Small Family Businesses Research Articles

Success and succession: agritourism, heterotopia and two generations of rural Japanese female entrepreneurs

Agritourism is promoted as a tool for rural revitalization in Japan. Farm inns are an example of agritourism and are run often by female farmers. They usually start a small family business to find a sufficient and comfortable way to make a living, with some of them focusing very little on profit and growth; they are lifestyle entrepreneurs. This article, based on multiple interviews conducted over several years with four female farmers and farm-inn owners—two elders and their daughters/granddaughters—focuses on the succession of farm-inn businesses from the older generation to the younger generation. A comparison of these different generations’ life stories shows that farm inns provide both generations with new identities as rural women, but in quite differing ways.

The Business Process of Small and Medium Portuguese Family Businesses: A Reindustrialization Case Study

Abstract Objective: To understand, through a concrete case study, the management process of small and medium-sized Portuguese family businesses in the face of the phenomenon of reindustrialization in Europe. In this case study we show how a company can react to the process by adopting a new management model, despite the factory being almost inactive for several years. The final idea is to demonstrate that this is a new reindustrialization movement, which does not perform in the same way as in the past. Methodology: Considering that we want an innovative and continuously learning organization, we intend to develop from a theoretical point of view the European Foundation for Quality model (EFQM) and then apply the improvement and management actions in each one of its aspects in order to promote and evaluate permanent and continuous improvement. For this proposal we use the change and organizational development method. Findings: Leadership is a topic with particular importance in this process of transformation, and in this case in particular, through changes in the shareholder body, generational changes and especially by the inclusion of the professional management team, for the improvement of the key performance indicators, including the EFQM score. Value Added: The implementation of a management model will lead management to a leadership style conducive to value creation and results in terms of quality, and human and financial capital based on effective organizational performance. Recommendations: Phased implementation, with the creation and development of pilot areas, is particularly beneficial to an organization’s culture, and also for engaging people via the cascading communication process.

Preserving Socioemotional Wealth of Small and Medium-Sized Family Businesses: A Propose Framework

Family businesses are found to acquired non-economic goals as compared to their business counterparts. Nevertheless, small and medium-sized family businesses are found to be facing challenges such as limited inter-knowledge sharing, lack of strategic succession planning and technology adoption that might hinder their goals achievement and sustainability. Thus, this research aims to propose a framework as to preserve the socioemotional wealth of small and medium-sized family businesses through family resources and capability such as knowledge sharing, succession planning and technology readiness. This study also proposes to test the moderating role of technology readiness in the relationship of knowledge sharing and succession planning toward socioemotional wealth of small and medium-sized family business.

Family Business, Resilience, and Ethnic Tourism in Yunnan, China

The expansion in commodification through tourism and the transformation of communities and heritages into destination attributes have become the centre of tourism research facing the COVID-19 crisis. Since small family businesses comprise the majority of the tourism industry, theories and practices on surviving the crisis are urgently required. This research attempts to clarify the level of business resilience during the COVID-19 lock down when business can only be conducted at home with very few visitors. It provides insights on family businesses in Yunnan, China, moving ahead with ethnic tourism against the lockdown and shutdown of tourism industry. Data were collected through in-depth interviews. The researchers invited previous research respondents who agreed to continue for online interviews. Eight interviewees were selected by purposive sampling. Although the COVID-19 crisis was unexpected, external shocks need to be taken into account for business planning. Tourism will not necessarily grow massively in the total number of visitors as the destinations have become saturated. The diversification of a tourism business facilitates the resilience of the firm by venturing into other areas of practice, including taking advantage of online platforms in selling local food and herbs, live broadcasting the local flora and fauna, teaching school children in making the traditional pickles, and other business extensions from tourism. Businesses are working together with other stakeholders in the effort of overcoming the COVID-19 crisis. Previous visitors from not only China but also overseas, who have kept in touch with the hosts in Yunnan, are becoming part of the supporting team for the business. However, there appears to be a lack of coordination in the community when businesses are isolated. There is a call for skills in using technology for online business, complementarity in the community, and policy support in the ethnic family businesses. Small family businesses in ethnic Yunnan are actively adapting and progressing despite the odds. They are resilient in times of crisis, with a strong presence of entrepreneurship, diversification of activities, re-organising resources, and digital literacy. The research sheds light on how community-based small family businesses surviving the crisis through resilience, entrepreneurship, and celebrating their ethnic cultures in tourism. Small-scale tourism closely linked with the community, family, and people may provide more promising prospects for tourism.

Invloed van bedrijfsstrategieën op de prestaties van kleine, familiale ondernemingen

The impact of compagny stragegies on the performance of small family compagnies. Dumoulin brick and pipe factory in Langemark and Wijtschate (Belgium), c. 1922-1981. The case of the Dumoulin brick and pipe factory (c. 1922-1981) in Langemark and Wijtschate in the southern Westhoek (Belgium) can be regarded as a typical example of a small, family-owned, West Flemish company that tried to survive in a turbulent business environment. In the twentieth century, the ceramic sector was characterized by large-scale technological changes and a rearrangement of the industrial landscape. This article reconstructs and analyzes the life cycle of the Dumoulin brick and pipe factory. The use of an explicit theoretical framework and the regional focus contribute to the international historiography of small and medium-sized enterprises and family businesses, as well as to the socio-economic history of West Flanders.

The Coronavirus as a Disrupter of a Sustainable Small Early Childhood Family Business in Vietnam

Access to quality early childhood education is a sustainable development goal towards empowering people in an emerging economy. The purpose of this study is to examine how the coronavirus disease impacted a small early childhood business in Vietnam, which experienced two waves of attacks. Previous studies have examined mainly the impact of various factors under stable environments. This study differs in that COVID-19 brought sudden, lasting, and impactful changes to the business environment. The study uses a case-study research approach that invited a small business owner to write and share the biography of the business from the start to the date of the research study and analysed the content using the theory of planned behaviour. The shared belief systems of a business to succeed led the owner to invest loan funds and join the company that became successful with planned actions. Dependence on a rental property later stalled the business growth. The owners settled into a stable way of business thinking. The two waves of coronavirus pandemic in Vietnam that affected their business location dried up cash, forcing the business into voluntary liquidation. The impact of coronavirus disease on small business in an emerging nation, Vietnam, can bring out lessons of business survival and ways policymakers can assist companies in surviving considering their capital structures under destabilising business environments. The qualitative causes found for the theory of planned behaviour can become useful for a later quantitative investigation.

The role of small and medium enterprise and family business distinctions in decision‐making: Insights from the farm echelon

AbstractSmall and medium enterprises (SMEs) and family businesses are ubiquitous in global supply chains but differ from large corporations along several dimensions touted as likely to influence their approach to supply chain management. Yet, little research exists that empirically examines how SME and family business distinctions manifest in operations and supply chain management (OSCM) decision‐making. Our study begins to address this important gap by investigating OSCM decisions in the farm echelon—a challenging but critical echelon overwhelmingly composed of small and midsize family farms. Using the hermeneutic method, we delve into the minds of 18 farmers to explore how SME and family business distinctions influence their production and storage decisions. We further examine how these distinctions interact with elements of the supply chain and the institutional environment in which farmers are embedded. Our contextualized understanding offers important implications for supply chain theory, practice, and public policy. We also provide timely guidance on the farmer's perspective amidst increased demands for a farm‐to‐fork experience.

Is small and medium-sized beautiful? The structure and evolution of family SMEs research

PurposeThe field of scientific research on small and medium-sized family businesses has been growing exponentially and the aim of this paper is to systematize the body of knowledge to develop an agenda for the future.Design/methodology/approachAdopting comparative bibliometric analyses on 155 articles (from 1989 until 2018) the authors provide a systematic assessment of the scientific research about small family firms, unveiling the structure and evolution of the field. Bibliographic coupling, co-citation analysis and co-occurrence analysis are adopted to identify the most influential studies and themes.FindingsFour clusters of research are reviewed: succession in family SMEs, performances of family SMEs, internationalization of family SMEs and organizational culture of family SMEs.Originality/valueThis paper contributes to the field of family SMEs by providing a systematic analysis of the scientific knowledge. Reviewing those clusters allows to providing avenues and reflections for future research and further practice.

Succession Planning in Micro and Small Family Business (Case: Micro and Small Family Business in East Jakarta)

Family business studies are gaining a foothold in Indonesia. This organization is the most common type of firm throughout the world. Nonetheless, the low survival rate of family businesses may relate to the issue of management succession and the issue is still the principal challenge that they need to face. This study will focus on knowing the importance of succession planning for family business owners, especially those belonging to the micro and small business category. The study involved one hundred family business owners in East Jakarta as respondents of the survey. The study itself would be focused on the ground rules made by the incumbents during succession planning. The study has revealed that, generally, the majority of the sample does not have an appropriate plan of succession. The result also exhibits that the majority of respondents favoring nuclear family members as the future successor. Moreover, the homosocial reproduction phenomenon also could be identified from the survey.

ORGANIZATIONAL CULTURE SHAPED BY ENTREPRENEURIAL ORIENTATION IN FAMILY FIRMS

Contemporary enterprises are still looking for ways and methods of achieving a competitive advantage, which invariably include entrepreneurship. Entrepreneurial orientation is an organizational construct consisting of five dimensions: proactivity, innovation, competitive aggressiveness, autonomy and risk taking. Family businesses show a significant specificity of functioning in many areas due to the dominant influence of the family on the management of such entities. It is not a uniform group, and individual companies may significantly differ, e.g. depending on the profile of their activity. However, in cases, organizational culture can determine the level of entrepreneurial orientation of the organization. In this article, research efforts focus on differences in the level of entrepreneurial orientation and building an entrepreneurial culture depending on the profile of the business. The conclusions were based on the results of the own questionnaire survey conducted among 118 small family businesses in Poland.

Organizational Capabilities, Business Strategic Orientation, and Performance in Family and Non-family Businesses in a sub-Saharan African Economy

ABSTRACT The study compares the impact of the interactions between organizational capabilities and business strategic orientation on performance for micro and small family businesses (FBs) and non-family businesses (NFBs). We use data from 207 FBs and 293 NFBs from Ghana to test our hypotheses. The findings indicate that the impact of the interaction between managerial capabilities and cost strategy on performance was more beneficial for FBs than NFBs. Moreover, the influence of the interaction between marketing capabilities and cost leadership strategy on performance was more detrimental to FBs than NFBs. Furthermore, the impact of the interaction between marketing capabilities and differentiation strategy on performance was greater for NFBs than FBs. The findings show that while FBs benefit more by leveraging managerial capabilities to pursue the cost leadership strategy, NFBs benefit more by leveraging marketing capabilities to implement the differentiation strategy. Implications are discussed.

Family Business Internationalization in Paradox: Effects of Socioemotional Wealth and Entrepreneurial Spirit.

This study investigates the internationalization (i. e., foreign investment) of small family businesses by classifying the effects of external socioemotional wealth (family reputation) vs. internal socioemotional wealth (family involvement). The study involved 2,704 small family businesses in China, and the results support the hypothesis that family reputation has a positive effect on internationalization, while family involvement has a negative effect on internationalization. Moreover, entrepreneurial spirit reinforces the positive effect of family reputation on internationalization and enhances the negative relationship between family involvement and internationalization. This study contributes by examining the effect of entrepreneurial spirit as a potential balancing factor for the paradoxical influence of internal vs. external socioemotional wealth.

At the heart of family businesses: how copreneurs craft work-life balance

PurposeThe purpose of this paper is to understand how experienced copreneurs of small family business (SFB), as the smallest unit and heart of their family business (FB), may create work-life balance (WLB). Copreneurs evince highly intertwined life-domains and often struggle to respite while managing their high business demands.Design/methodology/approachIn this couple interview study with 18 experienced copreneurial couples of SFBs (N = 36), we investigated strategies copreneurs use to create their WLB by merging a resource perspective (Hobfoll, 1989) with the concept of WLB crafting (Sturges, 2012).FindingsA key strategy in copreneurial couples was the structural establishment of microdomains, such as periods of personal resource recreation within a macrodomain (e.g. work) via individual physical and cognitive WLB crafting. Copreneurs used relational WLB crafting with a strong emphasis on seeking support and mainly to protect their microdomains by relying on their spouses as boundary keepers. Women more often expressed the importance of health and time for respite, as cognitive WLB crafting, and they were more active in creating (joint) recovery opportunities. Dyadic WLB crafting strategies were used when goal congruency for work or private activities was high.Originality/valueThis research applies WLB crafting research to the smallest unit of SFBs, namely copreneurs. The study provides in-depth insights into the strategies copreneurs of SFB use to create a satisfying WLB.

Research on the Influencing Factors of Chinese Family Business's Succession from the Perspective of Re-Creation

Under the background of great changes in China's economic environment, a large number of small and medium-sized family businesses are in urgent need of transformation and upgrading that entering the channel of re-creation. For the family business, the successor signifies the future development direction and growth trend of the business. The inter-generational succession of the family business is a multistage evolution process influenced by many factors. In the specific succession practice of family businesses, the influence of the succession of family businesses is analyzed from the perspective of re-creation in combination with the actual situation. Based on the theory analysis on influencing factors of family business’s succession and the way of the questionnaire and factor analysis measure, the research had found and explained the major influencing factors of Chinese family business's succession, namely, relationship, successor, creator, re-creation, organization, environment. It provided a reference on the inter-generational succession of Chinese family businesses from the perspective of re-creation.

Integrating family, friendship and business networks in family firms

PurposeThis paper considers the multiple social networks of small family businesses and the dynamic interactions between them. It analyses family, friendship and business networks and the way additional ties within the networks become visible when they are considered together rather than separately.Design/methodology/approachSemi-structured interviews of thirteen family-owned and managed businesses are used to establish the patterns of networking. A detailed case study is then presented, allowing a deeper qualitative analysis of the interaction of different types of networks.FindingsThe findings explore multiple rationalities employed in the networking of family businesses and how different aspects of their individual family, friendship and business networks contribute to business development.Research limitations/implicationsThe paper suggests that a multi-rational theoretical perspective of the family, rather than a solely business-related perspective, deepens the understanding of the dynamics of family businesses behavior and that different types of businesses may be influenced to varying degrees by different rationalities.Practical implicationsBusiness networking tends to be deliberately encouraged by business support agencies, often via the deliberate development of events. A deeper understanding of the manner in which small businesses use and develop networks would enhance the direction and effectiveness of such investment.Social implicationsFamily businesses, especially micro- small- and SME businesses, are often integral to the communities in which they are based. By viewing family businesses within their social space, we acknowledge the importance of the community around them and the integrated nature of family, business and community in rural areas.Originality/valueThe value of this research lies in the proposition that smaller businesses in rural areas are often surrounded by the inter-woven networks of family, business and community.

Keeping the farm business in the family: the case of farm and non-farm family businesses in the midwestern United States

Succession planning is a very crucial aspect of family business continuity. The successful transition of family businesses is especially important for small and medium scale family businesses which constitute the beginning phase of most businesses. This paper explores two critical aspects of succession planning, namely the decision to keep business ownership within the family and the transfer-readiness of family businesses. This study assessed potential correlates of these two constructs using data from small and medium scale farm and non-farm businesses in Midwest US. Results from a probit estimator showed that farm businesses were more likely to be kept within the family (P<0.01). For the full sample, the number of generations involved in daily management, the readiness of the senior management to delegate control, and the owner experience were found to be good correlates of the decision to keep the business within the family. For farms, we also found some correlation between the perception of the business as being successful and the decision to keep the business in the family (P<0.1). Results from the probit and bivariate probit models showed that capital and the number of generations in management are the most consistent correlates of transfer-readiness for the full and farm samples. Finally, we found that female owners of farm businesses were less likely to be ready for business transfers than their male counterparts (P<0.01).

Türkiye'de Tarım Sektöründeki Küçük Aile İşletmelerinin Pazarlama Desteklemeleri Üzerine Bir Güven Oyunu

Teknolojinin gelişmesine ayak uyduramayan küçük aile işletmelerinin, rekabet piyasasındaki mevcut konumlarını korumak ve etkinlik paylarını artırmak önemli bir konudur. Küçük aile işletmeleri gıda üretimin yaklaşık %80‘ini karşılamakta ve bu işletmelerin piyasadan çekilmesi gıda arzında ani düşüşe sebep olabilmektedir. Bu çalışmanın amacı küçük aile işletmelerine pazarlama eğitimi sağlanmasının, çiftçilerin becerilerini, üretimi ve karlılığı nasıl artırabileceğini göstermektir. Bu beklentilerin gerçekleşmesi büyük işletmelerin ya da kamunun sağlayacağı desteklerle mümkün olabilecektir. Bu çalışmada oyun teorisi kullanılarak, iki oyuncu (Proje kurucu ve çiftçi) arasında gerçekleşen olası stratejiler dikkate alınmış ve her aşamada elde edilecek kazançlar bulunmuştur. Sonuç olarak, yatırımı yapan kuruluş ile eğitimi alan çiftçinin iş birliği yapması, kazancı artıracağı sonucuna varılmıştır. Bu sonuç güven duygusu, iş birliği ve örgütlenmenin temelini oluşturmaktadır. Böylece üretim artarken, kalifiye eleman eksiği azalacak ve istihdama katkı sağlanacaktır. Ayrıca teknoloji kaynaklı pazarlama sorunlarının aşılmasına da katkı sağlayacaktır.

Direct and indirect effects of SEWi, family human capital and social capital on organizational social capital in small family firms

Given the importance of social capital in organizations, this research answers the question of how socioemotional wealth importance (SEWi), family human capital and family social capital influence organizational social capital in small family firms. Based on a sample of 334 small family businesses from the Biobio Region in Chile, a partial least squares structural equation modeling analysis (PLS-SEM) was performed. The results do not provide support for the predicted direct influence of family social capital on organizational social capital, but they support an indirect influence through SEWi and family human capital, both of which have a direct and positive influence on family firms’ organizational social capital. This means that SEWi and family human capital play a central role in generating organizational social capital in small family firms. It also suggests that both ability and willingness of family businesses play a role in allowing these firms to successfully transfer social capital from the family to the business system.

Consolidation strategies of small family firms in Poland during Covid-19 crisis

Objective: The objective of the article is to contribute to research into family businesses by understanding how small family businesses are responding and adapting to the Covid-19 crisis. Research Design & Methods: The research method is based on a comparative analysis of case studies. To investigate the impact of Covid-19 on small family businesses in Poland, we conducted exploratory studies in 12 entities, based on 29 partially structured interviews with managers of these companies. Findings: The sudden spread of the Covid-19 pandemic around the world took many lives and caused severe restrictions in social and private life, including the business sector. While almost every firm has been affected by the pandemic crisis, small businesses, dominated by family businesses, are particularly vulnerable to it. Our findings show that the Covid-19 crisis affects all companies and presents a completely new challenge that has so far had no precedent. Small family businesses are not prepared for the prolonged state of uncertainty and tension threatening the continuity of their operations, which particularly endangers financial stability and employee maintenance. In responding to the crisis, small family firms cannot refer to previous experience or developed methods and patterns of operation. Implications & Recommendations: Small family businesses must quickly adapt their operations to changing conditions, regardless of their size and industry in which they operate. Covid-19 in small family businesses causes changes in their approach to running the business and family life. Contribution & Value Added: According to our knowledge, this is the first empirical study in Poland on the impact of Covid-19 on small family businesses.

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.