Family Business in Emerging Markets

2018 ◽  
pp. 526-546 ◽  
Author(s):  
Rodrigo Basco
Keyword(s):  
Conceptual Model ◽  
Family Business ◽  
Emerging Economies ◽  
Family Firms ◽  
Developed Countries ◽  
Emerging Countries ◽  
Three Dimensions ◽  
The Family ◽  
Contextual Family ◽  
Social Importance

The phenomenon of the family firm has received considerable attention in academia over the last two decades. Even though the family business field is becoming increasingly more legitimate, the vast majority of family business research has focused on developed countries, with emerging countries being largely underrepresented. This limitation ultimately restricts our understanding of family firms. Thus, to address this gap, this chapter proposes a conceptual model linking three dimensions: family, business, and context. The model considers the specificities of organizational, institutional, social, temporal, and spatial forces across contexts for studying family and business dimensions in emerging countries. The aim of this conceptual model is to capture the complexity of the connectivity among contextual, family, and business dimensions. Exploring, understanding, and predicting these connectivities is particularly relevant in emerging economies because of the economic and social importance of family firms. Therefore, this chapter contributes to our understanding of the family business phenomenon by presenting a brief literature review on what we know about the topic so far, proposing a conceptual model that presents the relevant dimensions for researching family businesses in emerging economies, and highlighting future lines of research to further expand the family business field.

Entrepreneurial Orientation in Family Firms: Looking at a European Outermost Region

2017 ◽  
Vol 25 (04) ◽  
pp. 441-460 ◽  
Author(s):  
Duarte Pimentel ◽  
João Pedro Couto ◽  
Marc Scholten
Keyword(s):  
Family Business ◽  
Entrepreneurial Orientation ◽  
Family Firms ◽  
Three Dimensions ◽  
Current Debate ◽  
Family Participation ◽  
Autonomous Region ◽  
Business Context ◽  
The Family ◽  
A Current

This study addresses a current debate in the family business literature involving the extent to which the family business context hinders or promotes entrepreneurial behavior. The empirical evidence is provided by 155 small-sized firms, 82 family-controlled and 73 nonfamily-controlled, operating in an outermost region, the Autonomous Region of the Azores. This study analyzes the differences between family and nonfamily firms in regard to entrepreneurial orientation and how it is influenced by family participation. Results show that there are differences in entrepreneurship orientation and in two of its three dimensions, while revealing that family participation is negatively associated with entrepreneurial orientation and its three dimensions.

GENERATIONAL SUCCESSION: EXAMPLES FROM TUNISIAN FAMILY FIRMS

2009 ◽  
Vol 17 (02) ◽  
pp. 127-145 ◽  
Author(s):  
SALMA FATTOUM ◽  
ALAIN FAYOLLE
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Empirical Investigation ◽  
Developed Countries ◽  
Generational Change ◽  
The Family ◽  
Succession Process ◽  
Generational Succession ◽  
Methodological Aspects ◽  
Tunisian Family

The family character gathers firms whose weight in the economic activity of countries is considerable for developed countries as well as for the others. However, this type of firm is exposed to not only the threats that challenge all types of firms but they must also face dangers related to their family nature. Several American and European studies were interested in the succession issues associated with family businesses. However, this topic received very little theoretical and empirical investigation in developing countries. In Tunisia, the push in favor of private firms was given in the 60s. Nearly 50 years later, those entrepreneurs who had received state aid to start their businesses are about to retire. How is this dealt with? How is succession "guaranteed"? Hard as it may be to speculate on the outcome of this succession, can we at least describe its phases first and then consider the factors that could have an impact on it? These central questions to Tunisia's economy have yet to be answered academically. Our aim, in this paper, is to improve our understanding of the nature of the relation between the founder and his successor during the process of succession in the Tunisian family business while proposing reflections to be carried out to make a success of this generational change. Our paper is organized as follows. The first part will be an analysis of the literature on family firms and the succession process. In the second part, we will introduce the methodological aspects of our study, which was conducted on six Tunisian family firms at different stages of the succession process. In the third part, we will present and discuss the results.

Do dissimilarities in the family involvement in family firms lead to different levels of indebtedness? Evidence from Spain

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
María Comino-Jurado ◽  
Sonia Sánchez-Andújar ◽  
Purificación Parrado-Martínez
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Design Methodology ◽  
Family Firms ◽  
Governance Structure ◽  
Three Dimensions ◽  
Content Type ◽  
The Family ◽  
Family Business Group ◽  
Different Levels

PurposeThis paper examines how differences in the family involvement in a family business can influence its level of indebtedness. Assuming the influence of family is not the same for all family firms, we consider each company as a combination of the family involvement in three dimensions of the business: ownership, management and governance structure.Design/methodology/approachUsing the partial least squares technique allows us to address the heterogeneity of family firms through an integral concept of family involvement in business that jointly considers the level of family participation in the ownership, management and governance structure of each firm.FindingsOur results demonstrate that the level of family involvement in a family firm, considering the heterogeneity existing within the family business group, directly influences its level of indebtedness. In addition, we find that family involvement in ownership and governance structures individually considered are positively related to the level of indebtedness of the family business.Originality/valueOur findings prove that some indebtedness patterns, which previous literature has described as common to all Spanish family businesses, may actually be valid only for specific family firms with a particular level of family involvement. In addition, the way of measuring family business heterogeneity through our integral concept of family involvement can be replicated by other authors because of the manageability of the items, thus contributing to an increased understanding of the effects of family involvement in firms' development.

Determinants of Initial Satisfaction with the Succession Process in Family Firms: A Conceptual Model

2001 ◽  
Vol 25 (3) ◽  
pp. 17-36 ◽  
Author(s):  
Pramodita Sharma ◽  
James J. Chrisman ◽  
Amy L. Pablo ◽  
Jess H. Chua
Keyword(s):  
Conceptual Model ◽  
Family Business ◽  
Family Firms ◽  
Test Model ◽  
Leadership Succession ◽  
Economic Theories ◽  
The Core ◽  
The Family ◽  
Succession Process ◽  
Practical Implications

Leadership succession continues to form the core of the family business literature. Numerous studies have suggested factors that influence family members' initial satisfaction with the succession process, but this body of work is highly fragmented and lacks a unifying framework. In this paper, we draw on stakeholder theory and other organizational, behavioral, and economic theories to develop a conceptual model that integrates the findings from the literature. The research and practical implications of this integrative, ready-to-test, model are discussed.

Status conflict in family firms: a multilevel conceptual model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aleš Kubíček ◽  
Ondřej Machek
Keyword(s):  
Conceptual Model ◽  
Family Business ◽  
Family Firms ◽  
Levels Of Analysis ◽  
Firm Level ◽  
Content Type ◽  
The Family ◽  
Multilevel Research ◽  
Multilevel Theory ◽  
The Individual

PurposeThe purpose of this study is to integrate status conflict, as a relatively recent and unexplored phenomenon, to the family business literature.Design/methodology/approachThe authors follow multilevel theory building to develop a multilevel conceptual model of status conflict in family firms (FFs).FindingsThe authors identify the main antecedents, processes and consequences of status conflict at three levels of analysis (individual, family and firm) unique to FFs. Seventeen theoretical propositions at three levels of analysis are presented.Originality/valueThe authors address the need for multilevel research for organisations and multilevel status research, contribute to the under-researched theory of conflicts in FFs and show that the conflict literature, which has predominantly focussed on the individual- and group-level factors, can borrow from the family business literature, which has primarily been oriented to the group- and firm-level factors.

A Four Factor Model: A Guide to Planning Next Generation Involvement in the Family Firm

1998 ◽  
Vol 11 (2) ◽  
pp. 135-142 ◽  
Author(s):  
Eleni T. Stavrou
Keyword(s):  
Conceptual Model ◽  
Family Business ◽  
Decision Process ◽  
Family Firms ◽  
Factor Model ◽  
Family Firm ◽  
Next Generation ◽  
Level Of Involvement ◽  
The Family

The involvement of and the reasons for the involvement of offspring in their parents' firms can significantly affect the firm's future. In this paper, a conceptual model is presented that explains the decision process through which the most suitable level of involvement for the next generation in the firm may be assessed. The decision process involves four factors: family, business, personal, and market. These factors set the context for managing intergenerational transitions in family firms.

Family Businesses and Digital Entrepreneurship Adoption: A Conceptual Model

2020 ◽  
Vol 29 (2) ◽  
pp. 326-364
Author(s):  
Sami Basly ◽  
Amira Hammouda
Keyword(s):  
Conceptual Model ◽  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
Family Businesses ◽  
Socioemotional Wealth ◽  
Primary Appraisal ◽  
The Family ◽  
The World ◽  
Digital Entrepreneurship

Despite the prevalence of family businesses around the world, research on their contribution to the digital economy is still needed. A primary appraisal of the characteristics of the family business and the features of digital entrepreneurship suggests that the two phenomena are conflicting. Indeed, the most common descriptions of family businesses convey the idea that they favour stability to change and slow evolutions to upheavals and disruptions. This article attempts to answer the question: How could family businesses embrace the values and overcome the hindrances to digital entrepreneurship? To this end, this article suggests a conceptual model of digital entrepreneurship adoption in family firms. Based on the socioemotional wealth logic, we first describe the main variables influencing digital entrepreneurship adoption and then analyse the moderating influence of family involvement in the firm on the relationships between these variables and digital entrepreneurship adoption. Theoretical contributions and practical insights are presented.

Making gender visible in family business: past and present

2012 ◽  
Vol 13 (1) ◽  
Author(s):  
Paloma Fernández Pérez ◽  
Eleanor Hamilton
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Business Leadership ◽  
Legal Rules ◽  
Developed Economies ◽  
The Family ◽  
Interdisciplinary Synthesis ◽  
Complex Forms ◽  
Rules Of The Game

This  study  contributes  to  developing  our understanding of gender and family business. It draws on studies from the business history and management literatures and provides an interdisciplinary synthesis. It illuminates the role of women and their participation in the entrepreneurial practices of the family and the business. Leadership is introduced as a concept to examine the roles of women and men in family firms, arguing that concepts used  by  historians or economists like ownership and management have served to make women ‘invisible’, at least in western developed economies in which owners and managers have been historically due to legal rules  of  the  game  men,  and  minoritarily women. Finally, it explores gender relations and  the  notion  that  leadership  in  family business  may  take  complex  forms  crafte within constantly changing relationships.

The effects of goals attainment on CEO-owner satisfaction and the role of family involvement

2019 ◽  
Vol 10 (2) ◽  
pp. 116-127
Author(s):  
Ondřej Machek ◽  
Jiří Hnilica
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Firm Value ◽  
Family Firms ◽  
Hierarchical Regression ◽  
Content Type ◽  
Business Goals ◽  
Growth Increase ◽  
The Family ◽  
Owner Satisfaction

Purpose The purpose of this paper is to examine how the satisfaction with economic and non-economic goals achievement is related to the overall satisfaction with the business of the CEO-owner, and whether family involvement moderates this relationship. Design/methodology/approach Based on a survey among 323 CEO-owners of family and non-family businesses operating in the Czech Republic, the authors employ the OLS hierarchical regression analysis and test the moderating effects of family involvement on the relationship between the satisfaction with different goals attainment and the overall satisfaction with the business. Findings The main finding is that family and non-family CEO-owner’s satisfaction does not differ significantly when economic goals (profit maximisation, sales growth, increase in market share or firm value) and firm-oriented non-economic goals (satisfaction of employees, corporate reputation) are being achieved; both classes of goals increase the overall satisfaction with the firm and the family involvement does not strengthen this relationship. However, when it comes to external non-economic goals related to the society or environment, there is a significant and positive moderating effect of family involvement. Originality/value The study contributes to the family business literature. First, to date, most of the studies focused on family business goals have been qualitative, thus not allowing for generalisation of findings. Second, there is a lack of evidence on the ways in which family firms integrate their financial and non-financial goals. Third, the authors contribute to the literature on the determinants of personal satisfaction with the business for CEOs, which has been the focus on a relatively scarce number of studies.

“We are a family firm”

2018 ◽  
Vol 8 (1) ◽  
pp. 2-21 ◽  
Author(s):  
Claudia Binz Astrachan ◽  
Isabel C. Botero
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Firm ◽  
Business Owners ◽  
Public Companies ◽  
Content Type ◽  
Brand Building ◽  
Depth Interview ◽  
The Family ◽  
Family Associations

Purpose Evidence suggests that some stakeholders perceive family firms as more trustworthy, responsible, and customer-oriented than public companies. To capitalize on these positive perceptions, owning families can use references about their family nature in their organizational branding and marketing efforts. However, not all family firms actively communicate their family business brand. With this in mind, the purpose of this paper is to investigate why family firms decide to promote their “family business brand” in their communication efforts toward different stakeholders. Design/methodology/approach Data for this study were collected using an in-depth interview approach from 11 Swiss and German family business owners. Interviews were transcribed and coded to identify different themes that help explain the different motives and constraints that drive their decisions to promote the “family business brand.” Findings The analyses indicate that promoting family associations in branding efforts is driven by both identity-related (i.e. pride, identification) and outcome-related (e.g. reputational advantages) motives. However, there are several constraints that may negatively affect the promotion of the family business brand in corporate communication efforts. Originality/value This paper is one of the first to explore why family businesses decide to communicate their “family business brand.” Building on the findings, the authors present a conceptual framework identifying the antecedents and possible consequences of promoting a family firm brand. This framework can help researchers and practitioners better understand how the family business nature of the brand can influence decisions about the company’s branding and marketing practices.

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