“I'm Your Leader Now, but Do You Trust Me?”

2022 ◽  
pp. 466-487
Author(s):  
Simona Leonelli ◽  
Francesca Masciarelli ◽  
Alessandra Tognazzo
Keyword(s):  
Leadership Style ◽  
Family Business ◽  
Family Businesses ◽  
The Other ◽  
Leadership Succession ◽  
Next Generation ◽  
Previous Generation ◽  
Transportation Sector ◽  
Business Cases

Leadership succession is inevitable for most family businesses. To effectively face this challenging transition, next-generation leaders need to have the ability to gain their employees' trust which is typically very challenging due to previous generation' influence on the business. The chapter explores how trust in family leaders can impact succession when a business is passed from one generation to the next. This chapter presents two comparative examples of family business cases operating in the transportation sector in Italy. In the first business, the succession already took place and the next-generation leader is running the firm, while in the other firm, the incumbent generation is still in charge of the company and is not passing the baton. Results show that the incumbent and next-generation leader's perception of their leadership style correspond to non-family employees' perceptions. However, employees' trust in the incumbent is higher than the trust in the successor.

“I'm Your Leader Now, but Do You Trust Me?”

2020 ◽  
pp. 85-106
Author(s):  
Simona Leonelli ◽  
Francesca Masciarelli ◽  
Alessandra Tognazzo
Keyword(s):  
Leadership Style ◽  
Family Business ◽  
Family Businesses ◽  
The Other ◽  
Leadership Succession ◽  
Next Generation ◽  
Previous Generation ◽  
Transportation Sector ◽  
Business Cases

Leadership succession is inevitable for most family businesses. To effectively face this challenging transition, next-generation leaders need to have the ability to gain their employees' trust which is typically very challenging due to previous generation' influence on the business. The chapter explores how trust in family leaders can impact succession when a business is passed from one generation to the next. This chapter presents two comparative examples of family business cases operating in the transportation sector in Italy. In the first business, the succession already took place and the next-generation leader is running the firm, while in the other firm, the incumbent generation is still in charge of the company and is not passing the baton. Results show that the incumbent and next-generation leader's perception of their leadership style correspond to non-family employees' perceptions. However, employees' trust in the incumbent is higher than the trust in the successor.

ATF, Inc.: Fasteners and Family

2016 ◽  
pp. 1-8
Author(s):  
John L. Ward
Keyword(s):  
Leadership Style ◽  
Family Business ◽  
Charismatic Leadership ◽  
Leadership Succession ◽  
Business Leadership ◽  
The Future ◽  
Personal Leadership ◽  
Fundamental Insight ◽  
The Many ◽  
Personal Philosophy

The ATF case is a succinct opportunity to explore the many special features of leadership succession for a family business. In 2009 the company was passing the baton to the oldest of three sons in the second-generation family business. ATF produced metal and plastic fasteners for, primarily, the automotive industry. ATF had grown into a company with more than $50 million in annual revenues. The company had grown in large part through alliances with other family businesses around the world. First-generation patriarch Don Surber had led the company since he acquired it in 1982. Don was known for his charismatic leadership style and his focus on driving value through a network approach. The case traces the career paths of all three sons and looks at the succession through the eyes of the oldest son, Jason Surber. The elements, constituents, and challenges of succession are evident. The fundamental insight is that business leadership succession is far more than just passing the business leadership baton. It also requires attention to the family, the board, the whole system of external stakeholders, and the future of ownership. The epilogue in this note covers the period from 2009 to 2012 by describing what Jason did to earn credibility, to incorporate his brothers, and to define his personal leadership philosophy and style. The epilogue thus provides students with an opportunity to consider and define their own personal philosophy of management leadership and their own style. They will see the art of melding styles from the past with their own for the future.

scholarly journals Investigating value-laden leadership styles among family business owners

2016 ◽  
Vol 47 (4) ◽  
pp. 35-46 ◽  
Author(s):  
E. Venter ◽  
S. M. Farrington
Keyword(s):  
Leadership Styles ◽  
Leadership Style ◽  
Family Business ◽  
Business Performance ◽  
Business Owners ◽  
Primary Objective ◽  
Family Businesses ◽  
Participative Leadership ◽  
Significant Relationships ◽  
The Family

Given the need for a different approach to leadership, as well as the need for further investigation on leadership among family businesses, this study investigates several value-laden leadership styles among family businesses. More specifically the primary objective is to establish the levels of Servant, Ethical, Authentic, and Participative leadership displayed by family business owners and the influence thereof on the Perceived business performance of the family business. A survey was undertaken and 266 usable questionnaires were returned from 133 family business owners and 133 from family business employees. The data analysis involved calculating descriptive statistics and undertaking t-tests. Multiple regression analysis (MRA) was done to test the hypothesised relationships. Although the MRA analysis revealed no statistically significant relationships between the leadership styles investigated and Perceived business performance, the vast majority of respondents agreed that the styles investigated were displayed by the family business owners. For both sample groups Ethical leadership returned the highest mean score, followed by Servant and Participative leadership. The importance of these value-laden leadership styles to family businesses is thus highlighted, contradicting the literature that family businesses owners are often autocratic in their leadership style. In addition, increased clarity on the effectiveness of these value-laden leadership styles within the context of family business is provided.

scholarly journals LABORATORIOS SENOSIAIN S.A. DE C.V. Primero la Familia y Después el Negocio

1992 ◽  
pp. 73-83
Author(s):  
Emilio L. Espinosa Gamboa ◽  
Keyword(s):  
Family Business ◽  
Business Strategy ◽  
Historical Development ◽  
Family Businesses ◽  
Next Generation ◽  
Future Thinking ◽  
Three Generations ◽  
Definition Of ◽  
A Company ◽  
Pharmaceutical Laboratories

The present case is about the evolution of a family business whose beginning dates back to the early XX century. Having been a modest provincial pharmacy, over the years it became one of the most important pharmaceutical laboratories in Mexico. The main objective of the case is to detect the business strategy that has prevailed in each of the stages corresponding to the three generations of the Senosiain family and to explore how the strategy, both familiar and business, could be modified as a vision for the future, thinking about the imminent maturity of the next generation, and considering the profound changes that could occur in the environment, both national and international. In addition, it is worth highlighting the value of the strategic definition of a company, rebuilding and analyzing its tradition and its historical development as additional elements to evaluate its forces, weaknesses, values, among others. This case may also be suitable for discussing and analyzing the peculiar problems and characteristics of family businesses.

scholarly journals Diversification of export territories of family businesses as a tool of their further development

2019 ◽  
Vol 17 (3) ◽  
pp. 306-322 ◽  
Author(s):  
Naděžda Petrů ◽  
Andrea Tomášková ◽  
Monika Krošláková
Keyword(s):  
Foreign Trade ◽  
Family Business ◽  
First Generation ◽  
Family Businesses ◽  
Next Generation ◽  
Foreign Markets ◽  
The Family ◽  
The Stability ◽  
Further Development ◽  
The Eu

Family business is the largest global source of jobs in the private sector, whose multigenerational nature strengthens the stability of individual economies. A competitive small and medium-sized enterprise (SME) sector into which family businesses are classified is an essential prerequisite for the full-fledged integration of any economy into the global economic space. For the Czech economy, the importance of foreign trade is increasing, and is dependent on the capabilities of companies to expand to foreign markets. The goal of this article is to identify involvement of the generation of successors to export activities of family business, focusing on diversifying export territories in relation to structure of the industry A secondary goal is to discuss the demand mechanisms for SMEs/family business oriented toward export. The scientific hypotheses defined are focused on demonstrating a dependency between the diversification of export territories, the involvement of the generation of successors in the management of the company and structure of industry. Authors have demonstrated that family businesses managed by the first generation of founders export primarily to the territories of Slovakia, Germany, and the EU. Companies where the next generation contributes to management diversify territorial risk and also export outside the EU countries. A significant correlation was demonstrated between automotive industry and Germany, Slovakia and country outside the EU and mechanical engineering and country outside the EU. The uniqueness of this article lies in the topicality of the real transition of Czech family businesses to the next generation, which carries out foreign trade to promote the further development and sustainability of the family business for future generations.

scholarly journals Analysis of the success factors for MSME succession in Surabaya: A principal component analysis

2018 ◽  
Vol 21 (2) ◽  
Author(s):  
Candraningrat . ◽  
Oktaviani . ◽  
Sri - Suhandiah
Keyword(s):  
Principal Component Analysis ◽  
Factor Analysis ◽  
Family Business ◽  
Success Factors ◽  
Principal Component ◽  
Component Analysis ◽  
Family Businesses ◽  
Next Generation ◽  
Analysis Technique ◽  
The City

This study aims to find success factors for succession in family-based MSMEs in MSMEs in Surabaya, Indonesia, where Surabaya is a metropolitan city that allows entrepreneurs to develop and be sustainable for the next generation of family businesses. The research method used is factor analysis which is an analysis technique that forms the latent variables that have not been determined before the analysis, the results of anilisation will find any factors that influence the success of succession in MSMEs. Sample in this study amounted to 100 MSMEs of family businesses that could be met in Surabaya or incidental sampling, while respondents in this study were second generation family business owners. The method of data collection is a survey with a questionnaire instrument that has been tested for validity and reliability. The data analysis technique used is the Principal Component Analysis Factor Analysis with SPSS software. The results of this study found that six factors that determine the success of succession in MSMEs in the city of Surabaya are succession preparation procedures, successor characteristics, readiness of previous generations, communication in the succession process, relationships between family members, and introduction to the business environment. This research is expected to provide references on the sustainability of family business to the next generation in the city of Surabaya, East Java, Indonesia.

scholarly journals Kama Group Limited

Economics ◽  
2015 ◽  
pp. 806-824
Author(s):  
Lydia Andoh-Quainoo
Keyword(s):  
Family Business ◽  
Quantitative Methods ◽  
Family Businesses ◽  
Personal Attributes ◽  
African Continent ◽  
Qualitative And Quantitative Methods ◽  
Personal Motivation ◽  
Business Cases ◽  
African Context

Family businesses and entrepreneurship research has grown but with few studies in Africa. This case study fills that gap in the research on entrepreneurship and family business cases in the African continent. The case is explored to assess the motivation and challenges influencing entrepreneurial startup businesses and founders of family businesses. Using both qualitative and quantitative methods for data collection, the research confirms some differences and similarities in the motivational factors and challenges associated with starting a business in an African context, specifically Ghanaian. This entrepreneur's family business encountered a number of challenges in its startup. However, due to strong mental attributes such as personal motivation, persistence, commitment, and hard work, he has overcome these challenges and grown the business successfully. Although environmental challenges may be greater in an emerging economy such as Ghana, personal attributes can play a key role in building and sustaining a successful family business.

Family Business Tourism Risk in the Context of Coronavirus Pandemic

2021 ◽  
pp. 1-31
Author(s):  
Martina Harc ◽  
Martina Basarac Sertić
Keyword(s):  
European Union ◽  
Family Business ◽  
Global Economy ◽  
Theoretical Background ◽  
Family Businesses ◽  
Tourism Industry ◽  
Leadership Succession ◽  
The European Union ◽  
Business Resilience

The coronavirus is crippling the global economy. However, the economic impacts of the pandemic vary significantly across sectors of the economy. This outbreak and related lockdowns are putting the tourism industry under unprecedented pressure. Within months, world tourism went from over-tourism to non-tourism. Therefore, the overall objective of this chapter is to introduce the latest trends in tourism, with emphasis on family businesses. More precisely, the chapter encompasses (1) the theoretical background, which defines family business, highlights their characteristics, and summarizes the importance of leadership succession; (2) the role of family business resilience and their behaviour in times of crisis; (3) a review of relevant European Commission policy publications regarding EU tourism and statistical analyses of selected key tourism indicators; and (4) an analysis of family businesses environment in time of crisis. Hence, this chapter has documented the crucial role that family businesses tourism has within the European Union and on the front line of the current crises.

scholarly journals Family Business in the Brick and Tile Industry in Athens, 1900–1940

2019 ◽  
Vol 15 (1) ◽  
pp. 88
Author(s):  
Michalis Bardanis
Keyword(s):  
Family Business ◽  
Family Businesses ◽  
The Other ◽  
Dense Network ◽  
Medium Scale ◽  
Factory Production ◽  
Brick And Tile ◽  
The One ◽  
Industrial Units

From 1900 to 1940, family businesses in the brick- and tile-making industry of Athens and its port, Piraeus, were a notable institution that played an important role in the development of the sector and its transformation from artisanal to factory production. They formed a dense network of small and medium-scale units, from which more than 20 big factories would emerge after the 1920s. Α strong and constant antagonism between them, on the one side, and the few European-scale large industrial units, on the other, developed. Within this framework, the story of the Athens brick industry in this period can be vividly interpreted through the function and evolution of familial firms (which were under the control of nuclear, extended or multinuclear families) and the actions of their owners.

scholarly journals Relevo generacional y transmisión “mortis causa” de la empresa familiar en el Derecho español

2020 ◽  
Vol 22 (2) ◽  
pp. 34-75
Author(s):  
Ignacio Gallego Domínguez
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Family Businesses ◽  
The State ◽  
Code System ◽  
Next Generation ◽  
Legal Requirements ◽  
Inheritance Tax ◽  
Spanish Law ◽  
The Family

The most crucial challenge for family businesses is the transfer to the next generation. It affects both the leadership and the ownership of the enterprise, whether individual or corporate. Transferring the ownership of the organization at the time of the death of the owner, raises important questions in the Spanish Civil Code system, in which inheritance contracts are not allowed, and there are rigid forced heirship provisions, which limit the testator's freedom. The correct and appropriate transmission of the family business requires adequate planning, which must lead to write a will -to avoid intestacy-, and make use of those special mechanisms that contemplate the payment of the forced heirship with money outside the state, as well as those others allowed in Spanish law that help to channel the phenomenon. Succession planning also requires being vigilant to comply with the legal requirements for obtaining benefits in inheritance tax.

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