The determinants of family business owners’ intrafamily succession intention

2016 ◽  
Vol 10 (4) ◽  
pp. 710-725 ◽  
Author(s):  
Yonglong Zhou ◽  
Qiongjing Hu ◽  
Jingjing Yao ◽  
Xin Qin
Keyword(s):  
Survey Data ◽  
Family Business ◽  
Design Methodology ◽  
Family Firms ◽  
Business Owners ◽  
Content Type ◽  
Family Control ◽  
Positive Effects ◽  
Micro Level ◽  
Positive Effect

Purpose The purpose of this paper is to explore the determinants of family business owners’ intrafamily succession intention based on the theory of planned behavior and neo-institutional theory. Design/methodology/approach National survey data were collected from Chinese private firms in 2010, and a sample of 804 family firms was used to test the hypotheses. Findings At the micro level, familism, intrafamily succession regulation and family control have positive effects on owners’ intrafamily succession intention. At the macro level, district succession orientation, which is the district prevalence of intrafamily succession practice, has a positive effect on owners’ intrafamily succession intention. Additionally, the district succession orientation weakens the positive effects of intrafamily succession regulation and family control. Originality/value The paper contributes to the understanding of family business owners’ intrafamily succession intention from both micro and macro perspectives. Besides, it also contributes to the integration of micro and macro research by examining the interaction effects.

scholarly journals Owner-manager when death do us part – roles of a widow in sudden succession in family firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hanna Almlöf ◽  
Hans Sjögren
Keyword(s):  
Family Business ◽  
Design Methodology ◽  
Family Firms ◽  
Business Owners ◽  
Family Businesses ◽  
Qualitative Approach ◽  
Psychological Ownership ◽  
Structured Interviews ◽  
Unexpected Death ◽  
Content Type

PurposeThis study sheds light on a hitherto understudied group in family business literature: widows. We explore the roles a widow may take following the unexpected death of her owner-manager spouse when she had no salient role in the business prior to the death.Design/methodology/approachWe used a qualitative approach to research, to study inductively the roles considered and taken by three widows who unexpectedly succeeded as owners of Swedish privately held family firms. We conducted semi-structured interviews with widows and children in top management.FindingsWe construct a typology of four main roles a widow can take and analyse the underlying dimensions that they represent. We also analyse to which extent the choice of role widow can be explained by psychological ownership and double-loss theory. The typology can be used as a tool for family business owners and their advisors as the basis of an open and non-prejudiced discussion of the choices available to a widow.Originality/valueWe have investigated the factors that influence a widow's decision whether to take over the business or not, as suggested in previous research by, for example, Martinez et al. (2009). We explore the roles a widow can consider and adopt. The study advances our understanding of how businesses can remain as family firms also in the event of the unexpected death of an owner-manager (De Massis et al., 2008). We hereby contribute to the literature on sudden successions and on women in family businesses.

“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.

Individual unlearning, organizational unlearning and strategic flexibility

2019 ◽  
Vol 14 (1) ◽  
pp. 2-18 ◽  
Author(s):  
Xiangyang Wang ◽  
Ying Qi ◽  
Yingxin Zhao
Keyword(s):  
Theoretical Model ◽  
Survey Data ◽  
Design Methodology ◽  
Mediating Effect ◽  
Strategic Flexibility ◽  
Content Type ◽  
Positive Effects ◽  
The Relationship

PurposeThe purpose of this paper is to explore the relationship between unlearning and strategic flexibility from the down-up change perspective.Design/methodology/approachDrawing on the routine-updating process, this study builds a theoretical model and examines it using survey data from 233 firms in China.FindingsUnlearning is the enabler to strategic flexibility. Specifically, individual unlearning and organizational unlearning both have positive effects on strategic flexibility. Organizational unlearning exerts a partly mediating effect on the relationship between individual unlearning and strategic flexibility.Originality/valueThe paper examines the different mechanisms of individual and organizational unlearning on strategic flexibility and suggests that unlearning is a useful method or approach for strategic flexibility. In addition, this study is useful to help managers or practitioners determine how to embrace strategic flexibility by unlearning.

Advancing the multidimensional approach to family business professionalization

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gülçin Polat
Keyword(s):  
Organizational Structure ◽  
Work Environment ◽  
Family Business ◽  
Design Methodology ◽  
Family Firms ◽  
Academic Research ◽  
Multidimensional Approach ◽  
Content Type ◽  
Multidimensional Construct ◽  
Definition Of

PurposeAlthough it has been implicitly or explicitly assumed that family business professionalization is indeed a multidimensional construct, there has been a tendency to confine it to the employment of nonfamily managers and delegating authority in academic research. Dekker et al. (2013) have made an impressive work in untangling the multidimensional structure of family business professionalization. This paper aims to introduce a more comprehensive multidimensional approach and a framework to understand and study family business professionalization by identifying additional dimensions.Design/methodology/approachThe conceptual framework relies on insights derived from the literature on family business professionalization, occupational professionalism and organizational professionalism to reveal the broader multidimensionality of family business professionalization.FindingsThe proposed framework extends the definition of family business professionalization and offers additional dimensions which were grouped under five overarching headings: professionalization of management, professionalization of organizational structure, processes and operations, professionalization of family's relationship with business, professionalization of employees and professionalization of work environment and culture.Originality/valueThis paper contributes to the literature by providing a wider approach for the understanding of family business professionalization. It presents a new way of thinking about family business professionalization, underlining the importance of employees and organizational culture for the professionalization process in family firms.

Passing on the legacy: exploring the dynamics of succession in family businesses in Pakistan

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asma AbdulRahim Chang ◽  
Muhammad Shujaat Mubarik ◽  
Navaz Naghavi
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Design Methodology ◽  
Family Firms ◽  
Family Members ◽  
Family Businesses ◽  
Content Type ◽  
Traditional Family ◽  
Interviewing Technique

PurposeBy taking the theory of entrepreneurial legacy as the baseline, this study explores the various aspects of succession planning in indigenous family businesses especially the role of female family members in succession and conflicts in family businesses.Design/methodology/approachThe study is qualitative in nature and adopts narrative inquiry to explore the aspects of succession planning. In doing so, the study utilizes an in-depth interviewing technique with nine participants who run their family-owned firms which are mostly in their second or third generation for analysis.FindingsThe findings are concurrent with the literature that indicates a lack of strategic succession planning although ordinary or natural succession does occur in some firms. The study also reports a lack of consideration for female members in succession, daughters in particular, for traditional family firms (FFs) in contrast to entrepreneurial FFs.Research limitations/implicationsThe study has many implications for family-owned firms in Pakistan as they need to align their family business with the theory of entrepreneurial legacy and its three strategic activities in order to ensure the longevity of their business.Originality/valueExploring how succession planning takes place in family indigenous family businesses and what is the role of female family members in succession and conflicts in family businesses are original contributions of this study.

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.

Socio-emotional wealth and family: revisiting the connection

2016 ◽  
Vol 14 (3) ◽  
pp. 288-297 ◽  
Author(s):  
William Schulze
Keyword(s):  
Decision Making ◽  
Family Business ◽  
Operations Management ◽  
Design Methodology ◽  
Family Firms ◽  
Research Focus ◽  
Family Dynamic ◽  
Content Type ◽  
The Family ◽  
Complex Relationships

Purpose In this commentary, the author aims to question whether the socio-emotional wealth (SEW) construct should be limited to family firms by noting that non-family owners and founders, i.e. those who yet have to involve family in their enterprise‘s operations, management or ownership, are also motivated to maximize their socioemotional wealth. Design/methodology/approach The concept of SEW has generated significant traction in the family business literature and motivated an important body of work about how SEW alters decision-making in family firms. Professors Martin and Gomez–Mejia (this issue) extend past contributions by teasing apart complex relationships among the underlying dimensions of the construct. However, the domain of that paper, as well as the SEW construct, has heretofore been limited to family firms. The author builds his commentary on the work of Martin and Gomez–Mejia (this issue) to argue that the notion that SEW shapes decision-making in the owner controlled and owner-managed non-family firms, as well as family firms. Findings The author’s overarching conclusion is that there are several dimensions in which family interests materially alter decision-making but others in which family likely plays a moderating and possibly even a suppressor role. The surprising implication is that it may not be SEW per se that distinguishes family firms from non-family firms but rather how the family dynamic alters the influence of SEW on outcomes of interest. Originality/value Acknowledging that personal and familial SEW have a common foundation allows one to sharpen the research focus and shift it from questions about how SEW might alter decision-making in family firms to questions about how the presence of family members alters the influence of SEW on decision-making in owner-controlled and owner-managed firms. This commentary explicates the argument and offers some suggestions about how this re-framing might allow for the extension of the SEW concept from the family firm to its influence on founder-managed and non-family firms.

Will conjugal relationship affect the corporate innovation? – Empirical evidence from a-share listed family business in China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yupeng Xu ◽  
Bo Cheng ◽  
Fei Pan
Keyword(s):  
Empirical Evidence ◽  
Family Business ◽  
Family Firms ◽  
Listed Companies ◽  
Content Type ◽  
Positive Effects ◽  
Family Enterprises ◽  
Enterprise Innovation ◽  
The Impact ◽  
A Share

Purpose Few studies have focused on the impact of conjugal control and non-conjugal control on the innovation capability of family firms. In the context of the relative lack of research on the relationship between family firm heterogeneity and innovation ability, this study aims to focus on the differentiated impact of husband–wife-controlled family listed companies and non-husband–wife-controlled family listed companies on their innovation capabilities, which provides empirical evidence with more Chinese institutional and cultural characteristics for the development of corporate organizational management and innovation theories. Design/methodology/approach Taking all A-share listed family firms from 2007 to 2016 as the research sample, this paper examines the influence of spousal control on firm innovation level by empirical research method. Findings The empirical results show that compared with non-spousal-controlled family enterprises, spousal-controlled family enterprises have significant positive effects on the level of enterprise innovation. Further studies suggest that joint management of spousal-controlled family enterprises improves the level of innovation. Authority difference of the couple will weaken the innovation capacity. However, the wife’s professional skills can promote the innovation level. Originality/value Focusing on the characteristics of family internal structure and embedding marriage relationship in the enterprise organization, this paper investigates the influence of different characteristics of husband and wife and cooperation mode on enterprise innovation, and the conclusion enriches the theory of family business and family science, as well as provides important information reference for the stakeholder groups in the capital market.

Family firms and their participation in cross-border acquisition waves: evidence from India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Fuad ◽  
Vinod Thakur ◽  
Ashutosh Kumar Sinha
Keyword(s):  
Design Methodology ◽  
Family Firms ◽  
Risk Averse ◽  
Firm Age ◽  
Content Type ◽  
Family Control ◽  
Temporal Clustering ◽  
Cross Border ◽  
Simulation Based ◽  
The Relationship

PurposeFrom the socioemotional wealth (SEW) perspective, family firms prioritize non-financial goals and show risk averse behaviour towards conducting acquisitions. In this paper, we study family firms' acquisitive behaviour while participating in CBA waves. Scholars have largely treated the cross border acquisition (CBA) wave and non-wave environments as homogeneous. We theorize that these two environments differ in their uncertainty and risk profiles on account of temporal clustering of acquisition deals. Accordingly, based on the SEW perspective, we examine the preference of family firms to participate in CBA waves.Design/methodology/approach The paper is based on CBAs conducted by Indian family firms between 2000 and 2018. These waves are identified by conducting a simulation based methodology.FindingsOur findings suggest that foreign institutional ownership, firm age and acquisition relatedness moderate the relationship between family control and participation in CBA waves.Originality/valueOur paper contributes towards the acquisitive behavior of family firms and their participation in CBA waves.

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.

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