scholarly journals Extrinsic rewards in family businesses: Perspectives of nonfamily employees

2014 ◽  
Vol 45 (3) ◽  
pp. 67-79 ◽  
Author(s):  
S. M. Farrington ◽  
E. Venter ◽  
G. D. Sharp
Keyword(s):  
Job Satisfaction ◽  
Family Business ◽  
Structural Equation ◽  
Job Security ◽  
Business Owners ◽  
Primary Objective ◽  
Family Businesses ◽  
Organisational Commitment ◽  
Extrinsic Rewards ◽  
The Family

The rewards employees receive in exchange for their labour play an important role in influencing their levels of job satisfaction and organisational commitment, and ultimately in retaining their services. The issues surrounding rewards are, however, complex in the field of family business. The primary objective of this paper is to investigate the influence of selected extrinsic rewards, namely, compensation, promotion opportunities and job security, on the levels of jobsatisfaction and ultimately on the levels of organisational commitment of nonfamily employees working in family businesses. Structural equation modelling was used to assess the hypothesised relationships, and the results show that compensation and job security are significantly and positively related to job satisfaction. Job satisfaction was found to be significantly and positively related to organisational commitment and also found to act as a mediator between these extrinsic rewards and organisational commitment. Establishing the perspectives that nonfamily employees have of the rewards given to them by the family businesses in which they work, provides family business owners with valuable insights into attracting and retaining this valuable stakeholder group.

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 The impact of intra-group processes on family business success

2011 ◽  
Vol 14 (1) ◽  
pp. 8-23
Author(s):  
Shelley Farrington ◽  
Christo Boshoff ◽  
Elmarie Venter
Keyword(s):  
Family Business ◽  
Group Processes ◽  
Primary Objective ◽  
Family Businesses ◽  
Sibling Relationship ◽  
Psychological Climate ◽  
Business Success ◽  
Snowball Sampling ◽  
The Family ◽  
The Impact

Interpersonal ties and intra-group processes influence the ability of people to work together effectively as teams. In the context of the family business team, intra-group processes describe the interaction that takes place between the family members and the resultant psychological climate that exists in the family business. Given the increasing number of sibling teams among family businesses, as well as the challenges they face as team members, this study focuses on sibling teams in family businesses and the intra-group processes that influence their success. Consequently, the primary objective of this study is to identify and empirically test the intra-group processes influencing the effectiveness of sibling partnerships. A structured questionnaire was distributed to 1323 sibling partner respondents. The respondents were identified by means of a convenience snowball sampling technique, and the data were collected from 371 usable questionnaires. The empirical findings of this study show that the sibling relationship and fairness are important determinants of sibling team effectiveness.

Effects of Family-to-Work Conflict on Business Owners

2011 ◽  
Vol 25 (2) ◽  
pp. 178-190 ◽  
Author(s):  
Ho Kwong Kwan ◽  
Victor P. Lau ◽  
Kevin Au
Keyword(s):  
Job Satisfaction ◽  
Social Networks ◽  
Family Business ◽  
Business Owners ◽  
Family Businesses ◽  
Business Research ◽  
Personal Lives ◽  
Chinese Business ◽  
Work Conflict ◽  
The Relationship

Family plays an important part in personal lives, career success, and organizational success. This study examines how type of businesses (family business vs. nonfamily business) moderates the relationships between family-to-work conflict (FWC) and job satisfaction and social networks. Results of a study on 158 Chinese business owners indicate that among nonfamily businesses, the relationship between owners’ FWC and job satisfaction is negative, whereas the relationship between their FWC and social networks is positive. Among family businesses, in comparison, owners’ FWC is not related to their job satisfaction and social networks. It is hoped that these findings will offer a springboard for future family business research.

Differences in management styles, levels of profitability, and performance across generations, and the development of the Family Business Success Model

2019 ◽  
Vol 32 (1) ◽  
pp. 32-50 ◽  
Author(s):  
Josiane Fahed Sreih ◽  
Robert N. Lussier ◽  
Matthew C. Sonfield
Keyword(s):  
Family Business ◽  
Financial Management ◽  
Emerging Market ◽  
Business Owners ◽  
Family Businesses ◽  
Business Success ◽  
Content Type ◽  
Success Model ◽  
The Family ◽  
Probability Of Success

Purpose The purpose of this paper is to, first, investigate the differences between generations in family businesses and, second, develop and verify the Family Business Success Model ability to improve the probability of business success measured by perceived profits, growth and meeting the owners’ expectations. Design/methodology/approach Data were collected through questionnaires and personal interviews. Overall, 98 usable questionnaires were collected for statistical analysis with a response rate of 82 percent. Findings One-way ANOVA hypotheses testing of the variables found four significant differences between generations. Regression analysis found the Family Business Success Model to be significant. Family business owners can improve the probability of success by utilizing a team-management decision-making approach, effectively handling conflict effectively, formulating specific succession plans, developing strategic plans, using sophisticated financial management methods, dealing effectively with the founder’s influence and if they seek to grow, they should consider going public. Practical implications This study provides family business owners, managers, educators and public policy makers with the means to help family businesses survive and grow effectively throughout generations by using the Family Business Success Model. In addition, this study can help consultants and advisors of family businesses to understand the differences between the first, second and third generation family businesses from a holistic perspective and help them implement the family business model. Originality/value This study contributes to the literature as one of the few studies in the Lebanese emerging market that examines how the first, second and third generations of family businesses differ. More importantly, it develops a Family Business Success Model that improves the probability of success.

scholarly journals The impact of culture-related factors on good governance in Greek family businesses in South Africa

2011 ◽  
Vol 42 (2) ◽  
pp. 1-14 ◽  
Author(s):  
C. Adendorff ◽  
C. Boshoff
Keyword(s):  
South Africa ◽  
South African ◽  
Family Business ◽  
Structural Equation ◽  
Good Governance ◽  
Primary Objective ◽  
Family Businesses ◽  
Related Factors ◽  
Business Context ◽  
The Impact

The size of the family business component of the South African economy suggests that it is the predominant way of doing business in South Africa. A large proportion of these family businesses are Greek-owned. More importantly it is estimated that approximately 95% of all Greek businesses in South Africa can be classified as family businesses. The sustainability of Greek family businesses requires that they maintain good governance practices that are both economically and environmentally acceptable to all stakeholders. It also requires that the next generation of Greek entrepreneurs effectively balance good governance of their businesses with their family commitments.The primary objective of this study was to identify and explore the internal, culturally-related factors that influence good governance to ensure the survival, growth and sustainability of Greek family businesses in South Africa. A theoretical model of good governance factors was proposed and tested using Structural Equation Modelling.The study found that perceived good governance in a South African Greek family business context needs to be managed in terms of three factors, namely risk control, the internal regulatory environment and the protection of the stakeholders' interest. The study found that needs alignment, cultural needs alignment, vision and ethnic entrepreneurial growth all impact directly or indirectly on perceived good governance in South African Greek family businesses.

Succession Experiences in Philippine Family Businesses

2000 ◽  
Vol 13 (1) ◽  
pp. 15-35 ◽  
Author(s):  
Andrea L. Santiago
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Asian Country ◽  
Family Values ◽  
The Philippines ◽  
Business Owners ◽  
Family Businesses ◽  
Leadership Succession ◽  
The Family ◽  
Succession Process

Western research suggests that family business owners must prepare for leadership succession in a systematic manner to ensure continuity. A review of the succession experiences of eight family businesses in the Southeast Asian country of the Philippines seems to indicate that the key to smooth succession for group-oriented families is not entirely dependent on succession planning. Rather, a family business's smooth succession depends on the succession process being consistent with family values. In fact, valuing the preservation of the family unit helps to avoid the ill effects that normally accompany the absence of succession planning.

scholarly journals MANAGING SUCCESSION IN A FAMILY OWNED SMALL-MEDIUM ENTERPRISES

2020 ◽  
Vol 3 (1) ◽  
pp. 21
Author(s):  
Honey Nandlal ◽  
Suresh Kumar
Keyword(s):  
Family Business ◽  
First Generation ◽  
Business Owners ◽  
Family Businesses ◽  
Business Survival ◽  
Key Informants ◽  
Development Agenda ◽  
The Family ◽  
Small Medium Enterprises ◽  
Medium Enterprises

<p>Nowadays, family businesses are of high number in countires and contribute to the development of the economy. This research was conducted due to the importance of family business survival and it focuses on factors that affect their performance. Recently, family businesses have been identified as one of the concerns in the global entrepreneurial development agenda. This is because of the existing problem which is caused by family business owners avoid planning and treat succession as a problem instead of an opportunity. This impacts the continuity of the family-owned business. This research is made to emphasize the importance of planning and the drawbacks of negative bias in viewing succession as a problem. This study is expected to make family business owners understand the importance of planning and treating succession as an opportunity to achieve continuity. Qualitative research method was chosen as the method of the research with first generation family business owners as the key informants. Three key informants are chosen; Mr. Untoro A. Suryadi, Mr. IS and Mr. AS. In conclusion, family business should stop strategizing succession and treat succession as a practice.</p>

scholarly journals Role conflict and work-life-family (WLF) demands: a perspective of Malaysian family business

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hamrila Abd Latip ◽  
M. Monzer Rahaman ◽  
Kartinah Ayupp ◽  
Evan Lau
Keyword(s):  
Job Satisfaction ◽  
Family Involvement ◽  
Family Business ◽  
Management Practices ◽  
Family Businesses ◽  
Work Life ◽  
Business Strategies ◽  
Business Sector ◽  
Content Type ◽  
The Family

Purpose The purpose of this study is to analyze the relationship between work-life-family (WLF) demands and job satisfaction in family businesses. Design/methodology/approach Data were collected from 220, who involve in the family business sector in Malaysia. In this study, the major demands in individuals are classified into three categories of WLF. The work component was measured in terms of standard working hours, work pressure and conditions, co-worker relationships and promotional opportunities. The life component was represented by living standards, level of self-motivation fulfillment, achievement of individual targets, self-compassion, self-care and health and community development. The family component represented another segmentation of responsibility and demands for specific role, which relates to family tasks, collective/familiness targets, family involvement and mutual understanding. Findings The empirical results indicated that work-related demands determine entrepreneurs’ job satisfaction, then followed by family-related and life-related (personal) demands. As this study was confined to the micro businesses under the family business sector, this provides valuable findings by uncovering the differences among the antecedents because of the reasoning of work culture and business management practices. It is argued that the role conflicts are related to job satisfaction, individual happiness and family contentment. Originality/value It expands the typology and fostering sustainable entrepreneurial development. Insights gained could facilitate business strategies and effective human resource policies particularly among the family businesses in Malaysia.

scholarly journals Managerial competences in family firms from the service and production sectors

VUZF Review ◽  
2021 ◽  
Vol 6 (4) ◽  
pp. 145-156
Author(s):  
Izabella Kęsy ◽  
Marcin Kęsy ◽  
Patrycja Ślusarczyk
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Business Owners ◽  
Family Businesses ◽  
Primary Study ◽  
Measurement Tool ◽  
The Family ◽  
Business Entities ◽  
High Level ◽  
Or Team

In each organization an important aspect is to maintain balance in terms of resources, processes and systems. Lack of relationship between the various components of the company affects the reduction of efficiency in organization, which in turn affects the effectiveness of action. However, it is also important to maintain effectiveness in the implementation of tasks at the strategic or operational level, and this is particularly influenced by the leader of the organization or team respectively. In the case of family businesses decision- making can be reduced to the leader, who makes decisions independently, without obtaining data or information from the environment. Such actions carry a high level of randomness, which in consequence affects the lowering of economic profitability of the company. In the publication, theoretical and empirical considerations were carried out, which served the authors of the publication, to a limited extent, in juxtaposing the paradigm of the family business functioning in the theory of the subject with the results of the primary study, which was carried out using two qualitative methods, interview and observation. For this purpose, the measurement tool, the interview questionnaire, was developed and the planes of cognitive analysis that was conducted in the studied business entities were identified. The study was conducted on 30 family businesses operating through Poland, the only criterion for qualification for the study was the fact that this was the opinion of the business owners, which is in accordance with the theory of family business proposed by Frishkoff according to which a family business is an enterprise in which the owner admits that it is a family business, i.e. in this case the most important thing is the awareness of being one of the occurring types of family business.

scholarly journals Professionalism and Family Business Management The Synergy Leading towards Business Excellence

2019 ◽  
Vol 8 (2) ◽  
pp. 6549-6553
Keyword(s):  
Family Business ◽  
Analytical Approach ◽  
Business Management ◽  
Business Owners ◽  
Family Businesses ◽  
Business Managers ◽  
Business Excellence ◽  
The Family ◽  
Domain Expertise

If family businesses are praised for the expertise with technology and deeper knowledge about the markets, they are criticized for lack of professionalism in management. Business excellence models demand professionalism and strong leadership with a systematic analytical approach to business. This article posits that if family business owners can adopt professionalism they in fact would be in a commanding position in their business. They can forge a synergy, leveraging their domain expertise with the help of a professional approach and achieve sustained business excellence. The article evaluates this possibility of the family business owners-cum-managers adopting professionalism in order to achieve business excellence. It is based on a survey of 400 family business managers and this article presents the results of the survey that gathered relevant inputs in line with the objectives framed for the study.

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