scholarly journals Cultural Specificities of Succession’ Failure and Success in the Context of Unlisted Moroccan Family-Owned Businesses

2021 ◽  
Vol 12 (1) ◽  
pp. 130
Author(s):  
Azzeddine Allioui ◽  
Badr Habba ◽  
Taib Berrada El Azizi
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Large Family ◽  
Family Businesses ◽  
Structured Interviews ◽  
Succession Plan ◽  
The Family ◽  
Moroccan Family ◽  
Cultural Constraints ◽  
The Relationship

The purpose of this research aims to study the relationship between the cultural specificities of the Moroccan context and the success or failure of succession strategies (in terms of planning and process) in the case of Moroccan unlisted family businesses. Our study covered a sample of 20 unlisted Moroccan family businesses, 8 of which are SMEs, 6 are large firms, and 6 are VSEs, through a qualitative research based on semi-structured interviews with the managers of family businesses. Our results explain the influence of Moroccan cultural specificities on the success or failure of the transfer of family businesses. Indeed, these influences essentially manifest themselves in three antecedents: the succession planning that already reflects the intention to pass on the family business to the next generations, either by having a well-prepared plan, or an absence of a succession plan that leaves things to chance; the succession process that is influenced in part by specificities of Moroccan culture by granting privilege to the eldest male in the succession, and in another part this process becomes more rational by giving credit to successors competent to take over the family business in the case of large family businesses; and cultural constraints that are manifested mainly by the taboos surrounding the death of the predecessor and religious principles that similarly explain the different configurations of success or failure of the succession strategy of the family business. An extension of this work could be a multi-factor analysis in future researches.

Succession planning and family business performance in SMEs

2017 ◽  
Vol 36 (3) ◽  
pp. 330-347 ◽  
Author(s):  
Mozhdeh Mokhber ◽  
Tan Gi Gi ◽  
Siti Zaleha Abdul Rasid ◽  
Amin Vakilbashi ◽  
Noraiza Mohd Zamil ◽  
...  
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Business Performance ◽  
Positive Impact ◽  
Family Businesses ◽  
Related Factors ◽  
Content Type ◽  
The Family ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the impact of preparation level of heirs and the relationship between family and business members on the performance of family business in small- and medium-sized enterprises (SMEs) in Malaysia. Design/methodology/approach A quantitative research design involving the use of a survey questionnaire was implemented to investigate the influences of succession planning factors on the performance of family business in SMEs. The survey was conducted on 50 family business successors in Malaysian SMEs. Findings The result showed that the two studied factors – preparation level of heirs and the relationship between family and business members – have a positive impact on the performance of family business. Research limitations/implications The research concentrated on the performance of family business in SMEs in Malaysia’s southern region. The generalization therefore must be made very cautiously to the overall Malaysian SMEs. Practical implications The findings help family businesses to better understand the importance of the preparation level of heirs and the relationship between family and business members on business performance. This study shows the importance of key factors influencing succession planning so that the successor to the family business can bring the family firm to the next stage of success. Originality/value This study serves as a reference or guide for the management of family businesses to better understand the important factors for effective succession planning. It considers the best possible preparation and family-related factors affecting the end results of business, particularly in Malaysian SMEs.

Succession planning in William Jackson Food Group

2015 ◽  
Vol 5 (1) ◽  
pp. 2-16 ◽  
Author(s):  
Lorna Collins ◽  
Barbara Murray ◽  
Ken McCracken
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Large Family ◽  
Food Group ◽  
Family Businesses ◽  
Content Type ◽  
Succession Plan ◽  
Succession Process ◽  
Conversation Piece ◽  
The Uk

Purpose – This paper is a conversation piece which highlights the ways in which succession planning in large company might be handled. The discussion focuses on Christopher Oughtred the former Chairman of William Jackson Food Group, one of the largest family businesses in the UK. The paper aims to discuss these issues. Design/methodology/approach – This paper presents a conversation with a panel of leading family business experts and a family business owner. The paper presents latest thoughts on family business research, insights into a real family business succession project and reflections from a former Chairman on the succession process. Findings – Findings highlight possible stages and requirements of a successful transition and succession plan. Also suggestions for areas of further research are presented. Originality/value – The conversation recorded in this paper represents a rare opportunity to obtain reflections and insights on a succession process and how it was managed in a large family business. The conversation also highlights the kinds of challenges often experienced by family businesses during transition and succession. As a case study this is an exemplar of how succession might be planned.

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.

Direct and indirect effect of entrepreneurial orientation, family involvement and gender on family business performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Erny Rachmawati ◽  
Suliyanto ◽  
Agus Suroso
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Family Businesses ◽  
Future Research ◽  
Content Type ◽  
The Family ◽  
The Relationship

PurposeThis study aims to determine the direct effect of entrepreneurial orientation on family business performance. This study also discusses the role of family involvement as a mediating variable and the role of gender as a moderating variable in the relationship between entrepreneurial orientation and family business performance.Design/methodology/approachA total of 328 hotels in Yogyakarta, Indonesia, were selected as samples by the convenience sampling method. Primary data is collected through structured questionnaires that are delivered by themselves to key people in the hotel such as owners, directors and key staff (HRD, financial, relationship). Hypotheses are tested by structural equation modeling procedures using AMOS 22.0. Sobel test is used to determine the indirect effect of the mediation variable.FindingsThe results showed that entrepreneurial orientation had no significant effect on family business performance. Family involvement acts as a full mediation in the relationship between entrepreneurial orientation and family business performance. Gender acts as a moderating variable that can strengthen the relationship between entrepreneurial orientation and family business performance. The results showed support for previous research.Research limitations/implicationsThe results of the study cannot conclude the national family business because it adopts convenience sampling and the sampling area is limited in Yogyakarta. Future research can use a larger sample. This study only researches hotels managed by family businesses, so it is not feasible to conclude for family businesses in general. Future research may choose to use several types of family businesses so that more varied results can be obtained. Future research could also compare hotels managed by family businesses with non-family businesses. The results also found that in addition to gender roles, respondent heterogeneity was an important component in the study of social identity. Therefore, research examining the influence of different cultures on the relationship between entrepreneurial orientation and family business performance should be an extraordinary topic for future study. Other results from this study also indicate that there is a role for religion in improving hotel performance. Future research is needed to further explore Islamic business modeling for family businesses.Practical implicationsThis finding has significant implications that can help family businesses in developing strategies that are suitable for business management. Entrepreneurial orientation occupies a strategic position in developing sustainable competitive advantage in the family business of the tourism sector especially the hotel business in Yogyakarta for the better. Besides, the results of the study also showed that entrepreneurial orientation had no significant effect on performance. This relationship becomes significant when combined with active family involvement. This finding also shows that entrepreneurial orientation has the potential to have a more beneficial effect because of the active involvement of the family in helping with business management, alleviating business-related problems, and having a significant influence when the family also acts as management.Social implicationsResearch findings indicate the role of gender in strengthening the relationship between entrepreneurial orientation and family business performance. This provides a good position for women in the social environment to show achievement. To place women on the side of gender equality and justice in the family business in Indonesia. By opening wider access for Indonesian women in the realm of business management, expanding women's participation in a family business, increasing the role of control for women, and increasing women's knowledge and skills to increase the benefits in managing family businesses so that they have sustainable resilience in the face of global competition.Originality/valueThe results of this study provide a new model in providing an overview of the direct and indirect roles (mediating and moderating) in the assessment of family business performance. This study uses three variables which are important in performance appraisal, namely entrepreneurial orientation (independent variable), family involvement (mediating variable) and gender (moderating variable). Where research that combines these four variables, directly and indirectly, has never been done before.

scholarly journals Sucessão e conflitos: proposições de pesquisa acerca das empresas familiares

2020 ◽  
Vol 19 (2) ◽  
pp. 6-27
Author(s):  
Djeimi Angela Leonhardt Neske ◽  
Leonardo Alves de Oliveira Casimiro ◽  
Ivano Ribeiro
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Relationship Conflict ◽  
Governance System ◽  
Complete Understanding ◽  
The Family ◽  
Vast Literature ◽  
Succession Process ◽  
Or Organization ◽  
The Relationship

Objective: This paper aims to identify the implications of conflict on a succession process in family business.Methodology: For the development of this literature review, we based ourselves on the behavioral view of conflict, presenting a set of propositions and a framework for investigations in the field.Originality: Even with the vast literature on conflict, there is still no complete understanding of its effects on a group or organization. In a family business, the process of succession can intensify conflicts, since it includes the simultaneous relationship between the business and the family, and there is a need for greater understanding of this phenomenon.Main results: The results suggest that in family organizations, the relationship conflict may be present and negatively impact the succession process. Thus, management models focused on the collaborative view of conflicts can positively reflect the succession planning and the performance of the new management.Theoretical contributions: As a contribution, we present a series of propositions that provide indications of the effects of conflict on the succession of family businesses, highlighting the importance of a governance system that provides balance to the process.

When is the right time for succession? Multiple cases of family businesses in Indonesia

2020 ◽  
Vol 10 (4) ◽  
pp. 349-359
Author(s):  
Nyayu Lathifah Tirdasari ◽  
Wawan Dhewanto
Keyword(s):  
Family Business ◽  
Food Industry ◽  
Developmental Stages ◽  
Family Businesses ◽  
Comparative Case Study ◽  
Structured Interviews ◽  
Content Type ◽  
The Family ◽  
Succession Process ◽  
The Right

PurposeSuccession timing plays a key role in the part of the succession process. While much notice has been given solely to the viewpoint of predecessor and successor, less known about the schedule during this most critical family business dealings. The purpose of this research is to assess the right time for predecessors to let go of their leadership and allow the successor to take charge of the family business. Notably, it considers how the process of interaction between predecessor and successor may encourage successor capability, succeed the family business and following implications for the succession process as well.Design/methodology/approachAn exploratory comparative case study design employed in order to disclose the time by time activities around the succession process. This study presented circa 11 case studies from family businesses of the food industry. Data gathered utilizing semi-structured interviews and formal secondary data from the organizations, all of whom operate in Java, Indonesia.FindingsFindings reveal five critical outcomes. First, the results show that most of the respondents had no written succession plan and did not keep up the developmental stages, but the succession process was successful. Second, the study found a reduced age of successor even though the stages increase. Third, the respondents did not know when was the predecessor is getting busy managing the business, and some successors did not attend college as well. Fourth, the succession process of RC is the fastest and TY is the longest. Last, the succession process of the second-generation family business is faster than the third-generation.Originality/valueThis paper presents further evidence of the succession process of family businesses. It moves beyond a timing explanation of succession to develop a more sequentially aware understanding of the agility within the succession process. It contributes to the limited references of the family business in the food industry in Indonesia as well.

scholarly journals Ubuntu and Social Capital factors in Family Businesses

2008 ◽  
Vol 1 (1) ◽  
pp. 66
Author(s):  
William Venter
Keyword(s):  
South Africa ◽  
Social Capital ◽  
Social Responsibility ◽  
Family Business ◽  
Large Family ◽  
Family Businesses ◽  
Key Words And Phrases ◽  
Structured Interviews ◽  
The Social ◽  
Family Business Groups

<p>The current study is an investigation of social capital, and more particularly the support of the concept of ubuntu in large family businesses in South Africa. Insights into the social responsibility activities of some of the largest family businesses in South Africa, obtained through semi-structured interviews, clearly indicate the important role which the social responsibility ubuntu activities of these businesses play in caring for the community. As South Africa has a mainly “individualistic economic community”, it is interesting to observe how the collectivistic notion of ubuntu is practised in the social responsibility activities of family business groups.</p><p><strong>Key words and phrases:</strong> ubuntu, social responsibility, social capital, family business, conditional matrix</p>

Culture in small-sized Portuguese family businesses

2014 ◽  
Vol 12 (1) ◽  
pp. 40-67 ◽  
Author(s):  
Mafalda Casimiro ◽  
Maria José Chambel
Keyword(s):  
Human Resource ◽  
Family Business ◽  
Family Businesses ◽  
Research Approach ◽  
Cultural Patterns ◽  
Structured Interviews ◽  
Content Type ◽  
The Family ◽  
Multiple Variables ◽  
Laissez Faire

Purpose – This study aims to empirically identify cultural patterns in the family business: paternalistic, laissez-faire, participative and professional. Our second goal is to understand whether, besides the variable generation, there are other aspects that are based on the different cultural patterns in first and second generations. Dyer (1986) proposed a theoretical model to exploit cultural change in the family business, describing a typical temporal sequence of cultural patterns throughout the succession process. Design/methodology/approach – We selected a qualitative research approach with multiple case studies. Six small-sized Portuguese family businesses were selected. Data were collected from in-depth and semi-structured interviews with the family leaders and those directly responsible for human resource management. Findings – We empirically identified paternalistic, laissez-faire and participative cultural patterns. We also verified that, besides the generation, there are other factors that are at the root of the emergence of a cultural pattern within family businesses: the founder’s age and academic level and the presence of a human resource technician, in the case of businesses managed by founders and the presence of the founder in the case of businesses managed by second generation. Originality/value – By identifying different cultural patterns, we were able to verify that culture is an important variable to explain the relationship between the members of the family businesses and the way they are managed. Furthermore, this study suggests that more complex models, which consider multiple variables, are required to understand culture in the context of family businesses.

scholarly journals Performance Achievements of Family Business through Successor Readiness and The Relationship between Family and Business Members

2020 ◽  
Vol 13 (2) ◽  
pp. 198
Author(s):  
Gracia Ongkowijoyo ◽  
Timotius F.C.W Sutrisno ◽  
Teofilus Teofilus
Keyword(s):  
Family Business ◽  
Business Performance ◽  
Sampling Technique ◽  
Total Sample ◽  
Family Businesses ◽  
Partial Least Square ◽  
Least Square ◽  
Business Community ◽  
Succession Plan ◽  
The Relationship

Family businesses are one of the biggest contributors to Indonesia’s gross domestic product (GDP). Universitas Ciputra facilitate their students with family business guild. Succession plan and communication are important aspects for family businesses. Family businesses must educate potential successors in order to implement the succession plan well. The purpose of this study was to examine the effect of preparation level of successors towards family business performance; examine the effect of relationships among family and business members towards family business performance. A quantitative approach was used with a population of Universitas Ciputra’s Family Business Community. Purposive random sampling technique was used, yeilding a total sample of 93 people. The data analysis method used is Partial Least Square (PLS). The results showed that preparation level of heirs variable has a positive and significant effect on family business performance; the relationship among family and business members variable has a positive and significant effect on family business performance.

scholarly journals The role of conflict in the adoption of governance practices in family businesses

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asael Islas-Moreno ◽  
Manrrubio Muñoz-Rodríguez ◽  
Vinicio Horacio Santoyo-Cortés ◽  
Enrique Genaro Martínez-González ◽  
Norman Aguilar-Gallegos ◽  
...  
Keyword(s):  
Family Business ◽  
Agricultural Sector ◽  
Family Businesses ◽  
Content Type ◽  
Governance Systems ◽  
The Family ◽  
Governance Practices ◽  
Multiple Case ◽  
The Relationship

PurposeLittle is known regarding triggers in the adoption of governance practices within family businesses. Enterprises can implement governance practices to avoid re-arising conflicts lived in the past. Moreover, the type of conflicts experienced can determine the order in which different types of governance practices are adopted, another issue that requires further investigation. To address these knowledge gaps, this study gathers evidence into how the adoption of governance practices is linked to the conflicts experienced in family businesses and how this adoption evolves.Design/methodology/approachA multiple case study was conducted with 15 family businesses in the agricultural sector. The conflicts experienced throughout the enterprises' trajectories and the governance practices adopted were analysed and classified according to their relationship with the family, business and ownership subsystems.FindingsThe study shows that there is no direct link between the conflicts experienced and the governance practices adopted in family businesses. The most recurrent conflicts have to do with the relationship between family and ownership; however, the adoption of governance practices is centred on the relationship between business and ownership. The practices that mediate the relationship between family and business are adopted second, and the practices that mediate the relationship between family and ownership are adopted last.Originality/valueThe study applies a classification of conflicts and governance practices that adjusts to the complexity of the family business. The research contributes to the field by providing an understanding of the integration of knowledge about the family business, governance systems and conflict.

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