Family Business Survival Research Articles

The relationship between succession planning and survival of family business in Delta State, Nigeria

This seminar paper focused on the Relationship Between Succession Planning and Survival of Family Business in Delta State, Nigeria. The specific objectives are to: examine the impact of leadership succession planning on the survival of family business in Delta State, Nigeria and establish the impact of mentoring on the survival of family business in Delta State, Nigeria. The population of this study consists of the management and staff of the selected SMEs, which include; Dominion Gas, Blessed Plastics, Vinco Supermarket, Roban Stores, Gabs and Anny Stores who are currently on their payroll regardless of years of experience as of January 2024. The sample size of One hundred and seventy-four (174) was obtained using the Taro Yamani sample size formula. A stratified sampling technique was used. The study was driven by primary data. The data were analyzed using correlation and regression analysis as analytical tools. Findings revealed that Leadership Succession Planning (β =.259, P < 0.00), Mentoring (β =.136, P < 0.01), Innovation Investment (β =.130, P < 0.01), and Quality of Service (β =.075, P < 0.02). These are the dimensions with the strongest positive effects on the survival of the family business. The study concluded that A business mentoring program will help both mentors and mentees to develop their potential and upgrade their expertise. Effective mentoring can be associated with positive work behaviours, improve performance and contribute to succession planning because those who have been mentored are more likely to become mentors themselves. The management should also provide equitable opportunities for employees to feel motivated to improve the quality of their varied services. This will allow all employees, regardless of the output quality, to increase the efficacy of different brands, which may encourage customer retention.

Succession Planning and Survival of Selected Family Businesses in Benue State, Nigeria

The study investigated the effect of succession planning on the survival of selected family businesses in Benue State, Nigeria. The study examined the extent to which successor selection has effect on survival of family businesses and the extent to which successor training affects the survival of family businesses. The study adopted a survey research design and primary data were collected using self-administered questionnaire. The population of the study consists of 82 selected family-owned businesses in Benue State. The study used a census sampling approach and the entire population was considered as the sample size. Data collected from the participants were analysed using descriptive statistics (mean and standard deviation) and inferential statistics (correlation and multiple regression) with the aid of the Statistical Package for Social Sciences (SPSS 23). The study found that successor selection has a positive significant effect on the survival of family businesses in Benue State (β= 0.544; p<0.05). The study also revealed that successor training has a positive significant effect on the survival of family businesses in Benue State (β= 0.208; p<0.05). The study recommended amongst others that family business owners in Benue State should have a business policy that will guide in the successor selection process to enable succession planning to be successful in their businesses.

Family climate influences next-generation family business leader effectiveness and work engagement.

Effective next-generation leadership is central to the multi-generational survival of family businesses. This study of 100 next-generation family business leaders found that business-owning families that openly express their opinions, take time to listen to each other, and squarely address difficult issues positively influence the development of the emotional and social intelligence competencies in next-generation family leaders that drive their leadership effectiveness. That kind of open and transparent communication in the family also makes it more likely next-generation leaders will be held accountable for their leadership performance by others, which increases the degree to which they are positively engaged with their work in the family firm. On the other hand, the results suggest that senior-generation family leaders who lead autocratically, a leadership style often observed in entrepreneurs who found family firms, make it less likely that next-generation family leaders will learn the emotional and social intelligence competencies that predict their leadership effectiveness. The study also found that autocratic senior-generation leaders negatively affect next-generation leader self-efficacy and make it less likely that others will hold them accountable, which limits their engagement with work in the family business. One of the study's most important findings is that next-generation leader acceptance of personal responsibility for their leadership behaviors and results serves as a mediator through which the nature of the family climate influences their leadership effectiveness and work engagement. This suggests that while the nature of family relationships may make it easier or more difficult, next-generation family leaders have ultimate control over the development of their leadership talent and the inspiration, enthusiasm, energy, and pride they feel when working in the family business.

Leadership transition and survival strategies for family-owned SMEs in an emerging economy

PurposeThis study explores the different survival strategies employed by family-owned small and medium-sized businesses in Nigeria. The study delves into the dynamics of ensuring business continuity from founders to successors and identifies the success factors that can facilitate seamless leadership transition outcomes.Design/methodology/approachThis study utilised a qualitative multiple-case study approach, with the population consisting of founders from three medium-sized family businesses in Nigeria. Semi-structured interviews were the primary data collection tool used in the study. Furthermore, company documents were analysed to gain further insights into the leadership transition strategies employed in the selected businesses.FindingsSuccessful transition and survival of family businesses are dependent on the founder's desire and support for transition, successor preparation, building trust and credibility in successors, and instilling a clear vision for the business.Research limitations/implicationsThe study's findings will provide valuable insights to leaders of family-owned SMEs, specifically in the development of effective leadership transition action plans. It should be noted that the study is limited to three family-owned businesses in two locations in Nigeria, which may restrict the generalisability of the findings. Despite this, the study offers novel contributions to the current literature by presenting practical strategies for achieving the survival of family businesses in an emerging economy.Originality/valueThis study proposed strategies for business survival, continuity, sustainability and seamless leadership transition for small and medium-sized family-owned businesses. Importantly, the study recommends action plans for present and prospective family business leaders to deepen succession pathways.

Fiduciary asset management : As a means of founders’ transgenerational succession strategy

The 1990s generation of the fall of communism has reached retirement age by now, so the time has come for a generational transition. Studies on the succession of family enterprises mainly focus on internal factors such as professionalisation, involvement of external managers, successors’ socialisation, or the issue of asset values. However, the institutional environment shaping succession options including inheritance law, formal intermediaries, succession-related tax rules also have a major impact on the long-term survival of family businesses and the transfer of wealth from one generation to the next. The objective of this paper is to shed light on the peculiar features of family enterprises and their internal factors defining succession alternatives in this country. It intends to describe the formal set of institutions and the relationship between those institutions, transgenerational wealth transfer, and succession strategies. In the case of mixed exit strategies, it analyses the options, advantages, and risks of the application of fiduciary asset management as one of the “wedges of asset management” between the principals of family enterprises and the managers.

A Strategy for Family Business Survival during the Crisis in Gulf Business Environment

A Strategy for Family Business Survival during the Crisis in Gulf Business Environment

Transgenerational Entrepreneurship and Family Constitution: An Exploratory Case Study Analysis

Research shows that family owned businesses are less entrepreneurial on average, especially after the founder departs. Despite agreement on the importance of adopting governance structures and mechanisms for the survival of family businesses, there is still a lack of togetherness or cohesion among the family members across generations, which leads to confusion and conflicts and poses a serious threat to the sustained growth and long-term survival of the business. The aim of this paper is to explore the role of family constitution for transgenerational entrepreneurship in family businesses by examining how family governance practices can contribute to strengthening the transgenerational entrepreneurship. In this regard, family constitution of a family owned business located in İzmir, was examined and in-depth interviews and exploratory case study analysis from qualitative research methods were applied.

Family business research: Reviewing the past, contemplating the future.

This paper reviews articles published in the Journal of Family and Economic Issues (JFEI) from 2010 to 2019 and considers future research opportunities. The JFEI articles utilize theories and conceptual frameworks from several social science fields, to help readers understand the importance of including both the family and business in any discussion of family businesses. The literature review addresses four family business topical areas: (1) household and business economics, (2) business continuity and succession, (3) managerial and adoption strategies, and (4) values and goals. These JFEI articles have focused on differentiating family businesses from other types of businesses; explaining the unique interface between the family and the business; and identifying the characteristics (i.e., demographics, adjustment strategies, continuity, capitals, and values and goals) for family business survival and success. In the future, family business researchers have the opportunity to better understand the impact of community resources and climate; more carefully assess the challenges of women, minorities, and immigrants; understand the role of cultural capital; and explore the impact of innovation during rapidly changing times, such as those created by the pandemic.

MANAGING SUCCESSION IN A FAMILY OWNED SMALL-MEDIUM ENTERPRISES

<p>Nowadays, family businesses are of high number in countires and contribute to the development of the economy. This research was conducted due to the importance of family business survival and it focuses on factors that affect their performance. Recently, family businesses have been identified as one of the concerns in the global entrepreneurial development agenda. This is because of the existing problem which is caused by family business owners avoid planning and treat succession as a problem instead of an opportunity. This impacts the continuity of the family-owned business. This research is made to emphasize the importance of planning and the drawbacks of negative bias in viewing succession as a problem. This study is expected to make family business owners understand the importance of planning and treating succession as an opportunity to achieve continuity. Qualitative research method was chosen as the method of the research with first generation family business owners as the key informants. Three key informants are chosen; Mr. Untoro A. Suryadi, Mr. IS and Mr. AS. In conclusion, family business should stop strategizing succession and treat succession as a practice.</p>

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.

Socioemotional wealth and performance in private family firms

PurposeSocioemotional wealth (SEW) has emerged as a defining concept that distinguishes family-owned business organizations from businesses that are not exclusively controlled by family coalitions. This empirical study expands the literature by presenting a more nuanced understanding of how individual dimensions of socioemotional wealth interacts with firm performance outcomes. Deploying the stakeholder theory, the purpose of this study is to propose a research model linking the five dimensions of SEW with firm performance to propose and test a set of hypotheses.Design/methodology/approachTo test the hypotheses, data were collected through a survey of 357 medium-to-large private family firms in Bangladesh that were involved in export-oriented production of ready-made garments. Based on structural equation modeling, the data were analyzed using SmartPLS.FindingsThe results indicate that out of the five dimensions of SEW, three dimensions – family identification, emotional attachment and renewal of bonds through dynastic succession – have a positive and significant impact on firm performance. On the other hand, family control and influence have a significant but negative impact on firm performance. The only exception is in the case of binding social ties, which indicate a non-significant relationship.Research limitations/implicationsBy attempting to provide a clearer and predictable link between family-centric non-economic goals and firm-centric business goals, the study contributes to theory building and attempts to address the conflict in the literature in the study of family involvement in management and performance of the business enterprise.Practical implicationsFor industry practitioners and family business owners, it could provide guidance on which family-centric goals would maximize benefits to the firm and address the family-based utilities. Future strategic plans aimed at growth and sustainability of family firms can derive important clues from the findings of this study and design actionable goals that leverage those dimensions of socioemotional wealth that have a positive impact on firm performance.Social implicationsSocial implications of ensuring survival of family businesses are significant because of their role as one of the largest sources of employment generation in most societies. Policymakers and regulatory authorities would be able to frame customized initiatives to foster growth and sustainability of family enterprises that have such large impact on the economy.Originality/valueTheoretical contribution of the study comes from a more nuanced understanding of relationships between the individual dimension of SEW and firm performance, which will delineate a more consistent and predictable link between family-centric goals and firm-level outcomes. From the perspective of practical contribution, this may provide useful guidelines to industry practitioners and policymakers to frame initiatives that enable growth and sustainability of family firms that are typically the largest employment generators in most economies.

The influence of socioemotional wealth in the entrepreneurial orientation of family businesses

This study analyses the effect of socioemotional wealth on the entrepreneurial orientation of family businesses. Entrepreneurship, measured through entrepreneurial orientation, is a key factor for the survival of family businesses. Second-generation structural equation method (PLS-SEM) was used to analyse the results, specifically, the SmartPLS 3.2.7 software applied to data on106 Spanish family businesses. The main contribution of this study is to show that family businesses provide an adequate framework for analysing entrepreneurship from an entrepreneurial orientation. Second, the FIBER measurement model for socioemotional wealth allows capturing the special behaviour of family businesses. Finally, with this study we ascertain that socioemotional wealth positively influences entrepreneurial orientation, thus explaining 32.6% of its variance.

With or without emotions: how does history matter for family business survival?

With or without emotions: how does history matter for family business survival?

Family firm’s management composition: the role played by family members’ age in TMT and supervisor levels

Family firms (FFs) are the backbone of entrepreneurial fabric in many countries. Management of such businesses is complex because of their features: the overlap between family and company, and roles played by several members of the owning family. In the paper we carry out a study regarding FFs management’s age composition, focusing on the analysis of owning family’ member’s age within such companies in reference to a sample of Polish family joint-stock companies. Our main purpose is to understand how management is faced by the owning family according to the age composition of board members. Given the important role that the owning family has played for the survival of family businesses, the paper focuses on the study of management tasks based on the analysis of two management levels: Top Management Teams (TMTs) (senior management) and first level managers or supervisor level (the executive). This study has been assumed to be cognitive-exploratory. In general, we consider that the results achieved reveal key aspects of FFs’ internal performance, responding to questions related to management. The results show the identification of a group of very young people aged 18–28 who are members of Supervisory boards. The average age of family members in Supervisory boards does not differ from the average age of family members in TMTs. The distribution of age of family members in TMTs and Supervisory boards is multimodal and can be split into Gaussian components. Different age components were found in Supervisory boards and in TMTs. The result achieved offers a more realistic and reliable view on the status of FFs, which can be very useful not only to its leaders but also to all the stakeholders related to it.

La gestión humana como factor de éxito en las empresas de familia del Eje Cafetero

El presente trabajo está conformado por uno de los resultados de la investigación titulada ‘Factores de éxito de las empresas de familia de Manizales, Pereira y Armenia’, que comprende el estudio de 27 casos de sociedades regionales, con el fin de determinar los principales factores de éxito que inciden en los órdenes administrativo y organizacional para una empresa familiar. El escrito expresa la importancia de la gestión humana, erigiéndola como un factor distinguido para el logro del éxito, la estabilidad y la supervivencia de las empresas de familia del Eje cafetero, teniendo como fundamento principal, las prácticas adecuadas de gobernabilidad y gestión humana que generan una orientación y rumbo concreto para las compañías que fueron tomadas como sujetos de muestra y análisis.La desaparición de las empresas familiares generalmente se da por hechos determinantes como: la sucesión en la gerencia, la falta de prácticas dirigidas hacia una buena gestión humana, y la deficiencia de competencias profesionales de los familiares para ejercer en debida forma los cargos asignados, elementos que deben ser fortalecidos para evitar el cierre de este tipo de compañías.

Practicing fairness in the family business workplace

One of the main challenges facing family firms is achieving fairness between family and non-family employees in the workplace. Family and non-family employees have the potential to offer unique and distinct contributions to the firm, which makes the achievement of fairness between them messy and complicated. Hence, two interesting questions are worth exploring: Given the complex nature of the family business human capital, how can family firms achieve fairness between family and non-family employees? Why should family business decision makers and advisors promote fair practices in the family business workplace? We first introduce a fair process model as a possible solution for family businesses to achieve fairness between family and non-family employees. Then, based on several examples and studies, we show that family business owners can benefit significantly from promoting fairness in the workplace both in terms of preserving business reputation and in terms of achieving long-term family business survival and success.

No Heir apparent? Exploring the Worker Co-operative Model as a Solution to Family Business Continuity

Family businesses, with no apparent heir, face the risk of discontinuity. While a number of family businesses rely heavily on non-family employees, the role of non-family employees in the continuity of family businesses is under-researched. The workers’ co-operative model offers one way to address this gap as it represents a model whereby non-family employees gain a stake in ownership whilst the family remains involved. In practice, conversion to ensure continuity is actively promoted in a number of countries. In this paper, the authors explore the role of the workers’ co-operative model as one possible solution to succession difficulties facing family firms. Based on the reported experiences in a number of countries, we identify the motivations behind conversion, the barriers faced and the benefits accruing. We find that, in theory, the worker co-operative model merits the attention of family business scholars as a means of securing continuity and survival of family business. We explore the factors that appear to aid or hinder successful conversions in practice and we make recommendations to policy-makers surrounding the supports required to encourage and facilitate successful conversion.

The Role of Sustainability in Long Term Survival of Family Business: Henokiens Revisited

Abstract Our previous research was designed to explore the innovation capability of the firms from the Henokiens Group surviving through ages. Now the purpose of the present study is to explore the sustainability implications of the firms in the same group by using content analysis of their websites in order to observe the role of sustainability in long-term survival of family businesses. The article proceeds in the following manner: First, we briefly review the literature. Secondly, we explore sustainability focus of firms surviving through the ages by using content analysis method. We will be analysing all firms that are listed in the www.henokiens.com . Henokiens is an association that accepts family firms which are at least 200 years of age. The 46 firms from different nationalities were analysed by content. The validity and the reliability reports and procedures are given. Finally, we provide the research findings and discuss their managerial and theoretical implications.

Socioemotional Wealth across the Family Firm Life Cycle: A Commentary on “Family Business Survival and the Role of Boards”

The differences among family firms can be as telling as their overall distinctiveness from other forms of enterprise. In order to advance and condition the arguments of Wilson, Wright, and Scholes, we employ a typology of family firm evolutionary development to illustrate how changes in patterns of family involvement in the business can influence several socioemotional wealth priorities and how these in turn can shape the board composition required to enhance firm survival. We conclude by arguing how public listing and environmental competitive circumstances can condition these relationships.

Family Business Survival and the Role of Boards

We explore the vexing question of whether family firms are more likely to survive than nonfamily firms, focusing on the role of board composition. Utilizing a unique data set of over 700,000 private family and nonfamily firms in the U.K. during 2007–2010, we find that family firms are significantly less likely to fail than nonfamily firms. We identify the board characteristics associated with survival/failure in all firms and determine that it is these characteristics that are important in explaining the lower failure probability of family firms. We conclude with an agenda for further research on boards and family firm survival.