The Most Trusted Advisor and the Subtle Advice Process in Family Firms

2013 ◽  
Vol 26 (3) ◽  
pp. 293-313 ◽  
Author(s):  
Vanessa M. Strike
Keyword(s):  
Grounded Theory ◽  
Family Firms ◽  
Family Members ◽  
Family Firm ◽  
Theory Model ◽  
Implicit Processes ◽  
Practical Advice ◽  
Collective Attention ◽  
Advising Models

The literature on advising family firms has primarily focused on providing practical advice through offering explicit intervention phases and advising models to family firm advisors. Yet the underlying implicit processes behind advising are not well understood. This study examines nine most trusted advisors in six family firms to develop a grounded theory model of how advisors capture attention, how they become attuned to family firm members to influence attention, and how they aid family members to collaboratively interrelate and mindfully govern the firm in order to facilitate an environment of collective attention.

scholarly journals Generational brokerage: An intersubjective perspective on managing temporal orientations in family firm succession

2020 ◽  
pp. 147612702097697
Author(s):  
Vittoria Magrelli ◽  
Emanuela Rondi ◽  
Alfredo De Massis ◽  
Josip Kotlar
Keyword(s):  
Family Firms ◽  
Family Members ◽  
Family Firm ◽  
Mediation Process ◽  
Organizational Processes ◽  
Generation Family ◽  
Embedded Case Study ◽  
Intra Family

Interactions between family members of different generations often unleash powerful tensions in family firms. Intergenerational tensions can be particularly prominent during intra-family succession as a result of the different temporal orientations of senior and junior generation family members. However, scant systematic attention has thus far been paid to understanding the temporality of intergenerational tensions in family firms. Through an embedded case study, we explore the mediation process that helps family firms manage intergenerational tensions by way of temporal work. Our investigation of an advisory firm and its clients led us to identify generational brokerage as the intersubjective process through which temporal work enables generations toward the joint understanding of temporal orientations. Our theoretical insights have significant implications for developing a temporal view of succession and add novel important knowledge to research on mediation and time. Indeed, we show that generational brokerage is a dialectic construct with organizing properties able to blend disparate research streams by going beyond a unidirectional forward-flowing logic of time in examining organizational processes.

Leader behaviours of family and non-family executives in family firms

2020 ◽  
Vol 43 (7) ◽  
pp. 885-907
Author(s):  
Carolin Neffe ◽  
Celeste P.M. Wilderom ◽  
Frank Lattuch
Keyword(s):  
Family Firms ◽  
Longitudinal Research ◽  
Family Members ◽  
Family Firm ◽  
Self Awareness ◽  
Content Type ◽  
Leadership Frame ◽  
Family Based ◽  
Research Propositions ◽  
New Research

Purpose Several studies of family firm failures have pointed to non-family members in leading positions as a reason. However, non-family members have often played a key role in family-firm longevity, while non-family executives’ involvement in family firms is increasing. These non-family executives who (co-)run family firms are thought to require an almost impossible set of behavioural qualities. The aim of this exploratory study is to find out how specific leader behaviours of effective family executives and non-family executives may differ. Design/methodology/approach Based on Dulewicz and Higgs’ (2005) broad leadership frame, the authors draw attention to a large range of behaviours of family-firm executives. In-depth interviews were conducted with successful German executives, both family and non-family ones. Their answers had to contain specific behavioural examples. Findings More behavioural similarities than differences are shown between family- and non-family-based executives. Yet, the self-reflective communicative behavioural qualities of the non-family executives could balance a lack of such qualities among the family-based executives. Based on the three major differences – decision-making style, communication versatility and self-awareness – specific new research propositions are distilled about effective family firm leadership. Originality/value Practical suggestions for recruiting non-family executives are offered. Future quantitative longitudinal research on how to pair specific behavioural qualities of family and non-family based executives that optimise family-firm longevity is urgently needed.

scholarly journals Coexistence, Unity, Professionalism and Prudence

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Miguel-Angel Gallo
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Members ◽  
Family Firm ◽  
Family Businesses ◽  
The Family ◽  
Over Time

Family firms are complex and dynamic entities that are rich with peculiar, idiosyncratic features. The objective of this paper is to provide guidance to help those involved in family businesses, businesspersons, and family members to pursue the continuity of the family firm over time. Based on the author’s experience with entrepreneurs who built successful businesses, this paper identifies four elements that are critical to achieve transgenerational continuity in family firms, namely: coexistence, unity, professionalism, and prudence. The analysis of each element provides suggestions and key considerations for both scholars and practitioners in the family business field.

When family firm corporate governance fails: the case of El Corte Inglés

2019 ◽  
Vol 10 (2) ◽  
pp. 97-115
Author(s):  
María Sacristán-Navarro ◽  
Laura Cabeza-García
Keyword(s):  
Corporate Governance ◽  
Family Firms ◽  
Family Members ◽  
Family Firm ◽  
Governance Mechanisms ◽  
Content Type ◽  
Theoretical Concepts ◽  
Corporate Governance Mechanisms ◽  
The Right ◽  
Practical Implications

Purpose The purpose of this paper is to describe internal corporate governance mechanisms in family firms as well as conflicts that may arise among shareholders and family members in the absence of specific corporate governance mechanisms. Design/methodology/approach After presenting theoretical concepts, the authors study the case of Spanish family firm El Corte Inglés to understand some of the corporate governance difficulties the company has experienced over the past few years. Findings This case illustrates how corporate governance problems can arise because the right mechanisms have not been used, leading to conflicts among family members, valuation problems and power struggles. Practical implications There is a need for family firms to employ suitable corporate governance mechanisms as governance complexity increases. Originality/value This study aims to contribute to the understanding of corporate governance problems among family members and their possible solutions.

Are non-blood related “family” members treated differently? Determinants of bifurcation bias among family members in the family firm

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taewoo Kim ◽  
Laura Marler
Keyword(s):  
Social Identity Theory ◽  
Family Firms ◽  
Family Members ◽  
Family Firm ◽  
Individual Factors ◽  
Content Type ◽  
Societal Factors ◽  
Related Family ◽  
The Family ◽  
The Impact

PurposePossible asymmetric treatment among family members has long been neglected in the field of family firm research. To fill this gap, the purpose of this study is to shed light on the heterogeneity of treatment of family members in family firms by proposing factors that influence the likelihood of bifurcation bias among “family” members.Design/methodology/approachDrawing upon social identity theory and the concept of bifurcation bias, the authors theorize that family members working in family firms are not a homogenous entity, but rather a heterogeneous entity contingent on their status and/or position in the family. To provide a comprehensive understanding of heterogeneous treatment among family members, both individual factors and societal factors should be considered.FindingsBlood relatedness of family members is suggested as an important determinant of the likelihood of bifurcation bias among family members. It is also proposed that the impact of blood relatedness is likely influenced by both individual factors (familial proximity and familial tenure) and a societal factor (collectivism).Originality/valueTheorizing takes a step forward to advance the understanding of interpersonal dynamics in family firms. In particular, this article expands the research boundaries of family business research by taking into account that not all “family” members are treated preferentially. Moreover, this article deepens our understanding of the nature and status of non-blood related family members by unveiling the influence of both individual and societal factors. This article also provides a theoretical foundation for human resource management (HRM) research in family businesses by addressing bifurcation bias among family members.

Micro-Foundations of Corporate Entrepreneurship in Family Firms: An Institution-Based Perspective

2018 ◽  
Vol 43 (2) ◽  
pp. 274-281 ◽  
Author(s):  
Sohrab Soleimanof ◽  
Kulraj Singh ◽  
Daniel T. Holt
Keyword(s):  
Family Firms ◽  
Family Members ◽  
Institutional Context ◽  
Corporate Entrepreneurship ◽  
Family Firm ◽  
Institutional Perspective ◽  
The Family ◽  
Impact On Family ◽  
Micro Foundations

Family firm institutional context is composed of institutions that originate from the family and the business. Hence, a confluence of family and business institutions, with varying degrees of salience, interact and influence entrepreneurial behaviors within family firms. We suggest an institution-based perspective for examining entrepreneurial behaviors and explain why an institutional perspective can deepen our understanding of the micro-foundations of corporate entrepreneurship within family firms. Furthermore, we elaborate on family institutions’ influence on entrepreneurial behaviors by highlighting these institutions’ impact on family members’ cognitions and abilities, as well as, family and nonfamily members’ interactions and relationships.

Family Firm(s) Outcomes Model: Structuring Financial and Nonfinancial Outcomes Across the Family and Firm

2016 ◽  
Vol 30 (2) ◽  
pp. 182-202 ◽  
Author(s):  
Daniel T. Holt ◽  
Allison W. Pearson ◽  
Jon C. Carr ◽  
Tim Barnett
Keyword(s):  
Financial Performance ◽  
Family Firms ◽  
Family Members ◽  
Family Firm ◽  
Research And Practice ◽  
Family Unit ◽  
Firm Outcomes ◽  
The Family

Family firms are distinguished theoretically from nonfamily firms due to their pursuit of unique, family-related aspirations and goals. The pursuit of these aspirations and goals leads many family firms to define success or failure in terms of a broader set of outcomes than nonfamily firms. Despite this, family firm research has generally taken a constricted view of family firm outcomes by concentrating on narrowly defined financial performance as measured by accounting and/or market-based indicators. We contend that this somewhat myopic focus has slowed the field’s development to some degree, by constraining our ability to test its fundamental tenets. To address this, we draw on several disciplines to systematically order family firm outcomes within a family firm(s) outcomes model that encompasses both financial and nonfinancial dimensions. While financial performance is important in research and practice, herein we refer to both financial and nonfinancial outcomes and explain how these outcomes map on the family unit and the family firm. Furthermore, we suggest measures that can be used and explain how the model can be applied when researchers select financial and nonfinancial outcomes important to family members as the family firm’s success or failure is gauged.

A Study of Succession in a Family Firm

2001 ◽  
Vol 14 (3) ◽  
pp. 245-258 ◽  
Author(s):  
A.B. Ibrahim ◽  
K. Soufani ◽  
J. Lam
Keyword(s):  
Family Business ◽  
Case History ◽  
Family Firms ◽  
Family Members ◽  
New Economy ◽  
Family Firm ◽  
Next Generation ◽  
Succession Process

For many founders of family firms, the decision to retire and relinquish control of the business to their offspring is difficult. Pierre Peladeau founded Quebecor Inc., a family business and a communications leader in the new economy. The present research describes the reluctance of the founder to let go of the business to his offspring and the succession process after the death of the founder. The methodology employed is a combination of case history and study of public documents. The study underscores the need to manage conflict between family members and to plan for succession for the next generation effectively.

scholarly journals Strategic management in family business. The missing concept of the familiness learning mechanism

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ismael Barros-Contreras ◽  
Rodrigo Basco ◽  
Natalia Martín-Cruz ◽  
Juan Hernangómez
Keyword(s):  
Value Creation ◽  
Firm Value ◽  
Family Firms ◽  
Family Members ◽  
Family Firm ◽  
Capabilities Approach ◽  
Equation Modeling ◽  
Learning Mechanisms ◽  
Content Type ◽  
Learning Mechanism

PurposeThe purpose of this article is to provide a comprehensive understanding of the roots of family firms' competitive advantages by defining and testing the familiness learning mechanisms that emerge from the interaction between family and firm. Because family members are economically, emotionally and socially attached to the firm, family firms are expected to be able to develop unique and difficult to imitate learning mechanisms related to family firm value creation.Design/methodology/approachThis study operationalizes and tests the concept of the familiness learning mechanism using a sample of nonlisted Spanish family firms. The sample is analyzed using the structural equation modeling method.FindingsResults show that family firms' ability to accumulate internal and external knowledge, integrate social knowledge, as well as create and retain socioemotional knowledge forms the concept of the familiness learning mechanism, and the authors show what implications it might have for family firm value creation.Originality/valueBy using the dynamic capabilities approach, this article highlights the importance of the knowledge and learning derived from family involvement in the firm. The creation of learning mechanisms occurs because of the close relationships between family members and their simultaneous participation in the family and in the company systems, which creates a unique context wherein knowledge and learning emerge in an idiosyncratic manner.

Emotional intelligence in family firms

2014 ◽  
Vol 4 (1) ◽  
pp. 4-23 ◽  
Author(s):  
Gonzalo Gómez Betancourt ◽  
Isabel C. Botero ◽  
Jose Bernardo Betancourt Ramirez ◽  
Maria Piedad López Vergara
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Members ◽  
Family Firm ◽  
Business Owners ◽  
Interpersonal Dynamics ◽  
Content Type ◽  
The Family

Purpose – Although researchers have highlighted the importance of relational and family factors for the sustainability of a family firm, there is not much empirical research exploring how emotions and the management of emotions play a role in the interpersonal dynamics of family business owners. The purpose of this paper is to explore how the way family members manage their emotions affects the interpersonal dynamics in the family, business, and ownership subsystems of a family firm. Design/methodology/approach – The paper presents an in-depth case study from a family firm in Colombia-South America. Findings – The results indicate that the capability that family members have to manage their emotions influences the interpersonal dynamics that take place in the family firm at the individual and group level. In this case, the paper found that although emotional intelligence (EI) affected interpersonal relationships in a firm, this effect was based on the individual's willingness to use their EI capabilities, previous history between people, and the goals individuals have within each subsystem in a family firm. The paper also found that interpersonal dynamics, in turn, influence how family members work together. Research limitations/implications – Because this study uses an in-depth case study, the intention of the paper is to provide an initial picture of how EI can play a role in the interpersonal interactions between family business owners. The authors hope that this study can be used as a building block to enhance the understanding of the role of EI in family firms. Practical implications – EI represents an individual's capability to perceive, understand, manage, and regulate self and other's emotions. For family firms, this means that family business owners can use this capability to determine how to enact their roles in the family firm and how to interact with other to ensure harmony in their relationships. Originality/value – This paper builds on previous work on emotions in family firms to explore the role of EI in family firms, and provides an empirical exploration of the role of management of emotions in family firms.

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