Family-run Businesses Research Articles

Analysis of drivers of CSR practices’ implementation among family firms in India

PurposeDifferences in institutional environment and governance structures pave the way for heterogeneous nature of different businesses; this, in turn, shapes the way various sections of society act toward each other enacting their responsibilities. Taking into account the unique institutional environment and governance structures of firms in developing economies, this paper aims to build on the “stakeholder theory” to address the issue of the implementation of corporate social responsibilities (CSR) practices in these economies, particularly India. This paper also aims to uncover the saliency (legitimacy and power) of different stakeholder groups on different aspects of a firm’s CSR activities. Further, as most of the firms in developing economies are family-run firms, the paper examines role of organizational leadership in shaping firms’ CSR strategies.Design/methodology/approachIntegrating literature on “stakeholder theory” and CSR, this paper examines the implementation of different CSR practices by family-run firms in India. This paper uses survey research to collect data from 80 privately held family firms operating in apparel and textiles industry in India. The data have been collected from respondents holding top leadership positions in the sample firms.FindingsThe findings indicate that pressure from primary stakeholders (i.e. customers, employees and shareholders) and CSR-oriented leadership belief significantly influence organizational implementation of CSR practices, whereas pressure from secondary stakeholder (i.e. community groups and non-governmental organizations) was found to be insignificant. Further, CSR-oriented leadership belief moderated the relationship between primary stakeholder pressure and organizational implementation of CSR practices. The findings equally highlighted lower saliency of secondary stakeholder’s legitimacy and power because of weak institutional mechanisms, while on the other hand, the primary stakeholders exert considerable power because of the direct nature of transactional legitimacy, further accentuated by the governance structure in family firms.Originality/valueThis paper is among the very few studies that address the issue of CSR among family-run businesses in developing economies. Existing frameworks on analyzing firm’s implementation of CSR practices does not recognize the inherent heterogeneity among different stakeholder groups. Recognizing that different stakeholders have different levels of influence over firms, this paper categorized the stakeholders’ groups into primary and secondary to analyze their differential impact over firms. Additionally, given the critical role of leadership belief in the implementation of CSR practices, this paper analyzed the moderated effect of CSR-oriented leadership belief toward developing a more robust model of CSR implementation.

Optimizing the equity reassignment process: A novel application for family businesses

PurposeThis paper aims to support the equity reassignment process of large family business conglomerates, which can be complex due to both the nature and number of companies involved and specific owner requirements. Addressing these issues is especially important in the context of family businesses, since a successful reassignment might resolve and prevent family conflicts. Design/methodology/approachThe paper presents a model that determines the optimal reassignment in terms of a specific owner's preferences. This model can also handle different types of requirements, including accounting for equity and intra-loan partition between owners and controlling for liquidity, capital structure, and transaction costs. The model also considers risk diversification for each member's fortune by considering the uncertainty involved in the future value of each firm, which can change at any point depending on industry and market conditions. The methodology not only finds the optimal solution in terms of a specific target, but it allows for post-optimal analysis so that owners can obtain important insights in terms of the costs involved in adding each requirement to the model. Findings/ResultsThe model was successfully applied in a real case study. The tool played a primary role in identifying a new equity distribution for a family holding structure composed of 4 members and 26 companies. In the first step, the model derived an optimal solution in terms of the target chosen by the owners, but it did not fully satisfy all members. However, owners were able to come to a decision regarding final reassignment after doing a sensible post-optimal analysis. Originality/valuePrevious research has focused on analyzing the special characteristics of family-run businesses and how they differ with respect to non-family-run businesses in terms of performance, governance, and management, among other things. However, this paper is the first referring to the process of ownership reassignment and to use an optimization model in its methodology. It is also the first study that bridges the gaps between the disciplines of portfolio optimization, corporate finance, and family business.

Preventing and solving issues in family-run businesses

Running a business as a family can be a great venture and can secure a job for life for family members. Unfortunately, emotional ties can widen the scope for conflict. John Davies gives advice on how to set up a business to minimise the potential for clashes.

Phenotypic and Genotypic Examination of Antimicrobial Resistance in Thermophilic Campylobacter Species Isolated from Poultry in Turkey.

IntroductionThe study aimed to isolate thermophilic Campylobacter from chickens raised three rearing methods, determine its antimicrobial susceptibilities, and examine resistance-related genes by PCR.Material and MethodsCloacal swabs or intestinal contents were taken in Istanbul, Sakarya, and Izmir provinces. Chickens were from small village-based family-run businesses (n = 70), organically raised (n = 71), and conventionally raised broilers (n = 79). The samples were cultured on modified charcoal cefoperazone desoxycholate (mCCD) agar. Suspect isolates were identified with multiplex PCR (mPCR). As per EUCAST standards, MIC values were derived by broth microdilution for tetracycline, ciprofloxacin, nalidixic acid, kanamycin, gentamicin, and erythromycin in isolates of C. jejuni (n = 98) and C. coli (n = 83).ResultsIn C. jejuni, 78.6% tetracycline, 87.8% ciprofloxacin, and 81.6% nalidixic acid resistance was detected, but none was to kanamycin, gentamicin, or erythromycin. In C. coli, 98.8% ciprofloxacin and 63.9% nalidixic acid resistance was detected, whereas resistance to non-quinolones was not observed. C257T (Thr-86-Ile) mutation in the gyrA gene of all phenotypically quinolone-resistant isolates was detected through a mismatch amplification mutation assay PCR (MAMA-PCR). It emerged that all isolates bore the tet (O) resistance gene.ConclusionCommon tetracycline, nalidixic acid, and ciprofloxacin resistance exists in Campylobacter isolated from chickens raised three rearing methods.

Features of the waterpipe tobacco industry: A qualitative study of the third International Hookah Fair.

Background: Little research has been done to uncover the features of the waterpipe tobacco industry, which makes designing effective interventions and policies to counter this growing trend challenging. The objective of this study is to describe the features of the waterpipe industry. Methods: In 2015, we randomly sampled and conducted semi-structured interviews with 20 representatives of waterpipe companies participating in a trade exhibition in Germany. We used an inductive approach to identify emerging themes. Results: We interviewed representatives and four themes emerged: industry globalisation, cross-industry overlap, customer-product relationship, and attitude towards policy. The industry was described as transnational, generally decentralized, non-cartelized, with ad hoc relationships between suppliers, distributors and retailers. Ties with the cigarette industry were apparent. The waterpipe industry appeared to be in an early growth phase, encroaching on new markets, and comprising of mainly small family-run businesses. Customer loyalty appears stronger towards the waterpipe apparatus than tobacco. There was a notable absence of trade unionism and evidence of deliberate breaches of tobacco control laws. Conclusion: The waterpipe industry appears fragmented but is slowly growing into a mature, globalized, and customer-focused industry with ties to the cigarette industry. Now is an ideal window of opportunity to strengthen public health policy towards the waterpipe industry, which should include a specific legislative waterpipe framework.

Features of the waterpipe tobacco industry: A qualitative study of the third International Hookah Fair

Background: Little research has been done to uncover the features of the waterpipe tobacco industry, which makes designing effective interventions and policies to counter this growing trend challenging. The objective of this study is to describe the features of the waterpipe industry. Methods: In 2015, we randomly sampled and conducted semi-structured interviews with 20 representatives of waterpipe companies participating in a trade exhibition in Germany. We used an inductive approach to identify emerging themes. Results: We interviewed representatives and four themes emerged: industry globalisation, cross-industry overlap, customer-product relationship, and attitude towards policy. The industry was described as transnational, generally decentralized, non-cartelized, with ad hoc relationships between suppliers, distributors and retailers. Ties with the cigarette industry were apparent. The waterpipe industry appeared to be in an early growth phase, encroaching on new markets, and comprising of mainly small family-run businesses. Customer loyalty appears stronger towards the waterpipe apparatus than tobacco. There was a notable absence of trade unionism and evidence of deliberate breaches of tobacco control laws. Conclusion: The waterpipe industry appears fragmented but is slowly growing into a mature, globalized, and customer-focused industry with ties to the cigarette industry. Now is an ideal window of opportunity to strengthen public health policy towards the waterpipe industry, which should include a specific legislative waterpipe framework.

How to deal with succession in family-run care homes

Many of the UK's care homes are family-run businesses. This means that succession when an owner decides to leave the business, retires or dies can be a difficult subject. Adam Bernstein advises on how to manage the main issues around family succession.

SUNDAY TRADING IN THE NEW MILLENNIUM: SUNDAY IS THE NEW SATURDAY!

This study advances the literature by addressing the issues surrounding Sunday trading and provides in-depth insights into family-run small and medium size businesses (SMEs), employees and consumers attitudes and perception towards Sunday Trading. The results of semi-structured interviews found immense support for extending Sunday Trading hours and highlighted the socio-economic change. The arguments against Sunday Trading were found to be redundant. Sunday is the second busiest shopping day of the week. Lack of experienced Sunday workforce was found to be a major concern. Non-resident parents and parents with small children were amongst the supporters for reforming Sunday Trading act. Sunday is the new Saturday. The findings justify recent trends towards the creation of more pleasurable shopping environments that offer family activities to entice the customers into stores. Finally, more efforts should be made to understand and cater for the needs of the shoppers who believe reforming the Sunday Trading law is a necessity of today’s modern Britain. The findings demonstrate that Sunday Trading offers different benefits to consumers, employees and SMEs. The findings provide important implications for policy makers and practitioners.

A Comparative Analysis of Participating and Non-Participating Households in Pro-Poor Tourism in Southern Shaanxi, China

ABSTRACTThe ability of the poor to participate gainfully in pro-poor tourism (PPT) projects is an important but understudied factor in determining poverty alleviation impact. This study aims to address this knowledge gap by exploring the relationship between participation, income, and livelihood capital at the household level using China as a case study. We examined eight PPT projects in southern Shaanxi, a poverty-stricken region that has abundant tourism resources. Our comparative approach revealed the differences between participating and non-participating households. We found that the level of participation is 36% and the main form of participation was through family-run businesses. Participating households earned a significantly higher income than non-participating households. The former also had significantly more material, financial, political, social, and human capital. These findings underscore the capability of tourism as a poverty alleviation tool and reveal problems regarding the growing inequality between participating and non-participating households.

Sikeres nemzetközi és hazai családi vállalkozások

The purpose of family businesses are maintaining market competitiveness, develop sustainably and achieve their results in the dynamic market environment. The family run businesses are contributing significantly to the economic growth. They are interested in long-term preservation of values. The study presents the charachteristics of the world’s TOP family owned companies. In order to proving the economic value and importance of the Hungarian family businesses the study contains some findings of a representative national.

RISK MANAGEMENT OF GERMAN FRUIT PRODUCERS

Horticultural farms in Germany face substantial business risks. However, fruit farms often struggle to implement appropriate risk management processes, and the risk management literature widely has ignored this farm type. The aim of the study was to improve the assessment of risks by farmers and the choice of suitable risk management instruments. Therefore, a risk management process based on subjective probabilities and suitable for small and medium-sized farms was developed, considering the specific needs of family run businesses. An online survey was conducted to achieve a comprehensive view of the risk perception and risk management practices of German fruit producers. Price and production risks are the most relevant risk categories for fruit farmers. However, among single risk sources, those in the people risk category were seen as the most important. Results show significant interactions among risk categories and a significant correlation between loss experience and the rating of risk categories. The assumption that risk averse farmers generally rate risks higher than risk neutral or risk seeking farmers cannot be confirmed. Diversification seems to be the most important risk management instrument for many fruit producers, especially diversification of marketing channels, farm income, and production activities. Further research should focus on the apparent inconsistency between the satisfaction with instruments reported by farmers and the actual implementation of many of them (e.g., hail insurance and anti-hail net). Furthermore, there is a need for research, to develop decision models considering the interactions of risks and risk management instruments, loss experience and risk seeking attitudes.

Features of the waterpipe tobacco industry: A qualitative study of the third International Hookah Fair

Background: Little research has been done to uncover the features of the waterpipe tobacco industry, which makes designing effective interventions and policies to counter this growing trend challenging. The objective of this study is to describe the features of the waterpipe industry. Methods: In 2015, we randomly sampled and conducted semi-structured interviews with representatives of waterpipe companies participating in a trade exhibition in Germany. We used an inductive approach to identify emerging themes. Results: We interviewed 20 representatives and four themes emerged: industry growth, cross-industry overlap, customer-product relationship, and attitude towards policy. The industry was described as transnational, generally decentralized, non-cartelized, with ad hoc relationships between suppliers, distributors and retailers. Ties with the cigarette industry were apparent. The waterpipe industry appeared to be in an early growth phase, encroaching on new markets, and comprising of mainly small family-run businesses. Customer loyalty appears stronger towards the waterpipe apparatus than tobacco. There was a notable absence of trade unionism and evidence of deliberate breaches of tobacco control laws. Conclusion: The waterpipe industry appears fragmented but is slowly growing into a mature, globalized, and customer-focused industry with ties to the cigarette industry. Now is an ideal window of opportunity to strengthen public health policy towards the waterpipe industry, which should include a specific legislative waterpipe framework.

Ekolojik Hayvancılıkta Bilgisayar Teknolojisi Kullanımının Önemi

Ekolojik hayvancılık, çiftlik hayvanlarına doğal davranışlarının tüm hallerini göstermelerine izin veren, ekolojik yemlerle beslenen, verimi artırmak amacıyla hormon, antibiyotik vb. katkıların kullanılmadığı, tüketicilere daha sağlıklı ürünlerin sunulduğu, çevre bilinci ve hayvan haklarına duyarlılığın olduğu bir üretim şeklidir. Özellikle son zamanlarda ekolojik ürünlere olan talebin ciddi oranda artışı gözleri hayvancılık sektörüne çevirmiş durumdadır. Ekolojik tarımda başlıca amaç; toprak, bitki, hayvan ve insan arasındaki yaşam zincirinde üretim optimizasyonunu sağlıklı bir şekilde sağlamaktır. Bu amaçla ekolojik hayvancılığın her aşamasında bilgisayar teknolojisini kullanmak gerekmektedir. Günümüzde aile işletmeleri hayvancılıkta ön planda olmalarına rağmen, uygulama aşamasında bu işletmeler tarafından bilgisayar teknolojilerinden yeterli düzeyde yararlanılamamakta ve yetiştiriciliğin her aşamasında düzenli olarak kayıt tutulamamaktadır. Ekolojik hayvan yetiştiriciliğinde gerekli ve zorunlu olan kayıt tutma sistemi zorunlu bir otomasyon sistemini de beraberinde getirmektedir. Hayvancılık organizasyonlarının etkin şekilde kullanımı, ekolojik hayvansal üretim politika ve stratejilerinin oluşturulması ve üretim planlaması açısından daha aktif rol alması bakımından bilgisayar teknolojilerinden yararlanma son derece önemli olacaktır.

Governança Corporativa e as Questões Culturais na Organização. Um Estudo de Caso em Empresa Nacional.

The objective of this study is to discuss the importance of Corporate Governance in Brazilian organizations and in other countries. The majority of family businesses are restricted to the members and the interests of the family. The family business, however, can be committed to the business and generate value, but must respond positively to the interests of investors. From the 90s onwards, a more competitive market environment emerged and trade liberalization started to push companies more and more to participate in international competitiveness. Family-run businesses have the main challenge of promoting the implementation of a Corporate Governance model to break down barriers caused by an outdated organizational culture that the controlling and / or owner family seeks to preserve in the business. The scientific method used is a descriptive analysis and also the accomplishment of a case study in a national company. The principles of governance - fairness, transparency, corporate responsibility and accountability - are increasingly important in business activities, but their application in family businesses is still very limited. As a contribution of this study, we seek to bring to the reader a greater understanding on the subject of corporate governance.

Family firms, board structure and firm performance: evidence from top Indian firms

PurposeGiven the prevalence of family-run businesses in India, this paper aims to empirically investigate the impact of family firms on the relationship between firm performance and board characteristics. The effectiveness of board characteristics such as independent directors, chairman independence, role duality, non-executive directors, board busyness, board size, board meetings and board attendance are studied in the Indian context.Design/methodology/approachThe sample consists of top-listed firms in India for the period 2002 to 2012. Board index was constructed to capture the governance quality of the firm. The authors also study the relationship between board structure and firm performance by segregating the sample based on family management, family ownership and family representative directors. Random effects model was used for the regression analysis in the study.FindingsThe authors find a negative effect of board structure on firm performance in family firms compared to non-family firms. Contrary to the most Western literature, family management was not found to significantly affect firm performance as compared to that of professionally managed firms. In the subset analysis of family firms, higher proportion of family ownership and family representative directors did not show any significant impact on the firm performance. Having a higher proportion of independent directors, larger board size or an independent chairman does not appear to improve this insignificant relationship between family firms and firm performance. Also, in family firms, no significant difference in performance is noticed before and during recession period.Originality/valueThe study uses a self-defined corporate governance index to measure the governance parameters, specifically the board characteristics. The results documented in this study adds to the debate on the generalizability of the findings in Western governance studies in emerging markets like India with unique institutional development background.

Competitive Strategies of Croatian Small Familyrun Hospitality and Catering Enterprises

Abstract The subject of this paper is examining ways of creating strategic competitiveness in Croatian small family-run catering enterprises. Competitive advantage is necessary if the enterprise wants to survive on the market. Selection of a business strategy is an important factor because a company’s positioning is determined by profitability that can be above or below the industry average. Economic reality of the largest number of the world’s economies is characterized by domination of family-run businesses. This is followed by the growing interest in determining the importance of family-run businesses to national economies, the ways of their participation, and finding problems which they have to deal with. Family entrepreneurship represents a special area of small entrepreneurship in Croatia. This work presents core characteristics of entrepreneurship in Croatia, defined as family-run enterprise, along with its features, with special interest on some of the more important characteristics of family entrepreneurship. The main goal of this paper is to examine and analyze all the features of business strategies that generate a competitive advantage. An empirical online survey was conducted in 2015 among sixty Croatian small family-run catering enterprises. Over 40% of respondents believe that the government should facilitate an easier and more long-term administration for entrepreneurs. Research has also shown that the sustainability of competitive advantage lies in adapting to guest wishes.

Self-started versus Family Inherited Businesses: A Comparison of Managing Unorganized Food Grocery Retail Stores in an Emerging Economy

This study aims at analyzing the difference in food grocery retail store logistic management between self-started and family inherited retail businesses. The study has been carried out through in-depth personal interview of 40 unorganized grocery retail stores in Lucknow Uttar Pradesh, using a structured questionnaire. Simple statistical techniques such as descriptive statistics and cross-tabulation have been applied on the survey data. Chi-square test has been used to analyze the statistical difference in the processes of retail store management between self-started and family inherited business grocery stores. Findings indicate that those who joined the family run businesses are younger in age as compared to the ones who self-started their grocery stores. Similarly, the average retailing experience of self-starters is (10 years) and family inherited retails is (5 years), showing significant difference statistically, implying that both the groups have different level of retailing experiences. The study also analyzes the difference in methods of logistics management across the different types of unorganized retailers. Analysis indicates that both self-started and family inherited retail businesses follow similar management practices. There are a limited number of in-depth studies on unorganized retail operations based on primary data analysis. The findings of this study provide practical insights on difference in profile of self-started versus family inherited retail businesses and adoption of logistics processes in managing their stores.

Message framing in the context of the national menu-labelling policy: a comparison of public health and private industry interests.

We conducted a content analysis of public comments to understand the key framing approaches used by private industry v. public health sector, with the goal of informing future public health messaging, framing and advocacy in the context of policy making. Comments to the proposed menu-labelling policy were extracted from Regulations.gov and analysed. A framing matrix was used to organize and code key devices and themes. Documents were analysed using content analysis with Dedoose software. Recent national nutrition-labelling regulations in the USA provide a timely opportunity to understand message framing in relation to obesity prevention and policy. We examined a total of ninety-seven documents submitted on behalf of organizations (private industry, n 64; public health, n 33). Public health focused on positive health consequences of the policy, used a social justice frame and supported its arguments with academic data. Industry was more critical of the policy; it used a market justice frame that emphasized minimal regulation, depicted its members as small, family-run businesses, and illustrated points with humanizing examples. Public health framing should counter and consider engaging directly with non-health-related arguments made by industry. Public health should include more powerful framing devices to convey their messages, including metaphors and humanizing examples.

Innovation and service experiences in small tourism family firms

Purpose This paper aims to explore the pertinent issues of innovation and service experiences in family firms in the tourism industry, which are mostly small- and medium-sized enterprises. Design/methodology/approach The conceptual paper, building on social identity theory, undertakes a thorough review of the relevant literature before developing propositions regarding innovation and service experiences for small family firms in the tourism industry. Findings Small tourism family firms are faced with deficits in strategic orientation and innovation, and cooperation seems to be a means to overcome size deficits in family-run businesses. Customers integrated into the service experience enhance innovative developments and foster innovation in small tourism firms. As a prerequisite, the service experience must be appropriately managed by collecting and evaluating relevant data on customers’ needs, expectations and satisfaction. An open-minded and consumer-focused market-driven strategy seems to be an advantage. Practical implications Future research should undertake empirical studies to validate and/or modify the propositions presented in this conceptual paper. Originality/value This is one of the few studies to have addressed the relationship between service experiences and innovation for family-run small businesses in the tourism industry.

The evolution of management from a trust to arm’s length model in family run businesses

PurposeThe primary purpose of this paper is to fill the research gap regarding the evolution of managerial processes within (largely family) diamond industry firms, especially over the past seven decades.Design/methodology/approachQualitative data were gathered from interviews with 100 managers in the diamond industry in Israel, together with data from Israeli Government, industry and academic sources.FindingsOver the recent life cycle of the diamond industry, with its changing structures and dynamics, participant firms have evolved through seven stages of engagement, from one based on trust and personal connections to more impersonal, standardized connections that exist today.Research limitations/implicationsIn seeking to tell the story of industry participants as a group, the differences in behaviours between the family firms and the non-family firms have not explored. This should be the work of future research, which, if aimed at teasing out the results of this study, may help shed additional light on the strategic processes that occur within family firms.Practical implicationsAlthough the firms examined in this study were from one industry (and an arguably narrow cultural base), their development over time was not dissimilar to the experience reported in other industries and cultures. This suggests that the components of the evolution of the strategic process that ensues within family firms may be generalizable throughout cultures. In the absence of kin relationships, the importance of trust in their dealings cannot be overstated.Originality/valueThe findings demonstrate how one group of participants in the global diamond industry has responded to the changing economic, social and political contexts of their operations, where trust and personal connections have been replaced by more impersonal, standardized dealings.