scholarly journals Significance of Family Representation among Family Businesses in the Czech Republic

2020 ◽  
pp. 1-9
Author(s):  
Vojtěch MEIER
Keyword(s):  
Czech Republic ◽  
Correlation Analysis ◽  
Board Of Directors ◽  
Family Business ◽  
Family Members ◽  
Family Businesses ◽  
The Czech Republic ◽  
Level Of Involvement ◽  
The Family ◽  
The Board Of Directors

Family businesses are the foundation of any economy. They have been heavily influencing our society for many centuries. The level of involvement among family members is vital to flourish a family business. Therefore, research is conducted to assess the dependencies of six aspects of the selected family businesses in the Czech Republic. Several findings from the family survey are found in the correlation analysis: there is the highest indirect dependence between the number of directors and the number of family members actively involved in a family business, and some factors do not show dependence. This is evidenced by the relationships between the number of members of the board of directors or managing directors and the number of family members who are not interested in family business. Correlation analysis methods are used on top of the methods of analysis, synthesis and comparison.

scholarly journals Family Businesses in the Corporate Governance of MNCs

2015 ◽  
Vol 63 (3) ◽  
pp. 979-984
Author(s):  
Pavla Odehnalová ◽  
Petr Pirožek
Keyword(s):  
Corporate Governance ◽  
Czech Republic ◽  
Family Business ◽  
Multinational Companies ◽  
Global Market ◽  
Family Businesses ◽  
Business Success ◽  
The Czech Republic ◽  
Executive Authority ◽  
The Family

The issue of family businesses is currently a very topical theme in the academic world. The importance of family businesses increases with internationalization and is associated with business success in global market conditions. A fundamental part of business activities abroad is the correct application of the corporate governance of subsidiaries of multinational family businesses. The available findings do not cover this area sufficiently, especially in the context of transformed economies in CEE. In view of the nature of foreign business activities, the degree of centralization of competences transferred between subsidiaries and headquarters and the presence of expatriates from the headquarters of multinational companies represented by the family firm in statutory bodies can be regarded as important variables. The main aim of the present paper is, based on research carried out, to describe and analyze the degree of centralization and presence of expatriates in the corporate governance of subsidiaries of multinational family businesses operating in the Czech Republic. The paper presents the results of an empirical investigation with a description of the presence of expatriates in the statutory bodies of subsidiaries of multinational companies in the Czech Republic. The results obtained present the number of subsidiaries corresponding to the definition of a family business with an emphasis on SMEs of up to 250 employees and the degree of centralization and presence of expatriates in administrative or executive authority, or in other positions. The sample which was used to research the family business comprised 214 subsidiaries of multinational companies from the most important sectors of the Czech economy.

scholarly journals Micro Family Businesses in the Czech Republic from the Perspective of Multiple Criteria Decision-Making

2021 ◽  
Vol 92 ◽  
pp. 05021
Author(s):  
Vojtěch Meier
Keyword(s):  
Decision Making ◽  
Czech Republic ◽  
Family Business ◽  
Multiple Criteria Decision Making ◽  
Family Businesses ◽  
Multiple Criteria ◽  
Legal Form ◽  
The Czech Republic ◽  
The Family ◽  
Definition Of

Research background: Family businesses are undoubtedly important in both the Czech and international economy. They also play a crucial part in globalization. They have always been providing the largest job source in the private sector all over the world. However, over all these years, there has not been a unified definition of family business, which makes the government hard to distinguish between family and non – family business. Thus, this complicated the administrative and legal process. Finally, in 2019, the definition of the family business in the Czech Republic has been specified, which has facilitated many administrative and legal processes. Simultaneously, the management of Czech family businesses is currently facing the first “post-revolutionary” transition of generations. Many family businesses are deciding whether to maintain or to change the type of business entities. Purpose of the article: This article aims to determine the most advantageous legal form of business for micro family businesses. Methods: This article uses the Saaty pair comparison method and TOPSIS method. In addition to the methods of analysis, synthesis, and comparison, the selected methods of multiple criteria decision making are used in the article. Findings & Value added: The results of the decision analysis revealed that, based on the criteria considered (legal, accounting, tax and managerial), the most optimal legal form of the family business is self-employed. Apart from the results, the research adds value to this topic for the Czech business environment, in which future scholars can compare between the Czech Republic and the other countries.

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.

scholarly journals Legal inheritance mechanisms for the protection a decedent's family members in Czech law

2021 ◽  
Vol 93 (4) ◽  
pp. 1063-1084
Author(s):  
Ivana Đokić
Keyword(s):  
Czech Republic ◽  
Family Members ◽  
The Czech Republic ◽  
Legal Literature ◽  
The Family ◽  
The Subject ◽  
Insight Into

The subject of the author's attention in this paper are certain regulations regarding legal inheritance in Czech law. We will try to give insight into inheritance mechanisms that are meant to protect the family members of a decedent, both through the prism of those regulations and that of Czech legal literature and the position of the highest court of the Czech Republic. We will pay special attention to the hereditary position of those subjects to which the decedent provided subsistence during his life and those persons who lived in a joint household with the decedent.

scholarly journals Coexistence, Unity, Professionalism and Prudence

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Miguel-Angel Gallo
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Members ◽  
Family Firm ◽  
Family Businesses ◽  
The Family ◽  
Over Time

Family firms are complex and dynamic entities that are rich with peculiar, idiosyncratic features. The objective of this paper is to provide guidance to help those involved in family businesses, businesspersons, and family members to pursue the continuity of the family firm over time. Based on the author’s experience with entrepreneurs who built successful businesses, this paper identifies four elements that are critical to achieve transgenerational continuity in family firms, namely: coexistence, unity, professionalism, and prudence. The analysis of each element provides suggestions and key considerations for both scholars and practitioners in the family business field.

Prosperity over time and across generations: the role of values and virtues in family businesses

2019 ◽  
Vol 33 (4) ◽  
pp. 639-654 ◽  
Author(s):  
Maria Jose Parada ◽  
Georges Samara ◽  
Alexandra Dawson ◽  
Eduard Bonet
Keyword(s):  
Family Business ◽  
Qualitative Methodology ◽  
Family Members ◽  
Family Businesses ◽  
Value Transmission ◽  
Content Type ◽  
Cardinal Virtues ◽  
The Family ◽  
The Individual ◽  
Over Time

Purpose Despite the great importance attributed to values in the family business, few studies have focused on their importance and on how such values influence the way family businesses behave over time. Using Aristotelian virtues as our main framework, the purpose of this paper is to understand what motivates both family members and business families to perform virtuous acts, therefore, observing the underlying beliefs at both levels of analysis that make individuals and families repeatedly behave in a way that reflects the pursuit of excellence of character. Design/methodology/approach The authors rely on a qualitative methodology, following an interpretive approach. Based on the narratives of family members from two Spanish family businesses, the authors abductively analyze how values and virtues in family businesses allow them to cope with changes that occur across generations. Findings Findings suggest that family businesses that have survived heavy crises have been able to overcome these critical moments in part due to their strong virtues – both at the individual and at the family level – where the so-called four cardinal virtues have been evident, for example, through the achievement of collective goals and adherence to a stated mission, as well as through behaviors that have been aimed at improving and benefiting the community. Practical implications Values are the basis for all businesses and their behaviors. Understanding the type of values, as well as the underlying virtues, that allow for prosperity across generations is important for business families to perpetuate those that allow the family business to thrive. Originality/value This paper contributes to the family business field by exploring a key understudied dimension that determines family business prosperity over time and across generations. It brings to the forefront values and virtues that are rarely studied in this setting despite their great importance, using narratives as a key element for value transmission as well as a research method that allows for deeper insights about specific processes.

Succession in Family Business Through Authentic Leadership

2022 ◽  
pp. 488-503
Author(s):  
Elif Baykal
Keyword(s):  
Family Business ◽  
Authentic Leadership ◽  
Family Firms ◽  
Family Members ◽  
Family Values ◽  
Family Businesses ◽  
Multiple Stakeholders ◽  
Conflicting Demands ◽  
The Family ◽  
Succession In Family Business

Family businesses are the kind of organizations that are characterized by overlapping systems of ownership, management, governance, and family values. In family firms, the family is the main asset of the business, and family members are strictly bound to the firm. Due to the dominance of a specific family, the success of the company is closely linked to the proper administration of the duality in the industry, the existence of family and business simultaneously. This fact distinguishes family firms from other companies. Furthermore, managerial and ownership priorities of the owner family are maintained through intergenerational succession. And, the existence of multiple stakeholders and their conflicting demands necessitate a transparent and authentic leadership approach in this delicate process. In this chapter, it is proposed that in family firms, intergenerational succession is more convenient and less painful, in case an authentic leader who gives importance to high levels of awareness, transparency, and morality is in power.

Succession in Family Business Through Authentic Leadership

2019 ◽  
pp. 436-451
Author(s):  
Elif Baykal
Keyword(s):  
Family Business ◽  
Authentic Leadership ◽  
Family Firms ◽  
Family Members ◽  
Family Values ◽  
Family Businesses ◽  
Multiple Stakeholders ◽  
Conflicting Demands ◽  
The Family ◽  
Succession In Family Business

Family businesses are the kind of organizations that are characterized by overlapping systems of ownership, management, governance, and family values. In family firms, the family is the main asset of the business, and family members are strictly bound to the firm. Due to the dominance of a specific family, the success of the company is closely linked to the proper administration of the duality in the industry, the existence of family and business simultaneously. This fact distinguishes family firms from other companies. Furthermore, managerial and ownership priorities of the owner family are maintained through intergenerational succession. And, the existence of multiple stakeholders and their conflicting demands necessitate a transparent and authentic leadership approach in this delicate process. In this chapter, it is proposed that in family firms, intergenerational succession is more convenient and less painful, in case an authentic leader who gives importance to high levels of awareness, transparency, and morality is in power.

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 Which Type of Advisors Do Family Businesses Trust Most? An Exploratory Application of Socioemotional Selectivity Theory

2014 ◽  
Vol 28 (3) ◽  
pp. 211-226 ◽  
Author(s):  
John T. Perry ◽  
J. Kirk Ring ◽  
J. Christian Broberg
Keyword(s):  
Family Business ◽  
Family Members ◽  
Family Businesses ◽  
Socioemotional Selectivity Theory ◽  
Socioemotional Wealth ◽  
Socioemotional Selectivity ◽  
The Family ◽  
Professional Business

In this article, we introduce socioemotional selectivity theory (SEST) from psychology to the family business literature. Applying the theory to family businesses, we argue that a family business’s age influences whether it trusts family or professional business advisors most. Consistent with SEST, we find that business age relates to whether the family business emphasizes financial or socioemotional wealth more and that this wealth emphasis relates to whether family members or professional business advisors are trusted most. Based on these findings, we believe that SEST has much to offer to the study of family and nonfamily businesses.

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