Product Variety ◽  
Content Type ◽  
Product Platforms ◽  
Substantial Risk ◽  
Pertinent Information ◽  
Practical Implications ◽  
Variety Means

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Consumer requirements are becoming increasingly more diverse and placing greater demands on businesses as a result. Ongoing market volatility heightens what is already a considerable challenge. Satisfying consumer desire for greater product variety means that firms need to embrace at least some aspects of lean production. One example is the manufacture of different products using the same platform. Savings in terms of both costs and assembly time are regularly achieved when platforms are utilized in this way. On the negative side, there is a substantial risk that products from the same platform will compete against each other for market share. Many observers believe that such cannibalization is inevitable. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

The dangers of pursuing innovation at all costs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Risk Taking ◽  
Design Methodology ◽  
Reading Time ◽  
Optimum Level ◽  
Company Performance ◽  
Content Type ◽  
Performance Risk ◽  
Pertinent Information ◽  
Technology Orientation ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on the inter-relationships between technology orientation (TO), company performance, risk-taking propensity, and innovativeness. The responses from the Florida-based technology firm managers revealed that too much TO effort can cause innovations to fall flat on their face. Up to the optimum level, however, increasing TO and innovativeness drove company performance. Risk appetites also impact the innovativeness-performance relationship, by enhancing it where innovativeness is low, and by mitigating the diminishing return of the innovativeness-performance dynamic whenever the amount of innovativeness was high. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Bankruptcy at family and non-family firms: do they fail differently?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Christine Mitter ◽  
Michaela Walcher ◽  
Stefan Mayr ◽  
Christine Duller
Keyword(s):  
Design Methodology ◽  
Family Firms ◽  
Social Ties ◽  
Social Bonds ◽  
Firm Characteristics ◽  
Management Tools ◽  
Content Type ◽  
Economic Slowdown ◽  
Bad Debt ◽  
Practical Implications

PurposeFamily firms strive for transgenerational survivability. Thus, bankruptcy is a daunting event. Whether family firms fail for other causes than non-family firms has been scarcely researched and is investigated in this study.Design/methodology/approachThe paper draws on a sample of 459 Austrian bankruptcy cases to examine the effects of the distinct characteristics of family firms on failure causes.FindingsOur results indicate that family firm characteristics impact their failure, as bankruptcy causes differ from non-family firms. While family firms fail less often than non-family firms due to unqualified management and poor business-economic competencies, external bankruptcy causes, in particular bad debt and economic slowdown, are more widespread.Practical implicationsAs our findings suggest that the close social bonds of family firms may become a burden in crisis situations and make them especially prone to external bankruptcy causes, owner-managers should pay more attention to the dependencies, deficiencies and risks that come with their binding social ties. Moreover, they should rely on external advice and appropriate management tools to better recognize and fend off the resulting risks.Originality/valueTo the best of our knowledge, this is the first study that quantitatively examines differences in bankruptcy causes between family and non-family firms.

Partnering in offshore drilling projects

2017 ◽  
Vol 10 (1) ◽  
pp. 84-108 ◽  
Author(s):  
Sjur Børve ◽  
Tuomas Ahola ◽  
Bjorn Andersen ◽  
Wenche Aarseth
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Design Methodology ◽  
Risk Mitigation ◽  
Offshore Drilling ◽  
Content Type ◽  
Integrated Risk ◽  
Offshore Development ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to evaluate to which extent partnering practices observed in earlier research focussing on the construction industry are applied in offshore development drilling projects. Design/methodology/approach The paper reviews earlier research on project partnering and the relationship-based procurement (RBP) taxonomy. The taxonomy is then empirically applied to describe partnering practices in an incentive-based drilling project in Norway. Findings Many elements of project partnering observed earlier in construction projects were found to characterize offshore development drilling projects. However, as assessed using the RBP framework, the authors found that partnering elements in observed context rated consistently lower than elements previously reported in the construction industry, indicating a lower maturity of partnering practices in the studied context. Practical implications The present study provides a multi-dimensional and systematic description of partnering practices in offshore drilling projects. Project owners can utilize this information to identify partnering elements requiring particular emphasis when initiating and managing drilling projects. Based on the findings, such elements include transparency and open-book auditing, integrated risk mitigation and insurance practices and establishment of authentic leadership. The findings further imply that partnering models cannot be directly applied across industry boundaries but must be tailored to fit the salient characteristics of each context. Originality/value The paper systematically describes to which extent specific partnering elements of the RBP taxonomy are applied in offshore drilling projects.

Sign in / Sign up

Export Citation Format

Share Document