scholarly journals Family business: From an informally managed and unstructured model to a structured, formally managed larger enterpris

2017 ◽  
Vol 15 (1) ◽  
pp. 123-132 ◽  
Author(s):  
Alessandro Capodaglio ◽  
Giuseppina Iacoviello ◽  
Gianpaolo Neri
Keyword(s):  
Family Business ◽  
Family Members ◽  
Real Life ◽  
Future Research ◽  
Corporate Management ◽  
Accounting System ◽  
Longitudinal Case Study ◽  
Theoretical Understanding ◽  
The Family

The family business is a fundamental element of the Italian economic development and wealth. One of the main reasons of failure of this type of firm is the business succession, within the family members. The aim of this paper is to analyse a fundamental task of the family business: the role played by a top management team that includes family members belonging to different generations in the strategy renewal process. In particular, we are interested in understanding how plurigenerational family business can apply incremental or radical strategic initiatives. A qualitative methodology is used to conduct a longitudinal case-study, using a deductive-inductive-deductive approach that is typical of the business administration studies. We use this approach to analyse the main influence among the corporate governance practice and the strategic changes of the family business. The case study method allows us to retain the meaningful characteristics of the real-life family business, such as organizational and managerial processes. Through a case study, we highlight the possibility of IS being able to support and facilitate the development of global knowledge, as well as the preparation of the cost accounting system for the calculation of the product cost and margin per customer, and the realization of a business intelligence and reporting system both for the board and the managers. This paper leads to the conclusion that traditional Italian entrepreneurial model can be considered still relevant and successful if supported by a prudent and conscious corporate management. This work contributes to a discussion of the potential benefits of the family business transition from the informally managed, unstructured directly controlled model to a delegated, structured, formally managed the larger enterprise. This paper reports on a study which aims to add to the theoretical understanding of how and why family business use IS in their strategies. The material from this paper can be used as the basis for future research as long as there are "significant" revisions from the original.

scholarly journals Family influence on internationalization: an analysis of risk acceptance

2018 ◽  
Vol 22 (1) ◽  
pp. 8
Author(s):  
Waldir Goede ◽  
Dinorá Eliete Floriani ◽  
Ademir Furtado Filho
Keyword(s):  
Family Business ◽  
Secondary Data ◽  
Family Influence ◽  
Primary Data ◽  
Longitudinal Case Study ◽  
Family Commitment ◽  
The Family ◽  
Risk Acceptance ◽  
Depth Interviews

This article aims to contribute to the literature on family business (FBs), particularly from the perspective of commitment and influence of family on the FB internationalization regarding risk acceptance. Qualitative in nature, the study involved the use of a single longitudinal case study, based on in-depth interviews, storytelling and secondary data. Primary data were collected through semi-structured personal interviews with the company’s board chairman and vice-chairman, commercial director, European director and export manager; and secondary data were obtained using documental and scientific sources. It could be seen that family commitment and ownership influenced the internationalization process due to the proactivity of its European descendant founders, and particularly because in this company studied the process was initiated by a non-family member. However, family participation encourages risk acceptance, since the attachment to the family business creates an eagerness for growth. The findings corroborate the characteristics proposed by the Uppsala School, which claims that internationalization occurs in an unplanned, opportunistic manner, following sequential phases, through incremental learning and via the establishment of networks.

Implementing an integrated ABC and TOC approach to enhance decision making in a Lean context

2014 ◽  
Vol 31 (8) ◽  
pp. 906-920 ◽  
Author(s):  
Majed Alsmadi ◽  
Ahmad Almani ◽  
Zulfiqar Khan
Keyword(s):  
Decision Making ◽  
Management Accounting ◽  
Real Life ◽  
Future Research ◽  
Research Approach ◽  
Accounting System ◽  
Product Mix ◽  
Content Type ◽  
Action Research Approach

Purpose – The purpose of this paper is to implement an integrated activity-based costing (ABC) and theory of constraints (TOC) approach to enhance decision making in a Lean company. Design/methodology/approach – Based on the literature, this paper proposes an integrated ABC and TOC approach and applies it to a Lean plastic manufacturing company to improve its product-mix decision. Findings – The results of the case study show that the current conventional product-mix decision used by the company and the proposed integrated approach can give significantly different results concerning the optimal product-mix and the associated bottlenecks. Moreover, the paper suggests that managers who implement Lean production without utilising a supportive management accounting system may experience disappointing financial results. Research limitations/implications – The validation of the suggested method is based on a single case study with an action research approach. For future research, the authors suggest the implementation of the approach in different industries. Practical implications – Overall, the integration of ABC and TOC provides managers with an accurate, timely and reliable tool that can help in making decisions about pricing, production line development, process improvements and product-mix. Originality/value – This paper contributes to Lean and management accounting literature by demonstrating the value of a method of integrating ABC and TOC. Also a case study is chosen for the empirical aspect of the study as there are no case studies available in the literature that illustrate a real life case of integrating ABC and TOC within Lean companies as an alternative to the current used cost accounting systems.

Managing family business tensions: the narrative of family history

2020 ◽  
Vol 15 (5) ◽  
pp. 669-686
Author(s):  
Rocio Arteaga ◽  
Timur Uman
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Methodological Approach ◽  
Family Members ◽  
Governance Structure ◽  
Future Research ◽  
Socioemotional Wealth ◽  
Content Type ◽  
Family Meetings ◽  
The Family

PurposeThis study explores the family governance structures that family firms employ to manage family business tensions.Design/methodology/approachBuilding on socioemotional wealth perspective and adopting a narrative methodological approach, the study analyses nine unique narratives of representatives of three Swedish family firms.FindingsThe study illustrates how the hybrid arena created between formal and informal family meetings is used as a governance structure for mitigating tensions by reinforcing family relational ties.Research limitations/implicationsBased on the findings, this study suggests how reliance on hybrid arena informs the field of family business management and governance and suggests future research directions.Practical implicationsThe findings of this study provide opportunities for family business practitioners, including owners, family members, family firm advisers and other stakeholders, to effectively manage family business tensions and foster socioemotional wealth.Originality/valueIn family firms, tensions can arise due to a desire for the preservation of socioemotional wealth. The authors show that these tensions may be managed by using informal and formal family meetings that create a hybrid arena where family members separate family and business issues and emotional and rational reactions, thereby avoiding negative emotions and creating a culture of harmony within the family.

Emotional intelligence in family firms

2014 ◽  
Vol 4 (1) ◽  
pp. 4-23 ◽  
Author(s):  
Gonzalo Gómez Betancourt ◽  
Isabel C. Botero ◽  
Jose Bernardo Betancourt Ramirez ◽  
Maria Piedad López Vergara
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Members ◽  
Family Firm ◽  
Business Owners ◽  
Interpersonal Dynamics ◽  
Content Type ◽  
The Family

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.

Examining employment relationship activities in family business research

2016 ◽  
Vol 6 (3) ◽  
pp. 210-224 ◽  
Author(s):  
Holly Ferraro ◽  
Jennifer Marrone
Keyword(s):  
Family Business ◽  
Family Members ◽  
Family Businesses ◽  
Theory And Practice ◽  
Employment Relationship ◽  
Future Research ◽  
Business Research ◽  
Content Type ◽  
The Family ◽  
Advance Theory

Purpose The purpose of this paper is to examine the family business literature on human resource management (HRM) activities within family-owned businesses to advance theory and practice. Design/methodology/approach This paper is a review of research on the formation, adaptation, and termination of the employment relationship within family businesses. Findings Important areas for future research are revealed. For example, little research investigates how family members are recruited, socialized, or how exit decisions are made. In contrast, significant attention has been given to role transitions during succession. Research limitations/implications The paper focuses on managing employment relationships (e.g. recruitment, selection, etc.) within family businesses. The research revealed HRM activities within family businesses are often informal so aspects of the employment relationship may not be fully captured by extant research. Practical implications This review provides specific HRM suggestions for practitioners to consider. For example, this review highlights that training inside the family business can be as effective as training outside the family business. Originality/value This review is novel in applying an established HRM framework to family business research and focuses on HRM activities of family members as opposed to non-family employees. The paper offers considerations for families bringing next generation members into their businesses and preparing offspring to run them successfully.

Social identity and family business: exploring family social capital

2015 ◽  
Vol 5 (2) ◽  
pp. 157-181 ◽  
Author(s):  
Torsten Schmidts ◽  
Deborah Shepherd
Keyword(s):  
Social Capital ◽  
Social Identity ◽  
Family Business ◽  
Social Identity Theory ◽  
Identity Theory ◽  
Family Members ◽  
Content Type ◽  
Family Social Capital ◽  
The Family ◽  
The Impact

Purpose – The purpose of this paper is to use social identity theory to explore factors that contribute to the development of family social capital. Effects are investigated both for the family and the business. Design/methodology/approach – A single in-depth case study focussing on the family unit was coducted within a fourth-generation family business involved in the arts retailing. Findings – The findings suggest that social identity theory is a useful lens to explore the development of family social capital. The six themes identified highlight that there is a normative and an affective dimension, leading to family members’ desire to uphold the status of the business. Evidence suggests that the normative factors may be both positively and negatively related to the development of family social capital, due to their potentially restrictive nature. Originality/value – The paper’s findings imply that social identity can contribute to understanding family dynamics. Evidence highlights various factors for family members that are not involved in the family business to uphold its status. This is attributed to the emotional significance of the business to the family’s identity. Furthermore, this paper suggests that the strong focus on norms and values, which developed gradually, may have adverse effects on the identification with the business and the willingness to uphold its status. Propositions are offered to provide guidance for future research to investigate this controversial evidence regarding the impact of value orientation on family social capital.

Understanding the influence of technological capability and exogenous pressure on business model dynamics: insights from a longitudinal case study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jingqin Su ◽  
Shuai Zhang ◽  
Huanhuan Ma
Keyword(s):  
Business Model ◽  
New Technology ◽  
Innovation Process ◽  
Technological Capability ◽  
Future Research ◽  
Longitudinal Case Study ◽  
Content Type ◽  
Research Stream ◽  
Over Time

PurposeThe purpose of the study is to explore how technological capability and exogenous pressure interactively influence business model (BM) dynamics over time in new technology-based ventures.Design/methodology/approachThe study adopts a longitudinal case study of the BM innovations of a Chinese financial technology venture. The structural approach and temporal bracket are used to analyze and theorize the data.FindingsThe findings indicate that distinct contextual changes impel a firm to refine or abandon existing BMs over time. In different stages, the antecedents interactively influence BM dynamics with three successive patterns, namely pressure dominance, parallel influence and hybrid influence. While both antecedents trigger changes during the initiation and implementation of new BMs, they also serve as the filter and the enabler, respectively, during the ideation and integration of BMs.Research limitations/implicationsThe study inductively develops three propositions regarding the relationship between BM dynamics and its antecedents, which is based on the data collected from one single firm. Future research should test the propositions in other domains and take more cross-level antecedents into consideration.Originality/valueThe study contributes to the nascent research stream of BM dynamics by offering in-depth insights into the interaction of internal and external antecedents and by linking the differentiated roles of antecedents to the BM innovation process. The research offers some practical implications for new technology-based ventures seeking to develop BMs in a fast-changing environment.

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.

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