Small Family Businesses Research Articles

Critical point on housing construction, resilience and family subjective welfare after disaster: Notes from the Lombok, Indonesia, earthquake sequence of July-August 2018

Families in earthquake-prone areas are vulnerable, the earthquake affecting their quality of life. Earthquakes also disrupt the distribution of welfare, even the fulfillment of basic family needs. In this study, we analyze the critical points of earthquake relief for housing construction assistance following earthquake sequence in Lombok, Indonesia, including the changes and the influence of resilience, i.e., economic, social, and psychological, towards the subjective well-being of the family following the Lombok earthquake sequence of July-August 2018. Using primary data collection in Lombok through a family survey questionnaire at 6 months after the earthquake, we found that there was a sharp increase in poverty and a sharp decrease of income in the first month after the disaster, which returned gradually through to the sixth month. The same pattern occurs in family resilience in terms of economic, social, and psychological aspects. We also found that changes in family security, i.e., economic, social and psychological, have a negative effect on their subjective well-being. This study highlights three critical points in rebuilding disaster victims' houses following Mw 6.4-6.9 Lombok earthquake sequence of July–August 2018. First, the decision regarding the absence of temporary shelter. Second, the statement that housing assistance funds may be used for small family businesses. Third, the validity of the damaged housing data and the choice of house type.

Родинна ферма – один із напрямків розвитку козівництва в Україні

People in Ukraine are paying more and more attention to goat breeding products, and the demand for the products encourages the population to actively engage in the industry. Currently, about 95 % of the goat herd in Ukraine is concentrated in private peasant farms. Today, none of the livestock industries in Ukraine has such a high concentration of animals among the population. So, within the framework of analytical studies, the main types of family farms have been identified in terms of their size and structure. It was determined that they are divided mostly into three main types: small household plots with up to 10 animals, small family farms with up to 100 animals and farms with more than 100 milking goats. An analysis of the farming aspects of these types of farms and the perspectives for further development revealed some general results and general trends. Goat keeping in small household plots with up to 10 goats is not subject to a deep economic and technological analysis, the management is done with an amateur approach, and the technologies are based on personal family experience and vary considerably between them. The goats are only raised for the production of their own family. Goat keeping on small family farms with up to 100 goats is oriented towards the global experience of running a small family business. These farms produce and sell milk, process it into craft products (cheese, yoghurt, etc.) and provide green tourism services. Farms, which contain more than 100 heads of goats can be classified as agricultural enterprises, where industrial technologies for conducting the industry are applied. The products are sold by wholesale or through retail outlets. In general, an analysis of approaches to farming on different family farms has revealed that small family farms with up to 100 animals are the most promising from a socio-economic point of view. They are more progressive than extensive small household plots and are more flexible in many managing aspects than large-scale farms. Family farms are able to respond to market demand in a timely and sufficiently fast manner, adapt to it and make a profit.

Magyar mikro- és kisvállalkozások családivállalat-kormányzásának specialitásai

A családi vállalkozások nemzetközi szakirodalmában előkelő helyen szerepelnek a családivállalat-kormányzás kutatás eredményei. Hazai viszonylatban a családi vállalkozások többsége mikro- és kisvállalkozás. A tanulmány célja, hogy feltérképezze a mikro-, kis- és középvállalkozások családivállalkozás-kormányzása témakörben született legfontosabb nemzetközi kutatási eredményeket és bemutassa a hazai családi vállalkozások körében a témában lefolytatott interjúk eredményeit. A szerzők kutatása rávilágít arra, hogy a magyar mikro- és kisvállalkozások esetében is fellelhetők klasszikus, családivállalkozás- specifikus (önkorlátozás, szülői altruizmus, családi opportunizmus) ügynöki problémák. Ennek ellenére a vizsgált vállalkozói körben kevéssé jellemző a családivállalat-kormányzás eszközeinek alkalmazása. Pozitívumként említhető, hogy a kutatási eredmények alapján, a második generáció nyitottságot mutat bevezetésükre és alkalmazásukra.

Internationalization: Case of an Emerging Home Decor Family Business

Komal International, India is a family-run enterprise [also called small and medium enterprises (SMEs) in India] catering to the home decor business. In its mission to become a ‘direct’ business partner (supplier) to several MNCs1, Komal International noticed specific challenges to become a ‘compliance-ready’2 export company. Consequently, the company embarked on identifying the relevant external and internal factors. The external factors were identified after assessing several MNCs that indirectly procured products manufactured by Komal International or were listed as their prospective buyers. This assessment and restructuring of its internal functioning allowed alignment with the needs of ‘compliance-ready’ export business. And in turn it provided the ability to survive in a competitive market. Purpose: This case study aims to identify challenges faced by the prospective family businesses (a supplier) to become a ‘compliance-ready’ supplier for the offshore MNCs (buyer) in the home decor market. The challenges were identified by conducting a structured questionnaire followed by a personal interview with existing and prospective buyers; further, modifications in the internal company policies lead to making a ‘compliance-ready’ supplier, useful in finding new export markets. Methodology: The approach was qualitative and included a series of in-person interviews3 with the management of the company over one year, assessing the concepts of family business internationalization as a theory, and from secondary published sources on home decor sector. As such, it was a case analysis to comprehend best practices in a family business to fulfil its vision. Basis of the Case: Phenomenon based. Type of the Case: Applied decisional. Protagonist: Present. Theory: The approach is to examine the relevance of ‘internationalization theory’ for a family business in India. Specifically, we shall, through a case study, investigate the business model adopted by an export ‘compliance-ready’ small family business to thrive in a competitive environment. Research Question: Komal International is a decade-old family business with a vision to provide home decor items globally. The protagonist, having examined the existing business model by considering the internationalization theory and the regulatory environment, has identified two specific challenges. The first is to understand the ‘compliance-ready’ strategy that in turn necessitates the internal policies to be streamlined for its business growth as a ‘direct’ exporter to MNCs. And the second is to meet an ambitious export prospect. The research question is attempted by using the internationalization theory and analysing its role as a supplier to MNCs and becoming ‘compliance-ready’ by modifying its internal company policies. Findings: The significant results suggested are the possible best practices that family businesses such as were embraced by Komal International that are aspirant to become a direct supplier to offshore MNCs may be considered for adopting. These include reworking many internal policies of the company considering (a) the internationalization theory, (b) opportunities from the revised regulatory environment established for Indian SMEs and (c) the opportunities in the global marketplace. By adopting changes within the company, the supplier side (for the buyers’ acceptance as a compliance-ready company) can be strengthened. The findings can be useful to entrepreneurs, specifically family businesses, keen on internationalization. It will be of value to researchers and other SMEs (this definition includes family-run business) in India and globally. The limitations of the study include defining quality parameters based on product specifications and small sample size in interviewing MNCs. The research experiment can be extended to include country-specific analysis, trade trends and cultural analysis.

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

ВАРТІСНО-ОРІЄНТОВАНЕ УПРАВЛІННЯ У МАЛОМУ СІМЕЙНОМУ БІЗНЕСІ, ЯКИЙ ПОСТРАЖДАВ ВІД КАРАНТИНУ

The issue of Value Based Management implementation in Small Family Business suffering from guarantine has been investigated in the study.Family firms are typically vulnerable due to their autonomous, family-oriented standing and their constrained financial capital and resources, but we presume that this applies to small family businesses rather than to big ones.This requires special methods of efficient management and means of government’s support of family business affected by quarantine. We do believe that Value Based Management (VBM) is a proper concept to be implemented in order to help them to survive and create long-term value.In the study Continuous Value Creation Cycle has been further refined. Continuous Value Creation Cycle encompasses five stages. 1 Strategic planning: Setting objectives, clarifying their indices at all levels of management. 2 Value creation: Operational processes of creating value (manufacturing goods, sales, etc.). 3 Value Assessment: Assessment of the value created. 4 Value contribution: Estimation of every department’s contribution in value created. 5 Remuneration: Using effective Remuneration System according to personnel contribution to the value created.Using this Continuous Value Creation Cycle, every entrepreneur can figure out where they should start – from setting objectives in their business to organization of remuneration system on the basis of personal contribution of every employee into the value created.Besides, the most affected by quarantine /coronavirus lockdown stages have been clarified. They are: the first (because being under tough circumstances of reducing demand, small businesses should set their objectives in a different way); the second (usual operational processes may well need deep analysis and diversification), and the forth stage (may be changed in case of diversification, because some new business units producing value may appear).The results obtained in the study can be used in further research in this realm, in further clarification of value drivers for a particular small family firm.

Industry 3.5 to empower smart production for poultry farming and an empirical study for broiler live weight prediction

Emerging countries and traditional industries may not be ready for direct migration of Industry 4.0. In particular, the broiler is a major source for meat, while poultry farming in emerging countries is mainly by small and medium-sized enterprises (SMEs) or family businesses. The live broilers need to maintain the desired specification for food processing while optimizing the feeding conversion rate for revenue management. Conventionally, broiler growth monitoring and prediction rely on farmers’ experience and a small amount of data by unrigorous sampling. Although the automatic weighing system (AWS) has gradually been employed to replace manual weighing to reduce cost and casualties, existing automatic weighing systems have limited capability for weight monitoring and weight prediction of broiler future growth. To fill the gaps, this study aims to employ Industry 3.5 as a hybrid and develop a data-driven framework for weight monitoring and prediction to support smart production for poultry farming for revenue optimization. The proposed framework contains two modules. The weight monitoring integrates Gaussian Mixture Model, bootstrapping resampling, and weighted mean technique to estimate the current weight of live broilers in the farm via big data including electronic signals collected from the farms via multiple sensors and devices. The weight prediction module employs mathematical growth functions as a basis and daily feedback for adjustment to provide real-time weight prediction to support related decisions for smart production. An empirical study was conducted in Taiwan. The results have shown the practical viability of this approach. The developed solution is implemented in the broiler industry.

Analysis of Innovation Activities of Slovak Small and Medium-Sized Family Businesses

Family businesses began to emerge in Slovakia after the change of social establishment in 1989, and since then they represent a significant group of business entities with a significant contribution to the economy, and have significant growth potential. Innovations have become a driving force for the future opportunities of these companies. Based on empirical research, this paper aims to identify the innovation activities of small and medium-sized family businesses in Slovakia and to determine their impact on the company’s economic results. We can state that out of small and medium-sized family businesses included in the survey, 76.5% have implemented innovations in the last five years. We use statistical tests to verify the research hypotheses. We can state that there is a statistically significant relationship between the size of the company and the number of types of introduced innovations, as well as between the generation running the company and the number of types of introduced innovations. Second-generation family businesses can, therefore, be considered more innovative than first-generation family businesses. We investigate the impact of the COVID-19 coronavirus pandemic on innovation activities in these companies. It is interesting that in 30.6% of family businesses the COVID-19 coronavirus pandemic positively affected their innovation activities.

Small Family Businesses: Innovation, Risk and Value

This article reviews the literature and applies principal-to-principal (PP) conflict theory to small family based businesses. The lack of accurate measurement and communication of risk leading to issues with innovation, is the primary cause of PP agency costs. Careful analysis of the risk levels reflected in the cost of debt and opportunity cost of equity provides a theoretically robust and empirically estimable process for ascertaining the true PP agency cost. Awareness of the constraining governance structures and the suggested method, based on the cost of capital, to assess small business risk can assist SME owners and financiers to SMEs to promote business efficiency and innovation.

The Impact of Industry 4.0 on Jobs Creation within the Small and Medium-Sized Enterprises and Family Businesses in Slovakia

Industry 4.0 has been creating new jobs for several years, and people are already being employed in work positions that did not exist ten years ago. Due to the speed and complexity of the changes brought about by the Fourth Industrial Revolution, it will be necessary to respond adequately and flexibly to this challenge. This research paper is devoted to the issue of Industry 4.0 outbreak into industrial enterprises, while the issue of job structure will become an increasingly urgent one. The main objective of this problem-oriented quantitative type of research is based on the analysis of the state and course of Industry 4.0 implementation process to estimate the impact of Industry 4.0 concept implementation on job creation in small and medium-sized enterprises and family businesses in Slovak Republic. A questionnaire survey in small and medium-sized enterprises in Slovak Republic was chosen as the fundamental research method. The results have shown that new technologies will increasingly displace physical labor in particular, and emerging jobs will put ever-increasing demands on human intellect. The conclusions from our findings can be the basis for the creation of educational programs not only within the workplace but also in the educational system in Slovak Republic.

Selection of Successors to Family Businesses in Taiwan: Case Study on Small and Medium Enterprises

The purpose of the study is to explore the methods which small and medium-sized family businesses in Taiwan adopt for selecting successors, the characteristics of successors, and the suitability of children’s or professional managers’ succession to family businesses. The qualitative interview was adopted to establish the contents of the survey, and 400 questionnaires were distributed to the original owners (bosses) of small and medium-sized family businesses, second generation successors (children), professional managers, graduate students in the EMBA program, and cadre members of trade associations. A total of 349 valid questionnaires were retrieved (87.25%). The grey relational analysis (GRA) was adopted as the statistical method of the study. According to the results of the study, the most common method for training successors was reserve cadre; the selection of successors was mainly based on the opinions of the bosses or chairmen; personal morality weighed heavily in the characteristics of successors; and professional managers’ succession improved the overall business performance.

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.

Psychodynamics from the Perspective of Non-family Employees during a Small Family Business Succession

This study analyses changes in non-family employees' psychodynamics during the family business succession process. Based on the main principles of human psychodynamics and from a non-family employee's perspective, this study examines how changes implemented in a family business succession influence the daily interaction between family owners and non-family employees. The study has been implemented using qualitative research methods and analysis of reached information was analysed by hermeneutic analysis. Based on case study approach this study has found that employees can influence the planning and the implementation of succession but are not actually the direct participants in this process, which is reserved primarily for the new owner/successor. It is important for the employees' psychodynamic process that they are given information about the succession and the information they are given is acted upon in the manner in which it was originally described. If non-family employees can express their thoughts and possibly influence the implementation of changes, that could lead to an improvement of their overall psychodynamic balance as it relates to the family business. The psychodynamic balance affects the employees work well-being and motivation. If employees are given information that differs greatly from the actions that are implemented within the family business that increases the need to balance the psychodynamic process and further decreases the employees sense of work wellbeing and motivation.

Perdurability, families, and internationalization processes: approaches from business history in Latin America

The main purpose of this text is to present an special issue with a set of researches that describes the history of companies, groups, and business families managed in Latin America from diverse approaches. Additionally, this article introduces the mid-range concept “durability of entrepreneurial process” as part of an agenda to business history in Latin America encouraging complementary methodologies and the theoretical debate. Economic and business history in Latin America has become open to a vigorous debate, strengthening. the analysis of sectors, large companies, national economic groups, longeval non-family business, and family-based companies as major lines of study. As emerging sublines, business historians in Latin America have also approached the study of internationalization, the evolution of organizational structures, the performance and corporate governance of businesses, women and business, and recently family succession andbusiness families in Latin America. In a much smaller proportion emerging research sublines, with great potential, have focused on small and medium-sized family businesses, immigration and ethnic descent-business. An agenda that more firmly promotes a theoretical and methodological proposal in business history studies in Latin America is urgent. The countries in which scholarship has progressed in these lines and sublines of research for over three decades are Colombia, Argentina, Mexico, Chile, Peru, Brazil, and Uruguay. The Latin America Congress of Economic History (CLADHE in Spanish) is the primary engine of discussions between economic and business historians which have held six events from 2007 and also, we must recognize the breach that the Business History Conference opened in their 2019 and 2020 meetings to discuss business history in Latin America. This presentation highlights contributions in this special issue about Mexican business groups and families, and the empirical and theoretical most relevant elements of the articles included about Argentina, Uruguay, Colombia, the Valencian SMEs in Latin America, and the political risks to invest in the region.

Determinants of Poverty in Somalia: A Logit Model Analysis

The main purpose of this study is to identify the key factors that determine a household’s poverty status. The study uses an econometric method, which called “logistic regression” analysis to determine the probability of a household being poor. The data used in the study is obtained from Somali High-Frequency Survey (SHFS) Wave II conducted by World Bank in collaboration with Somali statistical authorities in December 2017. The study found that type of residence household size, household head education, the share of literate in the household, access to electricity and small family business, agriculture fishing and hunting significantly explain the variation in the likelihood of being poor. Share of males in the household and agriculture, fishing and hunting as the main source of income for households reduces the probability of being poor. The study does not found a strong relationship between the probability of being the poor and the educational level of the household head.

Introduction to the Special Issue

Introduction to the Special Issue

What Drives the Success of a Business Entity or An Organization? A Case Study of Mydin Mohamed Holdings Berhad

Mydin, a company that transforms from a small family business to emporium and it is now the largest wholesaler in Malaysia. Mydin sell local and overseas products at affordable prices and cater to a large segment of the Malaysian population. In the hypermarket industry, having the right technology is the key that allows a business to grow, make profit, and successfully compete in the market. Mydin has to provide its products at the right time and at the best price to their customers, whilst ensuring excellent service. Getting information to people at the right time is as crucial. Mydin’s top priority is to ensure the consistency of flow of communication in their supply chain network, from the suppliers, to logistics and warehouse, to the ground staff and management team. Also, Mydin is a wholesaler that meet all consumers’ demand in one building that certainly save their time.

Innovation management practices: analysis of small family farmers on the border of Brazil and Paraguay

PurposeThis paper aims to focus on the innovation practices of small family businesses (rural farmers) living in border areas. Previous studies on small rural businesses have a low level of knowledge of innovation practices. The author acknowledges that technological innovation affects small farmers and it has a positive impact on the company’s performance. The proposal is to analyze the contribution of innovation practices in a group of small rural farmers that have similar characteristics in border countries. The potential for innovation management in the border business is also discussed.Design/methodology/approachThe hypothesis was approved with a sample of 71 small family farms and using a multiple linear regression model. This study examines those pointed 40 innovation management practices, on the border of Brazil and Paraguay in 2018. The practices were divided into five constructs, namely, strategy, processes, organisation, linkages and learning and was measured via the Likert Scale (1932) in which 1 is “not true at all” and 7 is “very true”.FindingsThe results show that small family farms are far from displaying constant management practices in innovation, as such, the author gives general recommendations for the small companies of this study.Research limitations/implicationsThe study relies on self-reported data and it does not have a longitudinal design.Practical implicationsAn important implication of this research study is that small rural organisations can become aware of the importance of generating innovation practices to achieve better long-term performance.Social implicationsKnowing whether border family farms are or have components of innovation management is a relevant issue for the generation of public policies aimed at improving the agricultural sector in the area. Borders often do not allow us to see the neighbors and the author ends up generating pre-concepts about all kinds of actions. However, the author sees in this study that there are common variables to develop a public policy of frontiers oriented to family farms.Originality/valueThe study innovates by including the same variables in the model (survey for both countries) and which can contribute to generating innovation practices in small border agricultural companies, where, clearly, the international norms and laws of each country influence each productive unit differently.

СТРАТЕГІЇ BИЖИВАННЯ МАЛОГО СЕМЕЙНОГО БИЗНЕСУ ПІД ЧАС ТА ПІСЛЯ КАРАНТИНУ

The issue of creation of Small Family Business Survival Strategies during and after quarantine has been worked out in the study.Family business unlike any other type of business has some specific features which might well help it to survive. They are: Strength in unity, Ability to handle conflicts, Fairness, Social engagement, Strong values, Pride and Mutual support. Therefore, based on these features, the Survival Triangle of Small Family Business has been developed in the paper. It is based on Short-term measures (immediate response to the quarantine challenges), Long-term Strategy (for the next several years of recession) and Family Values.Besides, the scheme of working out a strategy of Small Family Business Survival during and after quarantine has been offered. A Strategy of Survival should include a short-term part and a long-term one (in case low market demand after a guarantine is over). A long-term strategy must be based on strategic analysis, clear identification and enhancing of competitive advantages.Additionally, Decision Stages for Survival of Small Family Business being quarantined have been offered. Stage 1. Applying for governmental aid. The first immediate action is to get to know what kind of help can the government provide and apply for it оn time. Stage 2. Examination of the possibility of remote work. Not every business can be run remotely, therefore businessmen should consider delivery of their products to consumers even though they did not have such an option before. Consequently, their business models should be adjusted to the changed situation (for example, a classical shop keeper model could be transferred into Internet shop model). Stage 3. Examination of the possibility of changing your business specialization. It means application of a horizontal diversification strategy. For instance, a sewing company could be reoriented to tailoring medical gowns and masks. If this fails, Small Family Business goes to the next stage. Stage 4. Revision of skills of all the family members in order to find some way of their monetization. Stage 5. Socially responsible fundraising 50/50 (for maintaining business and anti-epidemic struggle).Implementation of all the aforementioned may well help Small Family Businesses in different countries survive quarantine and live after it. The results obtained in the study can be used in further research in this realm.The results obtained in the study can be used in further research in this realm.