Strategic Management of the Family Business: Past Research and Future Challenges

1997 ◽  
Vol 10 (1) ◽  
pp. 1-35 ◽  
Author(s):  
Pramodita Sharma ◽  
James J. Chrisman ◽  
Jess H. Chua
Keyword(s):  
Strategic Management ◽  
Family Business ◽  
Family Relationships ◽  
Family Firms ◽  
Management Practices ◽  
Past Research ◽  
Management Perspective ◽  
Future Challenges ◽  
Key Issues ◽  
And Performance

This article reviews the literature on family business from a strategic management perspective. In general, this literature is dominated by descriptive articles that typically focus on family relationships. However, the literature does not usually address how these relationships affect the performance of a family business. Taking a strategic management perspective, we outline a new set of objectives for family-business research. We also identify some of the key issues and gaps that should be explored in future studies if research is to contribute to improving the management practices and performance of family firms.

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.

Culture in Family-Owned Enterprises: Recognizing and Leveraging Unique Strengths

2004 ◽  
Vol 17 (1) ◽  
pp. 61-70 ◽  
Author(s):  
Daniel Denison ◽  
Colleen Lief ◽  
John L. Ward
Keyword(s):  
Organizational Behavior ◽  
Corporate Culture ◽  
Family Business ◽  
Family Firms ◽  
Assessment Tool ◽  
Small Sample ◽  
Business Culture ◽  
Bottom Line ◽  
Family Enterprises ◽  
And Performance

Through years of consulting experience and culture research, a fuller picture of family firms began to emerge. It became increasingly clear that family business sustainability and accomplishment were rooted in something deeper, something beyond superficial explanation. Belief in the innate value and uniqueness of family business culture drove collaboration on this project between the disciplines of family business and organizational behavior. The goal was to critically examine family business culture and performance relative to nonfamily firms. The Denison Organizational Culture Survey, a cultural assessment tool that has linked corporate culture to financial performance, was administered to a sample of 20 family businesses and 389 nonfamily businesses, allowing us to compare their cultures. The results showed that the corporate cultures of family enterprises were more positive than the culture of firms without a family affiliation. Family enterprises scored higher on all 12 dimensions of the assessment tool. Despite the small sample, several of these differences were statistically significant. This suggests that family firms perform better because of who they are. In addition, recent research that shows they also perform better because of what they do strategically. Their histories and shared identities provide a connectedness to time-tested core values and standards of behavior that lead to bottom-line success.

scholarly journals Hierarchical Dyadic Congruence in Family Firms: The Interplay of Supervisor and Supervisee Socioemotional Wealth Importance and Familial Status

2018 ◽  
Vol 43 (2) ◽  
pp. 322-329 ◽  
Author(s):  
Giovanna Campopiano ◽  
Emanuela Rondi
Keyword(s):  
Social Exchange ◽  
Family Business ◽  
Theoretical Basis ◽  
Family Firms ◽  
Socioemotional Wealth ◽  
Organization Behavior ◽  
Fine Grained ◽  
The Family ◽  
And Performance ◽  
The Relationship

We extend McLarty, Vardaman, and Barnett’s analysis of how family firm supervisor attributes, in terms of familial status and socioemotional wealth importance, affect supervisee performance by considering the supervisee attributes. We further integrate the concept of restricted and generalized social exchange to provide a theoretical basis for how hierarchical dyadic (in)congruence moderates the relationship between supervisee commitment and performance. By providing a more fine-grained conceptualization, we contribute to the family business literature at its organization behavior interface.

Stakeholder Perceptions of Culture and Management Practices in Family and Family Firms - A Preliminary Report

1997 ◽  
Vol 10 (2) ◽  
pp. 135-155 ◽  
Author(s):  
Ernesto J. Poza ◽  
Theodore Alfred ◽  
Anil Maheshwari
Keyword(s):  
Family Business ◽  
Preliminary Report ◽  
Family Firms ◽  
Management Practices ◽  
Family Businesses ◽  
Family Ownership ◽  
Business Culture ◽  
Stakeholder Perceptions ◽  
Communication Processes ◽  
Succession Processes

The research reported here represents part of an on-going project. Family businesses participating in the Partnership with Family Business at the Weatherhead School of Management, Case Western Reserve University, completed questionnaires that explored family and business culture and practices. The completed questionnaires show that CEOs generally perceived the practices, cultures, and succession processes more favorably than both other family members and non-family managers. The questionnaires indicate important relationships between family and family-firm cultures, suggesting the importance of intervention approaches that address the whole system of family and business. Non-family managers' perceptions of family firms differ, posing challenges to the full1 utilization of their capabilities. Age is significant in explaining some of the differences in perceptions within and between family and non-family respondents. Finally, responses indicate that planning practices, communication processes, and the use of boards are influenced by family ownership and are positively related to some features of firm andqor family.

Successor Attributes in Indian and Canadian Family Firms: A Comparative Study

2000 ◽  
Vol 13 (4) ◽  
pp. 313-330 ◽  
Author(s):  
Pramodita Sharma ◽  
A. Srinivas Rao
Keyword(s):  
Comparative Study ◽  
Family Business ◽  
Family Relationships ◽  
Family Firms ◽  
Family Firm ◽  
Business Owners ◽  
Past Performance ◽  
Indian Context ◽  
Using Data ◽  
Firm Owners

This study replicates the Chrisman, Chua, Sharma 1998 Canadian study in the Indian context. Using data from 43 Indian family firms, this study compares the successor attributes that Indian and Canadian family business owners consider most important. Despite significant differences in norms and culture prevalent in these two countries, results of this comparative study indicate that both sets of family firm owners rate integrity and commitment to the business as the two most important attributes of a successor. However, compared to Canadian family firm owners, Indian owners rate blood and family relationships higher. Canadian respondents, on the other hand, rate interpersonal skills, past performance, and experience higher.

scholarly journals An Investigation Of Family Culture In Family Firms’ Performance In Retailer-Vendor Strategic Partnerships

2021 ◽  
Author(s):  
Leonardo Amado Godoy
Keyword(s):  
Family Business ◽  
Positive Relationship ◽  
Family Firms ◽  
Strategic Partnerships ◽  
Family Culture ◽  
The Family ◽  
Relationship Value ◽  
And Performance ◽  
The Impact ◽  
Group Family

This research proposes a model to measure the effect of family culture on firm performance in family business retailer-vendor strategic partnerships. Prior research that has contributed to the development of the discourse on family culture, organizational culture, family and relationship value, commitment, and trust will be analyzed. Eight hypotheses are presented, four of which are an extension of prior research. The model ratifies a positive relationship between family culture and performance, especially when considering the successor generation. Since the founders of the firm are the personification of the family culture itself, for this group, family culture does not positively influence performance. The outcome of this research will illustrate not only the effects of family culture in family firms’ performance, but also the impact of relationship and behavioral factors in business.

Examining the Relation Between Ethical Focus and Financial Performance in Family Firms: An Exploratory Study

2010 ◽  
Vol 23 (4) ◽  
pp. 310-326 ◽  
Author(s):  
Ernest H. O'Boyle ◽  
Matthew W. Rutherford ◽  
Jeffrey M. Pollack
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Family Involvement ◽  
Family Business ◽  
Exploratory Study ◽  
Family Firms ◽  
Research Area ◽  
Future Research ◽  
Business Studies ◽  
And Performance

Empirically, the confluence of family involvement, ethics, and performance is a sparse research area. The authors explore a rich theoretical framework relating family involvement, ethical focus, and firm performance and empirically test a mediated model using a sample of 526 family businesses. The results illustrated that a firm’s ethical focus mediated the relation between family involvement and financial performance. Specifically, data supported the relation between family involvement and a firm’s ethical focus. And increased ethical focus predicted increased financial performance. The authors discuss the implications of these findings and offer potential areas for future research in family business studies.

scholarly journals Research on Accounting in Family Firms: Past Accomplishments and Future Challenges

2010 ◽  
Vol 23 (3) ◽  
pp. 193-215 ◽  
Author(s):  
Carlo Salvato ◽  
Ken Moores
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Additional Research ◽  
The Family ◽  
Future Challenges ◽  
Distinct Role

Accounting practices in family firms, although displaying evident unique features, have received relatively little attention as distinct from their equivalents in publicly held firms. This may have hampered conceptual advancements in both the accounting and the family business literatures. In this article the authors first assess accounting areas in which the “family entity” plays a distinct role and elaborate on important characteristics of these phenomena. They also report evidence suggesting that additional research efforts may illuminate both unresolved issues in the accounting literature and so-far-neglected dimensions of the family business entity. Finally, the authors examine several different avenues for research at the accounting—family business interface and identify common themes among them.

Contextualizing Performances of Family Firms

2011 ◽  
Vol 25 (3) ◽  
pp. 243-257 ◽  
Author(s):  
Andrea Colli
Keyword(s):  
Performance Measurement ◽  
Family Business ◽  
Family Firms ◽  
Historical Analysis ◽  
Critical Assessment ◽  
Business History ◽  
Theory Building ◽  
Potential Contribution ◽  
And Performance ◽  
The Relationship

Performances have only recently been addressed in business history research, partly because of problems concerning data quality and availability. As a consequence, performance measurement in family firms has been a neglected area in historical studies. Family business historians are thus increasingly interested in this topic. However, the longitudinal perspective adopted requires a problematical approach to the concept of performance. This article provides a critical assessment of the relationship between family firms and performance measurement from the perspective of business history and, at the same time, suggests the potential contribution of historical analysis to theory building in this field.

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