Flexibility in Norwegian Family-Owned Enterprises

2005 ◽  
Vol 18 (1) ◽  
pp. 57-76 ◽  
Author(s):  
Trygve Gulbrandsen
Keyword(s):  
Family Businesses ◽  
Family Ownership ◽  
Professional Managers ◽  
Professional Manager ◽  
Top Manager ◽  
Flexibility Measures ◽  
Personnel Policies

This article discusses whether family ownership affects a firm's adoption of flexible manpower and organization practices. The results presented in the article show that the important divide is not between family-owned and nonfamily businesses: family businesses with a professional top manager differ from nonfamily firms only as regards one of seven flexibility measures. More important is whether the owners choose to be in charge of the day-to-day running of the firm themselves (owner-management) or leave it to a professional manager. In owner-managed family businesses, five out of seven practices for increased flexibility prevail less frequently than in both family businesses with a professional manager and nonfamily firms. Owner-managers are, then, more skeptical of adopting new management principles and personnel policies than are professional managers.

The strength of the board on sustainability assurance decisions

2017 ◽  
Vol 24 (4) ◽  
pp. 863-886 ◽  
Author(s):  
Jennifer Martinez-Ferrero ◽  
Lázaro Rodríguez-Ariza ◽  
Isabel María García-Sánchez
Keyword(s):  
Random Effects ◽  
Design Methodology ◽  
Family Firms ◽  
Positive Impact ◽  
Family Businesses ◽  
Family Ownership ◽  
Logit Models ◽  
Board Size ◽  
Content Type ◽  
Sustainability Reports

Purpose The purpose of this paper is to analyze how family ownership influences the strength of the board’s monitoring function in companies’ decisions regarding the assurance of sustainability reports. Design/methodology/approach The international sample consists of 536 companies operating in more stakeholder-oriented countries during the period 2007-2014. The paper proposes alternative logit models of analysis using the random-effects estimator. Findings The results provide evidence that a firm’s sustainability assurance and its choice of accounting professionals as higher quality assurers are positively associated with board size and independence. The main result is the positive impact of family businesses on these assurance issues. The paper evidences the greater orientation toward sustainability issues of family businesses. Furthermore, it verifies the greater impact of board size on family firms’ assurance demand. Originality/value This study sheds some light on the unexplored topic of sustainability assurance in family firms. One of the differentiating aspects with respect to previous studies is the consideration of the moderating factor of family property. This study also contributes to the understanding of family firms’ demand for assurance and its practitioners, and the literature’s focus on its determinants.

scholarly journals Ownership structure and performance in family businesses at early developmental stage: evidence from China

2009 ◽  
Vol 7 (1) ◽  
pp. 138-150 ◽  
Author(s):  
Zhong Qin ◽  
Xin Deng
Keyword(s):  
Developmental Stage ◽  
Ownership Structure ◽  
Family Firms ◽  
Family Businesses ◽  
Early Developmental Stage ◽  
Governance Mechanism ◽  
Professional Managers ◽  
And Performance ◽  
The Impact ◽  
Early Developmental

This paper explores the impact of ownership structure on performance of family businesses at its early developmental stage in a context of under-developed market environment. Using a survey data of 296 private family firms in Ningbo, China, we find both management and single largest shareholder’s ownership is positively related to firm’s performance. However, family’s shareholding does not have significant impact on performance. Further inquiry on firm’s willingness to give shares to managers who are not family members indicates that while nearly half of the firms are willing to provide shares to professional managers, weak corporate governance mechanism and under-developed market may discourage such practice.

scholarly journals Professional Managers and Long-term Investment in State-owned Enterprises

2020 ◽  
Vol 214 ◽  
pp. 02039
Author(s):  
Wu lan ◽  
Mao Liqing ◽  
Yu Lingli
Keyword(s):  
Market Competition ◽  
Professional Managers ◽  
Professional Manager ◽  
Ownership Reform

In the background of mixed ownership reform, the introduction of professional managers in state- owned enterprises is to gradually integrate with the market, participate in market competition, and improve the efficiency of state-owned assets. However, due to the late introduction of China, the professional manager system of state-owned enterprises is constantly developing and improving. The results of this study show that the introduction of professional managers in state-owned enterprises will reduce the long-term investment of enterprises, but it is not significant in the case of the combination of manager and chairman. This paper puts forward a new direction and thinking for the construction of professional manager system.

Research on Growth of Professional Manager and Sustainable Development of Family Enterprise: A Review Based on Trust Expansion

2011 ◽  
Vol 403-408 ◽  
pp. 3166-3169
Author(s):  
Jie Lu ◽  
Jun Wang ◽  
Yan Xu
Keyword(s):  
Sustainable Development ◽  
Trust Mechanism ◽  
Competitive Systems ◽  
Integrate Management ◽  
Professional Managers ◽  
Family Enterprise ◽  
Family Enterprises ◽  
Professional Manager ◽  
Family Regulation ◽  
Effective Integration

Family enterprise needs to absorb and integrate new management resource continuously and has unique trust mechanism; In the process of retaining professional managers, there exists the absence of trust entertainment, mechanism, and ideal and so on. It is effective to adopt pan-family regulation to integrate management resource, expand the trust space of family enterprises and retain multiple competitive systems to restrain professional executives. Consequently,effective integration of professional managers,trust and family enterprises will come true.

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.

Another hybrid? Family businesses as venture capitalists

2017 ◽  
Vol 7 (3) ◽  
pp. 329-350 ◽  
Author(s):  
Torbjörn Ljungkvist ◽  
Börje Boers
Keyword(s):  
Venture Capital ◽  
Family Business ◽  
Family Firms ◽  
Family Businesses ◽  
Board Members ◽  
Family Ownership ◽  
Venture Capitalists ◽  
Ethical Awareness ◽  
Minority Shareholders ◽  
Content Type

Purpose This paper addresses the phenomenon of venture capital firms which are also family businesses (VCFBs). The purpose of this paper is to explore and understand the phenomenon of VCFB by answering the following questions: What are the features of professionalization in VCFBs? And, how do professionalization and types of family businesses explain the strategies and governance of VCFBs? Design/methodology/approach As an explorative case study, it maps the Swedish venture capital (VC) industry and compares two VCFBs and their business investments with regard to strategy and governance. Findings By suggesting two major configurations, the study explains how family business development and levels of professionalization relate to differences in VCFBs’ strategies, which in turn, affect their governance. The personal VCFB features active owners who personally take responsibility roles and strongly focus on customers and relationships. The administrative VCFB strongly focuses on predetermined financial metrics, high ethical awareness among board members, and ongoing interplay between the active family board members and minority shareholders. Research limitations/implications The study was conducted in Sweden and concerns Swedish VCFBs. The paper contributes to the literature by combining the two currently separate research streams, i.e. family business and VC, highlighting the importance and consequences of family ownership in VC businesses. Practical implications The present study provides stock market investors and stock analysts with a deeper understanding of VCFBs’ strategy incentives. By identifying the kind of VCFB and its relation to strategy, more reasonable assessments and analyses of the VCFBs’ actions will be possible. Family firms willing to accept VC-finance should consider the type of VC and the potential consequences of family ownership. Originality/value This study is the first to classify VC firms as family businesses. Moreover, it shows the features of professionalization in VCFBs by suggesting a set of configurations.

The State Matters: Management Models of Singaporean Chinese and Korean Business Groups

2003 ◽  
Vol 24 (4) ◽  
pp. 507-534 ◽  
Author(s):  
Lai Si Tsui-Auch ◽  
Yong-Joo Lee
Keyword(s):  
Business Groups ◽  
Family Businesses ◽  
The State ◽  
Family Control ◽  
Management Models ◽  
Professional Managers ◽  
Chinese Business ◽  
Role Of The State ◽  
Before And After ◽  
Asian Currency Crisis

Both the proponents and critics of Asian economic organization have been preoccupied with the ideal-typical management models of family businesses, and have rarely identified their changing management structures. We, instead, identify the change and continuity in these management structures through an analysis of family-controlled business groups in Singapore and South Korea before and after the Asian currency crisis. In our view, these business groups professionalized their management, but retained family control and corporate rule before the crisis. The crisis, however, increased the pressure on such groups to relinquish family control and corporate rule. Singaporean Chinese business groups tended to loosen their tight grip on corporate rule by absorbing more professional managers into their upper echelons. The surviving Korean chaebol, however, intensified family control. Only a few chaebol, which were on the brink of bankruptcy, relinquished corporate rule to professional managers. We argue that other than the market, cultural, and institutional factors as suggested in the existing literature, state capacities and strategies do matter in shaping the changing management structures of business groups. Drawing on our analysis, researchers will be able to conduct comparative studies of family businesses across East Asian societies, of organizational imitation, and of the role of the state in influencing management models.

THE PROFESSIONALIZATION OF CHINESE FAMILY BUSINESSES IN SINGAPORE

1999 ◽  
Vol 07 (02) ◽  
pp. 197-211 ◽  
Author(s):  
WEE-LIANG TAN ◽  
D. G. ALLAMPALLI
Keyword(s):  
Family Member ◽  
Business Performance ◽  
Family Businesses ◽  
Three Dimensions ◽  
Chinese Family ◽  
Firm Characteristics ◽  
Growth Strategies ◽  
Professional Managers ◽  
Significant Difference ◽  
Survival And Growth

It has become common advice furnished to family businesses that in order for them grow and further develop, they need to professionalise their management. The literature suggests that firms that follow this advice will perform better and show higher survival and growth. This paper presents the findings of a study on the professionalisation of family businesses in Singapore. It examined whether family businesses that have professionalised their management differ from these that have not. It is anticipated that the professionalised Chinese family businesses would benefit from the introduction of professional managers. It was anticipated that they would be older in age (since succesion is not confined to family member), report better business performance, and adopt aggressive growth strategies. Firm differences were studies using three dimensions: firm characteristics like age and size when professionalised; performance differences using growth and business volume measures developed by Chandler and Hanks (1993) and growth strategies using the Miles and Stones typology (1978) of growth oriented firms. The study found that the professionalised family businesses did not differ in age but showed significant difference in size, better performance and aggressive growth strategies from those that were not.

Unternehmen und Familie. Zur Genese von Familienunternehmen im Industriezeitalter: Sachsen 1850-1940

2008 ◽  
Vol 49 (2) ◽  
Author(s):  
Michael Schäfer
Keyword(s):  
Family Firms ◽  
Banking System ◽  
Early Death ◽  
Family Businesses ◽  
Industrial Firms ◽  
Industrial Enterprises ◽  
Professional Managers ◽  
Business Connections ◽  
Family Based ◽  
The 19Th Century

AbstractHistorians often regard family firms as a phenomenon typical of the early phases of industrialisation. It has been argued that the family was of great importance for early industrial enterprises.The family provided vital resources like capital, business connections, managers, commercial know-how and technical training facilities etc. But with the emergence of a modern banking system, professional managers and technical and commercial schools, the entrepreneurial family gradually lost these functions.The evidence of this case study on Saxony suggests rather different conclusions: (1.) The family’s function for early industrial firms seems to be less vital than often assumed. Since in Saxony up until the end of the 19th century a majority of founders came from family backgrounds outside of the commercial and industrial bourgeoisie, they could not rely on resources transmitted by an established bourgeois family. (2.) In many respects industrial enterprises owned by families were a rather modern phenomenon. The emergence of family firms seems to be connected to the typical challenges of personal enterprises: Inheritance laws and practices made it difficult to pass businesses on to the next generation without impairing the firm′s liquidity. Thus ownership of industrial enterprises was transferred to increasingly wider circles of people related to each other by kinship. (3.) Family firms pursued a meaningful purpose beyond the mere maximisation of profits. Family circumstances could very well lead to serious problems for family businesses: The early death of the owner-entrepreneur could leave the firm with successors not old enough to take over the firm’s management; succeeding sons might not be suited for their assigned task; the growth of the firm could be hampered by the family’s refusal to mobilise outside capital. But challenges were often met by responses suitable to solve problems inherent to family businesses and to compensate for certain handicaps. Moreover, family based firms could count on resources, especially in times of crisis, which could be vital for survival. Thus, it seems that family became rather more important for business between the middle of the 19th and the middle of the 20th century.

scholarly journals From Personal Relationship to Psychological Ownership: The Importance of Manager–Owner Relationship Closeness in Family Businesses

2013 ◽  
Vol 9 (2) ◽  
pp. 295-318 ◽  
Author(s):  
Hang Zhu ◽  
Chao C. Chen ◽  
Xinchun Li ◽  
Yinghui Zhou
Keyword(s):  
Family Businesses ◽  
Personal Relationship ◽  
Psychological Ownership ◽  
Intention To Stay ◽  
Relationship Closeness ◽  
Professional Managers ◽  
Benevolent Leadership ◽  
Relational Perspective ◽  
Practical Implications

AbstractIntegrating theories of psychological ownership and stewardship, and taking a relational perspective, we examine key antecedents and outcomes of professional managers' psychological ownership in Chinese owner-managed family businesses. We tested the model using a survey of 166 Chinese professional managers (one from each of 166 family businesses). We find that owner–manager relationship closeness at work mediates the effect of both the owner's benevolent leadership and owner–manager friendship ties on the manager's psychological ownership. Psychological ownership, in turn, is positively related to the manager's intention to stay and to stewardship behaviour. Theoretical and practical implications are discussed.

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