Family Business Management Research Articles

From Family Business Management to Professional Management in a Time-Honored Brand: The Case of Fu Yuan Guan

这个盒子描述 Fu 元 Guan 的开发进程，一张中国古老的品牌。通过私有化， Fu 元 Guan 熬过并且很快捕获了它的市场。然而，家庭企业管理风格证明了在进一步的扩大期间是一个瓶颈。有需要招募合格职业经理改进公司的全面管理，但是它似乎在那么做有挑战。这个盒子和优秀经理的途径描述这个家庭公司的每日的 operationalization，以达到展出它的内部管理怎么被实现。

Family Business Characteristics and the Approach to HRM in Overseas Ventures

This paper provides new evidence on the relationship between family business (FB) and human resource management (HRM) abroad. Our analysis provides two main results. First, not all organizational attributes of exert the same effect on the approach to abroad. Whereas participation of family members in the board of directors displays no significant impact, ownership and family managerial models favor the exploitation of the human resources supplied by the parent company. In contrast, the involvement of young successors favors an explorative attitude. Second, a multidimensional approach has better explanatory power compared with a dichotomous classification of FBs.

The Role of Relational Familiarity When Interpreting Family Business Communication

Research problem: This study investigates the difference in perceptions within the family-owned businesses of messages received from family members and outsiders to assess the role that relational familiarity (the amount of prior experience two people share communicating with each other) plays in internal business communication in these settings. Previous research has shown that this relational familiarity–along with experience with the communicative medium, the message topic, and the business context—lead to channel expansion (the ability to reduce uncertainty from a message with limited communicative cues) for business communicators. But the impact of relational familiarity on communication competence and personal biases between family members—which could impact the ability of relational familiarity to achieve its intended goals—has yet to be fully explored. Research questions: (1) Does increased relational familiarity between communicators lead to increased perceptions of message effectiveness and appropriateness in lean media settings? (2) In family business settings where familial biases may be prevalent, is increased relational familiarity linked to perceptions of increased sender likeability and lowered message negativity? Literature review: Channel Expansion Theory, which proposes that communicators can overcome the limitations of a medium by using their personal experience, guides this study. Previous research found that with personal experience with the communicator sending the message, a message receiver can enhance the limited capacity of a medium to convey cues that aid in understanding the message. Four perceptual variables—message effectiveness, message appropriateness, message negativity, sender likeability—result in benefits accrued from channel expansion and relational familiarity, such as reduced uncertainty and equivocality about the message topic. Methodology: A quasiexperimental setting was designed to elicit messages from business co-workers using email. Message senders were instructed to describe the same business problem in order for the recipient to understand the problem and decide how to proceed. Eighty-three family business owners, managers, and employees received one message from a family member belonging to the same business and one message assigned at random from a nonfamily member working elsewhere (a stranger). The 83 message receivers were asked to complete instruments measuring their perceptions of the messages. Results and conclusions: Results suggested that the relational familiarity between communicators played a significant role in improving message effectiveness and message appropriateness. Sender likeability was also enhanced when family members correctly identified the source of the message. The findings suggest that family members can benefit from channel expansion, though not as many members as expected, and that complex problem and task descriptions were communicated using lean media (communication channels that inhibit sending messages infused with communicative cues) and are perceived as most effective when described by familiar others.

EXAMINING THE RELATIONSHIP BETWEEN FIRM SIZE AND EXTERNAL ADVICE ON LEGAL MATTERS AND HUMAN RESOURCES BY FAMILY BUSINESSES

In this paper the authors study the relationship between the use of external advice and the size of a Spanish family business, focusing especially on the advice on legal matters and human resources, due to the importance of these particular issues for family firms. To fulfill this objective, an in-depth review of the literature has been performed, as well as an empirical study. The results show that a family nature of business has a positive impact in the use of human resources management external advice. Nevertheless, for legal advice no relationship can be found. Finally, in line with the literature and the results of the analysis, no positive relationship has been found between family business size and the use of external advice, in comparison to the results for companies in general. The scarcity of published work about the issue and the results obtained, especially those related to the use of legal advice for family business managers, make this paper useful for researchers and businesses managers.

Norms and Values in Family Business Management

Abstract Family entrepreneurship aiming at multi-generation, in which there is no clear distinction between the family and the business, and family members exert a significant influence on or directly manage a family business, is managed by means of norms and values, passed from generation to generation. Therefore, it is important, in the present unclear market conditions, to present the research results concerning norms and values in family business management from the point of view of the students of the Faculty of Management of Czestochowa University of Technology.

Women and family businesses. When women are left only minor roles

The number of women involved in the ownership, management and direction of family businesses has been growing in the last few years. However, women's presence has been sometimes described as ‘invisible’, without influence in decision-making, and women's efforts are not always properly recognized and rewarded in terms of job titles and salaries. Women in this type of situation have a marginal role and they are still quite numerous. This paper aims to identify some typical women's profiles sharing a minor role in their family firms. These profiles are described using three variables: women's role in the family firm; activities they actually carry out in the family firm; the type of remuneration they received. Each profile is outlined drawing both from the literature on this subject, as well as from interviews with women involved in their family firms with different roles and responsibilities. Interviewed women are all involved in small and medium-sized firms located in Italy, in the Marche region. Three women's profiles are described: completely invisible women, figurehead women and manager women. They show possible roles women can play within their family firms when the leader is a man. Moreover, they underline that women's minor role in the family firms is not always the result of stereotyping and gender discrimination. Women in fact are not always ‘victims’ and forced to operate in a secondary position. The socio-cultural context plays a very important role but women's personal reasons are equally important, as they lead women to accept a certain profile rather than another.

Family Control, Regulatory Environment, and the Growth of Entrepreneurial Firms: International Evidence

AbstractManuscript TypeEmpiricalResearch IssueWe investigate the joint effects of family control and the regulatory environment on entrepreneurial growth through the lens of socio‐emotional wealth (SEW) theory.Research FindingsTaking into consideration both economic and non‐economic goals of entrepreneurial firms, measured by sales growth and employment growth respectively, we find that, compared to their non‐family‐controlled counterparts, family‐controlled firms tend to have lower sales growth rates, but higher employment growth rates. Furthermore, less favorable regulatory environments reduce both sales and workforce growth rates to a greater extent for family‐controlled firms than for non‐family‐controlled firms.Theoretical/Academic ImplicationsWe add to the corporate governance and family business management literature by documenting that the regulatory environment moderates the corporate governance effect of family control on the economic and non‐economic goals of family‐controlled firms. The findings also contribute to the family business management literature by enriching and providing strong evidence in favor of the SEW theory through our exploration of the moderating role that macro‐governance plays in the family control‐SEW relation. This research also makes contributions to the entrepreneurship literature, laying a foundation for future empirical studies on entrepreneurial growth by separating its economic from its non‐economic dimensions.Practitioner/Policy ImplicationsOur findings provide practical implications for both policy makers and entrepreneurs. They not only help entrepreneurs better understand growth strategies in various macro‐governance settings, but also provide governments and policymakers with potential policy implications to encourage entrepreneurial and economic growth. Policies that improve the macro‐governance environment can help family firms to prosper by contributing to their economic and non‐economic growth, both of which are important for economic development.

Zayed Al Hussaini Group: the road ahead for the family business in the UAE

Subject area Corporate strategy and family business management. Study level/applicability The case is designed for usage in senior-level undergraduate courses of strategic management and managing family businesses. Case overview This case study relates the story of the launch and development of Zayed Al Hussaini Group, a family business in the United Arab Emirates (UAE). The business had been established a year after the unionization of the different Emirates by the founder, Zayed Al Hussaini, in partnership with his brother. Following a series of strategic moves, such as acquisitions and divestures, and adverse family-related events, the Group was led solely by the founder himself. Over the years, Zayed Al Hussaini Group has grown to become a successful family business in various industries of its operation, but following the death of the founder's son, the company activities have been struck with chaos. Zayed's nephew, Ahmed, who had left the family business to continue his studies and work at McKinsey & Company in London, has been called back home after eight years to take the lead of the entire Group. However, he is faced with several challenges, such as dealing with the family gap he has developed over time and balancing family and business priorities. Will Ahmed be able to make the right decisions in the role and responsibilities that have been bestowed upon him? Expected learning outcomes To analyse the process of launching a family business and making strategic decisions for managing its development over time. To assess the potential difficulties and challenges which are associated with managing a family-run organization. To evaluate the effectiveness of decisions with regards to the company's growth and succession management planning. To apply relevant theoretical concepts to the analysis of complex situations in the specific context of family businesses. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Types of governance, financial policy and the financial performance of micro-family-owned businesses in Canada

The purpose of this study is to examine the impact of type of governance on financial policy and financial performance of micro-family-owned businesses in Canada. This study utilised survey research (a non-experimental field study design). Micro-family-business owners from Western Canada were asked about their beliefs, perceptions and feelings regarding type of governance, financial policy and financial performance. The findings of this study indicate that type of governance positively impacts financial policy. The results also show that both type of governance and financial policy positively impact the financial performance of the micro-family-owned businesses in Canada. This study contributes to the literature on the factors that affect the financial performance of micro-family-owned businesses by showing that financial performance is affected by the joint impact of type of governance and financial policy, and that financial policies differ based on gender of the CEOs and length of stay of the CEOs in Canada. The findings may be useful for financial managers, family business owners, stakeholders, investors and family business management consultants.

Bisnis Keluarga di Bandung Bagaimana Mereka Bertahan-Berlanjut?

The Family business in Indonesia having capability to survive-sustain. Begin when the founder started his business, he fought remarkable that business can thrive. In order the business continues to grow and “built to last” there are many aspects and factors that must be considered, including regeneration by successors and professionalization of management. Three Dimention Development Model (Davis et al, 1997) will describe the situation of family business in Bandung consiting of The development of business, The development of family and The development of ownership. This research was conducted in three semesters, in 2011 and 2012. Using a sample of 45 companies from a variety of ages and types of business This research is descriptive -multikasus. The process of interview, observation and discussions with respondents in companies carried out by the students as a class assignment . Family Business Management class is organized by the Department of Management in Unpar.It seems the family business in Bandung can survive into old age, can reach 50 years and over. Succession from the first generation to next generation already happened or is happening. The sustainability of the business due to family commitments and a strong family beliefs . Most family business is in the mature stage, although the management and ownership is still controlled by family members.

Study of factors influencing knowledge transfer in family firms

Purpose: We propose in this paper to analyze what are the factors that influence knowledge transfer both intra and intergenerational in family firms. The main objective is to establish a framework that can be used later in empirical research, although we maintain a completely theoretical approach in this paper Design/methodology/approach: This study, which is a comprehensive framework characterized the knowledge transfer literature in family firms in terms of the factors influencing them, was developed by an extensive literature review. Findings: Based on an extensive literature review, we conclude that knowledge is best transferred when family members value the following factors: trust between family members, commitment to the family business, intergenerational relationships, intragenerational relationships, psychological ownership of the family business, successor’s aspects and training, predecessor involvement in the successor training, organizational culture and relationships with Family Business Associations. Research limitations/implications: The study demonstrates the extensiveness and variety of knowledge transfer research. However there is not the same situation in family firms’ field. For academics, these different factors can be used as a map for future empirical studies. Originality/value: There is a notable lack of research into knowledge practices in small and medium-sized enterprises and especially in family firms. Besides, there is a gap in the understanding of an effective way to transfer these resources across generations; actually, existing studies on knowledge management in family businesses are scarce. The main value of our paper is to fill out partially this gap.

Governança de Pequenas Empresas Familiares Brasileiras: Aspectos a Considerar no Modelo Adotado

O objetivo deste trabalho é discutir o conceito, o modelo e a estrutura de governança, apropriados à gestão de pequenas empresas familiares brasileiras, pois essa governança pode minimizar problemas de agência relativos à família proprietária. Governança é um instrumento de controle e de gestão que coloca em sintonia as empresas e o mercado, o qual contempla a relação da empresa com os stakeholders. Este estudo é uma pesquisa exploratória e descritiva, do tipo estudo de caso, com abordagem qualitativa dos dados. Os resultados indicam que a estrutura de governança adotada na empresa familiar analisada não é condizente com nenhum modelo presente na literatura, a qual enfatiza a grande empresa e a governança corporativa. O caso estudado apresenta particularidades e dinâmica coerentes com as características da família proprietária, com sistemas fracamente estruturados e processo decisório pautado na dinâmica do mercado.

A study of Chinese guanxi type in family business from the perspective of power-based and leadership behaviours

In Chinese society, a guanxi network is based on kinship or family ties of affection. This special pattern has a historical background and is one of the important factors that have enabled many Taiwanese enterprises to continue operating through the decades. The personal links between people create a kind of social network known as guanxi, which is a unique characteristic of Chinese society. The study aims to investigate the guanxi type of managers in Taiwanese family businesses, and examines how the guanxi type may moderate the correlation between the managers’ power and the influence tactics used to handle subordinates. We surveyed 178 managers who are working in Taiwanese family business. The results of the hierarchical regression modeling showed that as managers have more position power, especially those exercising the family guanxi, they are more likely to be assertive in their treatment of their subordinates. Managers possessing the friend guanxi often play a bridging role to complement the function of those managers with the family guanxi, who may use the assertive approach too strongly. Managers of this type can provide a “lubricant effect” and keep the family business running smoothly. We recommend that family business owners should pay more attention to relationship harmony and internal communication channels in their organisations.

FragraAroma – accord in business, concord in family

Subject area Entrepreneurship, internationalization, family-owned business management, strategic management. Study level/applicability MBA/postgraduate management program courses on family business management. The case can be taught at the beginning of the course to acquaint students with the dynamics of family-owned businesses. MBA/postgraduate/undergraduate courses on entrepreneurship. It can be used in the middle of the course to highlight the challenges presented by an entrepreneur due to change in the business environment and macroeconomic scenario. MBA/postgraduate course on strategic management. It can be used at the beginning of the course to introduce strategies for managing and sustaining growth of a business. MBA/postgraduate course on organizational development. It can be used in the middle of the course to help students understand the importance of designing an optimal organizational structure for a family business. Case overview FragraAroma was an Indian fragrance company. Anil Gupta, the Founder and Managing Director of FragraAroma, and his sister Nisha were equal shareholders of the company. With changes in the Foreign Direct Investment Policy in 2013 in India, Anil and Nisha's husband Tarun had different expansion plans for FragraAroma. While Anil was planning to expand FragraAroma internationally, but his sister and her husband wanted diversification of the company's customer segment in the domestic market itself. The case is poised at the juncture, where Anil was facing a labyrinth of critical decisions. Would he go ahead with Tarun's expansion plan or stick to his plan of internationalization? Would his decision affect the harmony of the family? Was there a way that could enable him sailing his family and family business out of the doldrums? Expected learning outcomes This case is primarily about a family business and the dilemmas faced by the owner of that family business. The case captures the challenges faced by a family business in sustaining growth and competitiveness. The case can be used to understand how decisions are taken in a family-owned business. To understand the challenges faced by a family-owned business while developing and implementing its growth strategies. To understand the opportunities and challenges presented to a family-owned businesses when macroeconomic scenarios change. To understand the spillover effects of business decisions on family relations in a typical family-owned business setup. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Management accounting in the family business: tipping the balance for survival

Purpose – This article presents the family business-specific benefits of taking a proactive approach to using management accounting practices and information. Design/methodology/approach – The (scarce) literature on management accounting in family businesses is used to discuss the obstacles and benefits of management accounting in family businesses. The benefits are presented using the three-circle model, which displays the family business system consisting of the three subsystems ownership, business and family. Findings – For family businesses, the main benefits of (increasingly) using management accounting should lie in codifying tacit knowledge, preparing for family and non-family succession, facilitating more fact-based decision-making and alleviating the production of proper information of non-family investors and creditors. Practical implications – Family business owners, as well as non-family managers in family businesses, might find helpful food for thought regarding how to establish or develop further the management accounting system in a family business. Originality/value – This article is among the first to discuss the benefits of management accounting for family businesses.

Supply chain management capability of small and medium sized family businesses in India: A multiple case study approach

Supply chain management has emerged as a vital capability of operational excellence for companies in India, which is currently one of the fastest growing emerging economies. Indian business is dominated by small and medium sized enterprises (SME). With a smaller size, narrow span of operations, and scarce resources, these businesses tend to be less advanced in their supply chain management (SCM) capabilities compared to large organizations. SMEs are predominantly owned and managed by families. Owners make strategic decisions, control and manage operations and therefore their attitude towards growth, risk appetite, and level of professionalism has a huge impact on the business. This research attempts to explore the relationships that “family-business” characteristics has on supply chain management capabilities of small and medium sized family businesses (SMFBs) in the Indian context. Our research framework is based on the interaction of two independent disciplines of research which makes a hermeneutic interpretative studies approach an appropriate lens to examine the intersection of family business and supply chain management. We use a within-case interpretive analysis of six manufacturing companies in diverse sectors to identify key constructs in the domain of “family-business” and “supply-chain management”. We then analyze the level of these constructs through across-case interpretive analyses. Finally, we use the pattern of across-case analyses to develop a set of propositions that link the relationships between the constructs of family business and supply chain management capabilities. Implications of these propositions for theory building and managerial practice are offered.

Family Ownership and Corporate Misconduct in U.S. Small Firms

This study adds to the theory of family business management by exploring the effects of family ownership on the corporate misconduct of small firms in the United States. The empirical findings indicate that small family-owned firms are less likely to commit misconduct than small non-family-owned firms. We interpret this finding as family firms aiming to achieve the trans-generational succession of moral capital. Further investigation shows a nonlinear family-ownership–misconduct relationship. A negative relationship between them only appears in mature firms. We further show that for relatively mature firms, only family firms with older owners are less likely to commit corporate misconduct.

Strategic management in private and family businesses

This Special Issue, taking five years to come to fruition, presents the latest researchon strategic management in private and family businesses in Asia Pacific regions.Asia Pacific societies have a long history of private and family businesses. Forexample, a Chinese classic, Records of the Grand Historian (known by its Chinesename Shiji, which was written from 109 BC to 91 BC), includes a chapter,“Biographies of Usurers” (Huozhi liezhuan), which describes private business peoplesuch as merchants and handcraftsmen over 2,000 years ago. During China’s QingDynasty (1644 to 1912), Chinese money merchants, who usually received in-vestments from family members, already established subsidiaries in Japan. InIndia, Tata Group, established in 1860, is regarded as the number one familybusiness in terms of size and scope. In Japan, a majority of large corporationstoday, such as Toyota and Suzuki, were actually developed from traditionalfamily businesses.There are some distinctions between private and family businesses. However,many people may think of these types of organizations as synonymous, since suchorganizations could be new ventures, small and medium-sized enterprises, and/orlarge corporations. “Private business” covers a wide range of enterprises that are

The future of family business education in UK business schools

PurposeThis practitioner paper aims to question basic assumptions about management education and to argue that a new paradigm is needed for UK business schools which embraces an oft neglected, yet economically vital, stakeholder group, namely family businesses. It seeks to pose the question of why we have forgotten to teach about family business management in the management portfolio.Design/methodology/approachThe paper adopts a stakeholder approach, building on nominal stakeholder theory to justify a change to the teaching paradigm in business schools. It builds on discussions in the extant literature about failures of business schools to address modern needs.FindingsThe authors find that business schools in the UK need to begin to engage with family businesses through embracing the next generation from families in business. Policy needs to be developed that will support the next generation in a positive way by teaching about the family in business.Originality/valueThe paper aims to stimulate discussion about key stakeholders and prompt review of neglect of this key area of business study in the UK.

Empresas familiares e a profissionalização da gestão: estudo de casos em empresas paulistas

DOI: 10.5902/198346592465 The present study was to examine, from two case studies, management processes (strategic planning, management control systems and human resources) and cultural (succession and organizational culture) two family businesses in the state of São Paulo. Concepts were discussed, and specific features, as well as factors related to organizational management of family businesses (planning, control, people management, culture and succession) to support the studies described. Through interviews and observation of routine business, it was concluded that there is evidence that the management in Company "B" moving towards professionalization, due to be developing a formal strategic planning. This company already has clear goals for employees and creating an area of ​​people management. In contrast, Company "A", still needs to improve its organizational structure, as there is lack of planning, strategies and formal actions, so that decisions are focused on owners and taken in light of action-reaction.