Guest Editors’ Introduction to the Special Issue on Family Business

Abstract

This special issue of the Journal of Family and Economic Issues focuses on the operation of family businesses and their response to environmental conditions of adversity and change, as well as family relationships such as daughter succession, and intermingling of family and business resources. The seven papers reflect the breadth of family business firms operating around the world. They represent a variety of methodologies, modes of analysis, and theoretical models for examining the family firm. The data were collected from divergent sources ranging from case studies to the use of national samples of family firms. Each paper contributes to a more rich understanding of the family business research stream. The lead paper for this special issue by Yilmazer and Schrank uses systems theory to explain the financial interaction between small businesses and owning households. The authors merge literatures on financial bootstrapping and intermingling of small family businesses to provide a holistic understanding of business and household finances. In this critical review the authors discuss successful financing of a small business when owned by a household member. Key conclusions include that the health of the household affects the business, and that the use of owner resources is beneficial for family firms, but not advantageous for households. Pushkarskaya and Marshall’s research investigates a sample of rural households in Kentucky comprised of different family-farm systems (single females, single males, older farm couples, younger farm couples, married older farmers living with younger family members, and married younger farmers with children) to study the economic impact on business decisions following the tobacco buyout. The authors use both the Sustainable Family Business Model and Agricultural Household Model to analyze family-farm decision processes. The authors found the Sustainable Family Business Model to be a better predictor of family-farm adaptation to change from a current mode of operation to a different operational choice strategy. Analysis of correlations between family and farm business decision components aided in differentiating the effectiveness of alternative choice strategy models for farm families. The paper by Distelburg and Blow uses a dual General Systems Theory and Eco-systems perspective to explain that family businesses function better when they identify the value orientation of their business and align their resources towards these values. The author collected data from 11 family businesses and compared their responses with a national sample from the American Family Business Survey (AFBS). This paper also analyzed value systems in relation to family-first family businesses and business-first family businesses. Findings reveal that individuals in a family business are more satisfied with their business when personal values are consistent with the values set for the business. Stafford et al emphasize the importance of resources that move between the family and the firm during times of change. In their paper, the authors used National Family Business Panel data and Spatial Hazard Events and Losses Data for the U.S. to identify factors influencing family L. S. Niehm (&) Department of Apparel, Educational Studies, and Hospitality Management, Iowa State University, 1066 Le Baron Hall, Ames, IA 50011-1120, USA e-mail: niehmlin@iastate.edu