scholarly journals Impacts of succession in family business

2019 ◽  
Vol 26 (3) ◽  
pp. 304-324 ◽  
Author(s):  
Andreas Gabriel ◽  
Vera Bitsch
Keyword(s):  
Organizational Climate ◽  
Family Business ◽  
System Analysis ◽  
System Thinking ◽  
Systemic Approach ◽  
Analysis Tool ◽  
Retail Sector ◽  
Content Type ◽  
Key Variables ◽  
Intra Family

PurposeWhile many studies in family business research focus on mono-causal impacts of succession, the purpose of this paper is to employ a systemic approach to analyze dynamic effects of intra-family succession on multiple business areas in family-run companies.Design/methodology/approachA system analysis using a participatory approach was conducted for a reference family-run company operating in the horticultural retail sector in Germany. The Vester Sensitivity Model, supplemented with principles from system thinking was used to identify key variables related to intra-family succession.FindingsExpert input and analysis of variable co-occurrence revealed key variables associated with succession such as “strategic planning,” “productivity” and “financial flexibility.” Dynamic interactions among various business areas were identified by simulating interventions in succession trajectories. In particular, key variables such as “conflicts between family and work” and “organizational climate” turned out to be highly sensitive to changes during a succession process.Practical implicationsThe concept and design of this system analysis tool will allow practitioners such as company managers and business consultants to better understand complex interrelations within companies and provide additional guidance with regard to critical events like business transfer.Originality/valueThe present study uses system thinking to analyze succession and its dynamic and time-lagged impacts on affected business areas in family-run companies for the first time. Repeated application of the systemic approach presented here to real-world business cases will gradually improve the tool and the quality of information it provides.

Does the balanced scorecard adoption enhance the levels of organizational climate, employees’ commitment, job satisfaction and job dedication?

2014 ◽  
Vol 52 (5) ◽  
pp. 983-1010 ◽  
Author(s):  
Miguel Ángel Calderón Molina ◽  
José Manuel Hurtado González ◽  
Beatriz Palacios Florencio ◽  
José Luis Galán González
Keyword(s):  
Job Satisfaction ◽  
Organizational Climate ◽  
Balanced Scorecard ◽  
Strategic Change ◽  
Retail Sector ◽  
Content Type ◽  
Strategic Objectives ◽  
The Balanced Scorecard ◽  
Before And After ◽  
Correct Implementation

Purpose – The purpose of this paper is to study the influence that balanced scorecard (BSC) adoption has on organizational climate, employees’ commitment, job satisfaction and job dedication. Design/methodology/approach – Data were collected using a questionnaire sent to the employees working in a retail sector firm, at two different moments in time, between the years 2009 and 2010. A total of 494 questionnaires were correctly returned. The response rates were 55.6 and 60.2 percent respectively. Tests (ANOVA) were carried out related to the constructs which make up the model studied, before and after the BSC implementation. Findings – The results indicate a clear relationship with the satisfaction of employees within the organization; it shows that the BSC implementation is significantly related to positive employees’ affective reactions. Originality/value – The outcomes of the study are relevant both to the literature on strategic change and business management, since they determine that the correct implementation of the BSC causes a significant change in the employees’ behavior and attitudes toward the firm's strategic objectives.

Intra-family dynamics and succession planning in family businesses in South Africa: the daughter as a potential successor

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Boris Urban ◽  
Ruth Palesa Nonkwelo
Keyword(s):  
South Africa ◽  
Family Business ◽  
Succession Planning ◽  
Family Dynamics ◽  
Business Environment ◽  
Family Businesses ◽  
Primary Data ◽  
African Countries ◽  
Content Type ◽  
Intra Family

PurposeLiterature considers the succession process to be successful when both the continuity of the business and harmony within the family are preserved. This study empirically investigates intra-family dynamics with regard to daughters as potential successors in family businesses.Design/methodology/approachThe study takes place in South Africa where family businesses represent a significant amount of all listed businesses on the Johannesburg Stock Exchange. A structured survey instrument is used to collect primary data from family businesses in South Africa. The study hypotheses are statistically tested using regression analyses.FindingsResults highlight the importance of the business context (BC), intra-family cohesion (IFC), intra-family adaptability (IFA) as well as the parent-daughter relationship (PDR) in successful daughter succession planning (SP). An important insight which emerges from the findings is the extent to which a harmonious business environment is conducive in accommodating the daughter as a successor to the business.Practical implicationsFamily business owners need to be aware of the often conflicting pressures that daughters face as potential successors. Evidence-based and fit for purpose to the South African family BC processes and directives must be formulated that guide the implementation of SP. The provision of training specifically focused on gender bias issues and women empowerment programmes in family business is recommended.Originality/valueInvestigating theoretical and practical problems related to daughters in SP in South Africa is important considering that firms in African countries in general tend to be poorly managed.

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.

A dyadic perspective of socially responsible mechanisms for retailer-manufacturer relationship in an apparel industry

2019 ◽  
Vol 49 (3) ◽  
pp. 242-266 ◽  
Author(s):  
Aswini Yadlapalli ◽  
Shams Rahman ◽  
Helen Rogers
Keyword(s):  
Social Responsibility ◽  
Social Factor ◽  
Developed Countries ◽  
Critical Element ◽  
Retail Sector ◽  
Socially Responsible ◽  
Dyadic Relationship ◽  
Case Study Methodology ◽  
Content Type ◽  
Relational Mechanism

Purpose The purpose of this paper is to identify and prioritise social responsible mechanisms in apparel supply chains to extend social responsibility from large retailers in developed countries to producers in developing nations. Design/methodology/approach A framework that consists of supplier qualification and supplier relational mechanisms as two socially responsible mechanisms, with five factors and 18 dimensions is proposed. To prioritise the dimensions, analytic hierarchy process is employed by using a case study methodology of a major Australian retailer sourcing from Bangladesh manufacturers. Findings Results indicate that at the mechanism level, both retailer and manufacturers perceive qualification of manufacturer as by far the most critical element compared to the relational mechanism. However, substantial differences exist at the factor level; namely, that the social factor is critical for the retailer, whereas the economic factor is critical for the manufacturer. Within the relational mechanism, evaluation helps retailers to enforce social responsibility, while manufacturers believe collaboration helps. Research limitations/implications The major limitation of this study is the generalisation of the findings. The results obtained by focusing on a particular context in the Australian retail sector importing from Bangladesh, may not be applicable to other nations. Practical implications By highlighting the difference of opinion, this study assists managers in developing guidelines to better understand the socially responsible mechanisms in the retailer-manufacturer dyadic relationship and to propose strategies to address the differences. Originality/value This study advances the literature on inter-organisational relationship to retailer-manufacturer dyad for the implementation of social responsibility by including supplier qualification along with supplier relational mechanism.

Crisis or opportunity: Marks and Spencer’s tryst with Indian retail

2020 ◽  
Vol 16 (6) ◽  
pp. 671-690
Author(s):  
Arunima Rana ◽  
Ravi Shankar
Keyword(s):  
Decision Making ◽  
International Business ◽  
Brand Management ◽  
Secondary Data ◽  
Business Environment ◽  
Special Focus ◽  
Retail Sector ◽  
Content Type ◽  
Competitor Analysis ◽  
Fashion Retail

Research methodology The case is written using secondary data sources (namely, research documents, press information, journal articles and published interviews). Publicly declared company information has further been leveraged to augment case facts. All information sources have been duly acknowledged in the reference section. Case overview/synopsis The case is written in the backdrop of COVID-19 pandemic and its effect on the Indian retail industry, revolving around scenarios in which a multinational retailer has to decide on its long- and short-term strategy in such an economic crisis. The case story has been developed around Marks and Spencer’s retail venture in the Indian market. With the COVID-19 pandemic impacting business at various levels, with countries moving to lock down and economies shrinking to recessionary levels, one of the worst affected sectors is retail. The teaching case builds upon Mark and Spencer’s initial decision of not entering and extending its food/grocery business in India. While it remained a dominant player in Indian fashion retail for almost two decades, it needs to re-think its decision of entering food retail owing to a pandemic situation affecting its offline sales/store footfall and increasing competition from global fashion brands such as Zara and H&M that had flooded the Indian fashion retail sector. The case provides a context for students to perform environmental factor and competitor analysis for a sector, with special focus on decision making in a changing crisis scenario. Complexity academic level This case could be used in undergraduate and MBA classroom programme, across subjects such as retail management, marketing management, international business, international business environment and strategic business management. This case fits while discussing topics such as business environmental factors, competitor analysis, decision-making under crisis, market entry decision, omnichannel retail strategy, consumer behaviour and brand management.

scholarly journals Beyond agency and stewardship theory: shareholder–manager relationships and governance structures in family firms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ann Sophie K. Löhde ◽  
Giovanna Campopiano ◽  
Andrea Calabrò
Keyword(s):  
Social Exchange ◽  
Family Business ◽  
Social Exchange Theory ◽  
Family Firms ◽  
Governance Structure ◽  
Managerial Behavior ◽  
Exchange System ◽  
Content Type ◽  
The One ◽  
Over Time

PurposeChallenging the static view of family business governance, we propose a model of owner–manager relationships derived from the configurational analysis of managerial behavior and change in governance structure.Design/methodology/approachStemming from social exchange theory and building on the 4C model proposed by Miller and Le Breton-Miller (2005), we consider the evolving owner–manager relationship in four main configurations. On the one hand, we account for family businesses shifting from a generalized to a restricted exchange system, and vice versa, according to whether a family manager misbehaves in a stewardship-oriented governance structure or a nonfamily manager succeeds in building a trusting relationship in an agency-oriented governance structure. On the other hand, we consider that family firms will strengthen a generalized exchange system, rather than a restricted one, according to whether a family manager contributes to the stewardship-oriented culture in the business or a nonfamily manager proves to be driven by extrinsic rewards. Four scenarios are analyzed in terms of the managerial behavior and governance structure that characterize the phases of the relationship between owners and managers.FindingsVarious factors trigger managerial behavior, making the firm deviate from or further build on what is assumed by stewardship and agency theories (i.e. proorganizational versus opportunistic behavior, respectively), which determine the governance structure over time. Workplace deviance, asymmetric altruism and patriarchy on the one hand, and proorganizational behavior, relationship building and long-term commitment on the other, are found to determine how the manager behaves and thus characterize the owner's reactions in terms of governance mechanisms. This enables us to present a dynamic view of governance structures, which adapt to the actual attitudes and behaviors of employed managers.Research limitations/implicationsAs time is a relevant dimension affecting individual behavior and triggering change in an organization, one must consider family business governance as being dynamic in nature. Moreover, it is not family membership that determines the most appropriate governance structure but the owner–manager relationship that evolves over time, thus contributing to the 4C model.Originality/valueThe proposed model integrates social exchange theory and the 4C model to predict changes in governance structure, as summarized in the final framework we propose.

Middle East luxury retail sector – opportunities or uncertainties in the future?

2016 ◽  
Vol 6 (3) ◽  
pp. 1-39
Author(s):  
Roger Moser ◽  
Gopalakrishnan Narayanamurthy
Keyword(s):  
Middle East ◽  
Multinational Corporations ◽  
International Business ◽  
Market Entry ◽  
Middle Eastern ◽  
Subject Area ◽  
Retail Sector ◽  
Senior Executive ◽  
Content Type ◽  
The Future

Subject area The subject area is international business and global operations. Study level/applicability The study includes BSc, MSc and MBA students and management trainees who are interested in learning how an industry can be assessed to make a decision on market entry/expansion. Even senior management teams could be targeted in executive education programs, as this case provides a detailed procedure and methodology that is also used by companies (multinational corporations and small- and medium-sized enterprises) to develop strategies on corporate and functional levels. Case overview A group of five senior executive teams of different Swiss luxury and lifestyle companies wanted to enter the Middle East market. To figure out the optimal market entry and operating strategies, the senior executive team approached the Head of the Swiss Business Hub Middle East of Switzerland Global Enterprise, Thomas Meier, in December 2012. Although being marked with great potential and an over-proportional growth, the Middle Eastern luxury market contained impediments that international firms had to take into consideration. Therefore, Thomas had to analyze the future outlook for this segment of the Middle East retail sector to develop potential strategies for the five different Swiss luxury and lifestyle companies to potentially operate successfully in the Middle East luxury and lifestyle market. Expected learning outcomes The study identifies barriers and operations challenges especially for Swiss and other foreign luxury and lifestyle retailers in the Middle East, understands the future (2017) institutional environment of the luxury and lifestyle retail sector in the Middle East and applies the institutions-resources matrix in the context of a Swiss company to evaluate the uncertainties prevailing in the Middle East luxury and lifestyle retail sector. It helps in turning insights about future developments in an industry (segment) into consequences for the corporate and functional strategies of a company. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or e-mail [email protected] to request teaching notes. Subject code CSS 5: International Business.

“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.

Image based portable wear debris analysis tool

2015 ◽  
Vol 67 (4) ◽  
pp. 389-398 ◽  
Author(s):  
Muhammad Ali Khan ◽  
Ahmed Farooq Cheema ◽  
Sohaib Zia Khan ◽  
Shafiq-ur-Rehman Qureshi
Keyword(s):  
Real Time ◽  
Wear Debris ◽  
Machine Component ◽  
Analysis Tool ◽  
Content Type ◽  
Real Time Analysis ◽  
Distribution Shape ◽  
Basic Features ◽  
Health Diagnosis ◽  
Wear Debris Analysis

Purpose – The purpose of this paper is to show the development of an image processing-based portable equipment for an automatic wear debris analysis. It can analyze both the qualitative and quantitative features of machine wear debris: size, quantity, size distribution, shape, surface texture and material composition via color. Design/methodology/approach – It comprises hardware and software components which can take debris in near real-time from a machine oil sump and process it for features diagnosis. This processing provides the information of the basic features on the user screen which can further be used for machine component health diagnosis. Findings – The developed system has the capacity to replace the existing off-line methods due to its cost effectiveness and simplicity in operation. The system is able to analyze debris basic quantitative and qualitative features greater than 50 micron and less than 300 micron. Originality/value – Wear debris basic features analysis tool is developed and discussed. The portable and near real-time analysis offered by the discussed work can be more technically effective as compared to the existing off-line and online techniques.

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