Tensions Within Family Business-Owning Couples Over Time

2006 ◽  
Vol 9 (3-4) ◽  
pp. 227-246 ◽  
Author(s):  
Sharon M. Danes
Keyword(s):  
Family Business ◽  
Over Time

scholarly journals Beyond agency and stewardship theory: shareholder–manager relationships and governance structures in family firms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ann Sophie K. Löhde ◽  
Giovanna Campopiano ◽  
Andrea Calabrò
Keyword(s):  
Social Exchange ◽  
Family Business ◽  
Social Exchange Theory ◽  
Family Firms ◽  
Governance Structure ◽  
Managerial Behavior ◽  
Exchange System ◽  
Content Type ◽  
The One ◽  
Over Time

PurposeChallenging the static view of family business governance, we propose a model of owner–manager relationships derived from the configurational analysis of managerial behavior and change in governance structure.Design/methodology/approachStemming from social exchange theory and building on the 4C model proposed by Miller and Le Breton-Miller (2005), we consider the evolving owner–manager relationship in four main configurations. On the one hand, we account for family businesses shifting from a generalized to a restricted exchange system, and vice versa, according to whether a family manager misbehaves in a stewardship-oriented governance structure or a nonfamily manager succeeds in building a trusting relationship in an agency-oriented governance structure. On the other hand, we consider that family firms will strengthen a generalized exchange system, rather than a restricted one, according to whether a family manager contributes to the stewardship-oriented culture in the business or a nonfamily manager proves to be driven by extrinsic rewards. Four scenarios are analyzed in terms of the managerial behavior and governance structure that characterize the phases of the relationship between owners and managers.FindingsVarious factors trigger managerial behavior, making the firm deviate from or further build on what is assumed by stewardship and agency theories (i.e. proorganizational versus opportunistic behavior, respectively), which determine the governance structure over time. Workplace deviance, asymmetric altruism and patriarchy on the one hand, and proorganizational behavior, relationship building and long-term commitment on the other, are found to determine how the manager behaves and thus characterize the owner's reactions in terms of governance mechanisms. This enables us to present a dynamic view of governance structures, which adapt to the actual attitudes and behaviors of employed managers.Research limitations/implicationsAs time is a relevant dimension affecting individual behavior and triggering change in an organization, one must consider family business governance as being dynamic in nature. Moreover, it is not family membership that determines the most appropriate governance structure but the owner–manager relationship that evolves over time, thus contributing to the 4C model.Originality/valueThe proposed model integrates social exchange theory and the 4C model to predict changes in governance structure, as summarized in the final framework we propose.

scholarly journals Service Tatars in the Diplomatic Service of the Muscovite State: The Baymakov-Rezanov Family

2021 ◽  
Vol 9 (3) ◽  
Author(s):  
Andrey Belyakov
Keyword(s):  
Seventeenth Century ◽  
Family Business ◽  
Historical Perspective ◽  
Classic Model ◽  
Muslim Countries ◽  
Time Of Troubles ◽  
The Moment ◽  
Over Time

Very little is known about diplomatic professionals specialising in eastern affairs in the Muscovite state until the seventeenth century. The issue has only occasionally been touched upon in some research works. This is explained by the limited number of surviving sources. For this reason, the Baymakov-Rezanov family is unique, as the extant data make it possible to trace the uninterrupted service of this clan’s representatives over the course of a century. This is thanks to cadastres and embassy records from both sides, a few extant documents from the Ambassadorial Prikaz, and the family’s persistent nickname. Ambassadorial service was a family business where traditions were passed from generation to generation, from elder sons to younger ones. Several generations of Baymakov-Rezanovs took part in organising the diplomatic contacts of the Muscovite state with Muslim countries as reconnaissance riders (Rus. stanichniki) and interpreters (Rus. tolmachi). They repeatedly headed diplomatic missions and were very well paid for their work. The examination of their family’s story makes it possible to observe the organisation of diplomatic service from a longer historical perspective. Initially, the technical side of contacts with the countries of the east was organised by princely Tartars, who served the grand prince proper. They were provided with land close to Moscow. Gradually, they started forming smaller groups of specialists, such as translators (Rus. bakshei), tolmachi, stanichniki, and the newly baptised (Rus. novokrescheny). This structure was largely destroyed by the Time of Troubles. This affected the circle of people recruited to the service; it grew considerably and was quite often created in accordance with the demands of the moment. Over time, it was predominated by service Tartars from Meshchera. The classic model of the peripheral staff of the Ambassadorial Prikaz, consisting of translators and tolmachi, only formed in the mid-seventeenth century as inherited positions dwindled significantly.

scholarly journals The Reciprocal Involvement of Family Business Owners and Communities in Business Success

2020 ◽  
Vol 12 (10) ◽  
pp. 4048
Author(s):  
Jennifer Johnson Jorgensen ◽  
Diane Masuo ◽  
Linda Manikowske ◽  
Yoon Lee
Keyword(s):  
Survey Data ◽  
Family Business ◽  
Business Owners ◽  
Business Success ◽  
Community Sustainability ◽  
Community Members ◽  
Business Outcomes ◽  
Rare Group ◽  
Over Time

It is believed that highly involved business owners and community members will yield benefits to ensure business and community sustainability over time. However, little research has delved into understanding the role of business owners’ involvement and the community’s involvement in business outcomes. Thus, the purpose of this study was to investigate the reciprocal involvement of family business owners and the community. To investigate this phenomenon, this study utilized survey data from a rare group of business owners who currently operate long-standing businesses. Results indicate that more involved business owners perceived higher levels of business success. When seeking a profit, business owners also tended to be more involved in the community than owners not seeking a profit. However, family-owned businesses felt that the community did not contribute to their businesses and did not stay involved over time. Overall, business owners felt that they contributed more than the community provided in return. Recommendation is made to stress in entrepreneurship curricula the importance of reciprocal involvement between businesses and their communities and vice versa to promote business and community sustainability over time.

Zayed Al Hussaini Group: the road ahead for the family business in the UAE

2014 ◽  
Vol 4 (1) ◽  
pp. 1-14 ◽  
Author(s):  
Anam Shahid ◽  
Virginia Bodolica ◽  
Martin Spraggon
Keyword(s):  
United Arab Emirates ◽  
Family Business ◽  
Corporate Strategy ◽  
Family Businesses ◽  
Entire Group ◽  
List Type ◽  
Content Type ◽  
Theoretical Concepts ◽  
The Family ◽  
Over Time

Subject areaCorporate strategy and family business management.Study level/applicabilityThe case is designed for usage in senior-level undergraduate courses of strategic management and managing family businesses.Case overviewThis case study relates the story of the launch and development of Zayed Al Hussaini Group, a family business in the United Arab Emirates (UAE). The business had been established a year after the unionization of the different Emirates by the founder, Zayed Al Hussaini, in partnership with his brother. Following a series of strategic moves, such as acquisitions and divestures, and adverse family-related events, the Group was led solely by the founder himself. Over the years, Zayed Al Hussaini Group has grown to become a successful family business in various industries of its operation, but following the death of the founder's son, the company activities have been struck with chaos. Zayed's nephew, Ahmed, who had left the family business to continue his studies and work at McKinsey & Company in London, has been called back home after eight years to take the lead of the entire Group. However, he is faced with several challenges, such as dealing with the family gap he has developed over time and balancing family and business priorities. Will Ahmed be able to make the right decisions in the role and responsibilities that have been bestowed upon him?Expected learning outcomesTo analyse the process of launching a family business and making strategic decisions for managing its development over time.To assess the potential difficulties and challenges which are associated with managing a family-run organization.To evaluate the effectiveness of decisions with regards to the company's growth and succession management planning.To apply relevant theoretical concepts to the analysis of complex situations in the specific context of family businesses.Supplementary materialsTeaching notes are available for educators only. Please contact your library to gain login details or [email protected] request teaching notes.

scholarly journals Coexistence, Unity, Professionalism and Prudence

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Miguel-Angel Gallo
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Members ◽  
Family Firm ◽  
Family Businesses ◽  
The Family ◽  
Over Time

Family firms are complex and dynamic entities that are rich with peculiar, idiosyncratic features. The objective of this paper is to provide guidance to help those involved in family businesses, businesspersons, and family members to pursue the continuity of the family firm over time. Based on the author’s experience with entrepreneurs who built successful businesses, this paper identifies four elements that are critical to achieve transgenerational continuity in family firms, namely: coexistence, unity, professionalism, and prudence. The analysis of each element provides suggestions and key considerations for both scholars and practitioners in the family business field.

Prosperity over time and across generations: the role of values and virtues in family businesses

2019 ◽  
Vol 33 (4) ◽  
pp. 639-654 ◽  
Author(s):  
Maria Jose Parada ◽  
Georges Samara ◽  
Alexandra Dawson ◽  
Eduard Bonet
Keyword(s):  
Family Business ◽  
Qualitative Methodology ◽  
Family Members ◽  
Family Businesses ◽  
Value Transmission ◽  
Content Type ◽  
Cardinal Virtues ◽  
The Family ◽  
The Individual ◽  
Over Time

Purpose Despite the great importance attributed to values in the family business, few studies have focused on their importance and on how such values influence the way family businesses behave over time. Using Aristotelian virtues as our main framework, the purpose of this paper is to understand what motivates both family members and business families to perform virtuous acts, therefore, observing the underlying beliefs at both levels of analysis that make individuals and families repeatedly behave in a way that reflects the pursuit of excellence of character. Design/methodology/approach The authors rely on a qualitative methodology, following an interpretive approach. Based on the narratives of family members from two Spanish family businesses, the authors abductively analyze how values and virtues in family businesses allow them to cope with changes that occur across generations. Findings Findings suggest that family businesses that have survived heavy crises have been able to overcome these critical moments in part due to their strong virtues – both at the individual and at the family level – where the so-called four cardinal virtues have been evident, for example, through the achievement of collective goals and adherence to a stated mission, as well as through behaviors that have been aimed at improving and benefiting the community. Practical implications Values are the basis for all businesses and their behaviors. Understanding the type of values, as well as the underlying virtues, that allow for prosperity across generations is important for business families to perpetuate those that allow the family business to thrive. Originality/value This paper contributes to the family business field by exploring a key understudied dimension that determines family business prosperity over time and across generations. It brings to the forefront values and virtues that are rarely studied in this setting despite their great importance, using narratives as a key element for value transmission as well as a research method that allows for deeper insights about specific processes.

scholarly journals Accounting for family and business overlaps

2020 ◽  
Vol 26 (2) ◽  
pp. 249-276 ◽  
Author(s):  
Martin Quinn ◽  
Martin Hiebl ◽  
Romilda Mazzotta ◽  
Stefania Veltri
Keyword(s):  
Family Business ◽  
Design Methodology ◽  
Contemporary Literature ◽  
Family Ownership ◽  
Business Systems ◽  
Content Type ◽  
The Family ◽  
Business Perspective ◽  
Circle Model ◽  
Over Time

Purpose This paper aims to draw on a family business perspective to explore the historic accounting records of an Italian liquorice juice business. The applicability of the three-circle model of family business systems to such an historic context is examined. Design/methodology/approach Using archival records, the Cassa accounting book of the business is studied. Its transactions are examined to distinguish family and business items over the period from 1875 to 1920. Findings Through an analysis of the accounting records, the family, ownership and business systems are shown to overlap more than typically expected in a contemporary setting. Originality/value Contemporary literature suggests the three-circle model of a family business is relatively static, but it has not been applied to an historic context. This study suggests that the model can be applied in historic studies, but it is not static over time with its elements needing refinement.

DETERMINANTS OF FAMILY BUSINESS RESILIENCE AFTER A NATURAL DISASTER BY GENDER OF BUSINESS OWNER

2009 ◽  
Vol 14 (04) ◽  
pp. 333-354 ◽  
Author(s):  
SHARON M. DANES ◽  
JINHEE LEE ◽  
SAYALI AMARAPURKAR ◽  
KATHRYN STAFFORD ◽  
GEORGE HAYNES ◽  
...  
Keyword(s):  
Natural Disasters ◽  
Natural Disaster ◽  
Family Business ◽  
Family Firms ◽  
Family Firm ◽  
Family Resilience ◽  
Disaster Assistance ◽  
National Family ◽  
Over Time ◽  
Disaster Exposure

Using National Family Business Panel data combined with national natural disaster and federal disaster assistance data, the purpose of the study was to investigate relative contributions of human, social and financial capital; natural disaster exposure; and federal disaster assistance to business-owning family resilience over time for male and female family business owners. With a theoretical foundation of Sustainable Family Business and Conservation of Resources theories, the study examined 311 small family firms from the National Family Business Panel. Federal disaster assistance explained a significant amount of variance in firm-owning resilience. Higher levels of federal disaster assistance were associated with lower family firm resilience for male-owned businesses and higher family firm resilience for female-owned businesses. This study advances knowledge of firm sustainability after natural disasters by adding to the conceptualization and measurement of family firm resilience; by having baseline firm financial data prior to disaster exposure; by utilizing a national, representative, longitudinal family firm sample; by including a range of natural disasters and federal disaster assistance; and by including family resilience over time.

scholarly journals Board composition in family and non-family innovative businesses

2017 ◽  
Vol 15 ◽  
pp. 459-466 ◽  
Author(s):  
Juan Pablo Gonzales-Bustos ◽  
Ana Beatriz Hernández-Lara ◽  
Xiaoni Li
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Gender Diversity ◽  
Descriptive Study ◽  
Family Businesses ◽  
Independent Directors ◽  
Board Composition ◽  
Composition And Structure ◽  
Significant Difference ◽  
Over Time

This paper aims to contribute to the literature on corporate governance and innovation, providing empirical evidence with respect to the evolution of board composition and innovation over time, comparing between family and non-family businesses. Data were collected from 86 Spanish companies belonging to innovative sectors during the period 2003 to 2014. The results show a significant difference between family and non-family firms in terms of their board composition, indicating bigger boards and a higher proportion of independent directors in the case of non-family businesses. With regards to external directors, the results also show that their proportion has been increasing in the last years especially in family companies, reaching similar levels to non-family ones. Finally, in terms of gender, its diversity has been also increasing in both types of companies, but more in family businesses, equalling or even overcoming gender diversity in non-family businesses. Non-significant differences were detected in the composition of the boards over time, with the only exception of gender diversity, which shows a significant growth. This descriptive study contributes to the inconclusive research on how is the composition and structure of the board in innovative companies, highlighting the differences between family and non-family business.

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