The Dream of Continuity of a Family Business across Generations (original) (raw)
Related papers
Succeeding Generations: Realizing the Dream of Families in Business
Administrative Science Quarterly, 2000
Today, the family business companies are an important subject of study and research. They form the backbone of the economy and represent 80% of worldwide companies according to the Institute for Family Business (IFB). These companies surf from a significant problem the conflicts between the family and the style of management. The different phases of business Development as the transmission are dominated by emotions. This is why the learning Institutes and consultants as IEF, OSEO, INSEE, IFA, KMPG and INSEAD were founded to help entrepreneurs and family businesses and to support their families regarding conflicts, transmission, funds transfer, properties. The main objective of this paper is to shed light on the common factors and characteristics that contribute into the success of family business companies.
Succeeding Generations: Realizing the Dream of Families in Businessby Ivan Lansberg
2000
Today, the family business companies are an important subject of study and research. They form the backbone of the economy and represent 80% of worldwide companies according to the Institute for Family Business (IFB). These companies surf from a significant problem the conflicts between the family and the style of management. The different phases of business Development as the transmission are dominated by emotions. This is why the learning Institutes and consultants as IEF, OSEO, INSEE, IFA, KMPG and INSEAD were founded to help entrepreneurs and family businesses and to support their families regarding conflicts, transmission, funds transfer, properties. The main objective of this paper is to shed light on the common factors and characteristics that contribute into the success of family business companies.
THE INFLUENCE OF FAMILY RELATIONS ON DECISION MAKING IN FAMILY BUSINESSES
The peculiarity and uniqueness of family businesses set them apart from other businesses in many things. Natural need of man to survive in these harsh circumstances forces him to constantly seek new sources of funding or simply tries to improve the existing. Secure existence is difficult to ensure. The successful family business provides many benefits: reliable operation, to be your own boss, flexible working hours, family members are taken care of, to become successful with your own strengths. Also this kind of business brings a range of difficulties that have to be overcomed. Apart from the daily struggle for enterprise development in the complex conditions of tough competition and rapid changes in the environment, family businesses face problems of internal character. Namely, the parents are thorn between the family relations, the love towards their children and the consistence in the decision making processes. Although this is a modern and very present theme however owners of family businesses rarely dare to speak publicly on the subject. This paper presents an action research conducted on a sample of 26 family businesses in FYROM. This research study is primarily exploratory in nature, and the research instruments include survey through questionnaires with family member and employees that are not family members. Key words: family businesses, family relations, decision making, family members, non-family members.
RUNNING IN THE FAMILY - PATERNALISM AND FAMILINESS IN THE DEVELOPMENT OF FAMILY BUSINESS
Family businesses are special in many respects. By examining their financial characteristics one can come to unique results. This paper explores the general characteristics of the financial behaviour of family businesses, presents the main findings of the INSIST project’s company case studies concerning the financing issues and strategies, and intends to identify the financial characteristics of company succession. As the parallelism of the family and business dimensions characterize the whole existence of family businesses, it is also present in their financial affairs. The financial decisions in family businesses (especially SMEs) are affected by the following factors: the primary goal of business decisions is not exclusively profitability, the simultaneous presence of family and business financial needs requires careful coordination, preferential handling of family needs at the expense of business needs - though there is evidence of postponing family investments for the sake of business, too. Family businesses, beyond their actual effectiveness, are guided by individual goals like securing living standards, ensuring workplaces for family members, stability of operation, preservation of the company's good reputation, and keeping the company's size at a level that the immediate family can control and manage. The INSIST project’s company case studies revealed some interesting traits of family business finances like the importance of financial support from the founder’s family at the establishement of the company, use of bootstrapping techniques, financial characteristics of succession, and the role of family members in financial management. Keywords: Family Business, family business finances, succession, bootstrapping.
Strategies for Successful Family-Owned Business
JURNAL APLIKASI MANAJEMEN, 2018
This study aimed at explaining the strategies of success in running family-owned enterprise to enable the next generation to develop the company which had been established by previous generations. This was a qualitative research with a case study approach conducted on military equipment business inTulungagung Regency. The results of this study indicated that the strategies of success in family-owned companies were through the process of selection of candidates for the next generation of the company and handing over all power to the elected candidates. Conflicts emerged inside the process of selection or determination of business leaders but through meetings orde liberation with all members of the second generation and produced an agreement that three of the six children of the family went into the organizational structure to manage the business. While the other three children set up their own business, however, the three children were still related to the development of family companies.
Family business insights: an overview of the literature
Journal of Family Business Management, 2015
Purpose-The purpose of this paper is to investigate how the family business literature has evolved, and to examine the factors influencing family-owned and managed businesses. The paper discusses important patterns in the present literature and new directions for future study. Design/methodology/approach-The research identifies key research topics and methodical approaches to understand family businesses. Insights into the reasoning behind the historic changes and the current direction and trends of the family business literature are also identified. Findings-The findings of this research argues that the main cause of the challenges in running a family business stem from the management of the interrelationship between family concerns and business concerns. Strong leadership and building a culture that accepts continuous change are key success factors. Research limitations/implications-Due to the specific nature of the family business dynamics and decision-making conflict, which can hardly be captured by quantitative studies alone, a promotion of qualitative studies is advisable. Practical implications-This study suggests that understanding the culture surrounding decision making in family business has great value. Characteristics such as aggressiveness, fearlessness and competition are key areas for investigation. Social implications-Overlooking the potential of non-family members for family business leadership can produce sub-optimal choices of successors. Further, the aspiration to change society's and government's view of family businesses warrants attention. Originality/value-This review of previous research offers researchers a broader and comprehensive view of the family business, which is inclusive of the challenges, decision making and solutions within the family business structure. Researchers, educators and practitioners will benefit from this paper.
Specific Features of Family Businesses: A Contribution to Literature
Financial Environment and Business Development, 2016
The family business represents a subset of the whole range of enterprises, and, therefore, it has all the essential requisites of them. However, it is characterized by the strong relationship with one or more families which, by providing the risk capital, constitute it. Consequently, its functionality strictly depends on the evolution through which these family units go and on the decisions that they make inside of them. Italian and international scholars had devoted particular attention to small-and medium-sized businesses, often considered as transitional phases for a dimensional development of the enterprise. The empirical evidence has actually disproved these assumptions, leading to the conclusion that even small-and medium-sized businesses can achieve high levels of success without necessarily increasing their dimensions. Starting from the eighties of the last century, business studies have considerably developed in this respect. The family business has now assumed an important role in the national and international scene, thus attracting an increasing interest in the theoretical and empirical research. The wide and rich literature on family businesses has highlighted a variety of topics, such as the understanding of the success and development factors of family businesses, the peculiarities of their management models, their corporate governance, their valuation, and, generally, the specificity of small-and mediumsized businesses. Today, a definition of a family business, which is unanimously accepted by the scholars of the field, is nonexistent. Therefore, this work aims at identifying those aspects, which are typical of a family business. Moreover, the abovesaid paper highlights too some other aspects, useful to identify family businesses from nonfamily ones. Finally, the paper wishes to examine how the identified variables (such as the ownership, dimensions, succession, and involvement of family members) affect the family business performance.
A Literature Study on Family Business Management from 1990 To 2012
IOSR Journal of Business and Management, 2013
Economic liberalization and rapid expansion after 1990 leads to an industrial base in recent years have not only created growth opportunities for many but also have tested their resource capabilities to respond to them; some have chosen to follow the role of a custodian of their existing wealth and followed the preservation route, while some others have followed more of an entrepreneurial route of exploiting opportunities with or without relevant resources, with mixed results. One of the key resources for all of them is their family, and their prime concern is wealth and welfare of their family. A major dilemma many of them have faced particularly in the last two decade since economic liberalization began is to choose between combinations of risks and returns of business growth and conservation of wealth of the family. Family as a social institution is one of the oldest surviving (Goode, 1982), but only in recent years family business, an important arm of it started receiving academic attention. This article reviews the literature on family business management In general; this literature is dominated by descriptive articles that typically focus on family relationships. However, the literature does not usually address how these relationships affect the performance of a family business. We also identify some of the key issues and gaps that should be explored in future studies if research is to contribute to improving the management practices and performance of family firms I.
Small and medium sized businesses are the engines that drive economic development and contribute significantly to the Gross Domestic Products (GDP) of most countries. The roots of such businesses are the families that form their foundations. To succeed, family business founders must establish strong foundations, structures and succession plans. This paper examined the role of African and Indian business founders in determining the future of their businesses across generations. The study targeted 52 business founders (owners) and managers operating Mombasa City (Kenya) and used stratified random sampling method to identify the respondents. A questionnaire was used as the primary data collection instrument while a documentary analysis was performed to attain secondary data. The paper found that family businesses are predominant among all respondents. It was also found that most Indian families involve family members in business during strategic development and planning. In terms of lo...
Management and development differences of family businesses between two different generations
International journal of transitions and innovation systems, 2018
Family businesses encounter the same success factors as all other companies, as such they need to develop a managing system and seek their position in the market in order to ensure a sustainable development. Family businesses face different challenges and, finding a mechanism to manage differences and conflicts have always been a challenge for these businesses. In this regard, many of these differences are caused by conflicts and misunderstandings between different generations and understanding the differences between generations may help family businesses creating a sustainable, long-term and competitive business. This paper presents quantitative data to address management and development differences of family businesses between two different generations (in contexts where family business is led by founders and successors) and comparing the development of these businesses between two periods of time.