“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.

Emotional intelligence in family firms

2014 ◽  
Vol 4 (1) ◽  
pp. 4-23 ◽  
Author(s):  
Gonzalo Gómez Betancourt ◽  
Isabel C. Botero ◽  
Jose Bernardo Betancourt Ramirez ◽  
Maria Piedad López Vergara
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Members ◽  
Family Firm ◽  
Business Owners ◽  
Interpersonal Dynamics ◽  
Content Type ◽  
The Family

Purpose – Although researchers have highlighted the importance of relational and family factors for the sustainability of a family firm, there is not much empirical research exploring how emotions and the management of emotions play a role in the interpersonal dynamics of family business owners. The purpose of this paper is to explore how the way family members manage their emotions affects the interpersonal dynamics in the family, business, and ownership subsystems of a family firm. Design/methodology/approach – The paper presents an in-depth case study from a family firm in Colombia-South America. Findings – The results indicate that the capability that family members have to manage their emotions influences the interpersonal dynamics that take place in the family firm at the individual and group level. In this case, the paper found that although emotional intelligence (EI) affected interpersonal relationships in a firm, this effect was based on the individual's willingness to use their EI capabilities, previous history between people, and the goals individuals have within each subsystem in a family firm. The paper also found that interpersonal dynamics, in turn, influence how family members work together. Research limitations/implications – Because this study uses an in-depth case study, the intention of the paper is to provide an initial picture of how EI can play a role in the interpersonal interactions between family business owners. The authors hope that this study can be used as a building block to enhance the understanding of the role of EI in family firms. Practical implications – EI represents an individual's capability to perceive, understand, manage, and regulate self and other's emotions. For family firms, this means that family business owners can use this capability to determine how to enact their roles in the family firm and how to interact with other to ensure harmony in their relationships. Originality/value – This paper builds on previous work on emotions in family firms to explore the role of EI in family firms, and provides an empirical exploration of the role of management of emotions in family firms.

Does family involvement matter post IPO? Adding value through advertising in family firms

2018 ◽  
Vol 8 (3) ◽  
pp. 218-234 ◽  
Author(s):  
Atanas Nik Nikolov ◽  
Yuan Wen
Keyword(s):  
Firm Performance ◽  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
Family Firm ◽  
Family Businesses ◽  
Publicly Traded ◽  
Content Type ◽  
The Public ◽  
The Family

PurposeThis paper brings together research on advertising, family business, and the resource-based view (RBV) of the firm to examine performance differences between publicly traded US family vs non-family firms. The purpose of this paper is to understand the heterogeneity of family vs non-family firm advertising after such firms become publicly traded.Design/methodology/approachThe authors draw on the RBV of the firm, as well as on extensive empirical literature in family business and advertising research to empirically examine the differences between family and non-family firms in terms of performance.FindingsUsing panel data from over 2,000 companies across ten years, this research demonstrates that family businesses have higher advertising intensity than competitors, and achieve higher performance returns on their advertising investments, relative to non-family competitors. The results suggest that the “familiness” of public family firms is an intangible resource that, when combined with their advertising investments, affords family businesses a relative advantage compared to non-family businesses.Research limitations/implicationsFamily involvement in publicly traded firms may contribute toward a richer resource endowment and result in creating synergistic effects between firm “familiness” and the public status of the firm. The paper contributes toward the RBV of the firm and the advertising literature. Limitations include the lack of qualitative data to ground the findings and potential moderating effects.Practical implicationsUnderstanding how family firms’ advertising spending influences their consequent performance provides new information to family firms’ owners and management, as well as investors. The authors suggest that the “familiness” of public family firms may provide a significant advantage over their non-family-owned competitors.Social implicationsThe implications for society include that the family firm as an organizational form does not need to be relegated to a second-class citizen status in the business world: indeed, combining family firms’ characteristics within a publicly traded platform may provide firm performance benefits which benefit the founding family and other stakeholders.Originality/valueThis study contributes by highlighting the important influence of family involvement on advertising investment in the public family firm, a topic which has received limited attention. Second, it also integrates public ownership in family firms with the family involvement–advertising–firm performance relationship. As such, it uncovers a new pathway through which the family effect is leveraged to increase firm performance. Third, this study also contributes to the advertising and resource building literatures by identifying advertising as an additional resource which magnifies the impact of the bundle of resources available to the public family firm. Fourth, the use of an extensive panel data set allows for a more complex empirical investigation of the inherently dynamic relationships in the data and thus provides a contribution to the empirical stream of research in family business.

Advice-seeking process in family businesses: a qualitative study

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aleš Kubíček ◽  
Lucie Dofkova ◽  
Ondřej Machek
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Professional Associations ◽  
Family Firm ◽  
Business Owners ◽  
Structured Interviews ◽  
Content Type ◽  
Advice Seeking ◽  
External Sources

PurposeThe purpose of this paper is to explore the process of seeking advice in family firms.Design/methodology/approachExploratory multiple case study design was employed to examine how family firm owners use various sources of advice. The analysis is based on data collected from semi-structured interviews with six Czech family business owners.FindingsThe case study analysis shows that family business owners first seek advice among those family members who work in the family firm. Subsequently, they approach internal or external sources with whom they have a specific relationship (management and key employees, peers and professional associations). Only when these sources do not provide adequate results, external advisors are approached. However, if the advice required a specific knowledge or certification, external advisors may be approached in the first place.Originality/valueBased on the qualitative data analysis, we developed a model of the advice-seeking process. Since the theoretical “how” of the advising process in family firms is still underresearched, this study presents theoretical extensions as well as practical implications.

Understanding family firm innovation heterogeneity

2016 ◽  
Vol 6 (2) ◽  
pp. 103-121 ◽  
Author(s):  
Zonghui Li ◽  
Joshua J. Daspit
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
Firm Heterogeneity ◽  
Family Firm ◽  
Firm Innovation ◽  
Content Type ◽  
Business Studies ◽  
The Family ◽  
Innovation Strategies

Purpose – In family business studies, inconsistent findings exist regarding the relationship between family involvement and firm innovation. The purpose of this paper is to understand the heterogeneity of family firm innovation. Design/methodology/approach – The authors draw on governance literature and the socioemotional wealth (SEW) perspective to examine how the extent of family governance and the type of SEW objectives jointly influence innovation strategies in family firms. Findings – The authors develop a typology of family firm innovation strategies, positing that the family firm’s risk orientation, innovation goal, and knowledge diversity vary depending on the degree of family involvement in governance and the type of SEW objective. The authors propose that four family firm innovation strategies (e.g. Limited Innovators, Intended Innovators, Potential Innovators, and Active Innovators) emerge when family involvement in the dominant coalition (high or low) is contrasted with the SEW objective (restricted or extended) pursued by the family. Practical implications – Understanding how governance and SEW goals work together to influence the firm’s innovation strategies is potentially valuable for managers of family firms. The authors offer practical suggestions for how to strategically reposition the firm to pursue innovation strategies more in line with those of the Active Innovator. Originality/value – This study contributes to the family business literature by using a multi-dimensional approach to examine family firm heterogeneity. In addition, by articulating various family firm innovation strategies, the authors offer insight into the previously inconsistent findings concerning firm innovation behavior and outcomes in family business studies.

The nexus between size and external business advice in the family firm

2016 ◽  
Vol 29 (3) ◽  
pp. 326-346
Author(s):  
Cristina López-Cózar-Navarro ◽  
Tiziana Priede-Bergamini ◽  
Sonia Benito-Hernández
Keyword(s):  
Family Business ◽  
Design Methodology ◽  
Family Firms ◽  
Industrial Sector ◽  
Family Firm ◽  
Content Type ◽  
Legal Advice ◽  
Equality Of Means ◽  
The Family ◽  
Different Types

Purpose The purpose of this paper is to suggest two main objectives: to analyze if the size of the company is determined by the use of external legal and human resources (HR) advice; and to analyze if the size of the family business is determined by the use of these two same types of external advice. Design/methodology/approach The assessment is developed (2,013 firms, the Spanish industrial sector) by using descriptive statistics to compare the features of the different types of firms in the sample: family and non-family ones. This is completed with a test of equality of means and using econometric models. Findings Regarding legal advice, results show that as far as legal matters are concerned, when family businesses make greater use of this type of advice, they are smaller. This is a remarkable and interesting result because it differs from non-family firms, in which the use of this type of advice is positively related with size. Regarding the use of HR advice, while it remains significant in general cases with a positive result, this is not the same for family firms. Originality/value The use of advising in family firms is seldom dealt with in the literature, despite its helpfulness for family firm managers. There is gap in this field and a great deal of interesting research remains to be developed, because the authors consider that factors determining the use of advice in family and non-family firms are different.

Intergenerational communication in family firm succession

2018 ◽  
Vol 8 (1) ◽  
pp. 75-90 ◽  
Author(s):  
Gabriela Leiß ◽  
Anita Zehrer
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Small Sample Size ◽  
Family Firm ◽  
Family Businesses ◽  
Small Sample ◽  
Intergenerational Communication ◽  
Interaction Patterns ◽  
Content Type ◽  
The Family

Purpose The purpose of this paper is to explore how intergenerational communication between predecessors and successors impacts on the entrepreneurial family and the family business, and aims at developing a typology of communication patterns in family business succession. Design/methodology/approach Based on grounded theory methodology, ten in-depth narrative family interviews with predecessors and successors were conducted, transcribed and analyzed. The qualitative data analysis followed a hermeneutic approach focusing on in situ language phenomena such as positioning, syntax, semantics and interaction patterns. Findings The reconstruction of the interviewees’ subjective realities resulted in a theoretical concept with four communication types, varying between continuity and change, and between relatedness and autonomy. Given the fact that succession is not a single event but a long-lasting process, the typology can be transferred into a dynamic model for succession comprising three consecutive stages: intergenerational transmission, independent acquisition and finally interdependent development of the family firm heritage. Research limitations/implications First, the results are based upon a small sample size (n=10) that should not be generalized to the population of family businesses at large. Hence, to complete the overall picture, a broader survey among family-run firms by means of an extended qualitative or even a quantitative survey would be most valuable to generate more objective data. Another shortcoming is that the authors only investigated intra-family succession and challenges. No attention was paid to the various opportunities of external succession of family businesses, such as management buyout, management buy in, external management or liquidation. Practical implications Understanding the sociological and psychological aspects of communication helps family firms to identify characteristics in communication during their succession process. First, the knowledge that various communication types are highly dependent upon the personal interactions among the parties involved, might be an asset for family firms which are handing over their company in the future. Second, knowledge on different communication types might raise awareness for and prevent from conflicts and emotional relationships during the firm succession and thus function as a strategic advantage. Social implications Following a sustainable and responsible strategy, family firms can be regarded as the pillars of our economy. Yet, they can be compared to an endangered species often not surviving the transfer from one generation to the next. Succession seems to be a delicate stage in a company’s lifecycle, the failure of which threatens thousands of jobs every year. When it comes to the survival rate of family firms, the increase of communicative and reflexive competence as it is addressed by this paper, is one of the key factors helping the family to deal with conflicts and thus strengthen their self-efficacy. Originality/value The dynamic succession model presented in this paper gives experts a comprehensive insight into the inner logic of entrepreneurial families reconstructed by their communicative patterns. Understanding the different dimensions of succession lays the foundation for consulting and supporting family members in transition processes helping them to cope with intergenerational ambivalences and find solutions that are both beneficial for the individuals as well as for the business.

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.

The innovation and internationalisation processes of family businesses

2017 ◽  
Vol 27 (2) ◽  
pp. 231-247 ◽  
Author(s):  
Vitor Braga ◽  
Aldina Correia ◽  
Alexandra Braga ◽  
Sofia Lemos
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Businesses ◽  
Family Management ◽  
Multivariate Statistic ◽  
Content Type ◽  
Business Innovation ◽  
The Family ◽  
Internationalisation Strategies ◽  
Innovation Processes

Purpose The success of the family firms cannot be detached from the current paradigm where, within the present economic conditions, economic agents struggle to exploit the existing opportunities and need to take into account the risks associated to the international arena and the innovation processes. The internationalisation and innovation processes may trigger resistance within family business due to their relatively higher difficulty to take risks and to invest in industries outside the scope of their original core business. Innovation and internationalisation processes become relevant strategies for the family firms’ continuity and success. In line with such fact, the aim of this paper is to contribute with insights regarding the processes of innovation and internationalisation within family businesses. In particular, this paper aims to assess the propensity of such firms to apply such strategies, to identify the particular business behaviour and to assess the extent to which the particulars of family firms may constraint or lead to the implementation of innovation policies, and thus its internationalisation. Design/methodology/approach The data were collected through questionnaires within family business aiming to understand the scope and characteristics of internationalisation and innovation processes within these firms. The 154 replies from such data collection were analysed using different multivariate statistic procedures, although this paper is based on factorial and correlation analysis. Findings The analysis of the results shows that there is an association between the processes of innovation and internationalisation within family business. In addition, the results also suggest a typology of firms regarding their innovation and internationalisation strategies and motivations. Research limitations/implications The results of this paper are, to some extent, limited because they did not allow comparing the findings with data from non-family business. However, the authors’ aim was not to distinguish family firms, but rather to characterise them. Practical implications This paper expects to contribute with lessons for the management of family business and to raise awareness of the constraints faced by family business. It is important to highlight that family business performance may be affected by a lower propensity to risk-taking attitudes, by the lack of non-family management and to the necessity of separating the family and the business in the business dimensions that the family limits the business growth. Originality/value Although there is a significant amount of the literature devoted to explore family business, innovation and internationalisation studies, very few draw on the relationship between internationalisation and innovation processes within family business. This paper explores such a relationship within a particular business context – the family dynamics that strongly affect management and business development.

Inside an African family business estate: the founder’s legacy and the successor’s dilemma

2017 ◽  
Vol 7 (3) ◽  
pp. 1-28 ◽  
Author(s):  
Zubaida Muhumed ◽  
Virginia Bodolica ◽  
Martin Spraggon
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Management Practices ◽  
Emerging Market ◽  
Strategic Decision ◽  
Eastern Region ◽  
Ripple Effect ◽  
Strategic Choices ◽  
Content Type ◽  
The Family

Subject area Family business. Study level/applicability Specialized undergraduate courses, Elective MBA courses. Case overview This case study uncovers the remarkable story of the relentless growth and sporadic weakening of Nurul Ain (NA) Limited, a family business conglomerate with major operations in the Eastern region of Africa. The case provides an opportunity to follow the different stages of development of this family-owned organization through a sequence of strategic events and family dynamics that led to its recurrent success, decline and rejuvenation. Despite the numerous successes of NA Limited since its establishment in the early 1990s, the ambiguous relationship between family, ownership and management systems has caused a ripple effect of strategic, structural and governance challenges that threaten the sustainability of the family business. Nowadays, the founder faces the pressing challenge of ensuring his legacy remains intact and is passed over to his chosen successor, who, in turn, is confronted with the dilemma of joining the family business or pursing an independent career outside NA Limited. Shedding light on the complexity of today’s family-run organizations, the case allows examining the effectiveness of strategic decision-making in an emerging market context by applying a variety of family business principles, theories and frameworks. Expected learning outcomes Discuss the sources of competitive advantage and the typical challenges that family firms face in the context of emerging markets. Perform a comprehensive corporate diagnosis and examine the specificities of strategic management process in family businesses. Assess the succession management practices in family-run organizations and design a profile of successful successor. Discuss the effectiveness of various corporate governance mechanisms in the context of family-owned enterprises. Evaluate the strategic choices of the top management team and offer recommendations for securing the family business longevity. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 11: Strategy.

Family business governance: what’s wrong? What’s right? What’s next?

2019 ◽  
Vol 9 (1) ◽  
pp. 1-23
Author(s):  
Irfan Saleem ◽  
Faiza Khalid ◽  
Muhammad Nadeem
Keyword(s):  
Family Business ◽  
Generation X ◽  
Family Firm ◽  
Board Structure ◽  
Content Type ◽  
Academic Level ◽  
The Family ◽  
Governance Practices

Learning outcomes This case study can help the reader to understand how to build an effective board for family business, and why evolving board structure can help family firm to sustain for a longer period in Market. Reader can also learn about role of independent director, CEO's Succession process and ways to deal with duality issue that family owned enterprise may face during a transition from generation X to Y. Case overview/synopsis This teaching case study describes various decision-making situations using example of a Pakistani family firm and entrepreneurs who started the business few decades back in France. This partially disguised case is based on actual events. The data are collected based on discussions with family business owners and minutes of meetings. The objective of study is to make sense of the family business theories e.g. socio emotional wealth stakeholder and agency. Case readers can also learn about the family’s business governance practices using diverse scenarios presented in this case. Complexity academic level This study is suitable for graduate and undergraduate studies. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 7: Management science.

Sign in / Sign up

Export Citation Format

Share Document