Development Of Family Businesses Research Articles

Dynamism in Adversity: a Comparative Study of Trends in the Performance of Listed Family- and Non-Family-Controlled Companies in Hong Kong, 1997–2014

This paper addresses the long debate over the superiority of the performance of family- vs non-family-controlled companies from the contesting perspectives of entrepreneurial familism and managerial capitalism. Publicly listed family- and non-family-controlled companies in Hong Kong have been selected for a comparison of their overall performance. The focus is on Hang Seng Index constituent companies in general, and on two cases in particular: one non-family-controlled bank (HSBC), and one family-controlled bank (BEA). We found that family-controlled companies were not necessarily less competitive than non-family-controlled companies. Specifically, when HSBC and BEA were compared, the latter showed no clear inferiority in operating profit margin and return on assets, even though the former enjoys unparalleled advantages, such as an overwhelming superiority in size, the privilege of issuing notes, and status as Hong Kong’s quasi-central bank. Therefore, we argue that entrepreneurial familism seems to be a resilient source of business dynamism, particularly when family-controlled companies have been repeatedly tested by adverse socioeconomic crises. Based on the finding, it is suggested that governments across the world should provide a favorable institutional set-up to facilitate the development of family businesses.

Effect of Entrepreneurial Networks on Family Business Development: A Conceptual Consideration

Family businesses are generally affected by resource constraints. These resource constraints are occasioned by the vagaries in the business environment. Consequently, budding and established family business entrepreneurs are now resorting to the acquisition and sharing of intangible resources as a strategy for achieving family business development. One type of resource that is increasingly being employed is entrepreneurial networks. In spite of the known supports entrepreneurial networks give to entrepreneurs at the different states of family business development, empirical evidences are still rear. Based on the foregoing, this study undertook a literature review and thereafter proposes that: the effect of family network on family business start-up is significant; the effect of intra-industry network on family business formalization is significant; the effect of professional network on family business professionalization is significant; the effect of extra-industry network on family business diversification is significant; the effect of social network on family business internationalization is significant; and the effect of intra-firm network on family business succession is significant. For family business development to be influenced by entrepreneurial networks, budding entrepreneurs, founder and/or descendant CEOs and employees of family businesses need to be actively involved in network relationships that encourage and facilitates resource acquisition and sharing. Moreover, an empirical study is recommended based on these propositions. This is to validate the propositions and to further add to the family business development and entrepreneurial networks literature.

DETERMINATION OF FAMILY BUSINESS DEVELOPMENT IN POLAND AT EUROPEAN UNION COUNTRIES PERSPECTIVE

Family business development in Poland, as much as in EU countries, represents true phenomenon that requires systematic research and analysis. In spite of all family business fall within to the same economic rules as others, they are very often covered by the idealistic imagination. There is no doubt, one of the most important value that appears and develops within family business is related to mutual help and altruism. On the other hand, family business management has to be related both to social values and economic ones. It often leads to all kinds of internal and external conflicts. It is necessary to remember that family businesses represent globally 90% of all entrepreneurships.

Medical Family Businesses in Poland – Model and Managerial Challenges

Medical Family Businesses in Poland - Model and Managerial Challenges There is a deficit of data in Poland about characteristics of family enterprises providing medical services. The medical sector in Poland faces a rapid development of family businesses and is diverse because it encompasses various size business entities that specialize in many possible aspects of the medical business. The article is about the characteristics of family enterprises providing medical services and extent to which they resemble family businesses, and to which they are derived from medical service activities. The article is of theoretical nature and its aim is to propose the model for the functioning of family-owned medical businesses, taking into account the impact of the type of activity and the family organization. The first part of the article is focuses on characteristics of family businesses, there is relatively little representative research analyzing the share of family enterprises in the Polish economy and describing their character. The second part of the article is the problem of ethos of medical professions in relation to business and economic logics of an organization. In the third of the article part there is a proposal for a model combining both aspects of the functioning of this type of economic entities.

PEMBINAAN DAN PENGEMBANGAN BISNIS USAHA KECIL DAN KELUARGA

Female entrepreneur or family in Kel. New Limbungan is a group of small economic enterprises and families who get capital assistance from UEK rolling funds. UEK’s capital assistance has not been able to overcome the weaknesses of small business / family to develop a better business, because business management still needs the ability to manage a rational bisnia and must have sika and the behavior of an entrepreneur. Running a small business / family has a risk of failure if making a business decision is not appropriate or not in accordance with the business environment faced or dare not run or develop their business, therefore need to instilled a confident, creative and risk-taking attitude. And for small entrepreneurs / families also have to understand how to manage a rational business; how to market products, manage finances and realize good relationships with customers. Prospect of small / family development in Kec. Coastal tassle still shows a positive tendency, people are accustomed to traditionally shop for necessities at small shops or small businesses that are still traditional. The existence of small / family enterprises is still needed and relevant to local values that still put forward the traditional ways. On the other hand, the potential of small entrepreneurs / family members to develop their business indicates a strong will and strong desire to improve better business management. In connection with the indication of the weakness of small / family business development it is deemed necessary to provide coaching by providing a more entrepreneurial attitude and business management attitude more effectively.

Gender-related factors in family business succession: a systematic literature review

Succession is one of the most discussed topics in family business research. However, despite the changing professional and family roles of women and the growing number of female CEOs worldwide, published works in the body of literature have relatively little to say on the role of gender in succession. The article reviews the recent development in the literature related to women in intergenerational succession in family businesses with the aim of systematizing gender-related factors affecting intra-family succession, and also proposes directions for future research. Based on a sample of 35 studies published between 2005 and 2017, this paper categorizes the gender-related factors found in the literature into three categories: environment and context, people, and processes. Subsequently, the paper summarizes the current state-of-the-art in light of these three categories. Since the research on the role of gender in succession is fragmented and lacks an overall direction, we present multiple directions for future research. The present review contributes to the body of literature on the development of family business by comprehensively systematizing existing gender-related factors affecting succession.

Інтернаціоналізація сімейного бізнесу: сутність процесу та чинники впливу.

The article examines the role and place of the family business as an effective form of entrepreneurship in the world economy. The internationalization of family companies as a trend of the modern entrepreneurial environment is presented. The content and directions of the internationalization of the family business are defined. Factors of influence and peculiarities of internationalization of family companies are revealed. Examples of the integration of Ukrainian family companies into the world economy are given. The advantages of internationalization for family companies are determined. The interrelations between internationalization and brands of family business, management of family firms, and the network of family companies are outlined. Promising markers for further research are proposed, among which: the impact of the internationalization of family companies on the development of family business in the domestic market; branding and internationalization; professionalization of family managers and internationalization; training abroad and internationalization of their own family business; The role of non-family managers in the internationalization of the family business.

Italian credit cooperative banks: the fundamental role in supporting the growth of SMEs and family businesses

Our research concentrates on the role of Italian credit cooperative banks, supporting the entrepreneurship and the development of SMEs and family businesses. We took into consideration the data of loans, allocated by those banks in 2014. We tried to find the relationship between the banking system and the world of SMEs and family businesses. This research represents the first step of a far deeper analysis. In this stage, we aimed at providing the groundwork for further empirical and qualitative analyses. Therefore, we try to improve the existing literature by using a conceptual approach. Despite the limitations of this research, researchers in the field of SMEs and credit cooperative banks can consider the opportunities for further developments of our analysis. Our findings give evidence that SMEs and family businesses need the support of the credit cooperative banks, in order to further exploit the opportunity to expand their businesses.

Social networking in family businesses in a local economy

Small, family owned businesses make considerable contributions to local economies. The importance of social networks to their development is also well established. This paper explores the different types of distinct, but interlocking, social networks of a rural business family, focussing upon the interaction between family, business and friendship networks. It presents a multi-rational logic framework to consider how the differing logics of each of these network influences the development and behaviour of family businesses. The changes in networks over time and between generations of the family are also analysed and gaps or structural holes within the networks identified. Implications for research and policy are then set out.

Another hybrid? Family businesses as venture capitalists

PurposeThis paper addresses the phenomenon of venture capital firms which are also family businesses (VCFBs). The purpose of this paper is to explore and understand the phenomenon of VCFB by answering the following questions: What are the features of professionalization in VCFBs? And, how do professionalization and types of family businesses explain the strategies and governance of VCFBs?Design/methodology/approachAs an explorative case study, it maps the Swedish venture capital (VC) industry and compares two VCFBs and their business investments with regard to strategy and governance.FindingsBy suggesting two major configurations, the study explains how family business development and levels of professionalization relate to differences in VCFBs’ strategies, which in turn, affect their governance. The personal VCFB features active owners who personally take responsibility roles and strongly focus on customers and relationships. The administrative VCFB strongly focuses on predetermined financial metrics, high ethical awareness among board members, and ongoing interplay between the active family board members and minority shareholders.Research limitations/implicationsThe study was conducted in Sweden and concerns Swedish VCFBs. The paper contributes to the literature by combining the two currently separate research streams, i.e. family business and VC, highlighting the importance and consequences of family ownership in VC businesses.Practical implicationsThe present study provides stock market investors and stock analysts with a deeper understanding of VCFBs’ strategy incentives. By identifying the kind of VCFB and its relation to strategy, more reasonable assessments and analyses of the VCFBs’ actions will be possible. Family firms willing to accept VC-finance should consider the type of VC and the potential consequences of family ownership.Originality/valueThis study is the first to classify VC firms as family businesses. Moreover, it shows the features of professionalization in VCFBs by suggesting a set of configurations.

Проблемы предпринимательского образования в контексте развития семейного предпринимательства

Проблемы предпринимательского образования в контексте развития семейного предпринимательства

Running in the Family – Paternalism and Familiness in the Development of Family Businesses

The study focuses on two features of family businesses (FBs), namely familiness and paternalism. These two concepts are inseparable in two ways: inseparable from family businesses and also from each other. Family businesses differ from one another in the degree of family involvement, leadership and management in the business. Paternalism as a leadership attitude is naturally present in FBs, especially in the founding stage of development. This feature provides the solid bases for establishing a strong and proud culture built around the personality and success of the founder. This characteristic however can become a major hindering factor upon succession. Through a review of the literature and the INSIST studies for Central Europe this study aims to identify the supportive and limiting factors of both phenomena and examine the case studies of the INSIST research project for signs of the existence of these supportive and limiting factors. It is found that the degree of familiness in these firms is a sliding scale and a lack of familiness is not a precursor for failure. Paternalism is found to be broken down into authoritarian, benevolent, moral and enlightened. After discovering studies claiming that paternalism is a stage in the process of leadership style changing from participative to autocratic (or vice versa) and that Central Europe and the current era of instability and uncertainty lead to employees preferring a more autocratic or paternalistic style, our findings suggest that there are more driving than restraining forces for family firms adopting a paternalistic style. Furthermore many cases appear to be on the path from an authoritative towards a more enlightened paternalistic leadership style either out of choice in the search to shake off the drawbacks of other types of paternalism or as part of a natural evolution of this particular leadership style within the context of this study.

Specifics of the Development of Family Businesses in the Czech Republic

In many developed countries, there has been a long tradition of family enterprises, and family enterprises have played a major role in national economies. A family enterprise can be regarded as the main pillar of economy, providing many job opportunities. In functioning market economies, family enterprises are associated both with small businesses but also large corporations, and present a major source of income for the state budget. The support of family enterprises is based on a sophisticated ecosystem of national institutions, associations, educational and research centres. In the Czech Republic, family businesses are mostly associated with small and medium-sized enterprises. These play a major role in the development of the endogenous potential of individual regions of the Czech Republic. Family enterprises are linked to a particular region, both commercially and socially, and form a regional business backbone and a basis for regional infrastructure. Their task also lies in the social area. The purpose of this article is to define a family business and to define the status of family businesses, in particular in the Czech Republic. The subject matter of the research is a family business as an economic feature. The scientific objective is to evaluate the current situation in the Czech Republic, and to propose functional ecosystem support of family enterprises, based on university educational programmes. The paper has been prepared on the basis of general theoretical scientific methods, in particular the method of comparison of secondary data in published publicly available researches, its analysis, synthesis, comparison, analogy, deduction and generalisation, and using a method of professional estimates. This study helped to establish that family businesses represent a true economic potential for the Czech Republic.

Family Business and Development of Home Work

The work we consider importance of a family business in conditions of modern market relations. The place of a family entrepreneurship of the market economy was substantiated, proposals on uplifting the effectiveness of the interrelations between the family entrepreneurship and financial institutions were given. Based on a comparative analysis of existing scientific literature determinations concepts of “family business “ and “household”, developed new definitions, and also made some specific adjustments to the economic functions of the family farm. Justified theoretically place the family farm in the market system, analyzed the activity of households in rural areas and develop ways to improve its efficiency. The main factors were developed using the methods of correlation and regression analysis forecast figures for the period 2015-2017 years and evidence-based recommendations on the prospects for the development of family businesses.

Family business development in mainland China from 1872 to 1949

This study reviews family business in mainland China from 1872 to 1949 and provides evidence of its early development and its origins in 1872 when the first modern manufacturing firm was founded. We analyse the social, economic, and political environment in which family firms in mainland China were embedded to improve our understanding of how this unique organisational form was established and developed. Our analyses cover the late Qing Dynasty and the period from 1912 to 1949 during which the Republic of China (ROC) ruled mainland China. Implications for current family business theory and practice are discussed.

The factors preventing family business development in Russia and the effective tools for their regulation

В статье представлены результаты теоретического анализа отечественных и зарубежных научных, правовых и государственных источников информации, посвященных проблеме семейного предпринимательства в России и странах Евросоюза. Результаты анализа могут быть использованы для последующих эмпирических исследований, а так же для разработки политики и программ поддержки семейного бизнеса в России.

Family business and regional development—A theoretical model of regional familiness

A key issue for regional development studies is to determine the exogenous and endogenous factors and the processes that occur within the territory and favor sustainable regional growth and development. Despite theoretical and empirical advances in understanding the mechanisms behind regional development, one dimension has been neglected: family business. To address this gap, I aim to link the family business and regional development literatures by developing a theoretical model that attempts to serve as a framework for interpreting the potential role that family firms play in regional development. The model is based on the concept of regional familiness, suggesting that the embeddedness of family businesses in regional productive structures affects regional factors, regional processes, and regional proximity dimensions and thus alters external economies of agglomeration and regional externalities. Theoretical and practical implications are discussed.

Singularities of Training Personnel in the Family Economics and Family Business at the Current Stage of Development of Market Relations

Transition of Russia to the development of market relations turned out to be an incentive motive for developing the basic concepts of the family economics and family business, a discovery of the opportunity for many Russian citizens to be engaged in entrepreneurship, which has formerly been inaccessible for them. The modern changes taking place in Russia and abroad raise new requirements for training the youths, for conscious active participation in various spheres of the socio-economic life of the society, in development of family businesses, and improvement of their efficiency. It should be noted that the problems of professional training of young people at higher education institutions as members of households in participation in the family business, formation of qualities of a future entrepreneur, and the entrepreneurial activity in the family business are actively considered and implemented in developed countries, while Russia does not virtually take part in this process. The main cause of failure in the family business is lack of competence, skills, and leadership qualities, as well as a set of competences needed for a successful business.

The Importance of Organizational Culture for Entrepreneurship in Family Businesses

Abstract The article discusses the issue of the importance of organizational culture for business development of family businesses. In connection with the above, there will be presented the essence and types of organizational culture, leading to the entrepreneurial attitudes of all members of family business. The theoretical part of the article is supported by empirical research, carried out in a selected group of family businesses in various industries in Czestochowa

THE ANALYSIS OF ENTREPRENEURIAL DIMENSION IN THE CONTEXT OF EUROPEAN COUNTRIES

Under the rapid processes of globalization, education should help strengthen the creative powers of society, especially of the younger generation, to preserve and to develop the identity, as well as to educate civil society, increasing employment opportunities, particularly the ones of the youth, as well as economic competitiveness, reducing poverty and social exclusion. This paper defines the concept of entrepreneurship, the importance of entrepreneurial competence in the context of learning to act, it also presents an overview of youth employment and unemployment situation in the labour market, entrepreneurship level evaluation problem. The paper presents results of the survey carried out among young people in Lithuania, Slovakia and Germany, the attitude towards decision-making, time management, initiative, leadership, communication, confidence, responsibility, money and investment risk, mental stamina, creativity, acquired and inborn personal characteristics of businessmen as well as small (family) business development opportunities.