scholarly journals Intergenerational Differences in Family Business Management and Their Influence on Business Profitability

2021 ◽  
Vol 13 (12) ◽  
pp. 6979
Author(s):  
Jordi Moreno-Gené ◽  
José Luis Gallizo
Keyword(s):  
Family Business ◽  
Practical Importance ◽  
Business Management ◽  
Growth Strategy ◽  
Generational Status ◽  
Generational Change ◽  
The Family ◽  
Spanish Family ◽  
The Face ◽  
Business Profitability

The generational change in the family business opens up expectations of strategies such as sustainability, professionalisation and internationalisation. Yet, there are gaps in current literature which fail to explain whether there are benefits in such strategies according to their management, their generational status, and their effects on performance. This paper compared first with second and later generation companies through the relevant characteristics. A regression analysis was applied to a sample that was identified by the Spanish Family Business Institute with information on growth strategy, corporate governance, professionalisation, and ownership, that is supported by financial data for the period of 2016–2020. The results showed that, although the differences in terms of profitability were small between generations, there were significant differences in management that affected performance. Growth tended to be lower in the second and subsequent generations, which also h a greater tendency to internationalise, being motivated by the professionalisation of management. Previous works in the literature have analysed differences in profitability between generations, however the analysis in this present work investigated the origin of these differences. The results showed disparities in management that allowed for the obtaining of different profitability indices, and therefore are of practical importance in the management of the internationalisation, growth, and sustainability of the family business in the face of intergenerational succession.

GENERATIONAL SUCCESSION: EXAMPLES FROM TUNISIAN FAMILY FIRMS

2009 ◽  
Vol 17 (02) ◽  
pp. 127-145 ◽  
Author(s):  
SALMA FATTOUM ◽  
ALAIN FAYOLLE
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Empirical Investigation ◽  
Developed Countries ◽  
Generational Change ◽  
The Family ◽  
Succession Process ◽  
Generational Succession ◽  
Methodological Aspects ◽  
Tunisian Family

The family character gathers firms whose weight in the economic activity of countries is considerable for developed countries as well as for the others. However, this type of firm is exposed to not only the threats that challenge all types of firms but they must also face dangers related to their family nature. Several American and European studies were interested in the succession issues associated with family businesses. However, this topic received very little theoretical and empirical investigation in developing countries. In Tunisia, the push in favor of private firms was given in the 60s. Nearly 50 years later, those entrepreneurs who had received state aid to start their businesses are about to retire. How is this dealt with? How is succession "guaranteed"? Hard as it may be to speculate on the outcome of this succession, can we at least describe its phases first and then consider the factors that could have an impact on it? These central questions to Tunisia's economy have yet to be answered academically. Our aim, in this paper, is to improve our understanding of the nature of the relation between the founder and his successor during the process of succession in the Tunisian family business while proposing reflections to be carried out to make a success of this generational change. Our paper is organized as follows. The first part will be an analysis of the literature on family firms and the succession process. In the second part, we will introduce the methodological aspects of our study, which was conducted on six Tunisian family firms at different stages of the succession process. In the third part, we will present and discuss the results.

scholarly journals Managing Family Business

Management ◽  
2014 ◽  
Author(s):  
Frank Hoy ◽  
Giacomo Laffranchini
Keyword(s):  
Family Business ◽  
Management Practices ◽  
Business Management ◽  
Business Owners ◽  
Journal Articles ◽  
Business Research ◽  
Childhood Education ◽  
Family Behavior ◽  
The Family ◽  
The Subject

The study of family business involves the interrelationships of owners, managers and employees, and family members, all functioning within broader cultural, legal, competitive, and other environments. Foundational disciplines for investigating family business management practices include anthropology, economics, family studies, history, psychology, and sociology. Additional contributing fields include agriculture, various business disciplines, early-childhood education, family behavior, and others. Early contributions to the family business literature came predominantly from biographies and autobiographies of family business owners and from consultants to families in business who shared their observations and advice from their experiences. With the introduction of the journal Family Business Review, the subsequent launch of other journals addressing the subject, and the initiation of academic conferences on family business research, the knowledge base of the field has expanded rapidly. The domain of managing family business encompasses the dynamics of families that exercise control over enterprises and the performance of those companies. The notion of management includes both the business and the family, separate and together. Major themes addressed in the family business literature are succession, governance, and financial and wealth management. With increased research contributions from scholars in diverse fields, there has been an expansion of topics being covered. In this article, the focus is on the state of knowledge regarding the management of the family firm. The materials cited in this article introduce scholars to seminal contributions to the management of family business literature and to books and journal articles that are expected to influence forthcoming streams of research.

scholarly journals Familiness and socioemotional wealth in Spanish family firms: An empirical examination

2017 ◽  
Vol 7 (1-2) ◽  
Author(s):  
Ismael Barros ◽  
Juan Hernangómez ◽  
Natalia Martin-Cruz
Keyword(s):  
Organizational Effectiveness ◽  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
Family Influence ◽  
Socioemotional Wealth ◽  
Empirical Examination ◽  
The Family ◽  
Spanish Family ◽  
The Impact

The socioemotional wealth (SEW) related to emotional endowments accumulated in the business by the family, is one of the most important features that differentiate the family firms of other organizations. However, there are few studies developed in the context of the antecedents and consequences of the building and use of SEW in the family business. Therefore, this study, using a sample of Spanish family firms that are non-publicly traded, explains how family influence affects the building and use of SEW and, thus, the organizational effectiveness of the family firm. The results indicate mixed results regarding the impact of the family involvement on the essence. Those suggest a positive relationship between building and use of SEW and organizational effectiveness of the family business.

NEW PERSONNEL TECHNOLOGIES USAGE IN THE FAMILY BUSINESS MANAGEMENT

2016 ◽  
Vol 17 (1) ◽  
pp. 253-260
Author(s):  
Tetyana Palonna ◽  
Iryna Goryana ◽  
Lidiya Vasilchenko
Keyword(s):  
Family Business ◽  
Business Management ◽  
The Family

Integrating the Daughter into Family Business Management

1992 ◽  
Vol 16 (4) ◽  
pp. 41-56 ◽  
Author(s):  
Colette Dumas
Keyword(s):  
Empirical Study ◽  
Family Business ◽  
Business Management ◽  
Family Firm ◽  
The Family ◽  
Firm Management ◽  
Key Aspects ◽  
Untapped Resource

This paper presents guidelines for integrating daughters into family business management. Based upon the results of an empirical study of daughters working with their founder/fathers in 18 family-owned firms, this paper indicates that the daughter represents an often untapped resource within the family firm and may be particularly suited for working in collaboration with the father/founder to manage the family firm. Key aspects of the daughter's particular strengths in working with the father to manage the family firm are stressed, and steps for integrating the daughter into family firm management are proposed.

The entry of a second generation at SK Enterprises: challenges and future prospects

2020 ◽  
Vol 16 (3) ◽  
pp. 289-306
Author(s):  
Rajesh Panda ◽  
Pooja Gupta ◽  
Madhvi Sethi
Keyword(s):  
Family Business ◽  
First Generation ◽  
Growth Strategy ◽  
Primary Data ◽  
Content Type ◽  
Mba Program ◽  
Business System ◽  
The Family ◽  
The Future ◽  
New Generation

Theoretical basis The case discussion begins with an understanding of Davis’s three-circle model. It then leads toward the key resources and challenges, by system and development stage as given by Gersick et al. (1997). After understanding the family business system, the case delves into making the students understand the circumplex model of the marital and family system. This matrix talks about the flexibility in the business structure along with cohesion in the family unit. The case then gets into the discussion about succession and the new generation joining the family business and the conflicts that may arise due to the same. It might be imperative to bring out the different forms of conflict that may arise in the family and business system. Researchers have identified three forms of conflict – task, process and relationship (Mckee, Madden, Kellermans and Eddleston, 2014). As passing the baton would take place next for this business in the case, the current generation needs to look at the future growth strategy for the business. Here, the discussion refers to the exploitation and exploration matrix given by Bergfeld and Weber (2011). Research methodology This is a primary data case. The data has been collected from SK Enterprises. Interviews were conducted to arrive at the issues and challenges discussed in the case. Case overview/synopsis This case talks about the dilemma of a first-generation entrepreneur. Jatinder Agarwal was the owner of SK Enterprises, a light-engineering firm manufacturing bright bars, engine parts and ceiling fan shafts. He had set up the business in 1984. His brother, Ramesh was helping him in the business. The business had prospered and grown from a single product manufacturing workshop in 1984 to two factories manufacturing multiple light engineering products. In 2015, the business was doing well and both Jatinder and Ramesh were excited to involve their respective sons, Pranav and Sanidh in the business after completion of their education. The case is about the challenges faced by Jatinder and Ramesh with the entry of a new generation. Jatinder and Ramesh were working in the family business with an implied structure where the business was a sole proprietorship in the name of Jatinder but the decisions were taken by both the brothers collectively. With the entry of the new generation, Jatinder had to decide how to re-organize the business and avoid conflicts in the family. He also had to take a decision regarding the future course of strategy, which would help the business grow further. Complexity academic level This case is about the dilemmas faced by a first-generation entrepreneur. The case can be taught in an “entrepreneurship” course, in a post-graduate MBA program. This case can also be taught in a family business program as part of the course on “Understanding Family Business – Managing Paradoxes” or “Building Lasting Family Business – Synergy in Vision, Values and Strategy.” This case can also be taught as part of a “business strategy” or “human resource management” in MBA or executive MBA program in the first year.

scholarly journals Strategi Pengembangan Usaha Keluarga Skala Mikro di Kota Palembang

2021 ◽  
Vol 9 (1) ◽  
pp. 116
Author(s):  
Yulizar Kasih ◽  
Charisma Ayu Pramuditha
Keyword(s):  
Development Strategy ◽  
Family Business ◽  
Sampling Technique ◽  
Business Development ◽  
Growth Strategy ◽  
Online Marketing ◽  
Matrix Analysis ◽  
The Family ◽  
Swot Matrix ◽  
Strategic Factors

The purpose of this study is to determine the characteristics of the family business, internal strategic factors (strengths and weaknesses) and external (opportunities and threats) of the family business. This study analyzes various strategic alternatives that will be selected as a family business development strategy, then to determine the main strategies that can be implemented. ess by compiling a strategic business plan, implement the cooperation with external parties in the form of training and assistance related to product quality improvement, product innovation, preparation of financial rep This research is a descriptive study with 43 respondents as the research object selected by purposive and convenience sampling technique. The analyzed data uses descriptively by IFE-EFE matrix analysis and the SWOT matrix. The results from this study show that the family business was in a growth strategy position. Business development was carried out by increasing the scale of the busin orts, processing business licenses, online marketing (digital marketing), preparation of credit proposals, build the relationships with suppliers and maintain well-established relationships with customers.

scholarly journals “Can you tell me about the future?” A narrative of the goal-setting process in family business

2017 ◽  
Vol 1 (1) ◽  
pp. 184-200 ◽  
Author(s):  
Bice Della Piana ◽  
Alessandra Vecchi ◽  
Vittoria Marino ◽  
Mario D'Arco
Keyword(s):  
Goal Setting ◽  
Family Business ◽  
Narrative Analysis ◽  
Family Firms ◽  
Growth Strategy ◽  
Future Goals ◽  
Setting Process ◽  
The Family ◽  
The Future ◽  
Family Harmony

By relying on the taxonomy introduced by Kotlar and De Massis (2013), the present study proposes to investigate the dynamics and the set of goals perceived by the family members strategic for the future growth of their family business. Using an interview approach, the researchers recorded the professional stories of 15 family firm owners and managers. Through the interpretation of the narrative material emerged that the interviewees never mentioned the role that family-centred non-economic goals (i.e., ‘family harmony’, the ‘family social status’ and ‘the family identity’) plays in the performance of the family firms. Contrary, non-family non-economic goals, such as innovation and internationalisation, are considered two keys growth drivers. In particular, if both innovation and internationalisation have equal importance amongst the current goals, internationalisation assumes a greater importance in relation to the future goals of growth.   Keywords: Goal setting process; Family business; Growth Strategy; Narrative analysis

scholarly journals Does COVID-19 Change CSR? A Family Business Perspective

2021 ◽  
Vol 13 (24) ◽  
pp. 13954
Author(s):  
Elena Rivo-López ◽  
Mónica Villanueva-Villar ◽  
Sofía Novoa-Santos ◽  
María Isabel Doval-Ruiz
Keyword(s):  
Family Business ◽  
Manufacturing Sector ◽  
Family Businesses ◽  
Social Commitment ◽  
Spanish Family ◽  
Business Perspective ◽  
The Face ◽  
Medical Materials ◽  
First Time

The purpose of this study was to analyze the #Damos La Cara (“Let’s show our face”) initiative, which is an initiative promoted by the Instituto de la Empresa Familiar, the most representative organization of family businesses in Spain. This analysis allowed us to characterize the Spanish family business and to analyze their reactions and interventions in the face of the crisis posed by COVID-19 from the perspective of CSR. The methodology used consisted of a content analysis, viewing 127 videos wherein family members presented their companies and the activities carried out to improve their relations with their employees and their environment. The conclusions reached allowed us to affirm that they were mostly second- and third-generation companies from the manufacturing sector; the most repeated actions were social commitment to their workers (internal) and the donation of medical materials (corporate). To the best of our knowledge, this was the first time that an analysis of these characteristics had been carried out in the field of family businesses. This analysis showed the intense philanthropic activity carried out by Spanish family businesses, not only in emergencies but also as a regular activity and as a consequence of their values and long-term vision.

Studying the Family Enterprise Holistically

2009 ◽  
Vol 22 (1) ◽  
pp. 82-95 ◽  
Author(s):  
Rodrigo Basco ◽  
María José Pérez Rodríguez
Keyword(s):  
Family Business ◽  
Representative Sample ◽  
Empirical Support ◽  
Enterprise Management ◽  
Review Of The Literature ◽  
Business Results ◽  
Family Enterprise ◽  
Family Enterprises ◽  
The Family ◽  
Spanish Family

This research contributes to the family business literature by empirically demonstrating that family enterprises that give more emphasis to family and business as a whole have better family results and similar business results when compared to those enterprises that limit governance to only the business. The article includes a review of the literature, and it identifies a set of four basic dimensions that focus on different aspects of family enterprise. The study then combines measures of these dimensions to describe both the governance and the nature of the family and the business. A representative sample of 732 Spanish family enterprises enabled the research to reveal empirical support for the theory positing that balanced attention to governing the subsystems is an effective route to family enterprise management.

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