Decision-Making Challenges of Women Entrepreneurship in Family Business Succession Process

2017 ◽  
Vol 25 (04) ◽  
pp. 411-439 ◽  
Author(s):  
Veland Ramadani ◽  
Léo-Paul Dana ◽  
Nora Sadiku-Dushi ◽  
Vanessa Ratten ◽  
Dianne H. B. Welsh
Keyword(s):  
Decision Making ◽  
Family Business ◽  
Succession Planning ◽  
Family Businesses ◽  
Policy Implications ◽  
Decision Making Process ◽  
Long Term Performance ◽  
Business Succession ◽  
Term Performance

The decision-making process concerning succession issues for family businesses is crucial as it affects long term performance and sustainability. However, while succession issues in family business has been extensively studied, the decision-making process for women-owned family businesses is sparse, particularly in transition economies. This is despite the growth of women-owned businesses worldwide. This study explores the succession decision-making process in women-owned small family businesses in Kosovo using a qualitative approach. The findings suggest that group decision making is important in family businesses and plays a role in determining how gender influences succession planning. Managerial and policy implications are discussed.

Heroic leadership illusions in football teams: Rationality, decision making and noise-signal ratio in the firing of football managers

Leadership ◽  
2012 ◽  
Vol 8 (2) ◽  
pp. 169-185 ◽  
Author(s):  
Jan Ketil Arnulf ◽  
John Erik Mathisen ◽  
Thorvald Hærem
Keyword(s):  
Decision Making ◽  
Team Leadership ◽  
Noise Signal ◽  
Decision Makers ◽  
Signal Ratio ◽  
Management Positions ◽  
The Individual ◽  
Long Term Performance ◽  
Term Performance

Similar to practices in top management positions worldwide, there has been an increasing tendency in recent decades to fire football managers when the team does not perform to the stakeholders' expectations. Previous research has suggested that improvements after change of manager are a statistical artefact. Based on 12 years of data from the Norwegian Premier League, we conduct a natural experiment showing what would have taken place if the manager had not been fired. In this case, the performance might have improved just as well and even quicker. Building on theories in expertise and decision making, we explore the data and argue that decision makers may be fooled by randomness and learn wrong lessons about team leadership. Our analyses support a post-heroic view of team leadership as an emergent, output variable. Exaggerated focus on the individual manager may ruin long-term performance. Practical implications are discussed.

Successful family business succession: Utilizing peer groups for critical leadership skills development

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jenell Lynn-Senter Wittmer ◽  
Clinton Oliver Longenecker ◽  
Angie Jones
Keyword(s):  
Leadership Development ◽  
Family Business ◽  
Succession Planning ◽  
Leadership Skills ◽  
Peer Groups ◽  
Family Businesses ◽  
Business Leaders ◽  
Content Type ◽  
Critical Leadership ◽  
Business Succession

Purpose The current study explores the necessary leadership skills required for leadership succession in family businesses as well as best development activities for each skill. The current study provides suggestions for best practices in developing and utilizing peer groups as a leadership development method. Design/methodology/approach A needs assessment was conducted by surveying 150 family-business leaders. Leaders were asked, “What are your most pressing leadership development needs for your organization as you move toward succession? A follow-up question was then asked: “For each of these skills, what method would best help develop this skill for family business leaders?” The responses were content analyzed, placed into themes, and rank ordered. Findings High agreement amongst business leaders was found as eight leadership skills were cited by high percentages of family-business leaders. Leaders overwhelmingly reported peer developmental activities as being the best method for developing these skills. Originality/value Succession planning in family-businesses is critical as many family business fail to make it past the first or second generation. However, little research explores what specific leadership skills are necessary for optimal succession. As well, many leaders in public organizations seek individual methods of development, such as executive coaching, whereas family business leaders seek group activities to learn with/through their peers.

Who Will Be Next?

2013 ◽  
pp. 241-256
Author(s):  
Elena Khoury ◽  
Maria C. Khoury
Keyword(s):  
Decision Making ◽  
Family Business ◽  
Succession Planning ◽  
Second Generation ◽  
Stock Exchange ◽  
Business Students ◽  
Decision Makers ◽  
Decision Making Process ◽  
Small Family ◽  
A Company

This case is about a family business, Taybeh Brewing Company (TBC), with strategic and succession planning issues including the need to prepare the second generation of decision makers to take over. It covers the centralization of control and issues that arise when it is time for a founder of a company to relinquish control or share in the decision making process. It also deals with the lack of interest by the second generation to continue what others initiated as a family legacy. The business has been approached to become listed on the stock exchange, but the owners have not made a decision. By reading about the small family business, students can learn about business structure that is proper for a company’s future, the pitfalls of founder’s syndrome, and succession planning, which according to Muna and Khoury (2012) becomes imperative for the first and second generations to take seriously.

Determinants of Longevity and Success in Lebanese Family Businesses: An Exploratory Study

2006 ◽  
Vol 19 (3) ◽  
pp. 225-234 ◽  
Author(s):  
Josiane Fahed-Sreih ◽  
Salpie Djoundourian
Keyword(s):  
Decision Making ◽  
Succession Planning ◽  
Exploratory Study ◽  
Family Businesses ◽  
Decision Making Process ◽  
Participatory Decision Making ◽  
Advisory Boards ◽  
Family Meetings ◽  
Female Ceos ◽  
Female Ownership

This article explores the characteristics of Lebanese family businesses using a sample of 114 firms and tests various propositions regarding the relationships between correlates of effective succession planning and longevity. Successful family businesses in Lebanon exhibit a variety of responses to the variables that are conducive to success. The findings indicate that older firms are more inclined to use a participatory decision-making process, as evidenced by more reliance on advisory boards. A significantly larger proportion of older firms relative to younger ones holds family meetings and has formal redemption and liquidity plans. Firms in our sample are characterized by liberal attitudes: more than 75% consider female ownership acceptable and more than two-thirds of the firms respond positively to potential female CEOs.

scholarly journals The effect of decision time horizon on short termism: An experimental approach

2021 ◽  
Vol 10 (4, special issue) ◽  
pp. 293-301
Author(s):  
Abdallah Bader Mahmoud Alzoubi ◽  
Gavin Nicholson ◽  
Mohammad Bader Mahmoud Alzoubi
Keyword(s):  
Decision Making ◽  
Agency Theory ◽  
Experimental Approach ◽  
Investment Decision ◽  
Investment Decisions ◽  
Decision Time ◽  
Long Term Performance ◽  
Term Performance ◽  
Short Termism

Short-termism (i.e., the sub-optimal favouring of short-term performance over long-term performance) is generally explained as an outcome of the agency relationship whereby self-interested managers and/or stock market pressures distort the balance between short and long-term performance. We investigate if short termism (Crilly, 2017; Reilly, Souder, & Ranucci, 2016) is due to cognitive bias (temporal distortion) rather than agency costs. We test these hypotheses with an experimental approach by applying a 3x2 factorial design to manipulate temporal distortion on 60 non-conflicted decision-makers. Results suggest that individuals make inconsistent investment decisions based on differing payout time horizons. Participants faced with simple comparisons between investment opportunities were consistent across different time periods and followed a model of rational decision-making. In contrast, more complex decisions led to intertemporal inconsistency. We provide evidence that: 1) individuals on the whole struggle to deal with incorporating time into business decisions in a consistent way causing us to question the link between short-termism and agency theory; 2) principals likely view investment decisions inconsistently across time and so are a cause of sub-optimal investment decision-making and 3) we need to look beyond studies of moral hazard associated with agency theory and/or myopic market pricing when investigating short-termism.

scholarly journals Portuguese and Brazilian Family Business: in Between Urgency and Delay Perceptions in the Succession Process

2020 ◽  
Vol 3 (2) ◽  
pp. 24
Author(s):  
Ana Paula Marques ◽  
Leandro Alves da Silva
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Family Businesses ◽  
Executive Succession ◽  
Family Conflicts ◽  
The Family ◽  
Management Succession ◽  
Business Succession ◽  
Depth Interviews

Family business has been the focus of several studies over the last two decades and its relevance has been supported by the interdisciplinary perspectives in the fields of management, entrepreneurship, economics, psychology, and sociology. Despite that, there is still insufficient knowledge about the key role of family influences in the business, namely the intergenerational management succession, its planning and effectiveness. According to a recent research focused on the entrepreneurial succession in Portugal (AEP, 2011), 50 percent of family businesses are not passed on to the second generation and only 20 percent reach the third generation. In fact, business succession planning has been identified as one of the most challenging steps in the life of the family firm, both in maintaining the competiveness of the business, and in overcoming intra/ inter family conflicts. Nonetheless, resistance to succession, relationship founder/ successor, planning of succession, and type of organisational culture, among others, explain how executive succession is one of the most important and hardest tasks in organisational life (Zahra, 2005). This paper will be supported mainly by qualitative data, taking into account the main results from the project “Roadmap for Portuguese Family Businesses” (NORTE2020/FEDER) developed in Portugal (Marques, 2018) and in Brazil (Silva, 2018), which analyses in-depth interviews conducted to Portuguese (N 23) and Brazilian (N 11) founders/managers/owners. In the present article we wish to discuss the main management challenges of a family business, particularly the importance of succession preparation and the role of the family in the socialisation of the second (third or subsequent) generation.

Shareholder Foundations of enterprises: the North European style of securing family businesses for the long term—rising up to the global challenge

2020 ◽  
Vol 26 (7) ◽  
pp. 654-662
Author(s):  
Ineke A Koele ◽  
Rasmus K Feldthusen
Keyword(s):  
Family Business ◽  
Ownership Structure ◽  
Family Businesses ◽  
Family Conflicts ◽  
Global Challenge ◽  
The North ◽  
The Family ◽  
Business Succession ◽  
Dispersed Ownership

Abstract This article explores how and why the traditional business succession system within family businesses needs to be reconsidered. Holding Foundations are generally overlooked although they provide a purpose-driven ownership structure with a stewardship governance that avoids family conflicts, taxation and dispersed ownership affecting the family business. In this article, the authors combine their experiences and insights from Denmark and the Netherlands with shareholder foundations of enterprises.

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