Shareholder Foundations of enterprises: the North European style of securing family businesses for the long term—rising up to the global challenge

2020 ◽  
Vol 26 (7) ◽  
pp. 654-662
Author(s):  
Ineke A Koele ◽  
Rasmus K Feldthusen
Keyword(s):  
Family Business ◽  
Ownership Structure ◽  
Family Businesses ◽  
Family Conflicts ◽  
Global Challenge ◽  
The North ◽  
The Family ◽  
Business Succession ◽  
Dispersed Ownership

Abstract This article explores how and why the traditional business succession system within family businesses needs to be reconsidered. Holding Foundations are generally overlooked although they provide a purpose-driven ownership structure with a stewardship governance that avoids family conflicts, taxation and dispersed ownership affecting the family business. In this article, the authors combine their experiences and insights from Denmark and the Netherlands with shareholder foundations of enterprises.

scholarly journals Portuguese and Brazilian Family Business: in Between Urgency and Delay Perceptions in the Succession Process

2020 ◽  
Vol 3 (2) ◽  
pp. 24
Author(s):  
Ana Paula Marques ◽  
Leandro Alves da Silva
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Family Businesses ◽  
Executive Succession ◽  
Family Conflicts ◽  
The Family ◽  
Management Succession ◽  
Business Succession ◽  
Depth Interviews

Family business has been the focus of several studies over the last two decades and its relevance has been supported by the interdisciplinary perspectives in the fields of management, entrepreneurship, economics, psychology, and sociology. Despite that, there is still insufficient knowledge about the key role of family influences in the business, namely the intergenerational management succession, its planning and effectiveness. According to a recent research focused on the entrepreneurial succession in Portugal (AEP, 2011), 50 percent of family businesses are not passed on to the second generation and only 20 percent reach the third generation. In fact, business succession planning has been identified as one of the most challenging steps in the life of the family firm, both in maintaining the competiveness of the business, and in overcoming intra/ inter family conflicts. Nonetheless, resistance to succession, relationship founder/ successor, planning of succession, and type of organisational culture, among others, explain how executive succession is one of the most important and hardest tasks in organisational life (Zahra, 2005). This paper will be supported mainly by qualitative data, taking into account the main results from the project “Roadmap for Portuguese Family Businesses” (NORTE2020/FEDER) developed in Portugal (Marques, 2018) and in Brazil (Silva, 2018), which analyses in-depth interviews conducted to Portuguese (N 23) and Brazilian (N 11) founders/managers/owners. In the present article we wish to discuss the main management challenges of a family business, particularly the importance of succession preparation and the role of the family in the socialisation of the second (third or subsequent) generation.

Cultural values and their implications to family business succession

2019 ◽  
Vol 10 (4) ◽  
pp. 281-292 ◽  
Author(s):  
Grisna Anggadwita ◽  
Werda Bagus Profityo ◽  
Dini Turipanam Alamanda ◽  
Anggraeni Permatasari
Keyword(s):  
Cultural Values ◽  
Family Business ◽  
Family Businesses ◽  
Chinese Family ◽  
Content Type ◽  
The Family ◽  
Succession Process ◽  
Business Succession ◽  
Family Business Succession ◽  
Practical Implications

Purpose The family business is one of the business entities that contribute to the economy of a country. Succession in the family business occupies a strategic position, especially in maintaining the company’s sustainability. The Chinese family business has unique characteristics in maintaining and growing its business with the cultural values that underlie how their business. The purpose of this paper is to discuss the cultural values of Chinese ethnic and their implications in the succession process in small family businesses in Bandung, Indonesia. Design/methodology/approach This research uses a qualitative method with the in-depth interview method as a data collection technique. The sampling technique uses purposive sampling, while to test the validity of research data using a triangulation technique. A total of four small Chinese-owned family businesses participated as informants in this study. The study will identify the stage of succession process in the Chinese family business. Findings There are several stages identified in the succession planning of small Chinese-owned family business in Bandung which include succession antecedents, succession activities and desired outcomes. The results showed that small Chinese-owned family business in Bandung has not applied the rules and procedures in the succession process. Most of the Chinese family business in this research still holds Confucianism culture; they prioritize boys as business successors, who have a greater responsibility rather than successor with other gender. Practical implications Several implications are discussed. One of them is the Chinese family business holding cultural values in the process of family business succession. Originality/value This research is expected to provide theoretical and practical implications for academics and family companies with similar cases.

Succession in the Family Business: Challenges for Successors from an Entrepreneurial Perspective

2014 ◽  
Vol 15 (4) ◽  
pp. 279-284 ◽  
Author(s):  
Daniela Weismeier-Sammer ◽  
Isabella R. Hatak
Keyword(s):  
Family Business ◽  
Family Businesses ◽  
Teaching Case ◽  
The Family ◽  
Succession Process ◽  
Business Succession ◽  
Business Challenges ◽  
Family Business Succession

Kronmann Wholesale and Retail is an outstanding family business with more than 300 years of history. This teaching case tells the story of two cousins who follow their fathers into a business full of tradition. The case gives students the opportunity to gain insights into the complex succession process of family businesses, as well as the challenges with which successors are confronted in the course of family business succession.

scholarly journals Current and future challenges of family businesses

2020 ◽  
Vol 20 (2) ◽  
pp. 119
Author(s):  
Jessica Hastenteufel ◽  
Mareike Staub
Keyword(s):  
Family Business ◽  
Demographic Change ◽  
Family Businesses ◽  
The Family ◽  
Future Challenges ◽  
Family Strategy

Family businesses are an important part of every economy. They are characterized by long traditions that combine aspects such as trust and reliability, as well as by features such as innovativeness, foresight, long-term focus and flexibility. Both family businesses and the entrepreneurial families themselves do have some weaknesses and face current challenges like digitization, internationalization and demographic change. These issues must be kept in mind in order to constantly develop appropriate solutions that will help them survive and thrive in the market. Moreover, the high relevance of the family in a family business is associated with opportunities – for example, when a family strategy with clear values, roles and goals is defined, and a so called family business governance is developed.

scholarly journals The Effect of Religiosity, Spirituality and Family Power Influence on Family Business Sustainable Values

2019 ◽  
pp. 172-211
Author(s):  
Zazli Lily Wisker ◽  
Vikinta Rosinaite ◽  
Balakrishnan Muniapan
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Family Business ◽  
Religious Practice ◽  
Family Businesses ◽  
Positive Effects ◽  
The North ◽  
The Family ◽  
Negative Effect ◽  
Corporate Social

Family businesses are distinct from non-family businesses due to the families’ involvement in managing and influencing the business. The influence can take several forms. This study examines if religiosity, spirituality and power influence of the owning family business affect the family businesses’ corporate social responsibility towards their customers, employees, shareholders and societies. The study hypothesises positive effects of religious belief, religious practice, spirituality and power influences on family business corporate social responsibility. Data was collected among 251 family members from 84 small to medium-sized family businesses in the North Island of New Zealand. The relationships were significant for spirituality and religious practice (negative effect). Ultimately, discussion and practical implications are discussed.

scholarly journals Family business: comparison with non-family, key differences and features of operation

2021 ◽  
Vol 71 (4) ◽  
pp. 140-150
Author(s):  
Yu. Solonenko
Keyword(s):  
Family Business ◽  
Ownership Structure ◽  
Social Systems ◽  
The United States ◽  
Local Communities ◽  
Family Businesses ◽  
The State ◽  
Family Enterprises ◽  
Moderate Growth ◽  
The Family

One of the traditional methods of the investigation of family business, as the most common and sustainable form of management in the world, is its comparison with the activities of non-family businesses. This approach makes it possible` to introduce into the analysis a fairly large list of indicators, which in turn increases the understanding of the functioning of both family and non-family companies. In this paper the investigation of family enterprises is carried out on the basis of developments of leading foreign scientists and the table is formed. Thus, the invesstigation demonstrates significant differences between family and non-family business, which are reflected in the general indicators, structural organization, forms of ownership, management, theoretical justification of doing business, business goals, available resources of the firm. Differences in both interior and exterior of the operation of these business facilities are defined. In general, the family business is socially oriented, aimed at stable moderate growth, resilient in times of crisis, adaptive, risk-averse, aimed at the long-term perspective of existence in order to pass it on to the next family generation. Analyzing the social systems of economically successful countries, such as the United States, Japan, the European Union, the Persian Gulf and East Asia, we find that the main form of ownership belongs to the family business. More detailed analysis of the economic systems of these countries reveals the formation of the balance between the ownership structure and the power structure. The ownership structure is characterized by large percentage of independent private owners, where the family form of ownership is widely represented in the leading sectors of the economy, and the family business itself is the dominant form of entrepreneurship. It is the family business that configures the property system within a single country, forming powerful social stratum of independent owners who control the main resources of the state. The presence of this layer results in the evolution of power democracy, where state institutions do not have declarative powers, but operate in real formal democracy. The level of real democracy (democracy) in the country is determined not by freedom-loving articles of the Constitution, but by the number of independent owners in the state. Family businesses and independent family owners are closely linked to local communities, are an integral part of them, providing jobs and employment in the regions, which is the basis for economic prosperity of local communities and the country as a whole.

scholarly journals Ownership Structures within Hungarian Family Businesses – Theories and Practice

2018 ◽  
Vol 12 (1-2) ◽  
pp. 35-40
Author(s):  
Júlia Tobak
Keyword(s):  
Family Business ◽  
Ownership Structure ◽  
Jel Classification ◽  
Family Businesses ◽  
Family Ownership ◽  
Service Trade ◽  
Ownership Structures ◽  
The Family ◽  
Owned Company

  We can talk about family business if the notions of family, ownership and business are closely connected to each other, namely if the business is in the possession of the family, managed and controlled by the family members. A family owned company is a business where a family has the majority ownership and/or the majority management and at least one family member actively works in the firm, the family owns the business. The study contains the results of research on ownership structure of family owned businesses. The examined family businesses are interested in longterm preservation of values, thus succession of generations plays a key role in their case. They attaches great importance how the ownership structure develops. The methotology to know more about the ownership structure of family businesses 11 expert interviews were made between november 2016 and september 2017 with owners and next generations of family owned agri-food enterprises in Hungary. A case study has been prepared too in this topic with the participation of companies with different activities (production, service, trade). In order to classify the analysed companies six categories of ownership were developed. These are non-owner, emotional owner, partial owner, controlling owner, majority owner and exclusive/ sole owner. Each generation of the analysed FBs were classified to these categories. According to the results the analysed family owned companies even are sharing the property within family. There are only two interviewed companies whose case we can talk about exclusive/sole ownership. JEL Classification: G32

scholarly journals Family business succession in the Mazovia Region in Poland – needs and barriers

2019 ◽  
Vol 50 (1) ◽  
pp. 81-90
Author(s):  
Ludmiła Walaszczyk
Keyword(s):  
Family Business ◽  
Family Businesses ◽  
Business Activity ◽  
Local Authorities ◽  
The Family ◽  
The Future ◽  
Succession Process ◽  
Business Succession ◽  
Family Business Succession

Every year many companies disappear from the market due to the fact that there is no possibility to find the successor, who could take over the business activity. The owners do not wish to transfer their business to the heirs, not even mentioning the external successors. Thanks to the indication of needs and barriers of the family business successions, it will be possible to develop tools and services, which will improve the succession process in family companies and will help to maintain family companies in the future. In the article, the author presents the latest state of knowledge about the needs of and barriers to the succession of family businesses in the Mazovia Region in Poland. The author focuses on the results of unstructured interviews with entrepreneurs from family companies and representatives of local authorities.

Keeping it in the family: family, priorities and succession in Scottish landed estates

2016 ◽  
Vol 6 (3) ◽  
pp. 350-362 ◽  
Author(s):  
Sofia di Belmonte ◽  
Claire Seaman ◽  
Richard Bent
Keyword(s):  
Family Business ◽  
Structured Interview ◽  
Family Businesses ◽  
Content Type ◽  
Strategic Vision ◽  
The Family ◽  
Definition Of Success ◽  
Definition Of ◽  
Insight Into

Purpose The purpose of this paper is to consider multigenerational landed estates in Scotland from a family business perspective. The strategic vision for the business is considered here in terms of the family definition of success, drawing upon aspects of cultural identity, legal and fiscal systems and stewardship theory. Design/methodology/approach A social-constructivist epistemology framed this study, which considered perceptions of family business strategy, culture and family defined visions of success. Semi-structured interview techniques were utilized to collect primarily qualitative date. Findings Results indicate that the families shared a very cohesive definition of what constituted the family business and were very aware of the importance of long-term planning in the succession process. The cultural and legal dimension of primogeniture played a defining role in the choice of successors, developed from the belief that the successor is the steward of the family property rather than the “owner” in any personal sense. Key priorities for the family included the training of the heir and the limiting of potential taxation liabilities juxtaposed with the desire to retain family discretion in decision making. Practical implications By extending current research to businesses that have been successfully transferred between six or more generations this study offers a unique insight into the requirements for effective succession. This research also offers an insight into the strategic management of a group of “family businesses” where the economic and legislative environment have required families to plan, where smaller family businesses are often able to defer. Originality/value Multigenerational estates represent some of the oldest family businesses in Scotland, offering a unique sample group of businesses which have survived through six or more generations. The clarity of strategic vision and the perceived importance of long-term planning offer an insight into the reasons for business longevity.

The Family Business and Its Social Responsibilities

2004 ◽  
Vol 17 (2) ◽  
pp. 135-148 ◽  
Author(s):  
M.A. Gallo
Keyword(s):  
Family Business ◽  
Family Businesses ◽  
Wealth Creation ◽  
Social Responsibilities ◽  
The Social ◽  
The Family

The social responsibilities of family businesses are still a little-studied area. This article is based on the opinions of 44 academics who are directly involved in studying and advising this type of company. The study's results indicate that family businesses are better at carrying out the responsibilities of wealth creation and delivery of goods to the market than the development of individual skills and guaranteeing their long-term continuity.

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