scholarly journals The determinants of the readiness to let go among senior generation owner-managers of small and medium-sized family businesses

2010 ◽  
Vol 13 (3) ◽  
pp. 293-315 ◽  
Author(s):  
Stephan P Van der Merwe
Keyword(s):  
Small Businesses ◽  
Family Members ◽  
Family Businesses ◽  
Oblique Rotation ◽  
Five Factors ◽  
The Family ◽  
Generation Family ◽  
Eigen Values ◽  
Younger Generation ◽  
And Control

The objective of this study was to assess the determinants of the readiness of the senior generation owner-managers to finally transfer the management and control of the family business to the younger generation. Data from 504 questionnaires linked to 81 family businesses were collected and analysed. An Oblimin oblique rotation was carried out on the principal components of the exploratory factor analysis. Five factors with eigen-values greater than one, explaining 62.64 per cent of the variance, were extracted. These five factors describing the theoretical dimensions of the dependent variable were: the senior generation owner-manager’s readiness to let go, and the independent variables of retirement planning, perceived suitability of the successor, estate planning, and the perceived liquidity of the business after the transfer. No significant practical differences relating to these five factors could be found between the perceptions of male and female respondents, the senior and younger generation family members or family members involved in medium-sized or small businesses. Practical recommendations are suggested to ensure a smooth final transfer of the management and control of the business to the younger generation family members.

scholarly journals An investigation into the suitability of younger generation successors in small and medium-sized family businesses

2011 ◽  
Vol 42 (1) ◽  
pp. 31-44 ◽  
Author(s):  
S. P. Van Der Merwe
Keyword(s):  
Family Business ◽  
Family Members ◽  
Positive Influence ◽  
Family Businesses ◽  
Oblique Rotation ◽  
Independent Variables ◽  
Five Factors ◽  
The Family ◽  
Generation Family ◽  
Younger Generation

This study highlighted the importance of the suitability of the younger generation family members in small and medium-sized family businesses to successfully manage the business after management succession. Data from 270 questionnaires linked to 77 family businesses were collected and analysed. An Oblimin oblique rotation was performed on the principal components of the exploratory factor analysis. Five factors with eigen-values greater than one, explaining 65,78% of the variance, were extracted. These five factors describing the theoretical dimensions of the dependent variable, the suitability of the younger generation to manage the family business after succession, and the independent variables, namely value-adding by the younger generation, willingness of the younger generation, credibility of the younger generation and the degree of self-empowerment by the younger generation family members. The findings of this study indicated that the three independent variables, value-adding of the younger generation, the willingness of the younger generation to be in the family business and the credibility of the younger generation have a significant positive influence on the perceived suitability of the younger generation. Practical recommendations are suggested to ensure a smooth final transfer of the management and control of the business to the younger generation family members.

scholarly journals An investigation of the determinants of estate and retirement planning in intergenerational family businesses

2009 ◽  
Vol 40 (3) ◽  
pp. 51-64 ◽  
Author(s):  
S. P. Van Der Merwe
Keyword(s):  
Small Businesses ◽  
Family Members ◽  
Retirement Planning ◽  
Family Businesses ◽  
Perceived Fairness ◽  
Oblique Rotation ◽  
Five Factors ◽  
The Will ◽  
And Control ◽  
Practical Recommendations

This study highlighted the importance of estate and retirement planning in small and medium-sized family businesses. Data from 504 questionnaires linked to 81 family businesses were collected and analysed. An Oblimin oblique rotation was performed on the principal components of the exploratory factor analysis. Five factors with eigenvalues greater than one, explaining 65.78% of the variance, were extracted. These five factors describing the theoretical dimensions of retirement planning, perceived fairness of the will, estate taxes, perceived liquidity of the business after succession and acquiring equity ownership were extracted. No practical significant differences could be found between the perceptions of male and female respondents as well as between family members involved in medium-sized or small businesses with regard to the five factors. Practical recommendations are suggested to ensure a smooth final transfer of the management and control of the business to the next generation family members.

scholarly journals Analysis of Innovation, Proactive, and Risk Taking as Presentations of Entrepreneurial Orientation towards Business Success of Second and Third Generation Family Business in Indonesia

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Christina Whidya Utami ◽  
Damelina Tambunan ◽  
Metta Padmalia
Keyword(s):  
Family Business ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Family Members ◽  
Family Businesses ◽  
Business Success ◽  
Third Generation ◽  
Scale Family ◽  
The Family ◽  
Generation Family

Research Objective: To analyze the effect of entrepreneurial orientation towards the business success of second and third generation family businesses in Indonesia. Methodology/ Research Approach: This study used a cross-sectional, correlation research design. The survey was conducted to 153 medium-scale family businesses that have run for 5-50 years and categorized as middle-scale business ran by the second and/ or third generation family. Hypothesis testing was done via a multiple regression using SPSS. Findings: there is a significant effect between entrepreneurship orientation, which is the independent variable of this study, that covers three indicators namely innovation, proactive, and risk-taking abilities. Innovative and proactive have a significant and positive effect, while risk-taking ability has a significant and negative effect on the success of family businesses in Indonesia. Research limitation/ implication: This study investigates strategies that family businesses use, in terms of entrepreneurial orientation. The limitations of this study are: Bias in assessment perspective of fellow families and the scale of the family business only focus on second and third-generation middle-scale family business. The implication of this research is to create an entrepreneurial orientation culture in family businesses that tend to be lacking innovative, proactive, and risk-taking behaviors, considering the amount of interference and involvement of family members in the management of their family businesses. Practical implication: It is hoped that the second and the third-generation family members show a better perspective exploration in seeing whether entrepreneurial orientation has been implemented and has an impact in creating business success. Thus, family businesses are expected to scale-up their businesses into large-scale companies, and at the same time, survive the succession phase of the next generation. Originality/ value: This study offers an analysis of a unique entrepreneurial orientation, given the personality, family, ownership, and management system in family businesses in Indonesia are different from other countries. Besides, there are influences of technological advances that may interfere family businesses, particularly the family system, in Indonesia

scholarly journals An assessment of the determinants of successor development in family businesses

2010 ◽  
Vol 10 (1) ◽  
Author(s):  
S. P. Van der Merwe
Keyword(s):  
Factor Analysis ◽  
Family Business ◽  
Family Members ◽  
Family Businesses ◽  
The Family ◽  
Management Succession ◽  
Generation Family ◽  
Successor Development ◽  
Measuring Scale

Purpose: The primary objective of this study is twofold: Firstly, to assess some of the determinants of successor development in family businesses with the focus on the role of the senior generation family members, and secondly, to make practical recommendations on actions that families can take to ensure successful management succession. Research methodology: The construct validity of the measuring scale was assessed by means of an exploratory factor analysis and by calculating Cronbach alpha coefficients. Thereafter, the correlation between the variables was explored by means of correlation analysis, t-tests and effect sizes. Findings: In this study the exploratory factor analysis provides some evidence of construct validity, but further research is needed before the measuring scale can be utilised to diagnose these issues in small and medium-sized family businesses. It is recommended that more advanced statistical procedures for scale validation, such as structural equation modelling, should be utilised in further development of the questionnaire. Supplementary research on the use of the measuring scale is also necessary to refine its norms. Practical implications: The importance for family businesses is that a better understanding of the determinants of the senior generation's role in the development of the prospective successor could contribute to the successful transfer of the business from the senior to the younger generation family members. It is, however, important to provide feedback on the diagnosis based on the proposed scale to individual family businesses. Originality/Value: Understanding the determinants of the role of the senior generation owner-manager in the development of the prospective successor is important to sensitise both role-players', as well as the senior and younger generations regarding their expectations, fears and needs in the process. This makes this measuring scale a useful tool to identify the state of these factors in the family business. Conclusion: This study confirms the important role that the senior generation family members play in the development of the younger generation successors to ensure that the prospected successor is competent to successfully manage the family business after management succession and to ensure the sustainability of the family business.

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.

Capturing the Familiness of Family Businesses: Development of the Family Influence Familiness Scale (FIFS)

2017 ◽  
Vol 41 (5) ◽  
pp. 709-742 ◽  
Author(s):  
Hermann Frank ◽  
Alexander Kessler ◽  
Thomas Rusch ◽  
Julia Suess–Reyes ◽  
Daniela Weismeier–Sammer
Keyword(s):  
High Reliability ◽  
Family Members ◽  
Reliability And Validity ◽  
Family Influence ◽  
Factor Analyses ◽  
Confirmatory Factor Analyses ◽  
Proficiency Level ◽  
Confirmatory Factor ◽  
The Family ◽  
And Control

This article develops a familiness scale measuring the family influence on the business via decision premises that express familiness. In three studies, we examine familiness with qualitative and quantitative approaches based on new systems theory. Narrative interviews are employed to generate items. Exploratory and confirmatory factor analyses led to a multidimensional scale (Family Influence Familiness Scale [FIFS]) comprising six dimensions: (1) ownership, management, and control; (2) proficiency level of active family members; (3) sharing of information between active family members; (4) transgenerational orientation; (5) family–employee bond; and (6) family business identity. Results indicate high reliability and validity levels.

scholarly journals Intensive mothering in hard times: Foucauldian ethical self-formation and cruel optimism

2019 ◽  
Vol 19 (4) ◽  
pp. 469-492 ◽  
Author(s):  
Benedetta Cappellini ◽  
Vicki Harman ◽  
Alessandra Marilli ◽  
Elizabeth Parsons
Keyword(s):  
Family Members ◽  
Sense Of Agency ◽  
Intensive Mothering ◽  
The Family ◽  
Individual Family ◽  
Hard Times ◽  
Self Worth ◽  
And Control ◽  
Self Formation ◽  
Emotional Effects

Discourses of intensive mothering now seem to dominate European and American parenting cultures. This is a problem for those mothers who do not currently possess the resources to match up. In a study of Italian and British mothers who are experiencing low or reduced incomes, we observe the ways in which they internalize intensive mothering discourses through a process of ethical self-formation. This mode of self-formation involves detailed self-surveillance and self-discipline and abnegation of their own needs in place of other individual family members, and the family as a whole. We find a series of contradictory emotional effects which generate both pride and self-worth but also stress and anxiety. We advance the theory that mothers operate within an optimistic affective regime to make sense of these contradictory effects and retain a sense of agency and control over their lives and those of their families. However, drawing on Berlant’s concept of cruel optimism, we argue that such affective regimes may be very pernicious in their effects, only serving to hold mothers in a relation that is ultimately impassable and often unfulfilling.

scholarly journals MELAS: A Multigenerational Impact of the MTTL1 A3243G MELAS Mutation

2014 ◽  
Vol 41 (2) ◽  
pp. 210-219 ◽  
Author(s):  
M. Prasad ◽  
B. Narayan ◽  
A.N. Prasad ◽  
C.A. Rupar ◽  
S. Levin ◽  
...  
Keyword(s):  
Maternal Inheritance ◽  
Extended Family ◽  
Family Members ◽  
Strong Support ◽  
Radiological Findings ◽  
Laboratory Findings ◽  
Clinical Presentations ◽  
The Family ◽  
Generation Family ◽  
Pathological Material

Background:the maternally inherited MTTL1 A3243G mutation in the mitochondrial genome causes MelaS (Mitochondrial encephalopathy lactic acidosis with Stroke-like episodes), a condition that is multisystemic but affects primarily the nervous system. Significant intra-familial variation in phenotype and severity of disease is well recognized.Methods:retrospective and ongoing study of an extended family carrying the MTTL1 A3243G mutation with multiple symptomatic individuals. tissue heteroplasmy is reviewed based on the clinical presentations, imaging studies, laboratory findings in affected individuals and pathological material obtained at autopsy in two of the family members.Results:there were seven affected individuals out of thirteen members in this three generation family who each carried the MTTL1 A3243G mutation. the clinical presentations were varied with symptoms ranging from hearing loss, migraines, dementia, seizures, diabetes, visual manifestations, and stroke like episodes. three of the family members are deceased from MelaS or to complications related to MelaS.Conclusions:the results of the clinical, pathological and radiological findings in this family provide strong support to the current concepts of maternal inheritance, tissue heteroplasmy and molecular pathogenesis in MelaS. neurologists (both adult and paediatric) are the most likely to encounter patients with MelaS in their practice. genetic counselling is complex in view of maternal inheritance and heteroplasmy. newer therapeutic options such as arginine are being used for acute and preventative management of stroke like episodes.

Voluntary Demand for Internal and External Auditing by Family Businesses

2000 ◽  
Vol 19 (s-1) ◽  
pp. 37-51 ◽  
Author(s):  
Peter Carey ◽  
Roger Simnett ◽  
George Tanewski
Keyword(s):  
Internal Audit ◽  
Business Environment ◽  
Family Businesses ◽  
Firm Characteristics ◽  
External Audit ◽  
The Family ◽  
The Board Of Directors ◽  
The Cost ◽  
And Control ◽  
The Impact

This study investigates voluntary demand for auditing by family businesses, a significant but relatively unexplored segment of the economy. The paper considers demand for both internal and external auditing by using survey data to investigate the impact of firm characteristics linked to the cost vs. benefit of engaging an auditor. Variables examined are firm size, debt, and two agency proxies that measure separation of ownership and control, namely, the proportion of nonfamily management in the firm, and the proportion of nonfamily representation on the board of directors. The paper also considers the association between internal and external auditing. Descriptive results on voluntary demand for auditing by 186 family businesses revealed that internal audit was more prevalent than external audit, and outsourcing was a common method for providing internal audit. Results from logistic regression analyses provide support for the hypothesized impact of the two agency proxies and firm debt on demand for external audit, but do not explain the demand for internal audit. For firms that voluntarily engaged an auditor (internal and/or external audit), the negative and significant correlation between internal and external audit suggest that in the family business environment they are more commonly viewed as substitute rather than complementary responses.

scholarly journals KOBHUNG, GENDER, AND RELIGION: HUSBAND AND WIFE POWER RELATIONS IN MADURESE CULTURE

Harmoni ◽  
2019 ◽  
Vol 18 (2) ◽  
pp. 146-164
Author(s):  
Umiarso El-Rumi ◽  
Atiqullah Atiqullah
Keyword(s):  
Family Members ◽  
Cultural Dynamics ◽  
Religious Activities ◽  
Social Functions ◽  
Important Place ◽  
Interactive Analysis ◽  
Patriarchal Culture ◽  
The Family ◽  
And Control

Salah   satu   keunikan   masyarakat   Madura   sampai   saat   ini   adalah   konsep   kobhung   yang   menjadi   tempat  penting  untuk  aktivitas  keagamaan  maupun  mengawasi  aktivitas  anggota  keluarga.  Walaupun  ada  fungsi  lain  yaitu  fungsi  ekonomi  maupun  sosial  yang  dimainkan  oleh  kobhung  tersebut.  Riset  ini  membahas  peran  kobhung  di  tengah  kebudayaan  Madura;  yang  posisinya  berada  di  sebelah  Barat  (kiblat) taneyanlanjheng (halaman panjang) di setiap permukiman  penduduk.  Ia  berfungsi  sebagai  pusat  aktivitas  laki-laki  (suami)  untuk  melakukan  transfer  nilai  religi  kepada  anak-anak  atau  isteri  mereka.  Di  sisi  lain,  ia  juga  sebagai  simbol  pengawasan  dan  kontrol (panopticon) keluar-masuk anggota keluarga, terutama laki-laki (suami) atas perempuan (istri). Hal ini terlegitimasi oleh tradisi patriarkal di masyarakat Madura   yang   tercermin   dalam   konsep   bhupa’, bhabhu,   ghuru,   rato   sangat   kental.   Konsep   ini   merupakan  sebuah  referential  standard  kepatuhan masyarakat Madura terhadap figur-figur utama secara  hirarkis. Oleh sebab itu, riset ini mengurai dinamika budaya  dan  upaya  istri  dalam  memposisikan  diri  mereka  di  tengah  budaya  patriarkhi.  Riset  ini  lebih  masuk   pada   jenis   kualitatif   fenomenologi   yang   meneropong   dinamika   relasi   suami-istri   tersebut   melalui peran kobhung. Koleksi data yang digunakan adalah  tehnik  interview  dan  observasi;  sedangkan  analisis  data  memakai  analisis  interaktif  Miles  dan  Hubermann. Riset ini menemukan bahwa perempuan di panagguan tidak bisa lepas dari konsep “tri aksi”, antara   lain:   adhandhan, arembi’,   dan   amassa’(merawat  diri,  melahirkan,  dan  memasak).  Konsep  ini  merupakan  wujud  dari  pengabdian  dirinya  atas  keluarga   yang   diyakini   sebagai   kodrat   (takdir).   Karenanya,  mereka  sama  sekali  tidak  menggugat;  bahkan  ia  menerima  dengan  lapang  dada  tentang  perannya di dalam rumah tangga. Kata Kunci: Kobhung, TaneyanLanjheng, Panoptikon   One of the uniqueness of the Madurese community until  now  is  the  concept  of  kobhung  which  has  become an important place for religious activities and oversees the activities of family members. Although there  are  other  functions,  namely  the  economic  and  social  functions  played  by  the  kobhung.  This  research   discusses   the   role   of   kobhung   among   Madura culture; whose position is in the west (qibla) taneyan lanjheng (long yard) in each residential area. It  functions  as  a  center  for  male  (husband)  activity  to  transfer  religious  values  to  their  children  or  their  wives.  On  the  other  hand  it  functions  as  a  symbol  of  supervision  and  control  (panopticon)  of  family  members,  especially  men  (husbands)  over  women  (wives). This is legitimized by the patriarchal tradition in the Madurese community which is reflected in the concepts  of  bhupa’,  bhabhu  ,  ghuru,  rato  that  was  very  thick.  This  concept  is  a  referential  standard  of  Madurese    compliance    with    hierarchical    main figures.  Therefore, this research outlines the cultural dynamics and the efforts of the wives in positioning themselves during patriarchal culture. This research is more into the qualitative type of phenomenology that  looks  at  the  dynamics  of  the  husband-wife  relationship  through  the  role  of  kobhung.  The  data  collection   used   was   interview   and   observation   techniques; while data analysis used the interactive analysis  by  Miles  and  Hubermann.  This  research  found that women in Panagguan cannot be separated from  the  concept  of  “three-action”,  among  others:  adhandhan,  arembi’,  and  amassa’  (taking  care  of  themselves, giving birth, and cooking). This concept is a manifestation of the devotion to the family which is  believed  to  be  natural  (destiny).  Therefore,  they  don’t sue at all; they even received gracefully about their role in the household. Keywords: Kobhung,  Taneyan  Lanjheng, Panopticon    

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