Determinants of family meetings in private family businesses

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Akif Cicek ◽  
Rüveyda Kelleci ◽  
Pieter Vandekerkhof
Keyword(s):  
Systems Theory ◽  
Family Firms ◽  
Social Systems ◽  
Governance Mechanisms ◽  
Social Systems Theory ◽  
Content Type ◽  
Family Governance ◽  
Family Meetings ◽  
The Social ◽  
The Family

PurposeFamily governance mechanisms serve to govern and strengthen relations between the family and the business, as well as the relationships between the members of the business family itself. However, despite agreement on the importance of adopting family governance structures, explicit research on the determinants of family governance mechanisms is currently missing. Therefore, the purpose of this study is to uncover the determinants of family meetings. In order to do so, the social systems theory is used to unravel several determining factors of this crucial form of family governance mechanisms in private family firms.Design/methodology/approachThe authors perform a qualitative study by conducting semi-structured interviews in eight Belgian private family firms in order to discover the antecedents of the implementation of family meetings. The authors use a pattern-matching technique as an analytical strategy.FindingsThe findings of the study highlight the importance of “soft,” relational, qualitative issues as antecedents of family meetings as opposed to previous research on family governance, which predominantly focused on “hard,” quantitative measures (e.g. family ownership). The findings of the study also provide novel insights into the origins of the family component (i.e. family meetings) of family business governance.Originality/valueWhile the current literature has only focused on describing the different types of family governance and their positive consequences for the family firm, the authors take a step back to explain why family meetings, as a form of family governance, are adopted in the first place. Second, the authors demonstrate the instrumentality of the social systems theory in understanding the family's needs that necessitate the implementation of family governance mechanisms.

scholarly journals Heterogeneity in family firms: contextualising the adoption of family governance mechanisms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rocío Arteaga ◽  
Alejandro Escribá-Esteve
Keyword(s):  
Systems Theory ◽  
Family Firms ◽  
Social Systems ◽  
Governance Mechanisms ◽  
Content Type ◽  
Family Governance ◽  
Governance Systems ◽  
Family Complexity ◽  
Communication Needs ◽  
The Relationship

PurposeThis research is aimed to better understand what characteristics of family firms create a context in which family governance systems are more frequently adopted.Design/methodology/approachWe analyse a sample of 490 Spanish family businesses using cluster analysis, and we identify four different types of family businesses whose characteristics are associated to the adoption of different family governance systems, i.e. family councils and family protocols. The comparison between clusters of the baseline parameters was performed using one-way analysis of variance (ANOVA) for parametric variables, the χ2 test for parametric variables and Kruskal-Wallis for nonparametric variables. By conducting between-profile analysis of covariance (ANCOVA), we tested for differences in the dependent variables (i.e. the existence of family councils and/or existence of family protocols) between the clusters, using cluster membership as the independent variable.FindingsTaking into account the characteristics of family firms in terms of ownership structure, management involvement, and family and organizational complexity, we identify four different contexts that create different communication needs and are related to the use of different family governance mechanisms. We characterize the different contexts or types of family firms as: founder-centric, protective, consensual and business-evolved. Our findings show that family protocols are associated to contexts with high family involvement in management and family complexity, while family councils are more frequent when there is a separation of managerial and ownership roles and there is a high organizational and family complexity.Research limitations/implicationsThe study highlights the value of social systems theory in order to explain the association between the characteristics of different firm types and contexts, and the use of family councils and family protocols to govern the relationship between the owner family and the business.Practical implicationsFamily governance mechanisms are widely recommended by practitioners and scholars. However, they are usually adopted only by a small percentage of family firms. This study helps to better understand what family governance systems may be more appropriate in different contexts and relativize the necessity of these governance mechanisms in function of the communication needs created within each context.Social implicationsThe improvement of family governance mechanisms helps to increase the likelihood of survival and durability of family firms. These firms contribute to more than 60% of employment in most developed countries. Consequently, good governance in family firms has social implications in terms of labour conditions and stability.Originality/valueMost family firms don't use family protocols or family councils to govern the relationship between the owner family and the firm. However, little is known about the reasons for this lack of structuration of the family-firm relationship. Using social systems theory, our research contributes to better understand the conditions in which business families are more prone to use structured forms to manage this relationship, as well as the reasons that may be constraining their adoption.

Beyond the competency frameworks-conceptualizing and deploying employee strengths at work

2020 ◽  
Vol 14 (5) ◽  
pp. 691-709 ◽  
Author(s):  
Vikas Rai Bhatnagar ◽  
Ajay K. Jain ◽  
Shiv S. Tripathi ◽  
Sabir Giga
Keyword(s):  
Systems Theory ◽  
Conceptual Model ◽  
Social Systems ◽  
Well Being ◽  
Social Implications ◽  
Social Systems Theory ◽  
Content Type ◽  
The Social ◽  
Organization Science ◽  
Conceptual Study

Purpose With growing stress at work, the need for scholars to focus on humanizing organizations is pressing. Scholars agree five factors lead to humanizing organizations. This study dwells upon one factor – employee strengths at work (ESAW) – problematizes, identifies the gap in its conceptualization, deploys critical social systems theory and reconceptualizes the construct of ESAW by taking key contextual factors into consideration. Thereafter, this study aims to develop a conceptual model and makes propositions related to the mediating effects of ESAW on the association of leadership style and employee performance. Design/methodology/approach Aimed at contributing to humanizing organizations, this conceptual study problematizes the construct of competency and the trait-based conceptualization of strengths in identifying gaps in the construct of competency for humanizing organizations. Next, the study deploys the technique of construct mixology for evolving the new construct of ESAW. To empirically test ESAW in the field, the authors deploy the critical social systems theory and develop a conceptual model. Further, drawing upon the conceptual model and the extant literature, the authors develop many propositions for enabling future research. Findings The study develops a new construct of ESAW that holds the promise of contributing to humanizing organizations. By embedding the current trait-based conceptualization of employee strengths to the context of the organization, the new five-factor construct of ESAW is indigenous to the field of organization science, hence, has a higher relevance. The study develops a conceptual model and makes propositions for empirically testing the new construct in the field that future researchers may focus upon. Research limitations/implications There is a compelling need for humanizing organizations. This conceptual study attempts to bring back the focus of researchers on humanizing organizations, within the framework of the market-driven economy. The new construct of ESAW has huge potential for theory-building and empirical testing. Practical implications Deployment of ESAW will contribute to humanizing organizations. The construct of ESAW is relevant to practice as it has evolved from the domain of organization science, unlike the earlier trait-based conceptualization of strength that emerged in personality psychology. Practitioners can deploy the construct of ESAW and achieve the two seemingly conflicting objectives of enabling employee well-being while also ensuring superior performance. Social implications Any contribution toward humanizing organizations forebodes increasing the social capital and the personal well-being of employees. If employees are happy at work, their productivity increases. As per the broaden and build theory of Fredrickson, higher well-being and productivity at work creates a spiral of positivity that transcends the working life of an employee. Hence, the study has huge social implications at times when the social fabric is stretched because of multiple demands on an employee. Originality/value Constructs developed in other fields and adopted in organization science have less relevance than those evolved in the domain of organization science. Past deficient conceptualization and practices persist unless scholars logically challenge it an alternative and improved conceptualization provided. The new construct of ESAW uses the method of construct mixology after unravelling the assumptions that impedes humanizing organizations.

Secrets of succession: how one family business reached the ninth generation

2019 ◽  
Vol 40 (5) ◽  
pp. 12-20 ◽  
Author(s):  
Chamsa Fendri ◽  
Pascal Nguyen
Keyword(s):  
Family Firms ◽  
Single Case ◽  
Content Type ◽  
Theoretical Concepts ◽  
The Social ◽  
The Family ◽  
Consistent Picture ◽  
Practical Implications ◽  
Insight Into

Purpose The purpose of this paper is to provide insight into the specific structures and routines of family firms and to highlight their strengths and weaknesses using a case study. Design/methodology/approach The case describes a French SME in the construction sector that is undergoing succession from the eighth to the ninth generation. Both generations have offered their viewpoints. The succession context allows us to better distinguish what makes a family firm uniquely resilient and what may easily turn into a weakness. Findings The case indicates that the trust that family owners have cultivated with employees allows the firm to operate less formally and with less rigid procedures. It also encourages employees to take initiatives and contributes to their greater engagement. On the other hand, it may expose the firm to more structured and well-organized competitors. Research limitations/implications The limitations are those relative to the use of a single case. Practical implications Succession is a delicate process that needs to be well prepared and executed without any haste. It involves retaining the firm’s strengths, such as the social capital that the family has patiently amassed. But it also represents an opportunity to review the firm’s practices and to introduce a good dose of innovation. Originality/value The case provides a vivid illustration of what makes family firms so distinctive. Theoretical concepts and empirical findings from the literature are put together in a single consistent picture.

scholarly journals Translation as a Factor of Social Teleonomy

2012 ◽  
Vol 24 (1) ◽  
pp. 17-44
Author(s):  
Sergey Tyulenev
Keyword(s):  
Life Cycle ◽  
Systems Theory ◽  
Social System ◽  
Social Systems ◽  
Social Function ◽  
Ernst Mayr ◽  
Social Systems Theory ◽  
Evolutionary Biologist ◽  
The Social

This article considers translation as a factor in the genesis of social macro-formations—ethnoses and superethnoses. The research combines Niklas Luhmann’s social systems theory, Lem Gumilev’s theory of ethnogenesis and the concept of teleonomy borrowed from evolutionary biologist Ernst Mayr in order to demonstrate the ethnogenetic function of translation. An ethnos is a closed loose system; it has a life cycle which is teleonomic by nature. Ethnoses evolve by passing through different stages—from inception to consummation at the acmetic phase and finally into the post-acmetic succession of phases leading to disintegration. At each of these different stages, the social system requires inputs of varying intensity from the environment. Translation as a boundary phenomenon serves as a mechanism to ensure such inputs. From the standpoint of its social function, translation is theorized in a broader sense than usual—as mediation on intrapersonal, interpersonal, interethnic and intergenerational levels.

scholarly journals Socio-symbolic ownership: extending the socio-emotional wealth perspective

2016 ◽  
Vol 14 (3) ◽  
pp. 244-257 ◽  
Author(s):  
Mattias Nordqvist
Keyword(s):  
Social Interactions ◽  
Family Firms ◽  
Content Type ◽  
Family Control ◽  
The Social ◽  
The Family ◽  
Micro Level ◽  
The Rich ◽  
World Environment ◽  
Micro Foundations

Purpose The purpose of this paper is to extend the socio-emotional wealth (SEW) perspective in general, and the contribution by Martin and Gomez-Mejia (this issue) in particular. The aim is also to address recent calls to incorporate more micro-level theorizing in the development of the SEW perspective and to embrace the rich, real-world environment in which this phenomenon takes place. Focus is particularly on the SEW dimension that is related to the ability to exercise family control over a business. Design/methodology/approach The approach is conceptual and introduces symbolic interactionism, a theory from micro-sociology and socio-psychology, to the SEW literature within the family business field. The paper draws on a previously published study by the author and relies on the centrality of the notion of socio-symbolic ownership in family firms. Findings The concepts of socio-symbolic ownership and the process of enacting ownership underline how family and non-family actors interpret and act upon specific guiding values and interests that constitute SEW at a micro level in each family firm. Socio-symbolic ownership and the guiding values and interests that the ownership is based on allow scholars to capture SEW differences among family firms, as the specific values and interests typically vary between family firms. Originality/value An approach is outlined that helps scholars to develop a more process-sensitive theory of SEW. Studying how and why actors engage in the social interactions, symbolic relations and interpretations that constitute the decision-making gives a better understanding of the important micro-foundations of SEW, and of the heterogeneity of family firms.

Family firms in Ibero-America: an introduction

2016 ◽  
Vol 29 (3) ◽  
pp. 219-230 ◽  
Author(s):  
Maria José Parada ◽  
Claudio Müller ◽  
Alberto Gimeno
Keyword(s):  
Family Business ◽  
Design Methodology ◽  
Family Firms ◽  
Content Type ◽  
Family Governance ◽  
Economic Context ◽  
The Family ◽  
Business Dynamics ◽  
And Behavior

Purpose This paper highlights the importance of understanding family firms in different contexts. The purpose of this paper is to reflect on the characteristics and behavior of family firms in Ibero-America, and their contribution and fit to the broader field of research. Based on the five articles in this special issue, this paper attempts to give an overview of their main contributions. Design/methodology/approach This paper explains in a contextual and analytical way the contributions of five papers that focus their attention on Ibero-American family firms, by linking them to the current research in the field and finding their fit within the broader field of family business. Tackling different topics, these five papers discuss about the comparison between family vs non-family businesses, innovation in family firms, and governance in family firms Findings Findings suggest that there is a need to stimulate research in family business in Ibero-America, especially Latin America, regarding family business dynamics, the different roles of the family within the enterprise, family governance, and the role of women. With regards to innovation the cultural and economic context play an important role in how they perform innovative activities. Originality/value This paper contributes to further understanding family firms by discussing the importance of the context and by linking all five papers with the broader literature in family business. The introduction also discusses topics worth to be further researched in Ibero-America.

Managing family business tensions: the narrative of family history

2020 ◽  
Vol 15 (5) ◽  
pp. 669-686
Author(s):  
Rocio Arteaga ◽  
Timur Uman
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Methodological Approach ◽  
Family Members ◽  
Governance Structure ◽  
Future Research ◽  
Socioemotional Wealth ◽  
Content Type ◽  
Family Meetings ◽  
The Family

PurposeThis study explores the family governance structures that family firms employ to manage family business tensions.Design/methodology/approachBuilding on socioemotional wealth perspective and adopting a narrative methodological approach, the study analyses nine unique narratives of representatives of three Swedish family firms.FindingsThe study illustrates how the hybrid arena created between formal and informal family meetings is used as a governance structure for mitigating tensions by reinforcing family relational ties.Research limitations/implicationsBased on the findings, this study suggests how reliance on hybrid arena informs the field of family business management and governance and suggests future research directions.Practical implicationsThe findings of this study provide opportunities for family business practitioners, including owners, family members, family firm advisers and other stakeholders, to effectively manage family business tensions and foster socioemotional wealth.Originality/valueIn family firms, tensions can arise due to a desire for the preservation of socioemotional wealth. The authors show that these tensions may be managed by using informal and formal family meetings that create a hybrid arena where family members separate family and business issues and emotional and rational reactions, thereby avoiding negative emotions and creating a culture of harmony within the family.

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