Family-owned SMEs Research Articles

THE ALGERIAN FAMILY BUSINESS AND THE UPGRADING PROGRAMS: A QUALITATIVE APPROACH

In order to support SMEs in their modernization and competitiveness efforts, the authorities have put in place a support strategy through the various support programs led by the Ministry of Industry and Mines (ex- Ministry of Small and Medium-Sized Enterprises and Crafts) in collaboration with the European Commission, such as the Euro-SME Development Program (EDPME). In this context, this work was carried out in order to help clarify one of the upgrading programs carried out in Algeria. The aim is to discover the real situation of one of the family SMEs in Algeria. In this study, we adopted a qualitative approach focusing on the often intuitive management mode of the company. This study made it possible to make an inventory and a strategic diagnosis of the targeted family business and tries to shed light on the obstacles to the achievement of the overall objectives of the upgrading operations. This study made it possible to carry out an ex-post evaluation and reveal a set of obstacles to the development of Algerian family-owned SMEs. This publication aims to contribute to the capitalization of the experience of the upgrading programs in Algeria.

Venture capital and the financial crisis in Portugal: the VC managers’ viewpoint

PurposeThe purpose of this paper is to examine, from the venture capital (VC) managers’ perspective, the impact of the international financial and sovereign debt crises on the VC industry in Portugal, and the changes and adjustments VC managers were forced to adopt to their procedures and current practices to cope with these challenges.Design/methodology/approachA two-step research design was adopted to best capture the dynamics of the crisis. Data were collected through in-depth semi-structured interviews and content analysed. The initial set of interviews with ten VC managers was conducted in 2011, immediately before the country bailout; and the second set in 2013, when the full impact of the debt crisis was being felt.FindingsThe study shows that the crises had a significant impact on the VC industry producing a complex and dynamic environment with high levels of uncertainty. The VC managers’ contradictory perceptions reflect their own struggle to figure out the best way to deal with the pressures in such a volatile environment where new opportunities may also arise. In general, VC firms became more selective adopting a more prudential attitude and tighter control mechanisms.Originality/valueThis study contributes to the field by analysing, from the VC managers’ perspective, the cumulative impact of the international financial and sovereign debt crisis on a European VC market with specific features: small dimension of the industry operating in a bank-centred capital market and where family-owned SMEs predominate.

Proposta de redução de lead time na linha de produtos termoelétricos de uma pequena empresa familiar do interior paulista

O Quick Response Manufacturing (QRM) é uma maneira de empresas manufatureiras alcançarem flexibilidade. Este é um elemento-chave para diferenciação e potencialização da competitividade. Há poucas pesquisas empíricas cujo tema permeia micro e pequenas empresas (MPEs) e flexibilidade da produção, o que pode impactar a apropriação dessa abordagem por esses importantes atores da nossa economia. Este artigo objetiva demonstrar os resultados de uma pesquisa de campo que utilizou o QRM para propor ações capazes de reduzir o lead time da linha de termoelétricos de uma pequena empresa familiar do interior paulista. Foram propostos a) o equilíbrio dos throughputs das operações lentas, reduzindo 50% dos lotes de produção seguido de reduções gradativas; b) a implantação da manufatura celular e melhorias da gestão dos estoques intermediários, utilizando o sistema POLCA e gestão visual; c) a implantação de um planejamento integrado de vendas e operações e regras para priorização de pedidos. Identificou-se que a proposta geraria uma redução de lead time de 39 para 21,3 dias e uma redução inicial de 51% no custo do estoque de matéria prima, podendo chegar até 69%. Notaram-se: a) problemas de gestão, capacidade de investimento e relação com fornecedores, frequentes em MPEs familiares; b) o QRM pode ser adaptado para as necessidades de MPEs; c) a importância da interação entre o conhecimento desenvolvido na academia e as pequenas empresas familiares.

Family Ownership, Organisational Control and Agency Costs in Australian Small and Medium-Sized Enterprises

Using the Business Longitudinal Database compiled by the Australian Bureau of Statistics, we examine the level and determinants of agency costs in small and medium-sized enterprises (SMEs), with a particular focus on the impact of family ownership and the variation in agency costs associated with firm size and the level of ownership concentration. Using univariate and multivariate analysis, we find that family ownership appears to reduce agency costs in smaller SMEs. However, among medium-sized family-owned SMEs, these gains appear offset by an increase in the lack of self-control and problems arising from the possible presence of parental altruism. For larger family-owned SMEs, agency costs again decrease, likely because of the effects of other forms of firm monitoring, such as by bank lenders and non-family investors, and the increased professionalization of management associated with an increase in the size and complexity of the firm.

Trust Based Relationships between Family Members and Long-Term Employees of Family-Owned SMEs

The purpose of this study is to identify dimensions of trust between family members in family-owned SMEs and long-term non-family employees who have been working in the enterprise with at least two generations. The data of the study were collected through interviews with the second generation members actively working in ten family businesses that operate in different sectors. The thematic analysis of the interview notes revealed that the dimensions of trust of family members in non-family employees included competence, identification and personal trustworthiness. Competence of the non-family employees means that they possess the practical skills to tackle various issues related to the family and enterprise. Identification of the long-term employees with the enterprise refers to the content that can be explained with the protection of the interests of the family and enterprise, self-commitment, and adaptation to the values. This is interpreted as psychological ownership. Trustworthiness, on the other hand, points to the ethical conduct such as truthfulness and contentedness. These findings show that trust in the non-family employees who have been working in family-owned SMEs has a specific context. Suggesting some implications for future studies, the findings also contain evidence demonstrating that the family business is a strong niche for scholars studying organizational behavior.

Trust Based Relationships between Family Members and Long-Term Employees of Family-Owned SMEs

Trust Based Relationships between Family Members and Long-Term Employees of Family-Owned SMEs

Family-owned and non family-owned SMEs: empirical evidence of survival determinants

Based on two samples: 1) 1589 family-owned SMEs; and 2) 485 non family-owned SMEs, using probit regressions this paper studies the are significant differences in the survival determinants of these two types of SMEs. The empirical evidence obtained lets us conclude there context of family-owned SMEs, size, age, R&D expenditure are neither positive nor restrictive determinants of survival, with cash flow and labour productivity being positive determinants of survival, and debt, interest paid and risk are restrictive determinants of survival. In the case of non family-owned SMEs, size, age, cash flow, debt and R&D expenditure are positive determinants of survival, with interest paid, risk and labour productivity being neither positive nor restrictive determinants of survival.

Search breadth, open innovation and family firms: evidences in Italian mid-high tech SMEs

The debate around the different management practices of family firms, compared with non-family ones, is largely supported by important theoretical reasons and a huge stream of literature. Recent debates focus on contrasting innovation management practices of family and non-family companies, where a few evidences are still available. Along this line, the present paper aims at examining and understanding the determinants which can explain whether there are divergences in the search breadth of family and non-family firms. Our explorative analysis, focused on Italian small- and medium-sized enterprises (SMEs) competing in mid–high tech industries, generally confirms some of the outcomes emerging in other preliminary studies in this field. In particular, we show that Italian family-owned SMEs have a narrower search breadth than their non-family counterparts. Furthermore, our preliminary findings point out the role of some other factors considered as relevant (e.g., generations, time and cost for R&D projects, etc.).

Search breadth, open innovation and family firms: evidences in Italian mid-high tech SMEs

The debate around the different management practices of family firms, compared with non-family ones, is largely supported by important theoretical reasons and a huge stream of literature. Recent debates focus on contrasting innovation management practices of family and non-family companies, where a few evidences are still available. Along this line, the present paper aims at examining and understanding the determinants which can explain whether there are divergences in the search breadth of family and non-family firms. Our explorative analysis, focused on Italian small- and medium-sized enterprises (SMEs) competing in mid–high tech industries, generally confirms some of the outcomes emerging in other preliminary studies in this field. In particular, we show that Italian family-owned SMEs have a narrower search breadth than their non-family counterparts. Furthermore, our preliminary findings point out the role of some other factors considered as relevant (e.g., generations, time and cost for R&D projects, etc.).

Determinantes de la estructura de capital en la pequeña y mediana empresa familiar en México

<p>Este trabajo examina los determinantes internos que influyen en la estructura de capital de las pequeñas y medianas empresas familiares en México (Pymef).</p><p>Se sugiere que el tamaño y la antigüedad de la empresa, la formalidad en la planeación administrativa y estratégica, la actitud hacia el control familiar y la edad del director influyen en las decisiones del tipo de fuentes de financiamiento por utilizar.</p><p>A través de un análisis de trayectorias se validan estadísticamente varias hipótesis tomando como base una muestra de 240 Pymef mexicanas. Los resultados indican relaciones significativas entre tamaño y deuda, así como entre edad del director, capital social y utilidades acumuladas.</p><p>Asimismo, aplicando el análisis por sector de actividad y por tamaño, se encontró evidencia empírica sobre las influencias entre el tamaño de la empresa y el capital social, así como la formalidad de la planeación administrativa y estratégica con la deuda. Los resultados sugieren líneas de investigación de las Pymef mexicanas.</p>

Are financing decisions of family-owned SMEs different? Empirical evidence using panel data

AbstractThis paper analyses if ownership structure is an important determinant of capital structure decisions, on the basis of two sub-samples of family-owned and non-family owned SMEs, and using panel data models. The results suggest that family ownership is an important determinant for: i) the variations of short and long-term debt stimulated by financial deficit; ii) the speed of adjustment of short and long-term debt towards the respective target levels; and iii) the relationships between determinants and short-term debt and long-term debt. In general, the capital structure decisions of family-owned SMEs are closer to what is forecast by trade-off theory than those of non-family owned SMEs, whereas the capital structure decisions of non-family owned SMEs are closer to the forecasts of pecking order theory than those of family-owned SMEs.

Are financing decisions of family-owned SMEs different? Empirical evidence using panel data

AbstractThis paper analyses if ownership structure is an important determinant of capital structure decisions, on the basis of two sub-samples of family-owned and non-family owned SMEs, and using panel data models. The results suggest that family ownership is an important determinant for: i) the variations of short and long-term debt stimulated by financial deficit; ii) the speed of adjustment of short and long-term debt towards the respective target levels; and iii) the relationships between determinants and short-term debt and long-term debt. In general, the capital structure decisions of family-owned SMEs are closer to what is forecast by trade-off theory than those of non-family owned SMEs, whereas the capital structure decisions of non-family owned SMEs are closer to the forecasts of pecking order theory than those of family-owned SMEs.

Are Financing Decisions of Family-Owned SMEs Different? Empirical Evidence Using Panel Data

Are Financing Decisions of Family-Owned SMEs Different? Empirical Evidence Using Panel Data

The effect of finance, knowledge and empathy gaps on the use of private equity amongst family-owned SMEs

This paper presents the findings of exploratory research into the challenges that small-to-medium-sized family-owned enterprises (SMFEs) face when engaging with the private equity (PE) sector. This study, conducted through interviews of SMFE owners, PE firms and family business professional advisors in South Australia, indicates that there are three large gaps between SMFE owners vis-a-vis the PE community: 1) a finance gap; 2) a knowledge gap; 3) an empathy gap. The results of this study also suggest that these gaps interact with each other to exacerbate the overall gap, and that some professional advisors were found to contribute to (rather than bridge) these gaps. This paper concludes with a revised conceptual framework model for the better understanding of the barriers to and opportunities for SMFEs to gain access to PE and some suggestions as to how professional bodies and trade associations can facilitate the process.

The internationalization of family and non family-owned SMEs

The internationalization of family and non family-owned SMEs