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From family successors to successful business leaders: A qualitative study of how high-quality relationships develop in family businesses
Abstract
Little attention has been given to the role of interpersonal relationships in building the leadership skills of next-generation successors, with most literature focusing on the development of their business and technical skills. Drawing on Leader-Member Exchange (LMX) theory, we qualitatively explore how high-quality relationships develop between next-generation leaders and family and non-family stakeholders and how they impact leadership development. Findings from interviews with 24 next-generation leaders of family businesses in India show that high-quality relationships develop through mutual respect, trust, early affiliation with the business, mentoring, and mutual obligation. By exploring how high-quality relationships develop between next-generation family business leaders and family and non-family stakeholders, we contribute to a finer-grained understanding of successful intergenerational succession in family businesses. We also contribute to LMX theory by considering networks of relationships (and not just dyadic relationships) and by identifying two antecedents that are specific to family businesses (early affiliation with the business and mentoring) to the previously identified ones (trust, mutual respect, and mutual obligation).
... Di sisi lain, bisnis keluarga juga memiliki sejumlah keunggulan yang bisa menjadi kekuatan mereka. Salah satu keunggulan utama adalah adanya loyalitas dan komitmen yang tinggi dari anggota keluarga yang terlibat dalam bisnis (Glyptis et al., 2021;James et al., 2021;Kandade et al., 2021). Faktor ini sering kali membuat bisnis keluarga mampu bertahan lebih lama dibandingkan dengan perusahaan non-keluarga. ...
... Generasi penerus sering kali memiliki perspektif yang berbeda mengenai pengelolaan bisnis, terutama terkait penggunaan teknologi, inovasi, dan manajemen modern. Tantangan yang dihadapi adalah bagaimana mengintegrasikan ide-ide baru dari generasi muda tanpa mengesampingkan tradisi dan nilai-nilai yang sudah ada (Glyptis et al., 2021;Kandade et al., 2021). ...
... Isu ini penting karena tanpa struktur yang baik, bisnis keluarga rentan terhadap masalah manajemen seperti kurangnya pengawasan, koordinasi yang buruk, dan ketidakefisienan. Makalah ini mengangkat perlunya sistem manajemen yang jelas dan profesional untuk menjaga stabilitas dan pertumbuhan bisnis (Glyptis et al., 2021;Kandade et al., 2021;Maseda et al., 2022). ...
Kegiatan usaha adalah segala bentuk aktivitas individu atau
organisasi dengan tujuan menghasilkan produk berupa barang atau
jasa kemudian dipergunakan untuk mengatasi masalah yang sedang
terjadi berupa keterbatasan yang dialami oleh individu atau
kelompok lainnya untuk menghasilkan manfaat dan keuntungan.
Jenis kegiatan usaha cukup beragam mulai dari Usaha Mikro Kecil
Menengah (UMKM) hingga perusahaan besar yang bergerak di
berbagai sektor ekonomi seperti manufaktur, jasa, teknologi, dan
lainnya.
Kegiatan usaha bersifat dinamis yang dipengaruhi oleh faktor
internal dan eksternal yang terus berkembang. Perubahan
permintaan pasar meliputi kebutuhan konsumen tekait gaya hidup,
dan teknologi, misalnya peningkatan pada produk yang ramah
lingkungan atau organik mengharuskan para pelaku usaha untuk
terus berinovasi pada produknya. Kedua, Tren pasar seperti
digitalisasi, e-commerce atau pola konsumsi juga ikut mempengaruhi
tingkat adaptasi para pelaku usaha agar tetap relevan dan kompetitif.
Persaingan usaha baik pada usaha sejenis atau perusahaan
dengan alternatif produk barang dan jasa mendorong para pelaku
usaha untuk meningkatkan efisiensi, kualitas produk, layanan, dan
harga agar tetap unggul. Para pelaku usaha juga perlu terus
berinovasi berupa mengembangkan produk baru, peningkatan layanan, hingga penerapan teknologi baru untuk mempermudah
operasional dan meningkatkan pengalaman konsumen. Para pelaku
usaha juga perlu lakukan transformasi digital untuk tetap relevan di
era modern pada beberapa aspek seperti penggunaan e-commerce
dan sosial media sebagai sarana pemasaran, dan penerapan sistem
ERP (Eterpise System Planning) untuk manajemen sumber daya
manusia. Peraturan pemerintah juga mempengaruhi operasional
kegiatan usaha seperti peraturan tentang pajak, lingkungan, dan
tenaga kerja
... These businesses typically adopt a long-term orientation, focusing on passing a robust business to future generations. They prioritize long-term viability and cultivate strong stakeholder relationships to ensure a positive and sustainable future (Ferreira et al., 2021;Kandade et al., 2021;Olson et al., 2003). In family businesses, the average founder's lifespan is twenty-four years, often determining the owner's tenure. ...
... This method allows for rich descriptions based on the primary actors' narratives of their lived experiences, which the researchers can then reinterpret (Pettigrew, 1990). This study selected this approach due to its efficacy in revealing novel and significant theoretical and applied discoveries Kandade et al., 2021). The researcher created well-defined categories by concentrating on specific areas in family business; these were then updated and improved through an iterative feedback loop to ensure validity (Harwood & Garry, 2003;Krippendorff, 2018). ...
... With this method, rich descriptions can be obtained based on the primary actors' narratives of their lived experiences, which the researchers can then reinterpret (Pettigrew, 1990). This study selected this approach due to its efficacy in revealing novel and significant theoretical and applied discoveries Kandade et al., 2021). The researcher created well-defined categories by concentrating on certain specific areas in family business; these were then updated and improved through an iterative feedback loop to ensure validity (Harwood & Garry, 2003;Krippendorff, 2018). ...
Family business dominates the Indian corporate landscape, reflecting the country’s strong familial culture. While sustainability in family business is a growing research area, its understanding in the Indian context remains limited. This study aims to investigate the factors contributing to family business sustainability in India and examines the relationships among these factors. Employing a qualitative approach, this research analyzes multiple case studies from Gujarat and Rajasthan. Data was collected through in-depth interviews with family business owners and successors and analyzed using content analysis. The findings reveal five key factors contributing to family business sustainability: succession planning, strategic diversification and expansion, innovation and adaptability, mentorship and knowledge transfer, and competitive advantage. A conceptual framework illustrates the interconnectedness of these factors, highlighting how succession planning supports knowledge transfer and fosters innovation, while strategic diversification often requires innovative approaches. This research offers valuable insights for family business owners navigating growth and sustainability challenges. It also provides a foundation for policymakers to develop targeted measures supporting family business, which significantly contribute to India’s economy. The study’s originality lies in its focus on the Indian context, offering a nuanced understanding of family business sustainability in a rapidly evolving emerging economy. By exploring the unique characteristics of Indian family businesses, this research contributes to the literature on family business sustainability in diverse cultural contexts.
... Ultimately, networks impact, amongst other factors, radical change adoption and hence the longterm success of the firm (Ciravegna et al., 2020). Extant research showed that family firms display both, different network configuration compared to nonfamily firms (Bika & Frazer, 2021;Carney, 2005;Kandade et al., 2021) as well as heterogeneous behavior when detecting and implementing radical change 1 (Covin et al., 2016;Nieto et al., 2015;Shepherd et al., 2020), due to complex dynamics in family firms (Maseda et al., 2022). More specifically, family firm networks typically display close-knit (Karlsson, 2018), homogenous ties (Lester & Cannella, 2006), limiting the integration of external knowledge (Brinkerink, 2018;Nieto et al., 2015) and innovation (Herrero, 2018). ...
... Additionally, family firms construct networks rooted in kinship, ethnicity, community, and political ties, fostering solidarity (Carney, 2005). By forming 'as-if-family' ties, developing non-kin connections grounded in shared values, trust, and compatibility, family firms can enhance knowledge sharing (Bika & Frazer, 2021;Kandade et al., 2021). ...
In this literature review, we explore the pivotal role of family firms’ networks (e.g., relationships with employees, suppliers, or customers) in the detection and implementation of radical change. Prior research has mostly taken an isolated perspective, studying only one or two of the three fields “family firms,” “networks,” and “radical change.” We provide a comprehensive synthesis of existing literature, including 79 scholarly papers and use the Input-Process-Output (IPO) framework as an organizing instrument to analyze insights from research on family firms, networks, and radical change. We develop a research agenda targeted at linking networks, radical change detection, and radical change implementation in family firms, highlighting that family firm networks, with their distinct configurations and behaviors, can significantly influence the success or failure of radical change adaptation.
... • Quality of family relationships. A high quality of family relationships predicts success in leadership transfer to successors (Kandade et al., 2021;Umans et al., 2021). When family relationships are of low quality or there are high levels of conflict, a non-family CEO is more prevalent (Waldkirch, 2020). ...
... High-quality family relationships are crucial for leadership of family members and their relationships with non-family stakeholders. Several factors have been found to be relevant in developing these relationships, including early affiliation to the family business, mentoring, trust, and mutual respect (Kandade et al., 2021). ...
Today, family businesses worldwide navigate various challenges to thrive. Effective leadership, capable of managing the complexities of family, business and ownership, is critical to sustaining their entrepreneurial activity in the long-term. Our aim with this chapter is to contribute to the understanding of leadership in the context of family businesses. To achieve this goal, we review the concept of leadership and current approaches to understanding it, explore the implications of being a leader in the family business context, examine the challenges and opportunities of leadership succession, propose a further research agenda, and elaborate on the implications for theory and practice.
... The authors chose to adopt the "Gioia method", a specific methodology of analyzing data used to bring rigour and for inductive building of theory (Gioia et al., 2013;Iglesias et al., 2023;Kandade et al., 2021;Troise, 2022). This method is useful for discovering new insights by exploring the views of the actors involved, to provide empirical descriptions of the phenomena under consideration (especially in the case of limited scholarly literature), to overcome the range of data and gain a rich understanding of the investigated topic (Branicki et al., 2023;Kandade et al., 2021;Stefan et al., 2022). ...
... The authors chose to adopt the "Gioia method", a specific methodology of analyzing data used to bring rigour and for inductive building of theory (Gioia et al., 2013;Iglesias et al., 2023;Kandade et al., 2021;Troise, 2022). This method is useful for discovering new insights by exploring the views of the actors involved, to provide empirical descriptions of the phenomena under consideration (especially in the case of limited scholarly literature), to overcome the range of data and gain a rich understanding of the investigated topic (Branicki et al., 2023;Kandade et al., 2021;Stefan et al., 2022). Given the exploratory and qualitative nature of the research and its aims, this method-with the related inductive approach adopted-is particularly suitable and allows the researchers to better disentangle both strategic and operational dimensions (Stefan et al., 2022). ...
This article aims to explore the role of stakeholder engagement in partnerships and the effects that it has on small‐ and medium‐sized enterprises' (SMEs) competitiveness and their ability to expand into foreign markets. This study employs a qualitative approach to research by gathering empirical data from nine SMEs that have engaged in a partnership fostered by a digital platform that operates as an online sales channel. Our study reveals that SMEs engaging in cooperative activities are able to leverage external stakeholders to improve their competitive advantage and increase their capabilities to permeate into foreign markets and better their structural costs and product variety. The insights derived from this study prove useful to both theory and practice. First, the obtained findings underline the significance of cooperative activities in enhancing SMEs' likelihood of growth and thriving amidst the ever‐changing global market. Second, the present article underlines the impact partnerships have on all three dimensions of stakeholder engagement, namely strategic, pragmatic and moral. Third, the present manuscript corroborates the influence of digital platforms in fostering collaborative initiatives. Finally, the findings carry insights supporting the significance of shared values, norms and objectives amongst businesses as crucial elements of the stakeholder engagement process.
... In that sense, little attention has been paid to the role of interpersonal relationships in the development of leadership skills of successors, indicating that there is a challenge to build highquality relationships of leaders through mutual respect, trust, early affiliation with the company, mentorship, and mutual obligation (Kandade et al., 2021). In relation to the previous authors, De Groot et al. (2022) indicate that the formation of social capital in business families is a fundamental challenge, seen as the need to implement family governance to improve social capital having as mediator family identity and cultural transmission mechanisms. ...
... Basic innovation challenges are presented, such as the digitization of businesses, the use of the internet, the insertion of digital mentality and the use of ICT. (Union et al., 2022;Keen & France, 2022;Rashid & Ratten, 2020;Rozmi et al., 2020); and there are also more specific and complex challenges in FBs which are unlocking the conservative mindset, balanced use of emotional wealth, building strong relationships, family constitution, positive approach to leadership, and implementing family governance for family transmission (Rondi et al., 2019;Rehman et al., 2023;Kandade et al., 2021;Arteaga & Menéndez-Requejo, 2017;Caspersz & Thomas, 2015;De Groot et al., 2022). Therefore, it is demonstrated that the initial challenge for performance in FB in the digital age is the defamiliarization of business under a fundamental policy in the company is the professionalization of employees (Zhong et al., 2023;Habba et al., 2022) to coincide in decisions according to reason, actions and emotion. ...
Objective: Identify the factors, characteristics, strengths, challenges, and opportunities that are required in family businesses (FB) to face innovation in the digital age. Theoretical Framework: Reviewed information on the development of family businesses in the digital age and the needs for innovation. Method: An exploratory study was carried out, for the analysis and selection of information, the PRISMA method and hermeneutics were used; In addition, publications from the last five years (2019-2023) from repositories such as Web of Science, Scopus, ScienceDirect, among others, were included. Likewise, the review of 55 scientific articles has been systematized using MS Excel software. Results and discussion: The factors were trends, consumer preferences, increasing competition, internal competencies and business model knowledge. Characteristics highlighted were transgenerational entrepreneurship, values and new forms of digital integration at kinship and genealogy level. Strengths were the ethical attitude, trust, identification and involvement of family management. Challenges were the digitalization of companies, the use of ICT, unlocking the conservative mentality and the defamiliarization of the company. Research Implications: It demonstrates the need to include FBs in the economic theory for study, as well as the consideration of practical specificities for their sustainable development. Originality/value: This study contributes to the literature to proceed with the innovation of a family business in the digital age, considering factors, characteristics, strengths, challenges and opportunities within an innovation ecosystem.
... Previous research has concentrated on developing the next generation's business and technical skills (Dhaenens et al., 2018;Ferris & Voia, 2012). Current issues on succession success in family businesses are related to developing the next generation's leadership through quality relationships with their predecessors (Kandade et al., 2021;Umans et al., 2021). Umans et al. (2021) argued that the intention of the company to transfer family business management to the next generation, as well as high-quality relationships between the current leader (incumbent) and the next generation, determine the success of intergenerational succession planning in family businesses. ...
... High-quality relationships foster intense interaction, inspire future generations to participate in family business decision-making, and strengthen their dedication to the family firm (Lansberg & Astrachan, 1994). Moreover, Kandade et al. (2021) found that the next generation's success in leading the company is undoubtedly a quality relationship between the next generation and family and stakeholders; this high-quality relationship can develop leadership from the next generation. The emergence of a high-quality connection between the two individuals is due to mutual respect. ...
This article aims to describe the impact of external factors (government policy and collaboration synergy) and internal factors (successor knowledge and successor willingness) on the future viability of small and medium enterprise (SME) family businesses during the COVID-19 pandemic and experimentally validate the significance of firm age and gender as moderators. Partial least squares structural equation modeling was used to analyze data from 170 owners or the next generation of family business SMEs. This study discovers evidence that government policy, collaborative synergy, successor knowledge, and successor willingness all significantly influence the SME family business’s viability. Meanwhile, it has been found that company age has a role in moderating the synergies between government policy and collaborative synergy with sustainability. However, gender is not proven to moderate the influence of internal factors on sustainability. The findings of this study imply that SME families must be able to form successors with the ability and knowledge to obtain business opportunities. During the COVID-19 epidemic, there must be an intense commitment to be responsible and transmit the family company to attain sustainability. In addition, the owner/next generation of family business businesses must take the initiative to take advantage of government assistance and collaborate with stakeholders.
... The importance of host-guest relationships, social relationships, and emotional connections in value creation cannot be overlooked in family businesses and the tourism industry (Glowka et al., 2021;Calabrò et al., 2021). Active customer involvement is also critical for scientific and consumer behavior development (Kandade et al., 2021;Pikkemaat & Zehrer, 2016). While SMEs dominate the tourism sector, family businesses have a higher likelihood of survival if their owners are entrepreneurial and adopt innovative and proactive behaviors (Davis & Harveston, 2000;Signori & Fassin, 2021). ...
... Firstly, family businesses should prioritize sustainability and CSR practices to ensure long-term success and a positive social impact (Fonseca & Carnicelli, 2021;Canosa & Schänzel, 2021;Marques et al., 2014). Secondly, succession planning is crucial for family businesses to ensure continuity and effective leadership transitions (Kandade et al., 2021;Pongelli et al., 2021). Thirdly, women's involvement in family businesses should be encouraged and supported, as they can bring unique perspectives and skills to the table (Getz & Carlsen, 2005;. ...
... However, ensuring the successful transition of leadership from one generation to the next is a difficult and crucial task for organizations (Bathija & Priyadarshini, 2018). To achieve transgenerational entrepreneurship, complete succession planning is required, in which firm owners who are also leaders proactively plan for the seamless transition of leadership to the next generation (Kandade et al., 2021). Successful leadership transitions include selecting credible successors to manage the organization in the next generation while ensuring family unity (Bozer et al., 2017). ...
... Successors must have broad capabilities in order to develop investments and preserve stakeholder relationships. Effective intergenerational business succession requires both the incumbent and the successor to be committed (Kandade et al., 2021). The collaboration of these two generations promotes innovation and competitiveness (Joshi, 2018). ...
The COVID-19 pandemic has posed significant challenges for family businesses around the world, forcing them to adapt to the "new normal." In family businesses, succession planning is critical for ensuring continuity and growth. The objective of this study is to look into how company leaders in Malaysia have implemented succession planning in previous research. It examines the context of Malaysian family businesses, focusing on the critical elements of succession planning and the challenges that business leaders face. A semantic approach was used in this study to focus on surface-level themes based on participants' explicit statements. The study's findings reveal that, although formal succession planning is recommended, informal practices are prevalent in Malaysian family businesses, impeding effective generational transfer. Limited scholarly research in Malaysia underscores the necessity for more structured and well-documented succession planning strategies. The study emphasises the value of formalisation, urging family businesses to consider succession planning as a strategic investment. Cooperation between incumbents and successors is critical for fostering innovation and competitiveness, both of which are required for adapting to changing market dynamics. This article concludes by emphasising the importance of structured succession planning approaches for Malaysian family businesses. By addressing these issues and embracing formal strategies, family businesses can secure their legacy, ensuring their continued success and contribution to the economy.
... Family stewardship is a central premise in family firms due to the unification of ownership and management. However, unlike a nonfamily firm, the object of their stewardship is not necessarily the financial well-being and profit of the business but the pursuit of family goals (Kandade et al., 2021) to serve the family interest. ...
... Another crucial factor that emerged is the importance of comprehensive successor training. Successful cases often included not only formal training in business operations but also in leadership and communication skills, essential for managing the interpersonal dynamics within a family business (Arif et al., 2022;Kandade et al., 2021). Preparing successors for these interpersonal challenges proved as critical as technical skill-building, as successors lacking such preparation struggled with leadership complexities, increasing the likelihood of failure (Brenes et al., 2011). ...
Purpose
This study aims to investigate the factors influencing successful and unsuccessful succession in Pakistani family-owned businesses (FOBs), with a focus on the interplay between formal governance practices and socio-cultural dynamics. By examining key elements in succession planning and leadership transition, the study offers insights tailored to the unique challenges faced by FOBs in emerging markets such as Pakistan.
Design/methodology/approach
Employing a multiple case study approach, this research examines generational transitions across ten Pakistani FOBs. Data were collected through semi-structured interviews with key family members involved in the succession process, with thematic analysis applied to identify patterns.
Findings
The findings indicate that proactive succession planning, formal governance mechanisms and thorough successor training are critical for achieving smooth leadership transitions in Pakistani FOBs. Companies that implement structured governance and clear succession processes experience fewer internal conflicts and greater business continuity. However, socio-cultural factors, such as seniority-based preferences and gender biases, present significant obstacles, often complicating the transition process. Additional challenges include resistance to modernized strategies, and sibling rivalry strongly influence succession outcomes in the Pakistani context and highlight the need for culturally sensitive governance approaches to improve business continuity.
Practical implications
Practical implications for family-owned businesses include early succession planning, structured governance mechanisms and comprehensive training for successors. Establishing family councils can minimize conflicts and align family goals. Addressing cultural biases, such as gender and seniority preferences, encourages merit-based succession, ensuring smoother transitions. These strategies enhance continuity, reduce disruptions and support sustained growth, particularly in culturally influenced contexts like Pakistani family-owned businesses.
Originality/value
By examining succession dynamics within the context of an emerging economy such as Pakistan, this study provides valuable insights into the unique cultural and organizational challenges facing FOBs. The findings enrich the understanding of succession in family enterprises and extend current knowledge on the influence of socio-cultural factors in business continuity.
... Each family member respects, honors, and is open to one another in every situation. This aligns with the findings ofKandade et al. (2021), which suggest that mutual respect can be fostered through support, communication, feedback, and mutual learning. This was confirmed during interviews with the first generation, conducted six times. ...
Family companies are very developed in Indonesia, but not all family companies can survive from generation to generation. In the desire to maintain the company, the first generation must prepare potential successors, to continue the family business so that it continues to grow. Preparing a successor or second generation to replace the position of the first generation is called the succession process. This research aims to determine the succession planning carried out by PT. Mahkota Putri Sejati in leadership transfer, management transfer, and family relationships. This research uses a qualitative approach with a case study method. The type of data used in this research is qualitative data in the form of interviews with informants and observations at the company. There are two sources of data for this research, including primary data in the form of interviews and secondary data in the form of documentation or written data by PT. Mahkota Putri Sejati. The results of this research indicate that the transfer of leadership that has been prepared by the first generation to the next generation of PT. Mahkota Putri Sejati is carried out through learning values and norms which will become the foundation for potential successors. Second, the learning and management transfer process carried out by the first generation to the next generation of PT. Mahkota Putri Sejati is carried out directly involving the company's operational activities. As well as family relationships that were instilled by the first generation in the next generation of PT. Mahkota Putri Sejati by instilling an attitude of mutual respect, respect, and openness to all family members involved.
... In research focusing on social exchanges, leader-member exchange (LMX) investigates the relationship between a leader and employees (Carnevale et al., 2020;Pearson & Marler, 2010). Research generally differentiates between low and high levels of LMX, with the latter characterized by respect, trust as well as mutual obligation (Kandade et al., 2021). Such relationships imply exchanges which -in contrast to low-quality LMX -go beyond a professional contract (Liden & Maslyn, 1998), which is often observable in family firms characterized by a "pseudo-family" atmosphere (Soluk et al., 2021, p. 373). ...
... Furthermore, support systems within the organization significantly influenced work outcomes, leading to heightened satisfaction among women regarding their jobs and career trajectories (Patwardhan et al., 2018). On the other hand, role models that we interact with, also known as personal role models, are individuals with whom we have direct and personal relationships, such as family members, friends, teachers, mentors, bosses, organizational leaders, or even peers (Kandade et al., 2021). These serve as sources of guidance and mentorship, providing individuals with the necessary skills and knowledge to achieve their goals and as important role models in learning to lead (Posner, 2021). ...
... It represents a complex interplay of attitudes towards work, organizations, and tasks, influenced by both organizational and personal factors (Nešić et al., 2020). Strong relationships, both personal and professional, thrive on a foundation of mutual respect and trust (Kandade et al., 2021). This principle extends to the workplace, where respect, trust, and performance form the cornerstones underpinning employee engagement (Melhem and Al-Qudah, 2019;Rahal and Farmanesh, 2022). ...
Employees play a crucial role in service firms, significantly influencing performance and value creation. Success in this regard depends on the efficient management of human resources as internal consumers. Therefore, this study examines the influence of organizational trust (OT) on job engagement (JE) and explores the moderating role of internal marketing (IM) on the relationship between organizational trust and job engagement. The study model was formulated and tested using data from 448 full-time employees in five-star hotels and category-A travel agencies in Egypt, specifically, in the Greater Cairo area. Findings revealed that OT positively impacts JE. IM positively impacts OT and JE. In addition, IM has a positive moderating impact on the relationship between OT and JE.
... An extensive body of research shows that a leader's age is connected to their administrative success (Ali, Li, Khan, Shah, & Ullah, 2021;Kandade, Samara, Parada, & Dawson, 2021;Schiuma, Schettini, Santarsiero, & Carlucci, 2022). For instance, it has been discovered that leaders in their fifties have superior administration abilities than those below their fifties, maintaining that people can generally constantly divide into complex functions until they mature (Campos-García & Zúñiga-Vicente, 2020). ...
Previous studies tend to not only assess principals’ demographic variables but also use other dependent variables, such as administrative effectiveness, job performance, and student achievement. In the literature, principals’ demographic qualities and the misuse of material capital have been under-assessed. This study used a quantitative approach to investigate the demographic attributes of principals and the abuse of school material capital in secondary schools. Using a questionnaire, data were gathered from 667 secondary school administrators in Cross River State, Nigeria. The findings revealed significant differences in the misuse of school material capital by principals of different ages, professional qualifications, and years of experience. However, major disparities between male and female principals were not identified. More specifically, principals who were older, seasoned, and possessed bachelor’s and Master of Education degrees were efficient managers of school material capital. A high rate of misuse was found among principals who were younger and inexperienced than their counterparts who were young, less experienced, and possessed a postgraduate diploma in education, as well as other professional academic qualifications unrelated to the field of education (e.g., HND, BSc, BA, and MSc). Based on these findings, key implications for quality service delivery and administrative effectiveness were discussed.
... By exploring this relationship, the paper aims to contribute to the understanding of the mechanisms through which entrepreneurs contribute to the transformation of economic development paradigms, fostering a culture of innovation and sustainable growth. Ultimately, the research findings may pave the way for a more innovation-driven and high-quality economic landscape (Kandade et al., 2021). ...
This paper deeply discusses the far-reaching influence, function, and internal mechanisms of entrepreneurship in promoting the development of high-quality economies by taking a-share listed companies in Chongqing and Chengdu from 2015 to 2022. In order to quantify the impact of entrepreneurship, this paper adopts a comprehensive index, which is constructed by the principal component analysis method and supplemented by total factor productivity as a strict robustness test. These paper’s findings emphasize the key role of entrepreneurship in promoting China’s rapid economic growth and show that entrepreneurs can realize the extraordinary development of enterprises by using internal control and directing a large amount of investments to R&D. This could lay the foundation for high-quality growth, which is becoming more and more important in the face of economic uncertainties. Our research is an indispensable resource for policymakers and entrepreneurs in China, providing them with valuable insights and strategies to meet the complex challenges in the process of pursuing high-quality economic development. In the changing economic environment, a subtle understanding the role of entrepreneurs could promote future economic growth and innovation of China.
... Additionally, if employees know the reporting structure within the FOPBC, chances are high that the conflicts will be reduced. Tien et al. (2019) and Kandade et al. (2021) observed that when FOBs fail to differentiate between family and business boundaries, it can lead to familial issues that impede the business's smooth operation. Professionalization of the FOBs can assist them to survive into future generations. ...
This paper sought to explore the factors influencing the intergenerational survival of FOPBCs in Zimbabwe. An exploratory research design was used to collect data from a population of 153 participants, made up of founders, managers, and inspectors working for FOPBCs in Harare, Zimbabwe. A 5-point Likert Scale questionnaire was designed and self-administered to the participants. Exploratory Factor Analysis (EFA) utilizing Principal Axis Factoring (PAF) extraction and Oblique with Kaizer Normalization Rotation, in IBM SPSS Statistics v 26, was used to examine the factors influencing survival of FOPBCs in Zimbabwe. An 8-factor solution, accounting for 84.76% of the total variance was established and all the factors were named accordingly. The factors which emanated from the EFA were succession planning, family entrepreneurial orientation, family total resources, leadership, management, strategic planning, corporate governance, and the external environment. The study concluded that, while all FOPBCs were affected by the external environment, firms capable of effectively implementing, monitoring, and controlling the other seven factors had higher chances of witnessing successful intergenerational business transitions. A clear strategy incorporating succession planning, family entrepreneurial orientation, family total resources, leadership, management at the same time upholding corporate governance practices will see FOPBCs surviving across generations.
... Second, the clear communication between family owners and employees, as well as the show of concern for employee satisfaction, creates an environment of trust and collaboration between family owners and digital technology employees [86], [87], [88]. Third, by their ability to offer job security or retain talent [50], [87], and provide mentoring, training, and opportunities for employees to develop business and IT skills [89], [90], family owners endear themselves to employees. This ensures that a balanced level of communication, objective value capture metrics, and partnering are achieved and, ultimately, BITA, which leads to sustained firm performance [59]. ...
This paper examines the performance effects of business IT alignment in the context of family firms. Using a unique survey-based dataset of 954 European family firms, this study provides empirical support for the prediction that business IT alignment is associated with family firms' performance. However, this result is weaker in family firms that prioritize family goals.
... The result for Question 3, on the other hand, indicates that most of the respondents disagree that their family business is a factor in choosing a course. Because of the relational ties that come with owning a family business, taking on a leadership position in the business is one of their options besides regular employment (Kandade et al., 2021;Nason et al., 2019). This option can be seen as an opportunity or a burden for the individual, depending on their capabilities and skills. ...
High school students are always excited about their college years. But behind the feeling of excitement is an indecisive and anxious mind. College can help students understand who they are and what they want to do in the future. It can also help them become a better version of themselves. The study intends to determine if family, friends, and in-demand jobs are some of the variables considered by students when choosing a college course. Results show that students who have a common interest in a course create more discussion about the topic, making it easier for them to decide. Peer influences have shown limited influence among respondents in terms of choosing a college and eventually choosing a course. Students also think of the availability of jobs, employment opportunities, and job requirements as significant factors in choosing their courses.
... However, the credit support and financial resources available to them in China do not catch their significant contributions to the national economy, which has become one of the major obstacles that hinders the development of SMFBs. However, past research on family businesses mainly focuses on the internal governance and management of large family-owned corporations (Chiang et al., 2022;Kandade et al., 2021;Singh et al., 2021;Tiberius et al., 2021;Waterwall & Alipour, 2021). At the same time, most studies of small businesses neglect the micro-sized firms, which are the majority of them, due to data availability. ...
This article examines the impacts of traditional and digital finance on the financing of small and micro family businesses (SMFBs) in China. Based on a comprehensive sample of 8625 SMFBs from China Household Financial Survey (CHFS) data, our results from Tobit regressions showed that traditional finance did not reduce the financing constraints of SMFBs, while digital finance significantly promoted SMFBs’ access to credit. Further analyses revealed that additional credit from digital finance helped SMFBs increase their business scale and operational capability, but decreased their profitability due to the high loan cost associated with digital finance. Our findings imply on the one hand that government policies aiming at encouraging commercial banks to provide loans to small and micro enterprises in China have been producing very limited effects. On the other hand, digital finance is an effective micro-loan provider for SMFBs thanks to its strong ability in collecting and integrating individuals’ credit history data, although more measures are needed to take for turning this financing enhancement of SMFBs into their profit growth. These findings enrich the literature on family business by comparing the effectiveness of different financing sources for SMFBs in China. It provides important insights for future policy design on how to ease financial constraints in SMFBs and support the development of SMFBs.
Plain English Summary
This study investigated the effects of traditional finance and digital finance on the financing of SMFBs in China. Tobit regression results indicated that traditional finance did not alleviate the financing constraints experienced by SMFBs. Despite the use of advanced financial technologies and the encouragement from government policies, commercial banks are still unwilling to extend credit to SMFBs. Digital credit, by contrast, enhanced the financial accessibility for SMFBs. Moreover, increased financing from digital finance was positively associated with SMFBs’ business expansion and operational ability, although it did not enhance the profitability of SMFBs in a short run. To effectively promote the financing and business success for SMFBs, efforts from multiple agents need to be taken. The owners of SMFBS should involve more in-depth in business operation and take greater responsibility for enterprise management. Policymakers should consider commercial banks’ objectives and interests, when encouraging them to lend to small and micro businesses, and monitor the true interest rate of digital financial services.
Purpose
Recognising the value of sustaining virtuous values in family business across generations, this paper aims to provide a conceptual framework and propose a mediated-moderated mechanism through which family members’ traits, such as family size and parenting style, influence the extent to which family business’s virtuous values transfer across generations.
Design/methodology/approach
The paper is based on systematic literature that was conducted using specific keyword searches in the business source databases of Emerald, ProQuest, ScienceDirect, EBSCOhost and SpringerLink.
Findings
This paper leads to a conceptual framework proposing a mediating relationship between family members’ traits and the transfer of virtuous values to the next generation. Further, two parallel mediators are proposed, moderated by traits of family members’ offspring, such as the age gap and gender of offspring.
Research limitations/implications
This paper proposes a conceptual framework focusing on transferring virtuous values across generations in the family business. It investigates family members’ traits, such as the size of the family and parenting style, to comprehend the family members’ traits and the transfer of virtuous values relationship.
Practical implications
The proposed conceptual framework should form the basis of interventions adopted by family business members to enhance the transfer to virtuous values across generations by positively impacting their moral self-efficacy and affective commitment to virtuous values.
Originality/value
Prior research on family businesses has primarily explored transgenerational succession. However, sustaining virtuous values across generations is equally important to retain a business’s legacy. Very limited scholarly attention has focused on these virtuous values in family business.
Different social exchange relationships among family members and between family and non-family stakeholders influence individual, group, and family-firm outcomes. Although many studies provide insights into social exchange relationships in family businesses, these studies are scattered across multiple literatures. Using the lens of social exchange theory, we review and organize 74 such studies. After discussing what is known and what gaps remain, we juxtapose our review with new theorizing about social exchanges to elicit research opportunities for family business research and for leveraging the family business context to “give back” to social exchange theory.
Ця книга у відкритому доступі - ваш квиток до підприємницького успіху! Дізнайтеся практичні поради, як мислити як підприємець, помічати можливості, будувати ключові відносини, розповідати переконливі історії та розвивати свій бізнес. Відкрийте для себе секрети подолання викликів, управління стресом та прийняття рішень у динамічному світі підприємництва. Незалежно від того, чи ви досвідчений підприємець, чи тільки починаєте, ці прості інструменти допоможуть вам досягти успіху в складному підприємницькому середовищі. Попрощайтеся з непосильними рішеннями та привітайте спрощений шлях до здійснення вашої підприємницької мрії!
Questo libro ad accesso libero è il vostro biglietto per il successo imprenditoriale! Imparate i consigli pratici per pensare come un imprenditore, individuare le opportunità, costruire relazioni chiave, raccontare storie avvincenti e far crescere la vostra impresa. Scoprite i segreti per superare le sfide, gestire lo stress e prendere decisioni nel dinamico mondo dell'imprenditoria. Che siate imprenditori esperti o alle prime armi, questi strumenti semplici vi guideranno al successo nel complesso panorama imprenditoriale. Dite addio alle decisioni opprimenti e date il benvenuto a un percorso semplificato per costruire il vostro sogno imprenditoriale!
Dit open access boek is jouw ticket naar succes als ondernemer! Leer praktische tips om meer als een ondernemer te denken, kansen te zien, belangrijke relaties op te bouwen, overtuigende verhalen te vertellen en je onderneming te laten groeien. Ontdek de geheimen van het overwinnen van uitdagingen, het omgaan met stress en het nemen van beslissingen in de dynamische wereld van ondernemerschap. Of je nu een doorgewinterde ondernemer bent of net begint, deze eenvoudige hulpmiddelen leiden je naar succes in het complexe ondernemerslandschap. Zeg vaarwel tegen overweldigende beslissingen en hallo tegen een vereenvoudigd pad naar het bouwen van je ondernemersdroom!
Este livro de acesso livre é o seu bilhete para o sucesso empresarial! Aprenda dicas práticas para pensar mais como um empreendedor, detetar oportunidades, construir relações importantes, contar histórias convincentes e fazer crescer o seu empreendimento. Descubra os segredos para ultrapassar desafios, gerir o stress e tomar decisões no mundo dinâmico do empreendedorismo. Quer seja um empresário experiente ou esteja apenas a começar, estas ferramentas simples guiá-lo-ão para o sucesso no complexo panorama empresarial. Diga adeus às decisões avassaladoras e olá a um caminho simplificado para construir o seu sonho empresarial!
这本开放获取的书籍是你通往创业成功的入场券！学习实用技巧，让你的思维更像创业者、发现机遇、建立关键关系、讲述引人入胜的故事，以及发展你的企业。发现在充满活力的创业世界中克服挑战、管理压力和做出决策的秘诀。无论你是经验丰富的创业者，还是刚刚起步，这些简单明了的工具都将引导你在复杂的创业环境中取得成功。告别令人不知所措的决定，向打造创业梦想的简化之路问好！
Buku akses terbuka ini adalah tiket Anda menuju kesuksesan wirausaha! Pelajari kiat-kiat praktis untuk berpikir seperti seorang wirausahawan, menemukan peluang, membangun hubungan yang penting, menceritakan kisah-kisah yang menarik, dan mengembangkan usaha Anda. Temukan rahasia untuk mengatasi tantangan, mengelola stres, dan membuat keputusan dalam dunia kewirausahaan yang dinamis. Baik Anda seorang wirausahawan berpengalaman atau baru memulai, alat bantu sederhana ini akan memandu Anda menuju kesuksesan dalam lanskap kewirausahaan yang kompleks. Ucapkan selamat tinggal pada keputusan yang membingungkan dan sambutlah jalan yang disederhanakan untuk membangun impian wirausaha Anda!
Bu açık erişimli kitap girişimcilikte başarıya giden biletiniz! Bir girişimci gibi düşünmek, fırsatları tespit etmek, önemli ilişkiler kurmak, ilgi çekici hikayeler anlatmak ve girişiminizi büyütmek için pratik ipuçları öğrenin. Girişimciliğin dinamik dünyasında zorlukların üstesinden gelmenin, stresi yönetmenin ve karar vermenin sırlarını keşfedin. İster deneyimli bir girişimci olun ister yeni başlıyor olun, bu basit araçlar sizi karmaşık girişimcilik ortamında başarıya götürecektir. Bunaltıcı kararlara veda edin ve girişimcilik hayalinizi inşa etmek için basitleştirilmiş bir yola merhaba deyin!
Dieses frei zugängliche Buch ist Ihre Eintrittskarte zum unternehmerischen Erfolg! Lernen Sie praktische Tipps, um wie ein Unternehmer zu denken, Chancen zu erkennen, wichtige Beziehungen aufzubauen, überzeugende Geschichten zu erzählen und Ihr Unternehmen wachsen zu lassen. Entdecken Sie die Geheimnisse der Bewältigung von Herausforderungen, der Stressbewältigung und der Entscheidungsfindung in der dynamischen Welt des Unternehmertums. Egal, ob Sie ein erfahrener Unternehmer sind oder gerade erst anfangen, diese einfachen Werkzeuge werden Sie zum Erfolg in der komplexen Unternehmenslandschaft führen. Verabschieden Sie sich von überwältigenden Entscheidungen und begrüßen Sie einen vereinfachten Weg zum Aufbau Ihres unternehmerischen Traums!
Este libro de libre acceso es su billete hacia el éxito empresarial. Aprenda consejos prácticos para pensar más como un emprendedor, detectar oportunidades, establecer relaciones clave, contar historias convincentes y hacer crecer su empresa. Descubra los secretos para superar los retos, gestionar el estrés y tomar decisiones en el dinámico mundo de la iniciativa empresarial. Tanto si eres un emprendedor experimentado como si acabas de empezar, estas sencillas herramientas te guiarán hacia el éxito en el complejo panorama empresarial. Despídete de las decisiones abrumadoras y da la bienvenida a un camino simplificado para construir tu sueño empresarial.
Tämä avoin kirja on lippusi yrittäjyyden menestykseen! Opi käytännön vinkkejä, joiden avulla voit ajatella enemmän yrittäjänä, havaita mahdollisuuksia, rakentaa keskeisiä suhteita, kertoa vakuuttavia tarinoita ja kasvattaa yritystäsi. Löydä salaisuudet haasteiden voittamiseen, stressin hallintaan ja päätöksentekoon yrittäjyyden dynaamisessa maailmassa. Olitpa kokenut yrittäjä tai vasta aloittamassa, nämä suoraviivaiset työkalut opastavat sinua menestymään monimutkaisessa yrittäjyysmaisemassa. Sano hyvästit ylivoimaisille päätöksille ja tervehdi yksinkertaistettua polkua yrittäjäunelmasi rakentamiseen!
Ce livre en libre accès est votre ticket pour la réussite entrepreneuriale ! Apprenez des conseils pratiques pour penser davantage comme un entrepreneur, repérer les opportunités, établir des relations clés, raconter des histoires convaincantes et développer votre entreprise. Découvrez les secrets pour surmonter les défis, gérer le stress et prendre des décisions dans le monde dynamique de l'entrepreneuriat. Que vous soyez un entrepreneur chevronné ou que vous débutiez, ces outils simples vous guideront vers le succès dans le paysage complexe de l'entrepreneuriat. Dites adieu aux décisions écrasantes et bonjour à un chemin simplifié vers la réalisation de votre rêve entrepreneurial !
Αυτό το βιβλίο ανοικτής πρόσβασης είναι το εισιτήριό σας για την επιχειρηματική επιτυχία! Μάθετε πρακτικές συμβουλές για να σκέφτεστε περισσότερο σαν επιχειρηματίας, να εντοπίζετε ευκαιρίες, να χτίζετε βασικές σχέσεις, να λέτε συναρπαστικές ιστορίες και να αναπτύσσετε το εγχείρημά σας. Ανακαλύψτε τα μυστικά για να ξεπερνάτε τις προκλήσεις, να διαχειρίζεστε το άγχος και να λαμβάνετε αποφάσεις στον δυναμικό κόσμο της επιχειρηματικότητας. Είτε είστε έμπειρος επιχειρηματίας είτε μόλις αρχίζετε, αυτά τα απλά εργαλεία θα σας οδηγήσουν στην επιτυχία στο πολύπλοκο επιχειρηματικό τοπίο. Πείτε αντίο στις συντριπτικές αποφάσεις και γεια σε μια απλουστευμένη πορεία προς την οικοδόμηση του επιχειρηματικού σας ονείρου!
이 오픈 액세스 책은 기업가적 성공을 위한 티켓입니다! 기업가처럼 생각하고, 기회를 포착하고, 중요한 관계를 구축하고, 매력적인 스토리를 전달하고, 벤처를 성장시키기 위한 실용적인 팁을 알아보세요. 역동적인 기업가 정신의 세계에서 도전을 극복하고, 스트레스를 관리하고, 의사 결정을 내리는 비결을 알아보세요. 노련한 기업가든 이제 막 시작한 기업가든, 이 간단한 도구는 복잡한 창업 환경에서 성공으로 이끄는 길잡이가 되어줄 것입니다. 복잡한 의사 결정은 이제 그만하고 창업가의 꿈을 이루기 위한 간소화된 길을 만나보세요!
Denna bok med öppen tillgång är din biljett till entreprenörsframgång! Lär dig praktiska tips för att tänka mer som en entreprenör, upptäcka möjligheter, bygga viktiga relationer, berätta övertygande historier och få ditt företag att växa. Upptäck hemligheterna bakom hur du övervinner utmaningar, hanterar stress och fattar beslut i entreprenörskapets dynamiska värld. Oavsett om du är en erfaren entreprenör eller precis har börjat, kommer dessa enkla verktyg att vägleda dig till framgång i det komplexa entreprenörslandskapet. Säg adjö till överväldigande beslut och hej till en förenklad väg till att bygga din entreprenörsdröm!
Αυτό το βιβλίο ανοικτής πρόσβασης είναι το εισιτήριό σας για την επιχειρηματική επιτυχία! Μάθετε πρακτικές συμβουλές για να σκέφτεστε περισσότερο σαν επιχειρηματίας, να εντοπίζετε ευκαιρίες, να χτίζετε βασικές σχέσεις, να λέτε συναρπαστικές ιστορίες και να αναπτύσσετε το εγχείρημά σας. Ανακαλύψτε τα μυστικά για να ξεπερνάτε τις προκλήσεις, να διαχειρίζεστε το άγχος και να λαμβάνετε αποφάσεις στον δυναμικό κόσμο της επιχειρηματικότητας. Είτε είστε έμπειρος επιχειρηματίας είτε μόλις αρχίζετε, αυτά τα απλά εργαλεία θα σας οδηγήσουν στην επιτυχία στο πολύπλοκο επιχειρηματικό τοπίο. Πείτε αντίο στις συντριπτικές αποφάσεις και γεια σε μια απλουστευμένη πορεία προς την οικοδόμηση του επιχειρηματικού σας ονείρου!
이 오픈 액세스 책은 기업가적 성공을 위한 티켓입니다! 기업가처럼 생각하고, 기회를 포착하고, 중요한 관계를 구축하고, 매력적인 스토리를 전달하고, 벤처를 성장시키기 위한 실용적인 팁을 알아보세요. 역동적인 기업가 정신의 세계에서 도전을 극복하고, 스트레스를 관리하고, 의사 결정을 내리는 비결을 알아보세요. 노련한 기업가든 이제 막 시작한 기업가든, 이 간단한 도구는 복잡한 창업 환경에서 성공으로 이끄는 길잡이가 되어줄 것입니다. 복잡한 의사 결정은 이제 그만하고 창업가의 꿈을 이루기 위한 간소화된 길을 만나보세요!
Este livro de acesso livre é sua passagem para o sucesso empresarial! Aprenda dicas práticas para pensar mais como um empreendedor, identificar oportunidades, construir relacionamentos importantes, contar histórias convincentes e fazer seu empreendimento crescer. Descubra os segredos para superar desafios, administrar o estresse e tomar decisões no dinâmico mundo do empreendedorismo. Quer você seja um empreendedor experiente ou esteja apenas começando, essas ferramentas simples o guiarão para o sucesso no complexo cenário empresarial. Diga adeus às decisões avassaladoras e dê as boas-vindas a um caminho simplificado para construir seu sonho empresarial!
このオープンアクセス・ブックは、起業家として成功するためのチケットです！起業家のように考え、チャンスを見つけ、重要な人間関係を築き、説得力のあるストーリーを語り、ベンチャー企業を成長させるための実践的なヒントを学ぶことができます。起業というダイナミックな世界で、困難を克服し、ストレスを管理し、決断を下す秘訣を発見してください。経験豊富な起業家も、起業したばかりの起業家も、これらのわかりやすいツールが、複雑な起業の世界で成功するための道しるべとなる。複雑な決断を迫られることなく、起業家としての夢を実現するためのシンプルな道しるべを手に入れよう！
这本开放获取的书籍是你通往创业成功的入场券！学习实用技巧，让你的思维更像创业者、发现机遇、建立关键关系、讲述引人入胜的故事，以及发展你的企业。发现在充满活力的创业世界中克服挑战、管理压力和做出决策的秘诀。无论你是经验丰富的创业者，还是刚刚起步，这些简单明了的工具都将引导你在复杂的创业环境中取得成功。告别令人不知所措的决定，向打造创业梦想的简化之路问好！
Transgenerational entrepreneurship entails the proactive development of a self-sustaining family-owned business that can be passed down through multiple generations, whereas family business succession refers to the transfer of business ownership and management to the next generation through inheritance. Choosing a successor in small and medium-sized enterprises requires a more comprehensive approach than in larger corporate firms due to fewer potential successors. The purpose of this research is to identify the challenges and factors that incumbents must consider when selecting a successor and implementing a succession plan. The study identifies challenges such as the involvement of an informal family member in the selection process, internal conflicts between the family and the business, the incumbent’s attachment to their leadership legacy, and the successor's readiness to assume responsibility. When it comes to succession planning, education, competence, demographic factors, relationships with family members and incumbents, experience, integrity, birth order, and primogeniture are all important factors to consider.
This chapter offers simple rules for riding the emotional roller coaster. These simple rules are: Don’t ignore your negative emotions; running a venture can be exhausting, so make sure you manage your entrepreneurial energy right; follow your entrepreneurial passion; build your emotional intelligence; pursue moderate stress at work to enhance life; and build your team’s emotional intelligence to enhance its performance.
Embarks on a critical exploration of leadership effectiveness against the backdrop of escalating global crises, such as catastrophic events, conflicts, poverty, infectious diseases, and corruption. Asserting the contemporary world's dire need for capable leadership, this study aims to dissect the core criteria and standards essential for developing leaders proficient in navigating the complexities of modern societies. With a focus on the descriptive and comparative analysis of both transformative and controversial leaders from various sectors and countries, the research meticulously examines their leadership styles, strategies, and ethical considerations to discern the qualities that distinguish effective leaders in times of crisis. The study is driven by the objective to answer pivotal questions regarding the criteria for capable leadership and the standards necessary to cultivate future leaders who can adeptly address and mitigate the multifaceted challenges plaguing modern countries. Through a comprehensive evaluation of case studies, the research aims to illuminate the patterns, divergences, and commonalities in leadership approaches, decision-making processes, and their consequential impact on societal well-being and governance. Anticipating the establishment of a robust framework for leadership assessment and development, the study underscores the importance of ethical standards, resilience, and strategic foresight in shaping leaders equipped to lead with integrity, innovation, and inclusivity. By contributing to the scholarly discourse on leadership, this research aspires to provide actionable insights and recommendations for the development of future leaders capable of confronting and surmounting the current era's global challenges with competence and ethical consideration. This in-depth analysis is not only timely but essential for understanding the dynamics of leadership in the modern era, offering a blueprint for cultivating leaders who can truly make a difference in a world rife with crisis and uncertainty.
The purpose of this chapter is to investigate the in-depth experiences of succession planning on the performance of family-owned small and medium enterprises (SMEs) in Sri Lanka and understand the reasons behind the failures of succession planning and how to overcome them. Drawing from in-depth semi-structured interviews with 10 (ten) Sri Lankan owners in private logistics sector were selected as the participants while employing the Leader-Member Exchange (LMX) theory to evaluate the viewpoints. The findings revealed that trust, loyalty, respect, and obligation are paramount important to the succession while lack of discipline, lack of practical knowledge, lack of self-awareness, lack of mental strength, lack of commitment given are found to be the main reasons for failures. Hence, mentorship, clear communication of expectations, freedom to follow in their parents' footsteps and allowing them to find their own passion within the business, encouraging the modern generation to gain practical experience can immensely aid in overcoming the challenges.
Building on an in-depth case study of a four-generational Scottish family firm, we generate a triple-layered model of socialization. Our findings go beyond the traditional focus on internal family socialization and value transmission and suggest that socialization involves three concentric layers unfolding over time, each with a distinct set of dimensions, values, challenges and processes: internal (transmitting knowledge within the family), interactive (resolving competing role demands through peer interactions), and experiential (interacting with both peer groups and malleable societal/economic frames). This novel theorization provides a promising framework for future research seeking to explain the complexities of socialization processes in transgenerational family firms.
Building on the entrepreneurial orientation (EO) literature, we investigate the relationship between family firm performance and autonomy, a key EO dimension. To enhance the understanding of the role of autonomy, we compare the joint impact of environmental dynamism and national cultural context (performance-based vs socially supportive cultures) on the autonomy–performance relationship of family firms in the United States and Taiwan. Using a configurational approach and data from 130 family firms (53 in the US and 77 in Taiwan), we found that in dynamic environments, autonomy is associated with improved performance in the United States, while in Taiwan, firms in dynamic environments fared worse with increasing autonomy. We discuss the implications of these findings and provide recommendations for future research.
The organizational justice literature and the family business literature have developed independently, which limits our understanding of fairness and justice in the family business workplace. So far, the concepts of justice and fairness have been used interchangeably in the family business literature, as if objective measures that aim to increase justice in the workplace will automatically translate into fairness perceptions among family business employees. By integrating the organizational justice literature and the family business literature, we first differentiate between the two concepts of justice and fairness and argue that a utilitarian conceptualization of justice may come into direct conflict with fairness perceptions in the family business workplace. Second, we shed light on the importance of incorporating socioemotional goals, particularly those that reveal a bright side of socioemotional wealth, into rules and regulations designed to increase justice in the workplace, which, we argue, contributes to increasing fairness perceptions among employees and to building and maintaining an ethical family business workplace. Theoretical and practical contributions are discussed at the end of the paper.
Integrating relational embeddedness arguments with Penrosean growth theory, we compare the growth of firms run by spousal entrepreneurs with firms run by sibling entrepreneurs. We theorize that trust, identification, and mutual obligations-the three facets of relational embeddedness-are more pronounced in spousal teams than in sibling teams, which provides spousal teams with advantages over sibling teams in generating firm growth. Probing a sample of all private firms in Sweden over a three-year period, we find support for this conjecture. Exploring boundary conditions to this baseline relationship, we also find that firm age weakens the growth advantages of spousal teams over sibling teams and that industry experience heterogeneity within the entrepreneurial team reinforces these growth advantages. These results provide important contributions for research on firm growth, the social embeddedness of firms, entrepreneurship, and family business.
How will the presence of independent directors affect family business performance? This question is still theoretically debated and empirically inconclusive. Because family businesses are a group of heterogeneous companies with different levels of family involvement in the business, the purpose of this paper is to empirically explore how the combination of different family business governance structures jointly shape the effect of independent directors on family business performance in an understudied Collectivist cultural setting. Using Qualitative Comparative Analysis (QCA) on a sample of 74 Lebanese family firms this study finds that, depending on the family firm governance structure, the presence of independent directors on the board can lead to either positive or negative firm performance. Theoretical and practical implications are discussed.
Purpose
The purpose of this paper is to examine the impact of preparation level of heirs and the relationship between family and business members on the performance of family business in small- and medium-sized enterprises (SMEs) in Malaysia.
Design/methodology/approach
A quantitative research design involving the use of a survey questionnaire was implemented to investigate the influences of succession planning factors on the performance of family business in SMEs. The survey was conducted on 50 family business successors in Malaysian SMEs.
Findings
The result showed that the two studied factors – preparation level of heirs and the relationship between family and business members – have a positive impact on the performance of family business.
Research limitations/implications
The research concentrated on the performance of family business in SMEs in Malaysia’s southern region. The generalization therefore must be made very cautiously to the overall Malaysian SMEs.
Practical implications
The findings help family businesses to better understand the importance of the preparation level of heirs and the relationship between family and business members on business performance. This study shows the importance of key factors influencing succession planning so that the successor to the family business can bring the family firm to the next stage of success.
Originality/value
This study serves as a reference or guide for the management of family businesses to better understand the important factors for effective succession planning. It considers the best possible preparation and family-related factors affecting the end results of business, particularly in Malaysian SMEs.
Drawing on the study of micro and small family businesses in a transition economy, this research explores the effects of trust transferred from the family to the business system. Specifically, it examines how the leader's interpersonal trust in the member affects the quality of the leader-member exchange (LMX) in familial dyads. The results reveal that interpersonal trust has a positive effect on LMX and the degree of this association depends on the leader's orientation. This relationship is strengthened by the leader's orientation, however, only in the case when the orientation is family-centric. The moderating effect is not statistically significant when the leader adopts business-centric orientation.
One of the main challenges family firms face 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? And what can family business decision makers and advisors learn about the consequences of fair practices in the family business workplace? We first introduce a model of a fair process 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 highly benefit from promoting fairness in the workplace in terms of preserving family business reputation, and in terms of achieving long term family business survival and success.
Competent research methods and data analysis are essential components for the progression of family business research. To identify and evaluate empirical trends, and make suggestions for future research, we examine 319 empirical articles published in Family Business Review since 1988. These studies are compared with 146 family business research articles published in top-tier journals not dedicated to family business research over the same timeframe. While we substantiate growth in rigor and sophistication, we address specific family business research challenges regarding construct validity, generalizability, causality, temporality, and multilevel issues. Suggestions are provided for future empirical research across six major topical areas.
We use a social exchange perspective to review family firm succession literature owing to its fit with the multiphase, multistakeholder nature of the process. We searched the history of 34 journals, finding 88 published or forthcoming articles that quantitatively examined succession. We consider the primary phases of the management succession process (ground rules, successor development, and transition) and the relevant stakeholder exchanges occurring during each phase, including exchanges between incumbents and successors, within family boundaries, and across family boundaries. We contribute to the family firm succession literature by identifying how a social exchange perspective can help guide future research.
http://fbr.sagepub.com/content/29/1/44
Subordinate and supervisor leader-member exchange (LMX) were examined as correlates of delegation and as moderators of relationships between delegation and subordinate performance and satisfaction. Raw score analyses of data on 106 dyads showed both to be significantly related to delegation and to have similar main and moderating effects for subordinate performance and satisfaction. Finally, within-and between-groups analyses largely supported the level-of-analysis predictions of the LMX approach. Implications for future LMX research are discussed.
This study aimed at identifying the relationship between the success factors of succession in terms of preparation of heirs, the relationship between family and business as well as planning and control activities to smooth transition process. In addition, the smoothness of the transition process was also studied to determine its relationship with post-transition performance. This study included 70 of the successors of family business around Kuala Terengganu which are selected as study samples. Data was analyzed using SPSS 18.0. Contingency coefficient test, Pearson r correlation and Spearman rho is used to measure the relationship between the variables of the study. The results showed the entry-level position and the relationship between family and business have significant influence on the smoothness of the transition process. While the planning and control has no significant relationship with the smoothness of the transition process. The study also shows the smooth process of transition has no significant influence on post-transition performance. The study is expected to help SMEs family business implement an effective succession process to develop future heirs and sustain the business in the market for a long time.
Family business research has grown over the last decade and there are increasing requests for deeper insights into the nature and workings of these organizations. Currently, family business research is dominated by quantitative research methods. In this article, we argue that these studies should be complemented by a research approach that is more apt to capture the specific complexity and dynamics unique to family businesses. We suggest that the interpretive approach within the broader umbrella of qualitative methods has this potential. The article discusses issues, choices, requirements and implications for family business scholars engaged in interpretive research. We also offer suggestions for bow editors and reviewers can assess interpretative research.
Supply chain management has emerged as a vital capability of operational excellence for companies in India, which is currently one of the fastest growing emerging economies. Indian business is dominated by small and medium sized enterprises (SME). With a smaller size, narrow span of operations, and scarce resources, these businesses tend to be less advanced in their supply chain management (SCM) capabilities compared to large organizations. SMEs are predominantly owned and managed by families. Owners make strategic decisions, control and manage operations and therefore their attitude towards growth, risk appetite, and level of professionalism has a huge impact on the business. This research attempts to explore the relationships that "family-business" characteristics has on supply chain management capabilities of small and medium sized family businesses (SMFBs) in the Indian context. Our research framework is based on the interaction of two independent disciplines of research which makes a hermeneutic interpretative studies approach an appropriate lens to examine the intersection of family business and supply chain management. We use a within-case interpretive analysis of six manufacturing companies in diverse sectors to identify key constructs in the domain of "family-business" and "supply-chain management". We then analyze the level of these constructs through across-case interpretive analyses. Finally, we use the pattern of across-case analyses to develop a set of propositions that link the relationships between the constructs of family business and supply chain management capabilities. Implications of these propositions for theory building and managerial practice are offered.
Self-managing teams are rapidly approaching the popularity of Quality Circles in both the popular and organizational literature. However, before this promising notion becomes the next panacea for the ills of our declining international competitiveness, we must investigate the fundamental question of how superior managed professionals become transformed into self-managers. This paper presents a model of a leadership-making process which purports to produce the transformation of superior manager professionals into self-managing and partially self-designing units. The focus of this paper is on the upper end of the self- managing category of Hackman’s (1986) authority matrix. A life cycle model of leadership-making is outlined, and emphasis is placed on the process by which teamwork is built from within and the activities which allow individuals to (a) outgrow their dependence on outside direction and control and (b) realize that a more effective strategy for accomplishing their own (“I”) needs is through satisfying learn (“We”) needs (i.e., the “transformation”). This model for the process of becoming a self-managing team player provides a data-grounded rationale (covering over 20 years of programmatic research) in order to facilitate hypothesis-testing research.
Research shows that family firms are less entrepreneurial, on average, especially after the founder departs. There are notable exceptions, however, and so we build a new theory to explain how these exceptional firms accomplish transgenerational entrepreneurship. Specifically, we conducted in-depth interviews with owners and (potential) successors in 21 German wineries that are, on average, in their 11th generation. We introduce entrepreneurial legacy, which we define as the family's rhetorical reconstruction of past entrepreneurial achievements or resilience, and theorize that it motivates incumbent and next-generation owners to engage in strategic activities that foster transgenerational entrepreneurship. Entrepreneurial legacy thus helps explain transgenerational entrepreneurship and has implications for family-firm, imprinting, and succession research.
For all its richness and potential for discovery, qualitative research has been critiqued as too often lacking in scholarly rigor. The authors summarize a systematic approach to new concept development and grounded theory articulation that is designed to bring “qualitative rigor” to the conduct and presentation of inductive research.
Succession literature addressed factors affecting the development of successors’ leadership skills. Yet the role professional advisors play in this process is not well understood. This study contrasts the detailed descriptions of four advisor-directed leadership development processes, to suggest a grounded theory of how advisors can facilitate the construction of successors’ leadership. Adopting an insider–outsider approach to the collection and analysis of ethnographic data, the study revealed that the assumption of a transitional leadership role by advisors—an interim leadership held by the advisor while supporting the successor’s leadership development—was critical to moving the succession process forward.
Work relationships have come to form the very foundation of organizations and the contemporary embodiment of how most work gets accomplished, and there has been increased scholarly interest in this area. Although research has investigated the nature of high-quality and low-quality work relationships, few attempts have taken that next important step in more precisely articulating the actual dimensions that underlie work relationships, how they relate to one another, and how, as contextual background, they frame and influence organizational phenomena. In an effort to help address this gap in our understanding of relationships at work, this study briefly reviews the relevant literature on work relationships, extracting what is currently known about the specific aspects or underlying dimensions of such relationships. Then, the authors introduce an integrative multidimensional conceptualization of dyadic work relationships, which specifies the critical foundational dimensions and processes, and discusses the implications for future theory and research.
"Providing an invaluable resource for scholars and researchers, this book investigates positive psychology and relationships theory and research across a range of settings and life stages—intimate, work, educational, senior/retirement, and in the context of diversity.
Nearly universally, relationships are a key source of what we all seek in life: happiness, fulfillment, and well-being. The experts who contributed to this novel volume apply the framework of positive psychology to the findings of relationships research across a variety of practical contexts. What actions create and sustain respectful, caring, joyous, stimulating, and loving relationships? How do people rich in friendship, intimacy, and interpersonal skills think and behave? How do they unconsciously cultivate positive relationships? This book brings together authoritative reviews, cutting-edge research, and thoughtful scholarship that serve to answer these questions and document the benefit of positive relationships in a variety of settings and across the human life span.
Following a comprehensive introduction, the book addresses positive intimate relationships, positive relationships at work, positive relationships during different stages of life (in youth, in adolescence, and among older adults), and positive relationships intersecting with diversity. The chapters underscore the simple concept that relationships are central to what makes life worth living and are fundamental to well-being across all life domains as they play out at home, in school, at work, in retirement homes, and in the community at large."
Through a multilevel view, this article challenges the dominant assumption in the literature suggesting that family employees will receive more compensation than their non-family peers, which will violate the latter group justice perceptions and will lead them to lower their inputs to retrieve equity. We start by discussing how competing socioemotional priorities combine with the degree of collectivism at the societal level to affect which group will bifurcated compensation favor. We suggest that embeddedness in a collectivist culture will generate a strong desire and a moral obligation to cater to the financial well-being of family members, hence leading to bifurcated compensation favoring family employees. In individualist cultures, however, the family will accord high importance to achieving family prominence, which leads to bifurcated compensation favoring non-family employees. Moving forward, we discuss how nepotism types shape the effect of bifurcated compensation on the under-privileged group work inputs and how this relationship is moderated by the extent of power distance embedded in society. Theoretical and empirical implications are discussed at the end of the paper.
Family social capital (FSC) is theoretically predicted to benefit family firm performance, but empirical results repeatedly disappoint this expectation. To bridge the disconnect between theory and empirical evidence, we conceptualize FSC as a multidimensional construct in which its dimensions exhibit a mix of positive and negative consequences resulting in a ‘too much of a good thing’ effect. At high levels, the structural, the structural dimension of FSC can cause the family firm to form a structured group and become trapped in its established networks, preventing new knowledge from entering the family firm. With a hand-collected dataset, we test a curvilinear relationship between the structural dimension of FSC and family firm financial performance, and linear effects from its relational and cognitive dimensions. We further examine whether possessing organizational social capital (OSC) mitigates the negative consequences of high FSC. We reveal that the form and combination of FSC matters more than its amount. We contribute to theory a co-dependent view of FSC and OSC (as two different social capitals) that appreciates their concurrent effects.
Socioemotional wealth (SEW) is an important point of reference for decision-making in family firms. This study shows that the SEW dimension of renewing family bonds through dynastic succession is positively related to the level of succession planning in a family firm. However, the link between the intention for transgenerational succession and the existence of such planned processes does not appear to be as straightforward as predicted. Therefore, by drawing on relational systems theory, we argue that high-quality relationships will positively moderate the expected positive effect of the intention for transgenerational succession on the level of succession planning in a family firm. Our results partly confirm this argument.
In this introduction, we observe that the study of social structures and social relationships constitutes a common theme among the articles and commentaries contained within this special issue on Theories of Family Enterprise. Individuals and organizations are embedded in complex networks of social organization and exchange. Within business enterprises, familial relationships engender unique goals, governance structures, resources, and outcomes. We discuss these relationships, potential research directions, and the contributions made by the articles and commentaries. In so doing, we expand the literature on how social structures and social relationships affect the behavior and performance of family firms.
Research Summary : Building on a unique data set with information on the nuclear structure of entrepreneurial families, we integrate leadership succession into a socioemotional wealth (SEW) logic to test the antecedents and consequences of primogeniture vis‐à‐vis second‐ or subsequent‐born selection in family firm succession. Our findings suggest that appointing a family firstborn sibling is more likely when there is a high degree of SEW endowment and the family firm has pre‐succession performance below aspiration levels. Next, we find that appointing a second‐ or subsequent‐born sibling has a positive and significant effect on post‐succession firm profitability, particularly when the firm is in its second generation or later.
Managerial Summary : What drives succession choices in family firms? What are the performance implications of each succession choice? These are questions of vital relevance for every business owner. Focusing on the pool of potential family heirs at the time of succession, our study adds to the debate on the drivers of succession choices by suggesting that having a family intensive governance structure fosters primogeniture as the main succession logic, even when the family firm is experiencing lower profitability. Our study informs business owners on the implications of different succession policies, suggesting that family firms that have the courage to disregard primogeniture and choose more wisely the family successor are also the ones experiencing higher post‐succession performance.
Family businesses are basically owner-managed enterprises with the family Involved within the business. When, to family ties within the business, is added the biological inevitability of an eventual transfer of power, family succession becomes an alternative to selling the business–-a transfer based on non-market considerations. A framework for studying family businesses is proposed which has succession as its anchor. The succession process is where changes in management, in strategy, and in control are planned for and executed. The framework is built upon stages of the family enterprise which emanate from the biological reality of parent and offspring being separated by age and business experience but wedded together by “blood” and a shared family experience.
Drawing from the mentoring and organizational commitment literatures, this paper addresses the relationship between mentoring and organizational commitment within the family business context. While there is a clear connection between mentoring and organizational commitment in the broader literature, the relationship takes on added complexity in family businesses. In this paper, we develop arguments and offer propositions suggesting that mentoring in family firms results in different commitment outcomes depending on the familial status of the members in the mentoring dyad. While mentoring is most often linked to affective commitment, our propositions extend theory by suggesting that the unique mentoring relationships present in family firms can foster normative and continuance commitment in many circumstances. Propositions regarding mentoring and the various facets of organizational commitment are presented. Implications for theory and human resource management are also discussed.
This paper examines intergenerational knowledge sharing within family firms in traditional industries. We position our analysis against the background of the knowledge-based view of the firm and utilize knowledge creation theory and perspectives on knowledge sharing behavior to analyse how knowledge is shared in an organization. We employ a multiple case study approach and use the New Zealand wine industry as the context of our analysis. Our study extends family business and knowledge sharing literature by challenging traditional views of incumbent-successor relationships. We reason that family business literature is sympathetic to the senior generation nurturing the next generation while leaving a gap in our understanding of how the next generation contributes knowledge to the firm. We suggest that the knowledge bases of the senior and next generation are different in terms of how they are generated and the relative weight of tacit and explicit knowledge they contain. We also argue that knowledge sharing in family firms is bidirectional leading to innovative outcomes and change.
The goal of every author is to write a paper that readers (and reviewers) find convincing. Since writers of papers based on case research do not have recourse to the canonical statement “results are significant at p _ 0.05” that helps assuage readers’ skepticism of empirical papers, researchers using case research often feel they are fighting an uphill battle to persuade their readers. In this short essay, I provide some thoughts guided by my experience of reading, reviewing, and writing papers based on case‐based research over the last decade. These are clearly only the views of this particular writer and thus should be taken with a considerable grain of salt. I am seeking here more to provoke thought than to provide answers.
Organizational support theory (OST) suggests that employees develop a general perception of the extent to which the organization values their contributions and cares about their well-being (perceived organizational support – POS), and respond to that support through attitudes and behaviors that are beneficial toward the organization. Although OST emphasizes both social exchange and self-enhancement processes, most accounts of POS’s effects are rooted in social exchange. For example, POS’s linkages with commitment and retention have been explained as an exchange of support for positive attitudes and continued employment. This research sheds light on self-enhancement’s less-understood role in fostering these reactions by demonstrating the influence of social comparison effects. Drawing on a sample of 342 employees nested in 82 work-units of a US hospitality company, our analysis demonstrates that favorable POS comparisons with peers in one’s work-unit are positively associated with commitment and retention, whereas unfavorable comparisons are negatively related. Results also show that comparisons taking place in less-supported work-units have stronger impact than comparisons made in those with better support. Our findings extend OST by revealing the importance of social comparisons in engendering responses to organizational support, and in so doing potentially explicate the differential ways social exchange and self-enhancement operate with regard to POS.
We argue that learning by younger family members who are to be involved as steward-like owners, board members, or managers of their firms is a process that occurs in large part via senior family members over a significant fraction of the human life cycle, beginning in early childhood and enduring until well into a career. The object of such learning is to develop in young family members attitudes and capabilities that are of singular advantage to successful family firms: long-term stewardship and the resources it cultivates. We build on a typology of learning to provide insight into the learning experiences that can foster these stewardship attitudes and capabilities at different stages and ages, as well as for different stewardship roles.
It is generally accepted that a family's involvement in the business makes the family business unique; but the literature continues to have difficulty defining the family business. We argue for a distinction between theoretical and operational definitions. A theoretical definition must identify the esence that distinguishes the family business from other businesses. It is the standard against which operational definitions must be measured. We propose a theoretical definition based on behavior as the essence of a family business. Our conceptual analysis shows that most of the operational definitions based on the components of family involvement overlap with our theoretical definition. Our empirical results suggest, however, that the components of family involvement typically used in operational definitions are weak predictors of intentions and, therefore, are not always reliable for distinguishing family businesses from non-family ones.
The ubiquity of family dominated firms in economies worldwide suggests that inquiry into the nature of the ethical frames of these types of firms is increasingly important. In the context of a social exchange approach and the norm of reciprocity, this manuscript addresses social cohesion in a dominant family firm coalition. It is argued that the factors underlying this cohesion, direct versus indirect reciprocity, shape unique attributes of family firms such as intentions for transgenerational sustainability, the pursuit of non-economic goals, and strong interpersonal ties. Exchange structures, represented by direct and indirect reciprocity, lead family and non-family firms toward development of distinctive ethical frames of reference.
Finding the right successor to a well-loved founder or president is often the most difficult task an organization can face--and the challenge can be even greater for family-run businesses. Succeeding Generations explores leadership transitions in family businesses, offering a clear-eyed assessment of the different options, from direct succession to building partnerships between siblings and cousins. Family-owned companies may dominate the worldwide business landscape, yet surprisingly few are successfully passed down from one generation to the next, and fewer still reach the third generation intact. Author Ivan Lansberg, an organizational psychologist who grew up in a family business, examines the reasons behind this high failure rate and reveals the factors that contribute to long-term success. He offers practical advice on how to mentor successors, how to set up a systematic selection process, and how to make the best use of the board of directors during times of transition. With a wealth of examples from companies in the United States, Europe, and Latin America, Succeeding Generations provides a thoughtful and comprehensive look at the sensitive dynamics of leadership succession in family businesses.
Recent thinking about top management has been influenced by alternative models of man.1 Economic approaches to governance such as agency theory tend to assume some form of homo-economicus, which depict subordinates as individualistic, opportunistic, and self-serving. Alternatively, sociological and psychological approaches to governance such as stewardship theory depict subordinates as collectivists, pro-organizational, and trustworthy. Through this research, we attempt to reconcile the differences between these assumptions by proposing a model based upon the subordinate's psychological attributes and the organization's situational characteristics.