scholarly journals UNDERSTANDING ORGANIZATIONAL CULTURE IN A SMALL FAMILY FIRM

Author(s):  
Gustavo José Da Nóbrega Danda ◽  
Denize Grzybovski

The purpose of this study is to investigate the characteristics of organizational culture that fosters entrepreneurship in family firms. The entrepreneurial process is viewed as radical change in family firms due to emotions related to change in this kind of organization, which are more intense than nonfamily firms and makes the organization behaves the same way of previous generation. The culture of family firm Alfa is analyzed through the model of Hall, Melin and Nordqvist (2001) which classifies family business culture according to the fact that it is dominated by one or several family members, the degree of culture explicitness and cultural openness. A single case study was conducted and semi-structured interviews were made with family and non-family members of the family firm Alfa. It was concluded that, despite the fact the employees feel comfortable to express their ideas and critics, the values and norms are not clearly stated and the culture is dominated by the influence of the founder. These last two characteristics damage the entrepreneurial process in the family firm analyzed. 

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Miguel-Angel Gallo

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.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taewoo Kim ◽  
Laura Marler

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.


2018 ◽  
Vol 43 (2) ◽  
pp. 274-281 ◽  
Author(s):  
Sohrab Soleimanof ◽  
Kulraj Singh ◽  
Daniel T. Holt

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.


2016 ◽  
Vol 30 (2) ◽  
pp. 182-202 ◽  
Author(s):  
Daniel T. Holt ◽  
Allison W. Pearson ◽  
Jon C. Carr ◽  
Tim Barnett

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.


2014 ◽  
Vol 4 (1) ◽  
pp. 4-23 ◽  
Author(s):  
Gonzalo Gómez Betancourt ◽  
Isabel C. Botero ◽  
Jose Bernardo Betancourt Ramirez ◽  
Maria Piedad López Vergara

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.


2004 ◽  
Vol 17 (2) ◽  
pp. 99-118 ◽  
Author(s):  
Ernesto J. Poza ◽  
Susan Hanlon ◽  
Reiko Kishida

The authors investigate the interaction between families and their businesses and the impact of this interaction on management and governance practices used. Family businesses participating in the family business programs at three U.S. universities completed questionnaires pertaining to family and business culture and practices. The research draws on the agency cost theory, governance, systems theory, and the resource-based view of organizations literature in the consideration of family firm attributes and the relationship between family members, nonfamily managers, and the firm. Chief executive officers generally perceive management practices, succession processes, and family environment more favorably than do either other family members or nonfamily managers. There are no significant differences in perceptions between active and inactive family members on the family scales. The difference in perceptions of the family firm between nonfamily managers and family managers is discussed as a challenge to the full utilization of professional management capabilities by family firms. Finally, owning family unity, the perception of business opportunity, and how positive the relation between firm and family is influences managerial and governance practices and therefore represents a resource for competitive advantage and sustained business performance.


Author(s):  
Moritz Belling ◽  
Ulrich Pidun ◽  
Dodo zu Knyphausen-Aufseß

AbstractThe viability and adaptation of family firms is a key research area owing to the longevity and transgenerational vision of the family. Throughout their development, firms transition through strategic change episodes with a potentially significant impact on their performance and survival. In this article, we combine family firm with strategic change research to propose how familiness supports or limits strategic change. We put forward three tendencies of family firms in their ability to deal with strategic change. First, familiness creates an overemphasis on the cognition of gradual change triggers but limits the cognition of radical change triggers. Second, familiness creates a tendency to inappropriately scope and dimension strategic change in radical change episodes to protect the value of legacy resources. Third, familiness supports endurance during strategic change implementation while also creating a tendency to be too slow or stubborn when implementing an insufficient change decision.


2017 ◽  
Vol 1 (1) ◽  
pp. 55-62
Author(s):  
Gérard HIRIGOYEN

Family actors behaviors have not been much studied over the last 20 years, while at the same time, literature about family firms produced increasingly many valuable papers. That is why a relevant Framework for knowing and understanding the behavioral biases of family members is still missing, and this lack concerns also the causes, outcomes and mechanisms of such biases. Particularly and contrary to the prominent literature, the altruism of the manager will be construed as behavioral bias leading to agency costs with an impact on family firm performance. Based on theoretical work, a modeling of these different problems of agency and altruism in the family business will be proposed.(paper in French)


2014 ◽  
Vol 11 (4) ◽  
pp. 199-202 ◽  
Author(s):  
Carla J. Berg ◽  
Pinpin Zheng ◽  
Michelle C. Kegler

Introduction: Spousal support predicts smoking cessation. China is the world's largest consumer of tobacco, with drastic differences in smoking prevalence among men and women. Thus, understanding marital interactions around husbands’ smoking has implications for cultures with similarly large gender disparities in smoking.Aims: We examined interactions among family members regarding husbands’ smoking in homes with small children in Shanghai.Methods: In Spring 2013, we conducted in-person semi-structured interviews among 13 male smokers and 17 female nonsmokers recruited from an urban and a suburban community in Shanghai.Results/Findings: To encourage husbands’ cessation or reduction, some women reported intervening either directly or indirectly through their children, emphasizing the health consequences for the smoker and the family. Some women reported not conversing about cessation due to concern about conflict, tolerance, or resignation. Women reported that their husbands’ responses to anti-smoking messages from family members included promises to quit in the future or noting the strength of the nicotine addiction and the disadvantages of quitting. Men reported the importance of smoking in work/culture and argued against the research about the harms of smoking.Conclusions: Interventions targeting motivators for cessation among men and to support women in encouraging their husbands’ cessation should be developed.


2018 ◽  
Vol 8 (1) ◽  
pp. 2-21 ◽  
Author(s):  
Claudia Binz Astrachan ◽  
Isabel C. Botero

Purpose Evidence suggests that some stakeholders perceive family firms as more trustworthy, responsible, and customer-oriented than public companies. To capitalize on these positive perceptions, owning families can use references about their family nature in their organizational branding and marketing efforts. However, not all family firms actively communicate their family business brand. With this in mind, the purpose of this paper is to investigate why family firms decide to promote their “family business brand” in their communication efforts toward different stakeholders. Design/methodology/approach Data for this study were collected using an in-depth interview approach from 11 Swiss and German family business owners. Interviews were transcribed and coded to identify different themes that help explain the different motives and constraints that drive their decisions to promote the “family business brand.” Findings The analyses indicate that promoting family associations in branding efforts is driven by both identity-related (i.e. pride, identification) and outcome-related (e.g. reputational advantages) motives. However, there are several constraints that may negatively affect the promotion of the family business brand in corporate communication efforts. Originality/value This paper is one of the first to explore why family businesses decide to communicate their “family business brand.” Building on the findings, the authors present a conceptual framework identifying the antecedents and possible consequences of promoting a family firm brand. This framework can help researchers and practitioners better understand how the family business nature of the brand can influence decisions about the company’s branding and marketing practices.


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