scholarly journals Developing capabilities for sustainability in family owned SMEs: An emerging market scenario

2020 ◽  
Vol 9 (6) ◽  
pp. 24-36
Author(s):  
Ben Akume ◽  
Osarumwense Iguisi
Keyword(s):  
Family Business ◽  
Business Performance ◽  
Emerging Market ◽  
Family Members ◽  
Business Environment ◽  
Family Businesses ◽  
Business Success ◽  
Stewardship Theory ◽  
Family Control ◽  
Business Sustainability

The academic discourse on ‘family’ perpetuity in family-owned businesses (FOB) is still burgeoning.  Current findings suggest the importance of family control and family inter-generational sustainability in family-owned businesses. Though literature in family perpetuity and sustainability is well documented from the advanced economies, there is a scarcity of insights from emerging markets where this research relates.  The study, therefore, sought to investigate, understand and interpret the underlying drivers of sustainability in small and medium family businesses using the stewardship theory paradigm and relying on evidence from an emerging market economy the Nigerian family business environment. A qualitative method with 41 in-depth interviews involving owners and managers of family-owned small and medium businesses was conducted. The study empirically shows that there is an interrelationship between family structure and business sustainability, hence the practice of polygamy was found to be inimical to family business success and sustainability. The study also showed that the element of spirituality arising from the ideals and values of the owning family is a significant factor for ensuring family wellbeing and business sustainability, and founding owner characteristics (industry experience) and impacts positively on the business performance and continuity. The study confirmed that the stewardship of non-family member employees within the business is provisional stewardship as non-family members rely on other incentives from the owning family members to behave as stewards.  Building on the stewardship theory, the paper develops a model of sustainability for small and medium family businesses. The study contributes to the theoretical literature on stewardship and family business sustainability

Developing Capabilities for Sustainability in Family Small Enterprises

2022 ◽  
pp. 583-600
Author(s):  
Ben Akume ◽  
Osarumwense Iguisi
Keyword(s):  
Family Business ◽  
Business Environment ◽  
Family Businesses ◽  
Business Success ◽  
Small Enterprises ◽  
Stewardship Theory ◽  
Business Sustainability ◽  
Advanced Economies ◽  
Medium Businesses ◽  
Depth Interviews

Though literature in family perpetuity and sustainability is well documented from the advanced economies, there is scarcity of insights from emerging markets where this research relates. The study, therefore, sought to investigate, understand, and interpret the underlying drivers of sustainability in small family businesses using the stewardship theory paradigm in the Nigerian family business environment. A qualitative method with 41 in-depth interviews involving owners and managers of family-owned small and medium businesses was conducted. The study empirically shows that there is an interrelationship between family structure and business sustainability; hence, the practice of polygamy was found to be inimical to family business success and sustainability. Building on the stewardship theory, the paper develops a model of sustainability for small and medium family businesses. The study contributes to the theoretical literature on stewardship and family business sustainability.

Developing Capabilities for Sustainability in Family Small Enterprises

2020 ◽  
Vol 1 (2) ◽  
pp. 9-23
Author(s):  
Ben Akume
Keyword(s):  
Family Business ◽  
Business Environment ◽  
Family Businesses ◽  
Business Success ◽  
Small Enterprises ◽  
Stewardship Theory ◽  
Business Sustainability ◽  
Advanced Economies ◽  
Medium Businesses ◽  
Depth Interviews

Though literature in family perpetuity and sustainability is well documented from the advanced economies, there is scarcity of insights from emerging markets where this research relates. The study, therefore, sought to investigate, understand, and interpret the underlying drivers of sustainability in small family businesses using the stewardship theory paradigm in the Nigerian family business environment. A qualitative method with 41 in-depth interviews involving owners and managers of family-owned small and medium businesses was conducted. The study empirically shows that there is an interrelationship between family structure and business sustainability; hence, the practice of polygamy was found to be inimical to family business success and sustainability. Building on the stewardship theory, the paper develops a model of sustainability for small and medium family businesses. The study contributes to the theoretical literature on stewardship and family business sustainability.

scholarly journals The influence of family and non-family stakeholders on Family Business success

2010 ◽  
Vol 3 (1) ◽  
pp. 32 ◽  
Author(s):  
Shelley Farrington ◽  
Elmarie Venter ◽  
Christo Boshoff
Keyword(s):  
Family Business ◽  
Family Relationships ◽  
Family Members ◽  
Sampling Technique ◽  
Family Businesses ◽  
Business Success ◽  
Snowball Sampling ◽  
Key Stakeholders ◽  
Keywords And Phrases ◽  
The Impact

<p>The greatest threats to the growth, success and survival of a family business are primarily issues related to family relationships. The involvement of non-family members has also shown to present many threats as well as opportunities for the family business. Because of the increasing number of sibling teams among family businesses this article focuses on the impact of family and non-family members’ involvement on the success of sibling-owned family businesses. Key stakeholders identified as influencing a Sibling Partnership are parents, non-active sibling shareholders, spouses, and non-family members. The primary objectives of this article are thus to evaluate the impact of the stakeholders identified on the success of a Sibling Partnership, by subjecting these relationships to empirical testing, and making recommendations to successfully manage relationships in family businesses. A structured questionnaire was made available to 1 323 sibling partner respondents. The respondents were identified by means of a convenience snowball sampling technique, and the data collected from 371 usable questionnaires was subjected to various statistical analyses. The empirical findings of this study show that both past and present Parental involvement, as well as the involvement of other family members and Non-family employees in the sibling-owned family businesses, significantly impact on its success.</p><p><strong>Keywords and phrases:</strong> Family business, Sibling Partnership, family team, family relationships, spouses, non-active shareholders, stakeholders</p>

Differences in management styles, levels of profitability, and performance across generations, and the development of the Family Business Success Model

2019 ◽  
Vol 32 (1) ◽  
pp. 32-50 ◽  
Author(s):  
Josiane Fahed Sreih ◽  
Robert N. Lussier ◽  
Matthew C. Sonfield
Keyword(s):  
Family Business ◽  
Financial Management ◽  
Emerging Market ◽  
Business Owners ◽  
Family Businesses ◽  
Business Success ◽  
Content Type ◽  
Success Model ◽  
The Family ◽  
Probability Of Success

Purpose The purpose of this paper is to, first, investigate the differences between generations in family businesses and, second, develop and verify the Family Business Success Model ability to improve the probability of business success measured by perceived profits, growth and meeting the owners’ expectations. Design/methodology/approach Data were collected through questionnaires and personal interviews. Overall, 98 usable questionnaires were collected for statistical analysis with a response rate of 82 percent. Findings One-way ANOVA hypotheses testing of the variables found four significant differences between generations. Regression analysis found the Family Business Success Model to be significant. Family business owners can improve the probability of success by utilizing a team-management decision-making approach, effectively handling conflict effectively, formulating specific succession plans, developing strategic plans, using sophisticated financial management methods, dealing effectively with the founder’s influence and if they seek to grow, they should consider going public. Practical implications This study provides family business owners, managers, educators and public policy makers with the means to help family businesses survive and grow effectively throughout generations by using the Family Business Success Model. In addition, this study can help consultants and advisors of family businesses to understand the differences between the first, second and third generation family businesses from a holistic perspective and help them implement the family business model. Originality/value This study contributes to the literature as one of the few studies in the Lebanese emerging market that examines how the first, second and third generations of family businesses differ. More importantly, it develops a Family Business Success Model that improves the probability of success.

scholarly journals Analysis of Innovation, Proactive, and Risk Taking as Presentations of Entrepreneurial Orientation towards Business Success of Second and Third Generation Family Business in Indonesia

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Christina Whidya Utami ◽  
Damelina Tambunan ◽  
Metta Padmalia
Keyword(s):  
Family Business ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Family Members ◽  
Family Businesses ◽  
Business Success ◽  
Third Generation ◽  
Scale Family ◽  
The Family ◽  
Generation Family

Research Objective: To analyze the effect of entrepreneurial orientation towards the business success of second and third generation family businesses in Indonesia. Methodology/ Research Approach: This study used a cross-sectional, correlation research design. The survey was conducted to 153 medium-scale family businesses that have run for 5-50 years and categorized as middle-scale business ran by the second and/ or third generation family. Hypothesis testing was done via a multiple regression using SPSS. Findings: there is a significant effect between entrepreneurship orientation, which is the independent variable of this study, that covers three indicators namely innovation, proactive, and risk-taking abilities. Innovative and proactive have a significant and positive effect, while risk-taking ability has a significant and negative effect on the success of family businesses in Indonesia. Research limitation/ implication: This study investigates strategies that family businesses use, in terms of entrepreneurial orientation. The limitations of this study are: Bias in assessment perspective of fellow families and the scale of the family business only focus on second and third-generation middle-scale family business. The implication of this research is to create an entrepreneurial orientation culture in family businesses that tend to be lacking innovative, proactive, and risk-taking behaviors, considering the amount of interference and involvement of family members in the management of their family businesses. Practical implication: It is hoped that the second and the third-generation family members show a better perspective exploration in seeing whether entrepreneurial orientation has been implemented and has an impact in creating business success. Thus, family businesses are expected to scale-up their businesses into large-scale companies, and at the same time, survive the succession phase of the next generation. Originality/ value: This study offers an analysis of a unique entrepreneurial orientation, given the personality, family, ownership, and management system in family businesses in Indonesia are different from other countries. Besides, there are influences of technological advances that may interfere family businesses, particularly the family system, in Indonesia

Outside Boards and Family Businesses: Another Look

1991 ◽  
Vol 4 (3) ◽  
pp. 269-285 ◽  
Author(s):  
Marc A. Schwartz ◽  
Louis B. Barnes
Keyword(s):  
Family Business ◽  
Empirical Studies ◽  
Family Members ◽  
Family Businesses ◽  
Board Members ◽  
Careful Selection ◽  
Business Week

The debate over the usefulness of outside board members in family businesses goes on. Two of the three empirical studies on this issue tend to disagree on their value. Using a sample of 262 family business firms, drawn from the Business Week Newsletter for Family-Owned Businesses, this study surveyed CEOs to learn of their attitudes toward inside and outside board members. The findings strongly support the inclusion of outsiders and suggest that the more outside board members the better and the more inside family members the worse, but only where CEO desire, careful selection, and shared expectations are part of that outsider membership.

Family succession, professionalization and internationalization: a study of Brazilian family businesses

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Augusto Dalmoro Costa ◽  
Aurora Carneiro Zen ◽  
Everson dos Santos Spindler
Keyword(s):  
Family Business ◽  
Family Members ◽  
Secondary Data ◽  
Family Businesses ◽  
Three Dimensions ◽  
Content Type ◽  
The Family ◽  
Two Generations ◽  
Internationalization Strategies ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the relationship between family succession, professionalization and internationalization in family businesses within the Brazilian context.Design/methodology/approachThe paper presents a multiple-case study method with three Brazilian family businesses that have at least two generations of the owning family involved in the business and an international presence of at least three years. In-depth interviews and secondary data were undertaken with family and non-family members of each case.FindingsThe authors' results show that a family business can boost its internationalization by introducing both succession planning and professionalization on international activities. As family members tend to be more risk-averse and focused on keeping the family business within the family, professionalization is a way of improving the firm's ability to expand internationally. This process tends to lead to lower performance by the firm for the first few months or the first year after the investment, but afterward, international performance tends to grow exponentially.Originality/valueOnly a few studies have been concerned on the relationship of these three dimensions. Thus, the research takes into account that professionalization and succession lead family businesses to improve their internationalization strategies.

Ethnicity Effects on the Family Business Entrepreneurial Process

2009 ◽  
Vol 22 (3) ◽  
pp. 293-296 ◽  
Author(s):  
Ira C. Harris
Keyword(s):  
Family Business ◽  
Business Performance ◽  
Group Identity ◽  
Family Businesses ◽  
Ethnic Background ◽  
Preferential Treatment ◽  
Entrepreneurial Process ◽  
The Family

This commentary adopts a cross-disciplinary framework to discuss possible influences of both family and ethnicity on business performance in the marketplace. Both family and ethnicity are viewed as “upstream factors” that may help a business gain a favorable identity with potential stakeholders. Family businesses that have an ethnic background in common with customers, employees, and suppliers may receive preferential treatment. Communities may patronize a business simply because of an associated group identity. Thus, ethnic collectivism may alter some assumptions about family businesses and how they compete.

Small family business in Russia: formal or informal?

2018 ◽  
Vol 38 (9/10) ◽  
pp. 809-822 ◽  
Author(s):  
Alexander Chepurenko
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Members ◽  
Family Businesses ◽  
Entrepreneurial Activity ◽  
Small Scale ◽  
Content Type ◽  
Small Family ◽  
Scale Family ◽  
Russian State

Purpose The purpose of this paper is to deal with informal entrepreneurial activity of micro and small family businesses in the specific transitional environment. Design/methodology/approach The paper uses two cases – an informal micro business (“marginal” family business), and a formal retail small firm (“simpleton” family firm), respectively, of a panel conducted in 2013–2015 in Moscow. Findings First, the real distribution of responsibilities between family members is informal; it relies more on interpersonal trust and “common law.” Second, exactly the ease of governing such trust-based businesses for the founders’ generation sets limits of succession of small-scale family businesses. Third, as trust in the state is very low, the policy of Russian authorities to quickly force informal entrepreneurs to become legalized is substantially wrong; the results would be either a transformation of “simpleton” into “marginal” businesses or quitting business. Research limitations/implications Research limitations of the study are the number of observations and the localization of the panel only in the capital of Russia. Practical implications The fundamental failure of Russian State policy toward small-scale family businesses is its attempt to convince “marginal” to formalize and to oppress “simpleton” family businesses pushing them into informality. In fact, it should be designed vice versa: tolerate “marginal” businesses and let them to “live and die” while shaping a friendly environment for “simpleton” family firms. Originality/value The paper argues that the most important facet of informality in small family entrepreneurship is the informal property rights and governance duties’ distribution among the family members.

Creating Competitive Advantage in Scottish Family Businesses

2010 ◽  
pp. 230-251
Author(s):  
Claire Seaman ◽  
Stuart Graham
Keyword(s):  
Knowledge Transfer ◽  
Competitive Advantage ◽  
Family Business ◽  
Future Development ◽  
Business Environment ◽  
Family Businesses ◽  
High Quality ◽  
Diverse Environment ◽  
The Creation

This chapter seeks to consider both the role that knowledge transfer may have in family businesses and the different manners in which knowledge transfer may take place within this diverse environment. The economic, social and community importance of family businesses within Scotland is considered, alongside the different manner in which family businesses commonly operate and the implications for knowledge transfer. The importance of knowledge transfer in the creation of competitive advantage within a family business environment and the relatively limited nature of research in this area are explored, highlighting the need for further research both to support the on-going development of a strategy for family businesses in Scotland and to facilitate future development of high quality knowledge transfer. Key to all of this, however, is an increased understanding of what is meant by knowledge transfer and the breadth of ways in which it happens.

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