Non-Market-Based Transfers of Wealth and Power: A Research Framework for Family Businesses

1987 ◽  
Vol 12 (2) ◽  
pp. 53-66 ◽  
Author(s):  
Neil C. Churchill ◽  
Kenneth J. Hatten
Keyword(s):  
Family Businesses ◽  
Family Experience ◽  
Family Ties ◽  
Research Framework ◽  
Family Enterprise ◽  
Biological Reality ◽  
The Family ◽  
Business Experience ◽  
Succession Process

Family businesses are basically owner-managed enterprises with the family involved within the business. When, to family ties within the business, is added the biological inevitability of an eventual transfer of power, family succession becomes an alternative to selling the business–-a transfer based on non-market considerations. A framework for studying family businesses is proposed which has succession as its anchor. The succession process is where changes in management, in strategy, and in control are planned for and executed. The framework is built upon stages of the family enterprise which emanate from the biological reality of parent and offspring being separated by age and business experience but wedded together by “blood” and a shared family experience.

Non-Market-Based Transfers of Wealth and Power: A Research Framework for Family Business

1997 ◽  
Vol 10 (1) ◽  
pp. 53-67 ◽  
Author(s):  
Neil C. Churchill ◽  
Kenneth J. Hatten
Keyword(s):  
Family Business ◽  
Family Businesses ◽  
Family Experience ◽  
Family Ties ◽  
Research Framework ◽  
Family Enterprise ◽  
Biological Reality ◽  
The Family ◽  
Business Experience ◽  
Succession Process

Family businesses are basically owner-managed enterprises with the family involved within the business. When, to family ties within the business, is added the biological inevitability of an eventual transfer of power, family succession becomes an alternative to selling the business—a transfer based on non-market considerations. A framework for studying family businesses is proposed which has succession as its anchor. The succession process is where changes in management, in strategy, and in control are planned for and executed. The framework is built upon stages of the family enterprise which emanate from the biological reality of parent and offspring being separated by age and business experience, but wedded together by “blood” and a shared family experience.

Non-Market-Based Transfers of Wealth and Power: A Research Framework for Family Businesses

1987 ◽  
Vol 11 (3) ◽  
pp. 51-64 ◽  
Author(s):  
Neil C. Churchill ◽  
Kenneth J. Hatten
Keyword(s):  
Family Businesses ◽  
Family Experience ◽  
Family Ties ◽  
Research Framework ◽  
Family Enterprise ◽  
Biological Reality ◽  
The Family ◽  
Business Experience ◽  
Succession Process

Family businesses are basically owner-managed enterprises with the family Involved within the business. When, to family ties within the business, is added the biological inevitability of an eventual transfer of power, family succession becomes an alternative to selling the business–-a transfer based on non-market considerations. A framework for studying family businesses is proposed which has succession as its anchor. The succession process is where changes in management, in strategy, and in control are planned for and executed. The framework is built upon stages of the family enterprise which emanate from the biological reality of parent and offspring being separated by age and business experience but wedded together by “blood” and a shared family experience.

Cultural values and their implications to family business succession

2019 ◽  
Vol 10 (4) ◽  
pp. 281-292 ◽  
Author(s):  
Grisna Anggadwita ◽  
Werda Bagus Profityo ◽  
Dini Turipanam Alamanda ◽  
Anggraeni Permatasari
Keyword(s):  
Cultural Values ◽  
Family Business ◽  
Family Businesses ◽  
Chinese Family ◽  
Content Type ◽  
The Family ◽  
Succession Process ◽  
Business Succession ◽  
Family Business Succession ◽  
Practical Implications

Purpose The family business is one of the business entities that contribute to the economy of a country. Succession in the family business occupies a strategic position, especially in maintaining the company’s sustainability. The Chinese family business has unique characteristics in maintaining and growing its business with the cultural values that underlie how their business. The purpose of this paper is to discuss the cultural values of Chinese ethnic and their implications in the succession process in small family businesses in Bandung, Indonesia. Design/methodology/approach This research uses a qualitative method with the in-depth interview method as a data collection technique. The sampling technique uses purposive sampling, while to test the validity of research data using a triangulation technique. A total of four small Chinese-owned family businesses participated as informants in this study. The study will identify the stage of succession process in the Chinese family business. Findings There are several stages identified in the succession planning of small Chinese-owned family business in Bandung which include succession antecedents, succession activities and desired outcomes. The results showed that small Chinese-owned family business in Bandung has not applied the rules and procedures in the succession process. Most of the Chinese family business in this research still holds Confucianism culture; they prioritize boys as business successors, who have a greater responsibility rather than successor with other gender. Practical implications Several implications are discussed. One of them is the Chinese family business holding cultural values in the process of family business succession. Originality/value This research is expected to provide theoretical and practical implications for academics and family companies with similar cases.

Succession in the Family Business: Challenges for Successors from an Entrepreneurial Perspective

2014 ◽  
Vol 15 (4) ◽  
pp. 279-284 ◽  
Author(s):  
Daniela Weismeier-Sammer ◽  
Isabella R. Hatak
Keyword(s):  
Family Business ◽  
Family Businesses ◽  
Teaching Case ◽  
The Family ◽  
Succession Process ◽  
Business Succession ◽  
Business Challenges ◽  
Family Business Succession

Kronmann Wholesale and Retail is an outstanding family business with more than 300 years of history. This teaching case tells the story of two cousins who follow their fathers into a business full of tradition. The case gives students the opportunity to gain insights into the complex succession process of family businesses, as well as the challenges with which successors are confronted in the course of family business succession.

scholarly journals The influence of family-related factors on the succession process in small and medium-sized family businesses

2014 ◽  
Vol 9 (1) ◽  
pp. 17-32 ◽  
Author(s):  
E Venter ◽  
C Boshoff
Keyword(s):  
Family Businesses ◽  
Related Factors ◽  
Empirical Results ◽  
The Family ◽  
Managerial Implications ◽  
Succession Process ◽  
Family Harmony ◽  
The Relationship

In this study family-related factors that can influence the succession process in small and medium-sized family businesses are empirically investigated.  The dependent variable in this study is measured by two underlying dimensions, namely satisfaction with the process and continued profitability of the business.  The empirical results indicate that the family-related factors that influence both the aforementioned dimensions are the mutual acceptance of roles, the relationship between the owner-manager and successor, and family harmony.  The continued profitability of the business is also influenced by the agreement to continue the business. The existence of family harmony in itself influences the relationship between the owner-manager and successor, the agreement to continue the business, as well as the mutual acceptance of roles.  The managerial implications of these empirical findings are discussed and recommendations offered.

Interview with Dr. William O’Hara

2003 ◽  
Vol 16 (3) ◽  
pp. 221-223 ◽  
Author(s):  
Paul I. Karofsky
Keyword(s):  
Family Business ◽  
Executive Director ◽  
Family Businesses ◽  
Business Community ◽  
Family Enterprise ◽  
The Family ◽  
History Of ◽  
New Research

Dr. William O’Hara, the executive director of Bryant College’s Institute for Family Enterprise (IFE), answers questions dealing with many aspects of his life. By founding the IFE and continually adapting it to the condition of the marketplace, O’Hara maintains a commitment to expanding the knowledge of the family business community. O’Hara’s new research into the history of family businesses hints at an underlying framework that is still applicable today. He spoke with Paul I. Karofsky, executive director of Northeastern University’s Center for Family Business.

scholarly journals The father’s role in supporting the son’s business knowledge development process in Vietnamese family businesses

2019 ◽  
Vol 11 (2) ◽  
pp. 258-276 ◽  
Author(s):  
Thanh Trung Pham ◽  
Robin Bell ◽  
David Newton
Keyword(s):  
Family Business ◽  
Development Process ◽  
Second Generation ◽  
Family Businesses ◽  
Knowledge Development ◽  
Content Type ◽  
The Family ◽  
Business Knowledge ◽  
Succession Process

Purpose Many family businesses do not survive into the second generation. A common reason put forward for this is poor succession planning for the second generation. This paper is designed with the aim to explore the role of the father in supporting the son’s business knowledge and development in Vietnamese family businesses. Design/methodology/approach This research adopted an inductive qualitative approach using multiple face-to-face semi-structured interviews with five father–son succession pairs. The interview participants were a cross section of Vietnamese family businesses, where the father–son pair was involved in the process of business knowledge transfer and the succession process was at an advanced stage. Findings The results suggest that the father plays different roles at different stages of the son’s business knowledge development process. In particular, the father acts as an example during the son’s childhood; a supporter to encourage the son to gain more business knowledge from both formal education and working experience outside the family business; a mentor and trouble-shooter after the son joins the family business as a full-time employee; and as an advisor after the son becomes the leader of the firm. Originality/value Most Vietnamese family businesses are still operating under the control of the first generation, and as a result, research into the succession process in Vietnam can help to provide valuable insights. Furthermore, existing research into the role of the predecessor in the whole process from the successor’s childhood until the end of the succession process is ambiguous and requires further research to clarify this research gap.

When is the right time for succession? Multiple cases of family businesses in Indonesia

2020 ◽  
Vol 10 (4) ◽  
pp. 349-359
Author(s):  
Nyayu Lathifah Tirdasari ◽  
Wawan Dhewanto
Keyword(s):  
Family Business ◽  
Food Industry ◽  
Developmental Stages ◽  
Family Businesses ◽  
Comparative Case Study ◽  
Structured Interviews ◽  
Content Type ◽  
The Family ◽  
Succession Process ◽  
The Right

PurposeSuccession timing plays a key role in the part of the succession process. While much notice has been given solely to the viewpoint of predecessor and successor, less known about the schedule during this most critical family business dealings. The purpose of this research is to assess the right time for predecessors to let go of their leadership and allow the successor to take charge of the family business. Notably, it considers how the process of interaction between predecessor and successor may encourage successor capability, succeed the family business and following implications for the succession process as well.Design/methodology/approachAn exploratory comparative case study design employed in order to disclose the time by time activities around the succession process. This study presented circa 11 case studies from family businesses of the food industry. Data gathered utilizing semi-structured interviews and formal secondary data from the organizations, all of whom operate in Java, Indonesia.FindingsFindings reveal five critical outcomes. First, the results show that most of the respondents had no written succession plan and did not keep up the developmental stages, but the succession process was successful. Second, the study found a reduced age of successor even though the stages increase. Third, the respondents did not know when was the predecessor is getting busy managing the business, and some successors did not attend college as well. Fourth, the succession process of RC is the fastest and TY is the longest. Last, the succession process of the second-generation family business is faster than the third-generation.Originality/valueThis paper presents further evidence of the succession process of family businesses. It moves beyond a timing explanation of succession to develop a more sequentially aware understanding of the agility within the succession process. It contributes to the limited references of the family business in the food industry in Indonesia as well.

The Succession Transition Process: A Longitudinal Perspective

2003 ◽  
Vol 16 (1) ◽  
pp. 17-33 ◽  
Author(s):  
Barbara Murray
Keyword(s):  
Transition Period ◽  
Transition Process ◽  
Longitudinal Case Study ◽  
Case Study Analysis ◽  
Whole Process ◽  
Family Enterprise ◽  
The Family ◽  
Succession Process ◽  
Generational Transition

Based on longitudinal case study analysis, this paper provides a metaview of the succession process as it unfolds during the generational transition periods in family enterprise systems. The results indicate that the transition period contains a sequence of phases, here called the transition cycle, during which time the system has an opportunity to do the work or tasks required when changing from one archetypal form of ownership and leadership to another. Each phase in the transition period has a distinct task that the system needs to address, and the whole process requires between three to eight years to complete. Three distinct types of transition “journeys” are identified, based on the extent to which the system was able to make progress with and achieve the tasks required within the transition cycle. One of these journey types was most likely to lead to continuity of the family enterprise, whereas the other two journey types were more likely to lead to disintegration of the system.

The Special Role of Strategic Planning for Family Businesses

1988 ◽  
Vol 1 (2) ◽  
pp. 105-117 ◽  
Author(s):  
John L. Ward
Keyword(s):  
Strategic Planning ◽  
Family Businesses ◽  
Special Role ◽  
Single Generation ◽  
Family Enterprise ◽  
The Family

Most family-owned businesses struggle to survive beyond a single generation. Strategic planning—for both business and family—can help to strengthen the family enterprise and extend its lifespan.

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