scholarly journals Family Businesses during the COVID-19 Crisis – Evidence from Poland

2020 ◽  
Vol 54 (3) ◽  
pp. 101
Author(s):  
Robert Zajkowski ◽  
Beata Żukowska
Keyword(s):  
Research Methods ◽  
Family Firms ◽  
Ad Hoc ◽  
Theoretical Background ◽  
Vital Role ◽  
Family Businesses ◽  
Primary Data ◽  
Probability Of Survival ◽  
Fractal Analyses ◽  
Business Entities

<p>Theoretical background: Family businesses are a specific group of enterprises in which family bonds play a vital role in determining the economic and noneconomic goals of the business. The subject literature emphasises the long-term focus of family businesses which is on continuity, futurity and perseverance. During the COVID-19 crisis, unique family business traits can allow these entities to access useful resources and take positive actions such as forging strong networking relationships, tapping into local idiosyncratic knowledge, exercising rapid response, having flexibility and exercising trust with caution. This suggests that family businesses might also react to the COVID-19 crisis in their own distinctive ways using their unique attributes.</p><p>Purpose of the article: In this paper we will show how family businesses deal with coronavirus restrictions and what measures they undertook during this challenging period. The paper is organised around four research questions.</p><p>Research methods: This research was conducted using a sample of 167 family businesses. Primary data related to reactions of family businesses facing the COVID-19 crisis were collected in April and at the beginning of May 2020. To achieve the goals of this study, we carried out such research methods and procedures as fractal analyses, descriptive statistics, statistical comparison of means and subjective classification of the factors.</p><p>Main findings: For family businesses, a sudden fall in revenue was a common result of COVID-19 restrictions in the Polish economy. In the case of the majority of surveyed family fims, revenues fell by 44%, and in the next 2 to 3 months businesses expected additional decreases of 39.8%. More than 65% declared a stable level of employment, but more than a quarter of surveyed family firms showed an average dip in firm employment of 15.7% and expected further job losses at around 13.1%. To protect businesses against the negative effects of the pandemic, surveyed family firms undertook several <em>ad hoc</em> measures. We divided the analysed reactions to COVID into three groups: proactive, neutral and progressive. We noticed that the most common measures were those marked as “neutral”, or those which neither expanded nor retrenched the business in the short term. This observation suggests that family businesses might choose “persevering” as their first strategic response to the sudden crisis. We also found that “proactive” measures were undertaken in family businesses which evaluated their probability of survival as higher than businesses that indicated “neutral” or “defensive” reactions. In addition, we isolated statistically significant differences in family fims’ average probability of survival among the firms which introduced particular neutral and defensive measures and those which did not. On this basis we can conclude that the lower the perceived probability of survival is, the more retrenchment-oriented types of measures begin to be taken. Additionally, it should be mentioned that so-called anti-crisis shields implemented by the Polish government were assessed as inadequately supportive of business entities’ survival.</p>

Analytical Model of Leadership in Family Firms Under Transformational Theoretical Approach

2009 ◽  
Vol 22 (2) ◽  
pp. 136-150 ◽  
Author(s):  
Manuel Carlos Vallejo
Keyword(s):  
Transformational Leadership ◽  
Theoretical Approach ◽  
Family Firms ◽  
Group Cohesion ◽  
Theoretical Background ◽  
Structural Equations ◽  
Family Businesses ◽  
Positive Effects ◽  
Specific Performance ◽  
Structural Equations Model

The goals of the current research were to analyze the existence of differences in leadership between family and nonfamily firms adopting a transformational leadership approach, as well as the potential positive effects of transformational leadership on family businesses. With the transformational leadership theory as theoretical background, the research reveals that leadership is more transformational in family businesses than in nonfamily businesses. Similarly, this research uses a structural equations model to explain the relations between this kind of leadership in family businesses and specific performance-related variables, such as group cohesion, longevity, and profitability.

scholarly journals Differentiation of Companies’ Environmental Initiatives in the Light of the Research Results

2020 ◽  
Vol 54 (3) ◽  
pp. 7
Author(s):  
Barbara Fura ◽  
Flavia Alex Bonga
Keyword(s):  
Environmental Protection ◽  
Economic Benefits ◽  
Theoretical Background ◽  
Primary Data ◽  
Chi Square ◽  
Environmental Initiatives ◽  
Size Type ◽  
Business Entities ◽  
The Empirical Analysis ◽  
Environmental Activities

<p>Theoretical background: The deteriorating condition of the natural environment, as a result of human activity, is one of the global problems that contemporary business entities must face. Companies in their attempts to comply with principles of environmental protection undertake activities aimed at better utilization of resources, production materials or improved efficiency. Such endeavours include the elimination of pollution, recycling of materials, reduction of waste generated, reduction of fuels and energy consumption, and limiting water usage. This contributes to improving corporate economic performance, thus, making production more efficient, more economical and safer.</p><p>Purpose of the article: The purpose of this article is to identify the company’s behavior with regard to environmental protection issues. The study tests the research hypothesis that the companies’ characteristics (i.e. company size, type of activity – production/non production, the scale of activity – local and regional, national, international) are factors that significantly differentiate the involvement of companies in activities for the environmental protection.</p><p>Research methods: The empirical analysis is based on primary data from 68 companies. It was carried out using the Mann–Whitney U test, chi-square independence test, and the correspondence analysis. The strength of the examined relationships was expressed by the V-Cramer coefficient.</p><p>Main findings: The research showed that the level of implementation of environmental initiatives depended on both the type of business activity and the size of the company. In the opinion of the surveyed entities, the implementation of pro-environmental activities aims at improving the company’s image and, to a lesser extent, at obtaining specific economic benefits. Large companies were often involved in the implementation of pro-environmental activities more than small and medium-sized entities. Production entities were more involved in it, compared to non-production companies.</p>

scholarly journals Unique Goals of Family Businesses and Their Absorption of Finance Instruments in the Financialization Era

Studia Humana ◽  
2021 ◽  
Vol 10 (2) ◽  
pp. 31-40
Author(s):  
Robert Zajkowski ◽  
Beata Żukowska
Keyword(s):  
Capital Accumulation ◽  
Private Equity ◽  
Family Firms ◽  
Family Values ◽  
Family Firm ◽  
Family Businesses ◽  
Term Survival ◽  
Public Company ◽  
Business Entities

Abstract Nowadays financialization seems to be an inherent and obvious phenomenon and it appears to have infected all industrialized economies. Within general phenomenon of financialization, three areas should be indicated: financialization as a system of capital accumulation, financialization of business entities and financialization of every day-life. In our paper we try to investigate family businesses that are unique due to the overlap of family and business subsystems in one entity. More specifically, we undertake to find out whether intertwining of family values with business objectives can influence the level of absorption of various finance instruments that are offered on nowadays financial market. Analysis revealed a few statistically significant relationships between perception of family firm objectives and absorption of basic and sophisticated finance instruments. It is the first to suggest, that family firms which are intrinsically-oriented, i.e. those more willing to keep independence or to keep long term survival, are less prone to absorb sophisticated finance instruments, e.g. private equity, venture capital, hybrid capital or they are less keen to become a public company. On the other hand, if a family firm is more oriented towards risk minimisation or keeping long term growth, then it is also more open for absorption of advanced finance instruments.

scholarly journals Managerial competences in family firms from the service and production sectors

VUZF Review ◽  
2021 ◽  
Vol 6 (4) ◽  
pp. 145-156
Author(s):  
Izabella Kęsy ◽  
Marcin Kęsy ◽  
Patrycja Ślusarczyk
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Business Owners ◽  
Family Businesses ◽  
Primary Study ◽  
Measurement Tool ◽  
The Family ◽  
Business Entities ◽  
High Level ◽  
Or Team

In each organization an important aspect is to maintain balance in terms of resources, processes and systems. Lack of relationship between the various components of the company affects the reduction of efficiency in organization, which in turn affects the effectiveness of action. However, it is also important to maintain effectiveness in the implementation of tasks at the strategic or operational level, and this is particularly influenced by the leader of the organization or team respectively. In the case of family businesses decision- making can be reduced to the leader, who makes decisions independently, without obtaining data or information from the environment. Such actions carry a high level of randomness, which in consequence affects the lowering of economic profitability of the company. In the publication, theoretical and empirical considerations were carried out, which served the authors of the publication, to a limited extent, in juxtaposing the paradigm of the family business functioning in the theory of the subject with the results of the primary study, which was carried out using two qualitative methods, interview and observation. For this purpose, the measurement tool, the interview questionnaire, was developed and the planes of cognitive analysis that was conducted in the studied business entities were identified. The study was conducted on 30 family businesses operating through Poland, the only criterion for qualification for the study was the fact that this was the opinion of the business owners, which is in accordance with the theory of family business proposed by Frishkoff according to which a family business is an enterprise in which the owner admits that it is a family business, i.e. in this case the most important thing is the awareness of being one of the occurring types of family business.

Employer branding and psychological contract in family and non-family firms

2020 ◽  
Author(s):  
Duarte Pimentel
Keyword(s):  
Empirical Evidence ◽  
Psychological Contract ◽  
Family Firms ◽  
Positive Impact ◽  
Family Businesses ◽  
Employer Branding ◽  
Privately Owned

This study compares the perceptions of employer branding and psychological contract levels of employees of family and non-family firms. Specifically, to better understand the dynamics of family businesses, we assess the extent to which employer branding perceptions have an impact on the employees' psychological contract levels. The empirical evidence is provided by a sample of 165 Portuguese employees (76 from family businesses and 89 from non-family businesses), working in small and medium-sized privately-owned companies. The results confirmed the research hypotheses, suggesting that employees of family companies have higher perceptions of employer branding and psychological contract levels than those of employees of non-family companies, also revealing that employer branding has a positive impact on the psychological contract levels of family firm’s employees.

Large qualitative models of complex chemical and bioengineering processes

1991 ◽  
Vol 56 (10) ◽  
pp. 2107-2141 ◽  
Author(s):  
Mirko Dohnal
Keyword(s):  
Case Studies ◽  
Chemical Process ◽  
Ad Hoc ◽  
Chemical Reactor ◽  
Theoretical Background ◽  
Qualitative Model ◽  
Complex Chemical ◽  
Practical Applications ◽  
Qualitative Models ◽  
Decomposition Principle

Qualitative model is a theoretical background of commonsense. Complex qualitative models can have prohibitively many solutions (qualitative states). Therefore a qualitative analogy of such classical quantitative tools as e.g. the decomposition is developed. Practical applications of decomposition principle is nearly always ad hoc. Therefore two case studies are presented in details, a chemical process (mixer, chemical reactor, separator) and an anaerobic fermentor.

The innovation and internationalisation processes of family businesses

2017 ◽  
Vol 27 (2) ◽  
pp. 231-247 ◽  
Author(s):  
Vitor Braga ◽  
Aldina Correia ◽  
Alexandra Braga ◽  
Sofia Lemos
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Businesses ◽  
Family Management ◽  
Multivariate Statistic ◽  
Content Type ◽  
Business Innovation ◽  
The Family ◽  
Internationalisation Strategies ◽  
Innovation Processes

Purpose The success of the family firms cannot be detached from the current paradigm where, within the present economic conditions, economic agents struggle to exploit the existing opportunities and need to take into account the risks associated to the international arena and the innovation processes. The internationalisation and innovation processes may trigger resistance within family business due to their relatively higher difficulty to take risks and to invest in industries outside the scope of their original core business. Innovation and internationalisation processes become relevant strategies for the family firms’ continuity and success. In line with such fact, the aim of this paper is to contribute with insights regarding the processes of innovation and internationalisation within family businesses. In particular, this paper aims to assess the propensity of such firms to apply such strategies, to identify the particular business behaviour and to assess the extent to which the particulars of family firms may constraint or lead to the implementation of innovation policies, and thus its internationalisation. Design/methodology/approach The data were collected through questionnaires within family business aiming to understand the scope and characteristics of internationalisation and innovation processes within these firms. The 154 replies from such data collection were analysed using different multivariate statistic procedures, although this paper is based on factorial and correlation analysis. Findings The analysis of the results shows that there is an association between the processes of innovation and internationalisation within family business. In addition, the results also suggest a typology of firms regarding their innovation and internationalisation strategies and motivations. Research limitations/implications The results of this paper are, to some extent, limited because they did not allow comparing the findings with data from non-family business. However, the authors’ aim was not to distinguish family firms, but rather to characterise them. Practical implications This paper expects to contribute with lessons for the management of family business and to raise awareness of the constraints faced by family business. It is important to highlight that family business performance may be affected by a lower propensity to risk-taking attitudes, by the lack of non-family management and to the necessity of separating the family and the business in the business dimensions that the family limits the business growth. Originality/value Although there is a significant amount of the literature devoted to explore family business, innovation and internationalisation studies, very few draw on the relationship between internationalisation and innovation processes within family business. This paper explores such a relationship within a particular business context – the family dynamics that strongly affect management and business development.

scholarly journals Entrepreneurial orientation in family firms – management and intercultural development

2014 ◽  
Vol 6 (4-1) ◽  
pp. 181-190 ◽  
Author(s):  
Wioletta Czemiel-Grzybowska
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family System ◽  
Open Systems ◽  
Family Businesses ◽  
Intercultural Development ◽  
System Perspective ◽  
Business Context ◽  
Systems Perspective ◽  
Business System

AbstractThis paper has taken an insight to the systemic models of family business from the open systems perspective. I focus on family business system models and on the subsystems content of family system and ownership system in family business context. The paper claim that the open system perspective on intercultural family businesses has both theoretical and empirical implications on family business research. Family businesses have many reasons, including family conflicts over money, nepotism leading to wrong management, and infighting over the succession of power from one generation to the other. Regulating the family’s roles as shareholders, board members, and managers is very important because it can help avoid these pitfalls. This paper will discuss the importance of the openness of the company through five the attributes of enduring family businesses: ownership, family, business and portfolio governance, wealth management, foundation. Dimension of attributes success have taken family business like five jewelers.

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.

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