First-, Second-, and Third-Generation Family Firms: A Comparison

2004 ◽  
Vol 17 (3) ◽  
pp. 189-201 ◽  
Author(s):  
Matthew C. Sonfield ◽  
Robert N. Lussier
Keyword(s):  
Social Science ◽  
Generational Differences ◽  
First Generation ◽  
Family Firms ◽  
Industrial Clusters ◽  
Family Businesses ◽  
Analysis Of Covariance ◽  
Lead Author ◽  
Third Generation ◽  
Generation Family

SAGE wishes to inform readers that the article titled “Bahavioral [sic] Characteristics of Entrepreneurs in the Gujrat, Gujranawala and Slalkot Industrial Clusters of Pakistan: A Comparisn [sic] of First, Second and Third Generation Family Firms,” by Shahid Qureshi, Sarfraz A. Mian, and Arif Iqbal Rana, published in Volume 1, Issue 2 (November 2010) of International Journal of Business and Social Science included substantial excerpts from this article, “First-, Second-, and Third-Generation Family Firms: A Comparison,” by Matthew C. Sonfield and Robert N. Lussier, Volume XVII, Number 3 (September 2004) of Family Business Review, without appropriate attribution to Drs. Sonfield and Lussier or authorization of the authors or SAGE. Numerous requests made by SAGE to the editor of International Journal of Business and Social Science to address the inappropriate use of this article have gone unanswered. SAGE has additionally been informed by the lead author of the IJBSS article, Shahid Qureshi, that Sarfraz A. Mian and Arif Iqbal Rana did not participate in the authorship of the IJBSS article, and authorship of the article was completed by Dr. Qureshi alone. There has been limited prior research into generational differences among family businesses. This study compared first-, second-, and third-generation family firms. Contrary to much of the current literature, only two significant differences were found when testing 11 hypotheses. As hypothesized, first-generation family businesses do less succession planning than second- and third-generation family firms, and there are no differences between first-, second-, and third- generation firms with regard to the influence of the firm's founder. Also, first-generation firms had the highest use of equity versus debt financing. Although not tested as a hypothesis, demographic analysis indicated fewer first-generation firms using the corporation form of ownership. Analysis of covariance indicated no spurious relationships existing in the hypotheses.

A Taxonomy of Founders Based on Values: The Root of Family Business Heterogeneity

2001 ◽  
Vol 14 (3) ◽  
pp. 209-230 ◽  
Author(s):  
Ercilia García-Álvarez ◽  
Jordi López-Sintas
Keyword(s):  
Family Business ◽  
First Generation ◽  
Family Firms ◽  
Large Range ◽  
New Economy ◽  
Value Systems ◽  
Business Owner ◽  
Doing Business ◽  
Generation Family ◽  
Business Behavior

The new economy offers a large range of opportunities to family businesses if they are able to promote values that allow constantly innovative behavior and business evolution. Although family firms are commonly associated with a traditional way of doing business, this paper shows the heterogeneity among first-generation family firms by building a taxonomy of four groups of founders based on values. The results show the relevance of identifying founders' value systems to understand the founders' influence on family business behavior. This value profile can be a valuable tool for family business owner-managers and advisors in identifying and promoting values that add value to firms without compromising next-generation family firm development.

scholarly journals Women in management: Are family firms somehow special?

2017 ◽  
Vol 23 (2) ◽  
pp. 224-240 ◽  
Author(s):  
Ángel L Meroño-Cerdán ◽  
Carolina López-Nicolás
Keyword(s):  
First Generation ◽  
Family Firms ◽  
Gender Effect ◽  
Services Sector ◽  
Organizational Conditions ◽  
Female Managers ◽  
Generation Family ◽  
Management Literature ◽  
Management Experience ◽  
Level Of Training

AbstractFirms managed by women present some differences in organizational conditions in terms of type of business and manager profile. The aim of this study is to check if those differences persist in family firms where the presence of female managers is higher, especially in second or subsequent generation family firms, than in non-family firms. The results reveal that family firms run by women are not smaller, but are concentrated in the services sector like non-family firms. Regarding the manager profile there are no differences either in the level of training or the age of female managers. They possess, however, less management experience but only in first generation family firms. In sum, gender differences in the type of business and in the manager profile found in the management literature disappear in family firms, only a sectoral gender effect persists.

The Invisible Hand of Evolutionary Psychology: The Importance of Kinship in First-Generation Family Firms

2019 ◽  
Vol 44 (1) ◽  
pp. 134-157 ◽  
Author(s):  
Xiaodong Yu ◽  
Laura Stanley ◽  
Yuping Li ◽  
Kimberly A. Eddleston ◽  
Franz W. Kellermanns
Keyword(s):  
Executive Compensation ◽  
Evolutionary Psychology ◽  
First Generation ◽  
Family Firms ◽  
Invisible Hand ◽  
Family Ownership ◽  
Generation Family ◽  
Different Types ◽  
Ceo Selection ◽  
Kinship Ties

While previous studies focus on differences between family and nonfamily firms regarding CEO selection and executive compensation, this study investigates differences among family firms with different types of kinship ties. We find that, compared with family firms with close kinship ties, those with distant kinship ties are more likely to appoint a nonfamily CEO and to pay nonfamily executives lower salaries. This relationship is moderated by firm performance and family ownership. Based on evolutionary psychology, we propose that family firms with close versus distant kinships have different motivation levels to preserve socioemotional wealth.

4-Helix Entrepreneurial Ecosystems Applied to KIBS

2020 ◽  
pp. 260-280
Author(s):  
Jose Manuel Saiz-Alvarez
Keyword(s):  
Decision Making ◽  
Family Firms ◽  
Full Time ◽  
Third Generation ◽  
Business Services ◽  
Men And Women ◽  
Knowledge Intensive Business Services ◽  
Entrepreneurial Ecosystems ◽  
Generation Family ◽  
Knowledge Intensive

This chapter studies how 4-helix entrepreneurial ecosystems determine KIBS (Knowledge Intensive Business Services) mainly created by second- and third-generation family firms, and how their family and non-family members influence future entrepreneurs. The answers of 535 full-time students ages 18-24 years old, randomly distributed between men and women, were analyzed. Findings of this chapter are: a) Mothers have the highest impact (39.4%) on their children's decision making compared to fathers (22.4%); b) Professors have the least impact (3.8%); c) Franchises is a good option for business to grow; d) Firms using 3-F (family, friends, and self-financing) strategies and treasury stock operations have a better chance of growing.

The Succession Conspiracy

1988 ◽  
Vol 1 (2) ◽  
pp. 119-143 ◽  
Author(s):  
Ivan Lansberg
Keyword(s):  
Succession Planning ◽  
First Generation ◽  
Family Firms ◽  
Generation Family

The lack of succession planning has been identified as one of the most important reasons why many first-generation family firms do not survive their founders. This paper explores some of the factors that interfere with succession planning and suggests ways in which these barriers can be constructively managed.

scholarly journals Analysis of Innovation Activities of Slovak Small and Medium-Sized Family Businesses

2020 ◽  
Vol 10 (4) ◽  
pp. 80 ◽  
Author(s):  
Marta Urbaníková ◽  
Michaela Štubňová ◽  
Viera Papcunová ◽  
Jarmila Hudáková
Keyword(s):  
First Generation ◽  
Significant Contribution ◽  
Statistical Tests ◽  
Family Businesses ◽  
Growth Potential ◽  
Significant Group ◽  
Innovation Activities ◽  
Generation Family ◽  
Business Entities ◽  
The Impact

Family businesses began to emerge in Slovakia after the change of social establishment in 1989, and since then they represent a significant group of business entities with a significant contribution to the economy, and have significant growth potential. Innovations have become a driving force for the future opportunities of these companies. Based on empirical research, this paper aims to identify the innovation activities of small and medium-sized family businesses in Slovakia and to determine their impact on the company’s economic results. We can state that out of small and medium-sized family businesses included in the survey, 76.5% have implemented innovations in the last five years. We use statistical tests to verify the research hypotheses. We can state that there is a statistically significant relationship between the size of the company and the number of types of introduced innovations, as well as between the generation running the company and the number of types of introduced innovations. Second-generation family businesses can, therefore, be considered more innovative than first-generation family businesses. We investigate the impact of the COVID-19 coronavirus pandemic on innovation activities in these companies. It is interesting that in 30.6% of family businesses the COVID-19 coronavirus pandemic positively affected their innovation activities.

Families, Fortunes, and Footwear: Reaching Out to the Fourth Generation of Brazil's Lupo S.A.

2017 ◽  
pp. 1-11
Author(s):  
John Ward ◽  
Sachin Waikar ◽  
Carol Adler Zsolnay
Keyword(s):  
Family Business ◽  
Family Members ◽  
Family Businesses ◽  
Fourth Generation ◽  
Third Generation ◽  
Generation Family

A successful third-generation family business explores whether or not to continue in business as a family into the fourth generation. If they do decide to move forward as a family business, how can they cultivate knowledge and interest among the forty-plus fourth-generation family members? The reasons behind perpetuating a family business are as important to consider as how to accomplish this goal. This case is designed to provoke students to reflect on their own intentions and motivations for their own family businesses.

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