Medium Family Businesses Research Articles

INFLUENCE OF THE CHARACTERISTICS OF SMALL AND MEDIUM FAMILY BUSINESSES ON CRM IMPLEMENTATION: A CASE STUDY

Purpose: This paper aims to explore the customer relationship management (CRM) strategies adopted by Family Small and Medium Entreprises (SME), while highlighting the impact of their characteristics and their assets on the choice and the adoption of these CRM strategies. Methodology: Since the unique case study approach allows in-depth, multi-faceted explorations of complex issues, we opted for it as a research strategy in order to develop a detailed understanding of the problem. Therefore, an in-depth case study was carried out within a small and medium family business in Morocco. Findings: Through this study, we have highlighted causal links between the characteristics and specificities of the family SMEs and their impacts on the adoption and implementation of CRM tools and strategies. While some characteristics linked to the nature of family SMEs such as participatory management style, familiness, the desire to transmit the business to future generations and proximity to customers constitute assets for the implementation of CRM, other characteristics, such as the desire to maintain financial independence and recruitment policies that are most often in favor of family members despite their competence, can negatively influence the implementation of successful CRM projects. Implications for Theory and Practice: The results of the present paper allow the authors to draw conclusions that are relevant to both academics and practitioners. As for the theoretical implications, this study highlights the relationship between the characteristics of family SMEs and the choice and implementation of CRM strategies, while relying on their strengths. Furthermore, developing a good understanding of the specificity of CRM adoption and implementation approaches within family SMEs has important managerial implications for family SME decision-makers, as it can help them make better decisions regarding the choice of relevant CRM strategies and to optimize the deployment of available human, financial and technological resources, while relying on their socio-emotional wealth and their motivation to perpetuate the company. Originality: This paper is one of the first to explore CRM strategies adopted by family SMEs. The authors present a conceptual framework that can help researchers and practitioners better understand how the family business nature can influence decisions about CRM tools and strategies implementation.

Investigating the Critical Factors of Employees’ Retention: A Medium Family Business in Egypt

A model of 9 Employee Retention factors (6 dependent variables and 3 demographics as moderators) is developed in the context of Family business Medium Egyptian Company. A qualitative method is used via structured interviews with 4 managers working in the company and reveals that only 5 dependent and one moderator are impacting Employee Retention which are: Salary, Benefits, Supervisor Support, Working Environment and Career Opportunities plus experience. monetary and non-monetary factors are important for employees retention, however, considering medium company inside a developing country like Egypt, how is this applied? In most of studies; salary and benefits were mentioned combined in one factor such as “compensation” or “remuneration”, which known as strong retention factor, in this study it must be separated according to the problem, as provided benefits having different effect on employees’ retention than basic salary. Another question was; are the employees demographics having effect on employees deciding wither benefits are more important than salary that impacting their retention? Results approved the necessity of separation between salary and benefits, plus they showed only experience as a moderator matters, in addition, the effect of family business which mainly concerns with work environment factor was not critical as other factors.The goal of this research is to investigate the critical factors between provided ones. The research also examines (gender, marital status, experience) if they have influence on the employees’ decision-choosing between benefits and salary. The importance of current study is to make a guide for similar contexts to find a way to consider important factors that will help to retain valuable employees. The value of this research is conducting the investigation on non-family members, with disregard of personal reasons or out of control reasons like force majeure.

The Role of Identity and Career Interest Alignment in Building Affective Commitment and Intention to Stay in Indonesian Small and Medium Family Business

The Role of Identity and Career Interest Alignment in Building Affective Commitment and Intention to Stay in Indonesian Small and Medium Family Business

Framework for Communication Model Encouraging Innovation in Thai Small and Medium Family Businesses

AbstractThis study aims to develop a conceptual framework that will be used in future research to create a model that serves as a communication tool and decision support system for Thai Small and Medium Family Enterprise (or businesse) members, both family and non-family, to encourage a family-driven innovation. Systematic review of the global family business case studies and theories will be conducted to develop the framework for the future studies. This model consists of the following factors: organization innovation, social capital, and socio-emotional wealth, “Familiness,” succession with family driven-innovation, and communication barriers within the family businesses. The plan for future studies will include: a qualitative study of twenty family SMEs with innovativeness will provide important data via semi-structured interviews with triangulation methods, data coding via pattern recognition will form an initial model aiming to reduce barriers between family members non-family employees, the model will then be tested for validity by quantitative analysis of questionnaires.

Developing capabilities for sustainability in family owned SMEs: An emerging market scenario

The academic discourse on ‘family’ perpetuity in family-owned businesses (FOB) is still burgeoning. Current findings suggest the importance of family control and family inter-generational sustainability in family-owned businesses. Though literature in family perpetuity and sustainability is well documented from the advanced economies, there is a scarcity of insights from emerging markets where this research relates. The study, therefore, sought to investigate, understand and interpret the underlying drivers of sustainability in small and medium family businesses using the stewardship theory paradigm and relying on evidence from an emerging market economy the Nigerian family business environment. A qualitative method with 41 in-depth interviews involving owners and managers of family-owned small and medium businesses was conducted. The study empirically shows that there is an interrelationship between family structure and business sustainability, hence the practice of polygamy was found to be inimical to family business success and sustainability. The study also showed that the element of spirituality arising from the ideals and values of the owning family is a significant factor for ensuring family wellbeing and business sustainability, and founding owner characteristics (industry experience) and impacts positively on the business performance and continuity. The study confirmed that the stewardship of non-family member employees within the business is provisional stewardship as non-family members rely on other incentives from the owning family members to behave as stewards. Building on the stewardship theory, the paper develops a model of sustainability for small and medium family businesses. The study contributes to the theoretical literature on stewardship and family business sustainability

Developing Capabilities for Sustainability in Family Small Enterprises

Though literature in family perpetuity and sustainability is well documented from the advanced economies, there is scarcity of insights from emerging markets where this research relates. The study, therefore, sought to investigate, understand, and interpret the underlying drivers of sustainability in small family businesses using the stewardship theory paradigm in the Nigerian family business environment. A qualitative method with 41 in-depth interviews involving owners and managers of family-owned small and medium businesses was conducted. The study empirically shows that there is an interrelationship between family structure and business sustainability; hence, the practice of polygamy was found to be inimical to family business success and sustainability. Building on the stewardship theory, the paper develops a model of sustainability for small and medium family businesses. The study contributes to the theoretical literature on stewardship and family business sustainability.

The Sustainability of Resource-Sharing Family Business in Relation to Family Non-Economic Goals

Small and medium family businesses have distinct characteristics that differ from large corporations, with distinct challenges to their owner-managers. Many entrepreneurial families seek to achieve non-economic goals and share familial resources without compensation, not necessarily maximization of their sustainable value. As a consequence, traditional financial reporting is of limited use to them, as it does not reflect their priorities. This article introduces sustainability elements in the socio-emotional-wealth theory; identifies a family business type called resource-sharing; proposes a financial ruleset to quantify the sustainable financial position of the company regarding the achievement of non-economic goals of the family; and introduces an integrated mechanism to identify strategic implications for both family and business. Concepts are applied to family businesses from three countries, to verify applicability and usefulness.

Introduction to the Special Issue

Introduction to the Special Issue

Factors affecting small and medium family businesses' internationalisation in Saudi Arabia

This study is aimed to investigate factors that influence small and medium enterprises towards internationalisation in the Kingdom of Saudi Arabia. There are variables delineated from theories which influence the firm's internationalisation, which include: size of the firm, age of the firm, education of the manager, training, experience of the manager and network relationship. The descriptive and multivariate regression analyses were used to analyse the data. A combination of stratified and snowball sampling techniques is adopted with a sample size of 119 managers of small and medium enterprises. The results of the research were consistent with past studies where it was revealed that the firm size, manager experience, training and network relationship had a significantly positive relationship with internationalisation. However, contrary to current findings outside Saudi Arabia, education of the manager and age of the firm did not have a significant positive relationship with internationalisation. This study could be considered as a pioneer study of internationalisation within the context of Saudi Arabia and expose the specific factors considered by Saudi Arabia family business managers who intend to embark on internationalisation.

Factors affecting small and medium family businesses' internationalisation in Saudi Arabia

This study is aimed to investigate factors that influence small and medium enterprises towards internationalisation in the Kingdom of Saudi Arabia. There are variables delineated from theories which influence the firm's internationalisation, which include: size of the firm, age of the firm, education of the manager, training, experience of the manager and network relationship. The descriptive and multivariate regression analyses were used to analyse the data. A combination of stratified and snowball sampling techniques is adopted with a sample size of 119 managers of small and medium enterprises. The results of the research were consistent with past studies where it was revealed that the firm size, manager experience, training and network relationship had a significantly positive relationship with internationalisation. However, contrary to current findings outside Saudi Arabia, education of the manager and age of the firm did not have a significant positive relationship with internationalisation. This study could be considered as a pioneer study of internationalisation within the context of Saudi Arabia and expose the specific factors considered by Saudi Arabia family business managers who intend to embark on internationalisation.

Governance in Family Business: A Literature Review

Public and academic discussion on corporate governance and its related issues are clearly visible in any country with active capital markets. This suggests that good governance is a crucial factor for ensuring economic development. However, few studies can be found relating to non-listed or smaller firms. With the aim of contributing to this knowledge gap, this study reviewed the literature specific to corporate governance in family business in an emerging market, Sri Lanka, a small developing country with average lower middle income. The development of corporate governance best practices in Sri Lanka has been strongly affected by British models and systems, which derive from the Anglo- Saxon model of corporate governance. However, previous researchers who found that ownership of many listed companies was concentrated mainly in individual shareholders or a family concluded that family business in Sri Lanka is very critical to the economic development of the country. This study presents a review of non-listed and small to medium family business, and their two-tier mechanism of governing.

Internationalisation of the small and medium family firm in Japan

In recent years, small family businesses in Japan are under enormous pressure to expand outside of home country due to various reasons. The purpose of this paper is to look for the appropriate internationalisation path for small and medium family firms in Japan as well as other strategic internationalisation factors and determinants. The study, qualitative research was conducted using case study as the research strategy. A small and medium sector food company was selected and studied with a prospective focus. The findings of the case study show that Uppsala, network model of internationalisation is more appropriate for the particular small and medium family business in Japan along with multi polar relationships and symbiotic management with large firms.