Life After Succession in the Family Business: Is It Really the End of Problems?

1995 ◽  
Vol 8 (1) ◽  
pp. 3-16 ◽  
Author(s):  
Michael Harvey ◽  
Rodney Evans
Keyword(s):  
Organizational Climate ◽  
Family Business ◽  
Next Generation ◽  
The Family ◽  
Succession Processes ◽  
Business Family ◽  
Management And Leadership

The succession processes in family business are well chronicled in the business literature. Most of the research focuses on the process of transferring power within the business-family. What has not been as closely examined is the after-succession environment that exists when the management and leadership of the family business are passed on to the next generation. This article addresses that organizational climate and the potential for additional problems in the business-family if post-succession issues are not identified and addressed and suggests some steps that will be helpful in producing complete succession success.

scholarly journals Celebrity Couples as Business Families: A Social Network Perspective

2021 ◽  
pp. 089448652110503
Author(s):  
Yasaman Gorji ◽  
Michael Carney ◽  
Rajshree Prakash
Keyword(s):  
Social Networks ◽  
Social Relationships ◽  
Family Business ◽  
Economic Capital ◽  
The Family ◽  
Hollywood Movies ◽  
Career Performance ◽  
Business Family ◽  
Production Industry

We depict Hollywood celebrity couples as business families who participate in the project-based movie production industry, which is a temporary and disaggregated form of organization where skilled individuals are linked to one another through contractual and social relationships. Appearing in Hollywood movies generates celebrity capital, which can be converted into economic capital through involvement in endorsements and other rent-generating activities. Finding projects is facilitated by membership in high-quality social networks, and we consider celebrity marriage as a means of merging two individuals’ social networks, which can be mutually beneficial for both parties. We develop and test three hypotheses about the quality of social networks prior to and after marriage and analyze their impact upon celebrities’ postmarriage career performance. We contribute to the family business literature by exploring hybridized and adaptive forms of business family in contemporary project industries, which has the potential to enlarge family business scholars’ research horizons.

scholarly journals The Impact of Owner Gender in Family Businesses in Indonesia Liliana Dewi, Kazia Laturette, and I Gusti Bagus Yos

2021 ◽  
Author(s):  
Liliana Dewi ◽  
Kazia Laturette ◽  
I Gusti Bagus Yosia Wiryakusuma
Keyword(s):  
Family Business ◽  
First Generation ◽  
Future Generations ◽  
Early Age ◽  
Next Generation ◽  
Female Leaders ◽  
The Family ◽  
Long Time ◽  
The Impact

There are differences in the way people perceive the role of women and men in business. The purpose of this study was to analyze the influence of male or female leaders on two business families in Indonesia. The success of the family company cannot be separated from the role of the first generation in trusting future generations to continue their family business. A qualitative approach was used, where the data were collected through interviews with two family companies with different generations of successors. One family company has a female successor generation and another family company has a male successor. The findings showed that the first generation trusted from an early age and involved the second generation in the family business, whether their children were girls or boys. In fact, all succeeded in taking over the baton of leadership. An interesting finding is that even though the next generation is female and handles welding, which is more commonly done by men, thanks to the trust given by their parents, this next generation would be more masculine in order to gain legitimacy from employees who have worked for a long time in the company. This is as good as the next generation of men in other family companies. Keywords: family business, gender, first-generation roles, succession of success

scholarly journals Nurturing and Transferring Entrepreneurship in Thai Business Families

2018 ◽  
Vol 5 (1) ◽  
pp. 23 ◽  
Author(s):  
Rungluck Naksung ◽  
Opas Piansoongnern
Keyword(s):  
Family Business ◽  
Parental Support ◽  
Developmental Stages ◽  
Structured Interview ◽  
Business Practices ◽  
The Family ◽  
Two Factors ◽  
Parental Family ◽  
Business Family ◽  
Thai Business

This research aims (1) to investigate patterns and phenomena of entrepreneurship formation in Thai business families; (2) to investigate practices of parent (the founders/predecessors of the business family) in nurturing and transferring entrepreneurship to their family members (successors); and (3) to build a model for nurturing and transferring entrepreneurship in Thai business families. The Semi-structured interview was used for collecting data from key informants who are potential successors of Thai business families. Eighteen potential family business successors participated in the interview. The study revealed that entrepreneurship in the Thai business families has been emerged since childhood developmental stages. The key practices of the Thai business families used for creating family entrepreneurship are: (1) Parental role modeling; (2) Parental family business practices; and (3) Parental support. However, the study disclosed and indicated that the founder or predecessor should build the family infrastructure before implementing any key practices. In this regard, the intellectual and mental factors were found as key elements. According to the findings, to be effective, these two factors must be created simultaneously.

Keddeg Company (B): Succession to the Next Generation of Small Business

2017 ◽  
pp. 1-3
Author(s):  
John L. Ward ◽  
Carol Adler Zsolnay
Keyword(s):  
Small Business ◽  
Family Business ◽  
Married Couple ◽  
Escalation Of Commitment ◽  
Health Issues ◽  
Next Generation ◽  
Sale Price ◽  
The Family ◽  
Complicating Factors ◽  
Mba Graduates

A married couple who have a successful industrial B2B business evaluate whether or not to sell the business to two of their offspring, who are both entrepreneurial MBA graduates. Complicating factors include the fact that the sale price and structure need to finance the couple's retirement and give fair inheritance treatment to the remaining siblings. In addition, the father has had some health issues and the business is doing well, so there is a lot of forward momentum to sell to the next generation.Evaluate whether or not, and how, to keep a business founded and run by entrepreneurs as a family business into the sibling generation. Explore "escalation of commitment" and how it influences decisions to keep the business in the family or not.

In the Founder's Shadow: Conflict in the Family Firm

1999 ◽  
Vol 12 (4) ◽  
pp. 311-323 ◽  
Author(s):  
Peter S. Davis ◽  
Paula D. Harveston
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Telephone Survey ◽  
Business Owners ◽  
Next Generation ◽  
Independent Variables ◽  
The Family ◽  
Nonlinear Trends ◽  
Using Data ◽  
Two Independent Variables

This paper examines the extent to which conflict across generations of family firms is due to the effects of two independent variables—generation and generational shadow. The presence of a generational shadow was indicated by whether either or both of the parents continued to influence the company once the next generation assumed control. Hypotheses predicted nonlinear trends in conflict and interactions between generation and generational shadow. Using data from a national telephone survey of over 1,000 family business owners, the results of an ANOVA test confirmed that the presence of generational shadow, in particular, that of the founder, increases organizational conflict.

Family business leadership transition: How an adaptation of executive coaching may help

2010 ◽  
Vol 15 (3) ◽  
pp. 378-391 ◽  
Author(s):  
Charmine EJ Härtel ◽  
Gil Bozer ◽  
Leon Levin
Keyword(s):  
Organizational Climate ◽  
Family Business ◽  
Executive Coaching ◽  
Business Environment ◽  
Leadership Transition ◽  
Business Leadership ◽  
Executive Coaches ◽  
Family Culture ◽  
Business Environments ◽  
The Family

AbstractWithin the traditional business organizational climate in which an executive coach operates, the identity of ‘the coached’ (coachee) can be quite clearly differentiated from the business identity. This is not the case within the world of family business, where the incumbent family business leader, the successor, the business and the family culture, are interwoven. This unique feature of family business means that, for executive coaching to be effective within the family business environment, a radically different approach to that used in traditional business environments must be adopted – namely, the consideration of what generally are thought of as noneconomic variables. This article represents a first attempt to effectively address the key and unique variables executive coaches need to know to work within the family business environment.

scholarly journals Building family business identity through transgenerational narratives

2017 ◽  
Vol 30 (3) ◽  
pp. 344-356 ◽  
Author(s):  
Maria Jose Parada ◽  
Alexandra Dawson
Keyword(s):  
Family Business ◽  
Collective Identity ◽  
Content Type ◽  
Old Spanish ◽  
Socially Constructed ◽  
Organizational Resource ◽  
The Family ◽  
Narrative Method ◽  
Business Family ◽  
Empirical Material

Purpose The purpose of this paper is to understand how family businesses (FBs) build their collective identity through transgenerational narratives. The authors examine the processes through which organizational meanings are socially constructed through narratives about individuals who are closely linked to the organizations (and their family). Design/methodology/approach Based on qualitative research, the authors study a 180-year old Spanish Pharmaceutical FB. Using longitudinal data, the authors analyze the narratives of six family members and two non-family executives. The authors use open-ended questions to allow interviewees to elaborate their own stories, following previous studies using extended narratives that leave the stage to the narrator. Findings Findings based on the stories of the eight interviewees (voice) suggest that the FB identity was initiated by the founder’s way to grow the business (fictionality). In turn the family shaped the identity of the FB, being reshaped by the stories arising from next generations’ entry into the business (reflexivity). While the FB identity reflects that of the owners, this identity is enduring but dynamic (temporality), not only shaped by the business family behind, but also conditioned by the environment. Originality/value The authors contribute to the growing literature adopting a narrative method to study phenomena in FBs. Thanks to the richness of the empirical material, a narrative method is particularly suited – and novel – for understanding collective identity, a crucial organizational resource that is closely linked to leadership in the FB.

The Family Factor: The Impact of Family Relationship Dynamics on Business-Owning Families during Transitions

1999 ◽  
Vol 12 (1) ◽  
pp. 41-57 ◽  
Author(s):  
Barbara Dunn
Keyword(s):  
Family Business ◽  
Family Relationship ◽  
Business Systems ◽  
Relationship Dynamics ◽  
Doctoral Research ◽  
Family Factor ◽  
The Family ◽  
The Impact ◽  
Succession Processes ◽  
Longitudinal Case Studies

This paper presents preliminary findings from three longitudinal case studies forming part of ongoing doctoral research into the activities and dynamics of business-owning families as they address the tasks and issues required during their succession processes. Specifically, the paper qualitatively explores the nature, characteristics, and effects of family relationship dynamics in three family business systems undertaking the transfer of controlling ownership to the next generation (from father to son). A model is presented to describe the sources of anxiety “imperatives” and their management during transition processes. Conclusions are drawn about the characteristics of emotional dynamics in business-owning families and how these can, over time, hinder or help families manage these tasks.

scholarly journals Family Cohesion as a Longevity Factor of Business with Intergenerational Transmission

2014 ◽  
Vol 15 (4) ◽  
pp. 791-819 ◽  
Author(s):  
FCO. Javier Fernández-Roca ◽  
Jesús D. López-Manjón ◽  
Fernando Gutiérrez-Hidalgo
Keyword(s):  
Intergenerational Transmission ◽  
Family Business ◽  
Family Cohesion ◽  
Business History ◽  
Intergenerational Transfer ◽  
Critical Response ◽  
Original Plan ◽  
The Family ◽  
Business Family

This article contributes to a line of research in Business History that aims to determine the factors of family business longevity in the long term with the study of individual cases. The literature has identified family cohesion as one of the essential factors for survival. Cohesion may be reinforced or broken at the time of the intergenerational transfer. This study finds that a critical response on the part of the business family to the difficulties associated with intergenerational transfer of control, including modifications to the original plan, is usually based on trust between generations. Within the business family cohesion facilitates intergenerational transfers and, consequently, allows the family to evolve and transform itself into a business dynasty.

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