Is succession a problem for family businesses?

2018 ◽  
Vol 46 (1) ◽  
pp. 4-8
Author(s):  
Prof. Roman Sobiecki
Keyword(s):  
Family Businesses ◽  
Generational Change ◽  
Doing Business ◽  
The Family ◽  
A Company

Family businesses constitute the oldest form of doing business. They connect three ele-ments: a family, an ownership and a company. The element that distinguishes family busi-nesses from non-family ones is succession. To keep a family character, it is necessary to pass it to the next generations. The main objective of this essay is to draw attention to the issue of succession that is currently faced by many companies in Poland and other coun-tries. Improper execution of the generational change can lead to a demise of the company. The Author discusses various new initiatives and undertakings that aim at supporting the companies in the process of transferring management to the successors. Moreover, he emphasises the importance of preparation of the successors themselves to take the re-sponsibility for the family company.

Transparency of Information in Spanish Family Businesses and Its Role in Online Reputation Management

2019 ◽  
pp. 248-263
Author(s):  
Marcelo Vallejo ◽  
Fernando Martínez Vallvey ◽  
Alfonso José López Rivero
Keyword(s):  
Corporate Reputation ◽  
Family Businesses ◽  
Reputation Management ◽  
Royal Decree ◽  
Information Transparency ◽  
The Social ◽  
The Family ◽  
Main Factors ◽  
Online Reputation ◽  
A Company

Corporate reputation is one of the main assets to compete successfully in the markets today, which requires its proper management. One of the main factors that determine the level of reputation of a company is transparency, due to its effects on the acquisition of the necessary information in order to maximize the effectiveness of stakeholders´ decisions. In order to know the current situation of information transparency provided by the family businesses of Castile and León, a study has been carried out, analyzing the degree of compliance with the requirements established by Royal Decree Law of 18/2017 of 24 November in 35 family businesses in the region. This law establishes the social and environmental information that companies with over 500 employees are legally obliged to provide.

scholarly journals Revealing the Third Generation Myth in Family Businesses

2020 ◽  
Vol 9 (1) ◽  
pp. 17-22
Author(s):  
Sabitha Rani Saraswati
Keyword(s):  
Data Collection ◽  
Knowledge Transfer ◽  
Family Business ◽  
Structured Interview ◽  
Family Businesses ◽  
Third Generation ◽  
Collection Method ◽  
The Third ◽  
The Family ◽  
A Company

A family Business is a company or business which is run and managed by a family. Hence, the purpose of this study is to find out the truth of the Third Generation myth in family businesses. This study uses a data collection method using a semi-structured interview. This research uses source triangulation method which aims to test the credibility of the data which is carried out by checking the data that has been obtained from several sources. In this study, samples will be taken from several sources. The resource person himself will be taken from the senior generation as the owner of the family businesses and the next generation. The results of this study states that the decline of family businesses did not occur solely because of the mistakes of the third generation. Therefore, the third generation myth is not true. Keywords: family business, trust, knowledge transfer, delegation, third generation

scholarly journals Radiografía Económico-Financiera de las pequeñas empresas familiares españolas

2019 ◽  
Vol 22 (1) ◽  
pp. 21-31 ◽  
Author(s):  
Sara Terrón Ibáñez ◽  
María Elena Gómez-Miranda ◽  
María del Mar Miras Rodríguez ◽  
Lázaro Rodríguez Ariza
Keyword(s):  
Family Firms ◽  
Negative Impact ◽  
Study Data ◽  
Family Businesses ◽  
External Financing ◽  
Financial Indicators ◽  
Small Family ◽  
The Family ◽  
National Economic ◽  
A Company

The aim of this study is to determine whether there are statistically significant differences between small Spanish companies according to their family or non-family nature, in terms of their main economic and financial indicators. The study data analysed correspond to the years 2003, 2007 and 2013, which enabled us to examine whether the characteristics observed and any differences between these companies persisted during a period featuring three different economic scenarios. The study sample was composed of 21,192 small family firms and 4,449 small non-family firms. The results obtained show that, regardless of the national economic situation, there were statistically significant differences between the two types of companies for certain economic and financial indicators. We conclude that the family nature of a company has a negative impact on productivity, the number of employees and levels of investment and turnover. Moreover, family firms face higher costs of external financing than do non-family businesses. En el presente trabajo se analiza, en primer lugar, si existen diferencias estadísticamente significativas entre las pequeñas empresas familiares y no familiares españolas en relación a sus principales indicadores económico-financieros. Se estudian datos referidos a los años 2003, 2007 y 2013, lo que nos permite analizar si las posibles diferencias se mantienen en tres escenarios económicos distintos, para 21192 pequeñas empresas familiares y 4449 pequeñas empresas no familiares. Las conclusiones obtenidas demuestran que, con independencia de la situación económica nacional, entre ambos tipos de empresas se han detectado diferencias estadísticamente significativas en el valor determinados indicadores económico-financieros. Concluimos que es el carácter familiar de las organizaciones el factor que afecta negativamente a la productividad de las organizaciones, al número de trabajadores, a la inversión y a la cifra de negocios. En cuanto al coste de la financiación ajena, las empresas familiares presentan valores más elevados que las empresas no familiares.

PELANGGARAN ETIKA BISNIS

2018 ◽  
Vol 4 (2) ◽  
pp. 37-45
Author(s):  
Nurul Qomariyah
Keyword(s):  
Adverse Effects ◽  
Business Ethics ◽  
Business Development ◽  
Basic Knowledge ◽  
Economic Activities ◽  
Market Mechanisms ◽  
Business People ◽  
Doing Business ◽  
Moral Aspect ◽  
A Company

Violations of business ethics that occur at this time, become a problem in itself. One of the factors supporting the occurrence of these violations is due to lack of basic knowledge about business ethics and the freedom of business people in carrying out economic activities, as a result many business people are competing in improving market mechanisms, Business should be assessed from a moral standpoint, just like all other human activities also seen from a moral standpoint. Because when not looking at the moral aspect of doing business, business people only think about how to increase sales turnover, and not only increase turnover, but also do things that are not ethical, such as: bribery, corruption, collusion and nepotism, it makes people uneasy . Adverse effects that will occur if a company is immoral and enforces the norms that apply in business ethics then it can have an impact on consumers' distrust of their products and can complicate business development again. Key words : Violation, Bussines ethic, case

The innovation and internationalisation processes of family businesses

2017 ◽  
Vol 27 (2) ◽  
pp. 231-247 ◽  
Author(s):  
Vitor Braga ◽  
Aldina Correia ◽  
Alexandra Braga ◽  
Sofia Lemos
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Businesses ◽  
Family Management ◽  
Multivariate Statistic ◽  
Content Type ◽  
Business Innovation ◽  
The Family ◽  
Internationalisation Strategies ◽  
Innovation Processes

Purpose The success of the family firms cannot be detached from the current paradigm where, within the present economic conditions, economic agents struggle to exploit the existing opportunities and need to take into account the risks associated to the international arena and the innovation processes. The internationalisation and innovation processes may trigger resistance within family business due to their relatively higher difficulty to take risks and to invest in industries outside the scope of their original core business. Innovation and internationalisation processes become relevant strategies for the family firms’ continuity and success. In line with such fact, the aim of this paper is to contribute with insights regarding the processes of innovation and internationalisation within family businesses. In particular, this paper aims to assess the propensity of such firms to apply such strategies, to identify the particular business behaviour and to assess the extent to which the particulars of family firms may constraint or lead to the implementation of innovation policies, and thus its internationalisation. Design/methodology/approach The data were collected through questionnaires within family business aiming to understand the scope and characteristics of internationalisation and innovation processes within these firms. The 154 replies from such data collection were analysed using different multivariate statistic procedures, although this paper is based on factorial and correlation analysis. Findings The analysis of the results shows that there is an association between the processes of innovation and internationalisation within family business. In addition, the results also suggest a typology of firms regarding their innovation and internationalisation strategies and motivations. Research limitations/implications The results of this paper are, to some extent, limited because they did not allow comparing the findings with data from non-family business. However, the authors’ aim was not to distinguish family firms, but rather to characterise them. Practical implications This paper expects to contribute with lessons for the management of family business and to raise awareness of the constraints faced by family business. It is important to highlight that family business performance may be affected by a lower propensity to risk-taking attitudes, by the lack of non-family management and to the necessity of separating the family and the business in the business dimensions that the family limits the business growth. Originality/value Although there is a significant amount of the literature devoted to explore family business, innovation and internationalisation studies, very few draw on the relationship between internationalisation and innovation processes within family business. This paper explores such a relationship within a particular business context – the family dynamics that strongly affect management and business development.

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 Revisiting Doing Business in the Middle East

2009 ◽  
Vol 12 (1) ◽  
pp. 55-57
Author(s):  
David Desplaces ◽  
Nancy K. McIntyre
Keyword(s):  
Middle East ◽  
International Management ◽  
Cross Cultural ◽  
Cultural Conflict ◽  
Class Discussion ◽  
Bottom Line ◽  
Cultural Aspects ◽  
Doing Business ◽  
Team Environment ◽  
A Company

This case engages students on a number of issues common to doing business in other countries, specifically in the Middle East. It is intended to be a basis for class discussion rather than to illustrate either effective or ineffective handling of the situation. The case seeks to integrate issues of international management and cross-cultural conflict and negotiation. Students are challenged to diagnose a cross-culturally sensitive situation and develop solutions in a team environment under limiting time restraints. This case is also designed to help students understand the cultural aspects of a situation and how different solutions could have major consequences on the bottom line of a company.

scholarly journals MENEJMEN RISIKO DALAM PERFEKTIF ISLAM

2017 ◽  
Vol 5 (1) ◽  
Author(s):  
Supriyo Supriyo
Keyword(s):  
Risk Management ◽  
Production System ◽  
Human Life ◽  
Short Term ◽  
Islamic Perspective ◽  
The Family ◽  
The Future ◽  
Short Run ◽  
A Company

Human life with all its activities in order to meet the needs of life always will always faced the possibility of risk either directly or indirectly, can occur in the short term or long term. A possibility of the occurrence or risk had certainly will affect the activity to be done And adversely affect the economy of a family and even a company, if the risks that occur have a vital impact on the family or an organization. Many failures within a company's organization are due to unforeseen risks occurring as for example the company never thinks that a newly established company is still in the short run abruptly because a workforce lacking control in the production system creates a great fire and spends all and has a bad impact For the economy of a family and even a company, if the risks that occur have a vital impact on the family or an organization. Many failures within a company's organization are due to unforeseen risks occurring as for example the company never thinks that a newly established company is still in the short run abruptly because a workforce lacking control in the production system creates a terrible fire and consumes all the company's assets Newly established. Everyone or anyone else would not want the incident to happen and befall themselves and his business in the future. Keywords: Islamic perspective, Risk management

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