scholarly journals Entrepreneurial strategies and corporate governance: Experiences from the Italian wine industry

2012 ◽  
Vol 8 (2) ◽  
pp. 44-60
Author(s):  
Di Toma Di Toma ◽  
Arianna Lazzini ◽  
Stefano Montanari
Keyword(s):  
Corporate Governance ◽  
Competitive Advantage ◽  
Family Business ◽  
Family Firms ◽  
Wine Industry ◽  
Competitive Advantages ◽  
Family Social Capital ◽  
Italian Wine ◽  
The Family ◽  
Entrepreneurial Strategies

A distinctive resource typical of family firms, critical in guarantee to family firms long lasting position of competitive advantage is familiness. In previous studies familiness has been defined to characterize the interactions between each family member, the whole family and the business. These interactions leads to systematic synergies with the potential to create competitive advantages or disadvantages for the firm. Family history and local roots can ensure the family business a competitive advantage long lasting and evolutive. Our analysis is focused on the wine industry in Italy and analyzes the case of Barone Ricasoli Spa an estate owned by the family Ricasoli since 1141. We find that the family social capital supports the processes of resources acquisition and promotes the business renewal.

scholarly journals Determinants of Family Business Progress

2014 ◽  
Vol 6 (4-2) ◽  
pp. 5-14
Author(s):  
Agnieszka Wróblewska-Kazakin
Keyword(s):  
Competitive Advantage ◽  
Family Business ◽  
Family Firms ◽  
Free Market ◽  
Testing Phase ◽  
A Value ◽  
The Family

Abstract The aim of this article is to indicate the characteristics, which make family business prominent in the free market. Perceiving these characteristics as values of family business gives them the opportunity to gain competitive advantage and enables multi-generation existence of the company. The process of succession, if conducted in a planned and formalized way, becomes a value itself. The two projects: ‘The guide to succession’ and ‘Value codes’, both in the testing phase, promoting the process of succession in Polish family firms, have set the creating of complex tools enabling the succession in the family business to be effected their target

Knowledge Transfer Strategies within Family Firm Succession

2014 ◽  
pp. 266-281 ◽  
Author(s):  
Isabella Hatak ◽  
Dietmar Roessl
Keyword(s):  
High Risk ◽  
Knowledge Transfer ◽  
Competitive Advantage ◽  
Family Firms ◽  
Family Firm ◽  
Empirical Approach ◽  
Competitive Advantages ◽  
Policy Makers ◽  
The Family ◽  
Transfer Strategies

A firm's knowledge is considered a key strategic asset in the course of generating competitive advantages. However, especially within family firm succession, there is a high risk that knowledge embedded if the predecessor leaves the organization. Thus, in order to maintain the family firm's competitive advantage an understanding of the challenges regarding the knowledge transfer within family firm succession is needed. In this chapter, the authors employ a qualitative empirical approach to identify context-based knowledge transfer strategies and develop a typology of transfer constellations. The results provide insight for students, researchers, consultants, policy makers and family firm leaders, who are searching for the most appropriate knowledge transfer strategy given the nature, philosophies and traditions of specific small and medium sized family firms.

scholarly journals The black box: Unraveling family business succession

2007 ◽  
Vol 10 (2) ◽  
pp. 9-14 ◽  
Author(s):  
Noel D. Campbell ◽  
Kirk H. Heriot ◽  
Dianne H. B. Welsh
Keyword(s):  
Competitive Advantage ◽  
Family Business ◽  
Family Firms ◽  
Second Generation ◽  
Family Firm ◽  
Black Box ◽  
Future Research ◽  
The Family ◽  
Business Succession ◽  
Family Business Succession

Using the family business succession, resourcebased view of firms, familiness, and organizational clan literatures, this article develops a model based on the ability of the family business to use familiness, a specific bundle of attributes deriving from a family’s culture, as a competitive advantage for the family firm. In particular, this resource-based framework of family business shows how familiness can distinguish between family firms that succeed beyond the second generation and those that do not. Implications for future research are discussed.

scholarly journals Mining the Past: History Scripting Strategies and Competitive Advantage in a Family Business

2021 ◽  
pp. 104225872110465
Author(s):  
Bingbing Ge ◽  
Alfredo De Massis ◽  
Josip Kotlar
Keyword(s):  
Family History ◽  
Competitive Advantage ◽  
Family Business ◽  
Family Firms ◽  
Past History ◽  
Superior Performance ◽  
Rhetorical History ◽  
The Past ◽  
The Family ◽  
History Of

History is increasingly recognized as a distinctive source of competitive advantage for family businesses. Taking a rhetorical history perspective, we study how a family business leveraged the family’s three generations long history of entrepreneurship to sustain profitable growth over 16 years. Through our analysis, we identify three history scripting strategies—embedding, elaborating, and building family history—that created important sources of competitive advantage for the family business, facilitating acceptance by broader communities, building a reputation of continuity, and inspiring innovation through tradition. These findings advance the history-informed understanding of family firms’ idiosyncratic sources of superior performance.

scholarly journals Zero-Leverage Policy: Is the Family Nature of Private Firms Relevant?

2019 ◽  
Vol 11 (7) ◽  
pp. 28
Author(s):  
Oscar Domenichelli
Keyword(s):  
Corporate Governance ◽  
Risk Aversion ◽  
Family Business ◽  
Family Firms ◽  
Private Firm ◽  
Agency Conflicts ◽  
Propensity Analysis ◽  
The Family ◽  
Debt Policy

This work investigates whether being a family business influences a private firm’s propensity to be leveraged and the underlying reasons behind such propensity. Analysis focuses on a sample of Italian private family and non-family firms for the period from 2008-2017. Socioemotional and corporate governance considerations cause agency conflicts to be negligible in Italian private family firms, and thus the use of debt is unrelated to these conflicts. Nevertheless, these enterprises are more likely to eschew a zero-debt policy, as opposed to their non-family counterparts. This is due to the socioemotional orientation of Italian private family firms, that is the desire of their family owners to keep long-term control over the business, through the use of leverage, which prevails over risk aversion.

scholarly journals Efficacy of corporate social responsibility in corporate governance structures of family owned business groups in India

2018 ◽  
Vol 2 (1) ◽  
pp. 52-68 ◽  
Author(s):  
Raveena Naz
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Family Business ◽  
Family Firms ◽  
Business Groups ◽  
Business Group ◽  
Governance Structures ◽  
The Family ◽  
Corporate Social

The concept of ‘Corporate Social Responsibility’ (CSR) has often relied on firms thinking beyond their economic interest despite the larger debate of shareholder versus stakeholder interest. India gave legal recognition to CSR in the Companies Act, 2013. CSR in India is believed to be different for two reasons: the dominance of family business and the history of practice of social responsibility as a form of philanthropy (mainly among the family business). This paper problematises the actual structure of business houses in India and the role of CSR in a context where the law identifies each company as a separate business entity while the economics of institutions emphasizes the ‘business group’ consisting of a plethora of firms as the institutional organization of business where capital owned or controlled by the family group is spread across the firms through the interlocked holding structures. Within this framework, the largest family firms, which are part of family owned business groups, top the CSR expenditure list. The governance structure of family firms allows family owned business group to show mandatory compliance of CSR even when they actually spend much less than what is prescribed by law. This aspect of the family firms is not addressed by the CSR legislation in particular or corporate governance legislation in general in India. The paper illustrates this with an empirical study of one of the largest family owned business group in India Reliance Industries Limited (RIL), which is well acclaimed for its CSR activities. The paper demonstrates how the business group through these series of shareholding network reduces its legally mandated CSR liability. The paper thus indicates the inadequacy of CSR legislation in India because the unit of compliance is an individual firm and it assumes that each firm is independent and only connected to each other through market dealings. The law does not recognize the inter-connections of firms (through common ownership and control) in corporate governance structures of family owned business group and hence is inadequate in its design to effect the threshold level of CSR expenditure. This is the central argument of the paper.

scholarly journals La medición de la familia en las empresas familiares privadas: un modelo de red bayesiana

2018 ◽  
Vol 63 (3) ◽  
pp. 42
Author(s):  
Griselda Dávila Aragón ◽  
Héctor X. Ramírez Pérez ◽  
Salvador Rivas Aceves
Keyword(s):  
Competitive Advantage ◽  
Family Business ◽  
Family Firms ◽  
Probabilistic Reasoning ◽  
Family Members ◽  
Business Leaders ◽  
The Family ◽  
Shared Information ◽  
Resources And Capabilities ◽  
High Level

<p><span lang="EN-US">The objective of this analysis was to identify the causality among variables that originate the highest level of <em>familiness </em>in private family firms. The Bayesian Networks (BN) theory was applied to measure the effectiveness of resources and capabilities provided by the family members within a family business to understand causal relations among variables by using probabilistic reasoning throughout a graphic. Re­sults showed that if salary of family members was higher than salary of employees in the same position, if family members shared information among themselves, and if family firms presented family-employee bonds, there was an 83%, 70%, and 79% of probability of having a high level <em>familiness</em>, respectively. The limitation of the study is that any modification in the BN might show different outcomes. These findings expand the knowledge on family business discipline and suggest a path for family business’ leaders to increase <em>familiness</em>. If family firms want to strengthen their competitive advantage, the main variables they should focus, among all the resources and capabilities that represent <em>familiness</em>, are salaries of family members, sharing information, and family-employee bonds.</span></p>

scholarly journals TAX AGRESSIVENESS IN FAMILY FIRMS: CAN CORPORATE GOVERNANCE MITIGATE IT?

2021 ◽  
Vol 3 (1) ◽  
pp. 1-18
Author(s):  
Arie Pratama
Keyword(s):  
Corporate Governance ◽  
Family Business ◽  
Audit Committee ◽  
Family Firms ◽  
Tax Avoidance ◽  
Financial Statements ◽  
Governance Structure ◽  
Board Of Director ◽  
Audit Firms ◽  
The Family

 Every taxpayers objectives is to minimize the tax paid to government. Few business tried to avoid tax more agressively than the others. This research will tried to investigate whether the family firms are more tax agressive compare to non family firms. Tax agressiveness might be reduced if there is a working governance structure. This research will also investigate whether the governance structure (i.e size of board of director, proportion of independent director, external audit firms, and audit committee) would significantly reduced the tax agressiveness. To control the results, researcher used size, profitability and leverage. This research was quantitative explanatory research. Researcher will analyzed 15 out of 57 family own-business in Indonesia, and make a comparison with non family firms. Researcher examined the financial statements and annual report from year 2011 – 2015. The research will used multiple regression analysis as a data analysis tools. This research will produce tax agressiveness analysis of family firms, non family firms, and combination of both firms. The research showed that, contrast to the non family firms, family firms had agressive tax avoidance scheme. The research also showed that corporate governance in family company in fact, increasing the agressiveness o tax avoidance, while non family firms corporate governance reduced the agressiveness of tax avoidance. Overall this research showed that family business need to improve the governance structure to control its agressive tax avoidance.   Keywords: Corporate Governance, Family Business, Ownership, Tax Avoidance.

Multiple Roles in Serving Families in Business

1998 ◽  
Vol 11 (3) ◽  
pp. 261-266 ◽  
Author(s):  
Marta Vago
Keyword(s):  
Corporate Governance ◽  
Best Practices ◽  
Family Business ◽  
Family Firms ◽  
Codes Of Conduct ◽  
Multiple Roles ◽  
Professional Standards ◽  
Business Professionals ◽  
Family Enterprise ◽  
The Family

When family business professionals serve family firms in more than one capacity, they begin to mirror the problems that cause conflict in business families. Fulfilling multiple professional roles started from necessity and became a tradition. The practice of “dual relationship” has gone unchallenged, even though it holds significant potential risk to the family enterprise. “Best practices” from corporate governance, together with established codes of conduct, provide guidelines for protecting both the quality and the integrity of professional input on which family firms rely. Better educated consumers and accountability to peers mean higher professional standards for meeting the needs of family enterprise.

Making gender visible in family business: past and present

2012 ◽  
Vol 13 (1) ◽  
Author(s):  
Paloma Fernández Pérez ◽  
Eleanor Hamilton
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Business Leadership ◽  
Legal Rules ◽  
Developed Economies ◽  
The Family ◽  
Interdisciplinary Synthesis ◽  
Complex Forms ◽  
Rules Of The Game

This  study  contributes  to  developing  our understanding of gender and family business. It draws on studies from the business history and management literatures and provides an interdisciplinary synthesis. It illuminates the role of women and their participation in the entrepreneurial practices of the family and the business. Leadership is introduced as a concept to examine the roles of women and men in family firms, arguing that concepts used  by  historians or economists like ownership and management have served to make women ‘invisible’, at least in western developed economies in which owners and managers have been historically due to legal rules  of  the  game  men,  and  minoritarily women. Finally, it explores gender relations and  the  notion  that  leadership  in  family business  may  take  complex  forms  crafte within constantly changing relationships.

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