scholarly journals The Family Influence on Business: Czech Family Companies

2021 ◽  
Vol 92 ◽  
pp. 05025
Author(s):  
Pavla Srbová ◽  
Mária Režňáková
Keyword(s):  
Family Members ◽  
Value Added ◽  
Family Businesses ◽  
Family Influence ◽  
Corporate Management ◽  
Business Practices ◽  
Socially Responsible ◽  
Top Managers ◽  
The Family ◽  
Responsible Business Practices

Research background: Family businesses represent a combination of family and business aspects. Typically, a family is the majority owner and its members are top managers of the firm. The company name often contains the names of family members, i.e. they are publicly known. The family thereby gains recognition through the business operations of its firm, such as socially responsible business practices, and may also be considered a good employer. These aspects constitute its socioemotional wealth (SEW). Family business owners may consider the SEW to be of greater importance than typical corporate management, and this may be a reason for the lower profitability of family businesses. The purpose of the article: The aim of this article is to describe selected factors influencing SEW and to verify their significance on data on Czech family companies. Methods: The research was based on qualitative and quantitative data obtained by a questionnaire survey. Descriptive and statistical methods were used to analyse the formulated assumptions. Findings & Value added: Most Czech family companies are run by the first or second generation of family owners. Since they consider their control and influence on their company to be extremely important, family owners do not typically consider the entry of non-family investors into the ownership structure. The assumption that family companies have a low level of indebtedness was not confirmed. The ownership of the company consists of one family, which usually keeps a 100% share. The family has at least one member in the top management. The founder of the company is typically the father. The family prefers to transfer the business to family members; firstly its management, then its ownership.

scholarly journals Analysis of the Medical Companies Operating in the Polish Capital Market

2020 ◽  
Vol 2/2020 (88) ◽  
pp. 84-102
Author(s):  
Edyta Mioduchowska-Jaroszewicz ◽  
◽  
Malwina Szczepkowska
Keyword(s):  
Capital Market ◽  
Value Added ◽  
Family Businesses ◽  
Family Influence ◽  
External Market ◽  
Family Enterprises ◽  
Medical Sector ◽  
The Family ◽  
Reliable Source ◽  
Two Measures

Purpose: The aim of the paper is to analyse the activity of medical companies operating in the Polish capital market through the analysis of their investment attractiveness. Two measures taking into account two different perspectives were used for efficiency evaluation: financial-internal (EVA) and external-market (TSR). Design/methodology/approach: Two measures of evaluation of financial and market results of medical companies were used to achieve the aim of the paper. These two measures take into account two different perspectives: financial-internal (EVA) and external-market (TSR). Economic value added (EVA) is based on a preconception that maximisation of the value of an enterprise is the best possible way to increase competitiveness. The second formula, Total Shareholder Return (TSR), measures shareholder value creation in the most direct way: not only shareholders’ value but also their wealth. The second part of the paper focuses on the characteristics of the private medical sector in terms of the family influence on the functioning of the selected companies. The Substantial Family Influence indicator proposed by S. Klein was used, which determines the level of ownership and the involvement of the family in the researched companies. Findings: The analysis of the results of the examined group of medical companies, using two different measures from two different perspectives, shows different results. Hence, it is difficult to determine which of the examined companies is an attractive investment – a reliable source of income from investment. The second part of the paper identifies the listed medical companies in terms of their family nature. The SFI index was used, in which the participation of family members in management boards and supervisory boards was additionally taken into account. The calculations allowed for identifying four family businesses, one of which, Enel-Med, may be specified as a company with a significant family impact. The EVA measure was used for comparison of the financial results obtained by the companies, dividing them into family and non-family enterprises; however, no differences have been observed between the groups. The findings obtained do not confirm that family businesses achieve better financial results. Research limitations/implications: The private medical market is going to develop and may be attractive from the point of view of investors not only for patients. Globalisation of the market, emergence of big businesses and, the need to consolidate the sector make it necessary for the Polish medical companies to search for external sources of financing and to enter the stock market. Hence the question whether investing in capital medical companies is profitable. The paper looked for the answer by conducting research on 19 companies and their financial results from 2016 and 2017. Two measures were used, taking into account two different perspectives: financial-internal (EVA) and external-market (TSR). The results obtained were different, so it is difficult to determine which of the examined companies is an attractive investment – a reliable source of income from investment. In light of this, it is worth considering whether the analysis carried out in the long term or with the use of other indicators would give more unambiguous results. Originality/value: The aim of the paper is to analyse the activity of medical companies operating in the Polish capital market through the analysis of their investment attractiveness, which is a new approach in the assessment of the operation of the private medical sector. Also, the analysis of the private medical sector, taking into account the influence of the family and using the SFI indicator on the functioning of individual companies, is an original approach.

Family succession, professionalization and internationalization: a study of Brazilian family businesses

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Augusto Dalmoro Costa ◽  
Aurora Carneiro Zen ◽  
Everson dos Santos Spindler
Keyword(s):  
Family Business ◽  
Family Members ◽  
Secondary Data ◽  
Family Businesses ◽  
Three Dimensions ◽  
Content Type ◽  
The Family ◽  
Two Generations ◽  
Internationalization Strategies ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the relationship between family succession, professionalization and internationalization in family businesses within the Brazilian context.Design/methodology/approachThe paper presents a multiple-case study method with three Brazilian family businesses that have at least two generations of the owning family involved in the business and an international presence of at least three years. In-depth interviews and secondary data were undertaken with family and non-family members of each case.FindingsThe authors' results show that a family business can boost its internationalization by introducing both succession planning and professionalization on international activities. As family members tend to be more risk-averse and focused on keeping the family business within the family, professionalization is a way of improving the firm's ability to expand internationally. This process tends to lead to lower performance by the firm for the first few months or the first year after the investment, but afterward, international performance tends to grow exponentially.Originality/valueOnly a few studies have been concerned on the relationship of these three dimensions. Thus, the research takes into account that professionalization and succession lead family businesses to improve their internationalization strategies.

Capturing the Familiness of Family Businesses: Development of the Family Influence Familiness Scale (FIFS)

2017 ◽  
Vol 41 (5) ◽  
pp. 709-742 ◽  
Author(s):  
Hermann Frank ◽  
Alexander Kessler ◽  
Thomas Rusch ◽  
Julia Suess–Reyes ◽  
Daniela Weismeier–Sammer
Keyword(s):  
High Reliability ◽  
Family Members ◽  
Reliability And Validity ◽  
Family Influence ◽  
Factor Analyses ◽  
Confirmatory Factor Analyses ◽  
Proficiency Level ◽  
Confirmatory Factor ◽  
The Family ◽  
And Control

This article develops a familiness scale measuring the family influence on the business via decision premises that express familiness. In three studies, we examine familiness with qualitative and quantitative approaches based on new systems theory. Narrative interviews are employed to generate items. Exploratory and confirmatory factor analyses led to a multidimensional scale (Family Influence Familiness Scale [FIFS]) comprising six dimensions: (1) ownership, management, and control; (2) proficiency level of active family members; (3) sharing of information between active family members; (4) transgenerational orientation; (5) family–employee bond; and (6) family business identity. Results indicate high reliability and validity levels.

How Michelin-starred chefs are being transformed into social bricoleurs? An online qualitative study of luxury foodservice during the pandemic crisis

2020 ◽  
Vol 32 (1) ◽  
pp. 87-99 ◽  
Author(s):  
Wided Batat
Keyword(s):  
Service Providers ◽  
Social Issues ◽  
Social Role ◽  
Well Being ◽  
Small Sample ◽  
Business Practices ◽  
Socially Responsible ◽  
Content Type ◽  
Response Strategies ◽  
Responsible Business Practices

PurposeThe purpose of this research is to examine response strategies and the change in Michelin-starred chefs' practices to adapt to the global pandemic coronavirus disease 2019 (COVID-19) crisis that has strongly affected the foodservice sector.Design/methodology/approachThe authors conducted an exploratory qualitative research that used mixed-method, combining online interviews with 12 French Michelin-starred chefs and archival data. A manual thematic analysis method was used to analyze the data and identify relevant themes following an iterative coding process.FindingsThe findings show that Michelin-starred restaurants implement multilevel response strategies by developing dynamic capabilities while playing a social role through the development of new forms of business practices. The results show that Michelin-starred chefs adopt social bricolage entrepreneurial thinking to deal with the extreme situation and use diverse resources and response strategies to tackle social issues and improve the collective and individual well-being. The authors identified three major response strategies implemented by luxury restaurants: philanthropic activities targeting the well-being of the community, socially responsible business practices to support the foodservice actors and initiatives centered on consumer's food well-being.Research limitations/implicationsThe limits of this study are related to the small sample size and the elimination of psychographic criteria such as age and gender, which can extend our understanding of response strategies implemented by female and male owners or by age range during crises in the foodservice sector. Also, given that France is the country of Haute gastronomy, the conclusions of this study may not be generalizable to other countries where the gastronomic culture might be different.Practical implicationsRestaurants with high-end or luxury positioning must use multilevel – i.e. individual, sector and societal – response strategies to play a social role while sustaining their businesses during times of crisis. These insights seek to provide a roadmap which can be applied to other sectors to assess response strategies driven by various motives, resources and capabilities.Social implicationsThis research contributes to transformative service research literature by providing insights regarding how service providers can rethink their activities during the crises to play an active social role. Also, the findings point to several ways in which service actors can help customers and the community to improve their well-being.Originality/valueTo our knowledge, no prior research examined both the type of response strategies deployed by companies to survive and the importance of playing a social role and developing socially responsible business practices during times of crisis.

Introduction of accounting practices in small family businesses

2017 ◽  
Vol 14 (2) ◽  
pp. 111-136 ◽  
Author(s):  
Esperanza Huerta ◽  
Yanira Petrides ◽  
Denise O’Shaughnessy
Keyword(s):  
Family Business ◽  
Perceived Competence ◽  
Family Businesses ◽  
Service Industries ◽  
Business Practices ◽  
Managerial Accounting ◽  
Content Type ◽  
Small Family ◽  
The Family ◽  
Small Family Business

Purpose This research investigates the introduction of accounting practices into small family businesses, based on socioemotional wealth theory. Design/methodology/approach A multiple-case study was conducted gathering data through interviews and documents (proprietary and public). The sample included six businesses (five Mexican and one American) from different manufacturing and service industries. Findings It was found that, although owners control the implementation of accounting practices, others (including family employees, non-family employees and external experts) at times propose practices. The owner’s control can be relaxed, or even eliminated, as the result of proposals from some family employees. However, the degree of influence of family employees is not linked to the closeness of the family relationship, but rather to the owners’ perceived competence of the family employee, indicating an interaction between competence and experience on one side, and family ties on the other. Research limitations/implications First, the owners chose which documentary data to provide and who was accessible for interviews, potentially biasing findings. Second, the degree of influence family employees can exert might change over time. Third, the study included a limited number of interviews, which can increase the risk of bias. Finally, all firms studied were still managed by the founder. It is possible that small family businesses that have undergone a succession process might incorporate accounting practices differently. Practical implications Organizations promoting the implementation of managerial accounting practices should be aware that, in addition to the owner, some family employees and external experts could influence business practices. Accountants already providing accounting services to small family business are also a good source for proposing managerial accounting practices Originality/value This study contributes to theory in four ways. First, it expands socioemotional theory to include the perceived competence of the family employee as a potential moderator in the decision-making process. Second, it categorizes the actors who can influence managerial accounting practices in small family businesses. Third, it further refines the role of these actors, based on their degree of influence. Fourth, it proposes a model that describes the introduction of managerial accounting practices in small family business.

scholarly journals Sustainable Development of Corporate Reputation – Reputation analysis of the selected brands owned by the family businesses

2021 ◽  
Vol 92 ◽  
pp. 05023
Author(s):  
Frantisek Pollak ◽  
Peter Markovic ◽  
Jarmila Strakova ◽  
Petra Partlova
Keyword(s):  
Sustainable Development ◽  
Corporate Reputation ◽  
Value Added ◽  
Family Businesses ◽  
Reputation Management ◽  
Wide Range ◽  
The Family ◽  
Online Ratings ◽  
Basic Facts ◽  
Online Reputation

Research background: The paper discusses the issue of sustainable development of corporate reputation, more specifically discusses the issue of traditional and innovative approaches to reputation management of selected global brands owned by the family businesses. Purpose of the article: The main aim of the paper itself is to present the available ways and methods of measuring the phenomenon of reputation, especially online reputation, as the modern challenge for responsible and sustainable development of the perceived image of subjects, as their very fragile intangible assets. Methods: Selected European and US brands owned by the family businesses were analyzed by the standardized multifactor reputation analysis TOR in the virtual environment of the Internet. Taking into account all relevant factors, the online ratings were normalized and then compared against the offline ratings. Relationships between factors were examined to identify and describe basic facts affecting the online reputation of subjects in the hyper-competitive market environment, especially for the European and for the US market. Findings & Value added: The results of analysis providing a comprehensive view on the issue of the selected approached to the sustainable development of corporate reputation. Although literature offers a wide range of approaches to measure reputation, the presented methodology offers a relatively simple and fairly accurate form for active reputation management, thus providing an effective tool for increasing the competitiveness for subjects trying to maximize their market advantages against their competitors.

scholarly journals Significance of Family Representation among Family Businesses in the Czech Republic

2020 ◽  
pp. 1-9
Author(s):  
Vojtěch MEIER
Keyword(s):  
Czech Republic ◽  
Correlation Analysis ◽  
Board Of Directors ◽  
Family Business ◽  
Family Members ◽  
Family Businesses ◽  
The Czech Republic ◽  
Level Of Involvement ◽  
The Family ◽  
The Board Of Directors

Family businesses are the foundation of any economy. They have been heavily influencing our society for many centuries. The level of involvement among family members is vital to flourish a family business. Therefore, research is conducted to assess the dependencies of six aspects of the selected family businesses in the Czech Republic. Several findings from the family survey are found in the correlation analysis: there is the highest indirect dependence between the number of directors and the number of family members actively involved in a family business, and some factors do not show dependence. This is evidenced by the relationships between the number of members of the board of directors or managing directors and the number of family members who are not interested in family business. Correlation analysis methods are used on top of the methods of analysis, synthesis and comparison.

scholarly journals The Impact of Socially Responsible Marketing on TV Viewership and Household Conflicts: A Theoretical Descriptive Study

2022 ◽  
Vol 19 ◽  
pp. 396-401
Author(s):  
Ahmed M. Asfahani
Keyword(s):  
Descriptive Study ◽  
Conflict Theory ◽  
Business Practices ◽  
Business Organizations ◽  
Socially Responsible ◽  
Uses And Gratification ◽  
Uses And Gratification Theory ◽  
Qualitative Descriptive ◽  
Responsible Business Practices ◽  
The Impact

Marketing is used by business organizations to promote the beneficial attributes of their product and services. The increased focus on promoting ethical and socially responsible business practices has contributed to the emergence of socially responsible marketing. This study explores this concept and how it promotes good/positive social and cultural norms. The research demonstrates how businesses are forced to practice socially responsible marketing though its impact on TV viewership and household conflict remains unknown. A qualitative descriptive study is carried out to examine the effect of socially responsible marketing on TV viewership and household conflict. Data was collected from a sample of 15 marketing experts using a self-administered question and analyzed through thematic analysis. The study found no significant link between socially responsible marketing and TV viewership. Additionally, this research found that socially responsible marketing reduces household conflict. These findings are supported by the Uses and Gratification Theory, Functionalist Theory, and Conflict Theory.

Different Strokes for Different Folks: The Roles of Religion and Tradition for Transgenerational Entrepreneurship in Family Businesses

2020 ◽  
pp. 104225872096442
Author(s):  
Nonyelum Lina Eze ◽  
Mattias Nordqvist ◽  
Georges Samara ◽  
Maria José Parada
Keyword(s):  
Qualitative Study ◽  
Family Structure ◽  
Developing Country ◽  
Family Business ◽  
Family Businesses ◽  
Business Practices ◽  
The Family

This study explores how differences originating in religion and traditions imbue family features and business practices that affect the capacity of family businesses to continue being entrepreneurial across generations; that is, to maintain transgenerational entrepreneurship. Building on an in-depth qualitative study of family businesses, we show how differences in religion and traditions within three subregions of a developing country shape the family structure, the functioning of the family, and the family mindset with concomitant implications on the business practices that foster or hinder transgenerational entrepreneurship. Theoretical and practical contributions are discussed in the context of entrepreneurship and family business.

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