The Strategic Divestment Decision in the Family Business Through the Real Options and Emotional Lenses

2022 ◽  
pp. 67-102
Author(s):  
Rania Labaki ◽  
Gérard Hirigoyen
Keyword(s):  
Real Options ◽  
Family Business ◽  
Business Research ◽  
The Real ◽  
Financial Decisions ◽  
The Core ◽  
The Family ◽  
Case Vignettes

Divestments have received little attention in family business research, although representing one of the most important strategic and financial decisions. Additionally, they have been insufficiently studied from the owning family's emotional perspective. This chapter contributes in filling these gaps by focusing on the core entity of the family business as object of divestment from the Real Options and Regret theoretical lenses. It suggests a characterization of the family business divestment decision and a series of propositions with case vignettes around configurations of divestment options, their valuation, and influence in different emotional family business archetypes.

The Strategic Divestment Decision in the Family Business Through the Real Options and Emotional Lenses

2020 ◽  
pp. 244-279
Author(s):  
Rania Labaki ◽  
Gérard Hirigoyen
Keyword(s):  
Real Options ◽  
Family Business ◽  
Business Research ◽  
The Real ◽  
Financial Decisions ◽  
The Core ◽  
The Family ◽  
Case Vignettes

Divestments have received little attention in family business research, although representing one of the most important strategic and financial decisions. Additionally, they have been insufficiently studied from the owning family's emotional perspective. This chapter contributes in filling these gaps by focusing on the core entity of the family business as object of divestment from the Real Options and Regret theoretical lenses. It suggests a characterization of the family business divestment decision and a series of propositions with case vignettes around configurations of divestment options, their valuation, and influence in different emotional family business archetypes.

scholarly journals Family Business: An Entrepreneurial Longer-Term Perspective

2016 ◽  
Vol 7 (1) ◽  
pp. 9
Author(s):  
Ratna L. Nugroho
Keyword(s):  
Conceptual Model ◽  
Family Business ◽  
Business Case ◽  
Business Research ◽  
The Family ◽  
Business Case Study ◽  
The Many

This family business case study is concerned with investigating the issue of the complexity of the many views of the family business research, focusing exclusively on the entrepreneurial concept. In taking this concept, three characteristics were identified in this case study, namely: the attitudes, the skills, and the behavior. Along with these findings, it is suggested that the conceptual model, the so-called “the three circles,” where this three circle has an overlap and identify as a longer-term entrepreneurial perspective within the family-owned enterprise.

Revisiting the Study of Family Businesses: Methodological Challenges, Dilemmas, and Alternative Approaches

1998 ◽  
Vol 11 (3) ◽  
pp. 239-252 ◽  
Author(s):  
Mary Winter ◽  
Margaret A. Fitzgerald ◽  
Ramona K. Z. Heck ◽  
George W. Haynes ◽  
Sharon M. Danes
Keyword(s):  
Empirical Evidence ◽  
Family Business ◽  
Methodological Approach ◽  
Family Businesses ◽  
Business Research ◽  
Internal Dynamics ◽  
Methodological Challenges ◽  
The Family ◽  
Alternative Approaches ◽  
Social Units

Family businesses are vital but understudied economic and social units. Previous family business research is limited relative to its definitions, sampling, and resulting empirical evidence. This paper presents an alternative methodological approach to the study of family businesses with the potential for allowing multiperspective and detailed analyses of the nature and internal dynamics of both the family and the business and the interaction between the two.

Determinants of Initial Satisfaction with the Succession Process in Family Firms: A Conceptual Model

2001 ◽  
Vol 25 (3) ◽  
pp. 17-36 ◽  
Author(s):  
Pramodita Sharma ◽  
James J. Chrisman ◽  
Amy L. Pablo ◽  
Jess H. Chua
Keyword(s):  
Conceptual Model ◽  
Family Business ◽  
Family Firms ◽  
Test Model ◽  
Leadership Succession ◽  
Economic Theories ◽  
The Core ◽  
The Family ◽  
Succession Process ◽  
Practical Implications

Leadership succession continues to form the core of the family business literature. Numerous studies have suggested factors that influence family members' initial satisfaction with the succession process, but this body of work is highly fragmented and lacks a unifying framework. In this paper, we draw on stakeholder theory and other organizational, behavioral, and economic theories to develop a conceptual model that integrates the findings from the literature. The research and practical implications of this integrative, ready-to-test, model are discussed.

Examining the Link between “Familiness” and Performance: Can the F–PEC Untangle the Family Business Theory Jungle?

2008 ◽  
Vol 32 (6) ◽  
pp. 1089-1109 ◽  
Author(s):  
Matthew W. Rutherford ◽  
Donald F. Kuratko ◽  
Daniel T. Holt
Keyword(s):  
Capital Structure ◽  
Family Business ◽  
Family Influence ◽  
Business Research ◽  
Empirical Examination ◽  
Perceived Performance ◽  
Current State ◽  
The Family ◽  
And Performance ◽  
The Relationship

Family business research appears to be caught in a “jungle” of competing theories in regards to familiness and performance. This study provides a further empirical examination into that relationship. We employ a family influence scale (the familiness–power, experience, and culture scale [F–PEC]) presented by Klein, Astrachan, and Smyrnios in an attempt to assess the relationship between familiness and performance in 831 family businesses. The resulting regression analysis adds to the current state of the literature by demonstrating significant and interesting results. Specifically, familiness showed associations with revenue, capital structure, growth, and perceived performance; however, the relationships were both positive and negative, thus casting doubt upon the F–PEC as a vehicle for untangling the jungle. We conclude with discussion and implications.

The relationship between socioemotional and financial wealth

2016 ◽  
Vol 14 (3) ◽  
pp. 215-233 ◽  
Author(s):  
Geoffrey Martin ◽  
Luis Gomez-Mejia
Keyword(s):  
Family Business ◽  
Family Firm ◽  
Corporate Diversification ◽  
Business Research ◽  
Strategic Decisions ◽  
Socioemotional Wealth ◽  
Content Type ◽  
The Family ◽  
The Relationship ◽  
Further Development

Purpose A growing volume of family firm literature has argued that the preservation of family socioemotional wealth takes precedence over the pursuit of financial goals. The purpose of this paper is to develop a conceptual framework that builds knowledge regarding the two-way relationship between socioemotional and financial forms of wealth, to develop a more complete theory of wealth concerns that may inform family firm decision-making. Design/methodology/approach The authors conceptually examine contingencies affecting the relationship between financial and socioemotional wealth (in both causal directions). Findings The authors predict when one form of wealth (socioemotional/financial) is likely to dominate the other (financial/socioemotional) in the family firm’s strategic decisions. Originality/value The paper advances knowledge on the two-way relationship between socioemotional and financial forms of wealth providing a platform for further development in the nascent field of family business research, including our understanding of family firm decisions regarding control and influence over the family business, environmental policy, altruism toward family members, R&D, accounting choices and corporate diversification.

Life Settlements From the Perspective of Institutional, Real Options, and Stewardship Theories

2009 ◽  
Vol 23 (1) ◽  
pp. 94-98 ◽  
Author(s):  
Clay Dibrell
Keyword(s):  
At Risk ◽  
Institutional Theory ◽  
Real Options ◽  
Family Business ◽  
Financial Capital ◽  
Stewardship Theory ◽  
Real Options Theory ◽  
The Family ◽  
Life Settlements ◽  
Options Theory

As families seek alternative forms of financial capital without putting the family business at risk, life settlements are gaining the interest of family businesses and scholars. This commentary draws upon institutional theory, real options theory, and stewardship theory to provide a foundation to better understand life settlements and to complement the work articulated by Adams (2009).

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.

Documenting the “Family Effect” on Family Business Research

2018 ◽  
Vol 31 (2) ◽  
pp. 238-239
Author(s):  
Donald O. Neubaum ◽  
Wim Voordeckers
Keyword(s):  
Family Business ◽  
Business Research ◽  
Family Effect ◽  
The Family
Sign in / Sign up

Export Citation Format

Share Document