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Planning and control practices in family firms versus non-family firms: empirical evidence from SMES in the wholesale sector
Abstract
Family businesses differ from traditional businesses in that they are owned or controlled by family members. Because of the potential for family member’s influence, family businesses face many unique and complex problems (Davis & Stern, 1980, Handler, 1989). However since the investigation of the connection between family involvement and organizational processes and outcomes is still in its infancy (Bellet, Dunn, Heck, Parady, Powell and Upton, 1996) many conflicting claims regarding the purported effects of family member involvement remain unresolved. The organizational processes focused on in this research are differences in planning and control practices between family businesses and non-family businesses. It is often said that family businesses plan much less than non-family firms. Several authors however indicate in the literature that observed differences between family and non-family firms in empirical research are often caused by industry differences, size differences, location differences, strategy differences, etc… In order to avoid this pitfall we have constructed our research sample along the following lines. We have chosen for our research population firms from just one industry namely the wholesale sector. In this way differences in environmental uncertainty are reduced to a certain extent. The following criteria dominated further the choice of the research population: growth rate (fast growth, slow growth and no growth), size (measured by balance sheet total) and location ( Flanders – Belgium). In total 616 companies (409 small companies and 207 medium-sized companies) were sent a survey. The questionnaire covered questions on the company’s family character, its firm activities, the motives for growth, the enabling and disabling factors for growth, the consequences of growth, and planning and control practices. The response rate for the small wholesale firms was 21,8% (89 usable responses) and the response rate for the medium-sized wholesale f
... Goffee (1996) señala la importancia de la formación de los gerentes e indica que la falta de educación podría ser la causa de quiebra de la empresa. Jorissen et al (2001) encuentran que los gerentes de las empresas familiares poseen un menor nivel educativo que los de las empresas no familiares. Matlay (2002) demuestra que los gerentes familiares no dan suficiente importancia a la formación porque no lo consideran como un elemento crucial dentro la estrategia corporativa. ...
... Tabone y Baldacchino (2003) mencionan que a las empresas familiares les falta profundizar en conocimientos de principios de contabilidad, lo que dificulta controlar las decisiones de gestión. Jorissen et al (2001) verifican que las empresas familiares cumplen con menos controles financieros que las empresas no familiares, adicionalmente, Willingham y Wright (1985) señalan que las pequeñas empresas tienen pocos controles contables. Gallo et al (2004) en su estudio denominado una "peculiar lógica financiera", ponen de manifiesto que estas peculiaridades entre empresas familiares y no familiares no se deben tanto a la falta de conocimientos de quienes dirigen la empresa como a la influencia personal de ellos y de otros miembros de la familia que tienen el poder. ...
... Así, se demuestra que las empresas familiares utilizan en menor medida las herramientas de gestión, contables y financieras para la adecuada toma de decisiones. Estos resultados corroboran los obtenidos por Tabone y Baldacchino (2003); Jorissen et al (2001) y Trostel y Nichols (1982). Esto implica una debilidad en la gestión de las empresas familiares para su permanencia y competitividad empresarial. ...
Los equipos virtuales han generado una nueva forma del trabajo en equipo. A las ventajas del trabajo en equipo, los equipos virtuales agregan otras derivadas de las características del empleo de moderna tecnología de las comunicaciones. En esta breve nota el autor examina las peculiaridades de un equipo virtual, aporta un conjunto de recomendaciones para la gerencia de estos equipos y establece algunas diferencias básicas entre el trabajo tradicional en equipos y los grupos virtuales. Agrega el autor una serie de apreciaciones acerca del empleo de certijos en el momento de escoger al candidato para ocupar un puesto. Aunque los acertijos o los juegos han sido utilizados para reconocer el temperamento y la capacidad de respuesta de un candidato sometido a presión, no siempre esta capacidad es directamente proporcional a sus capacidades para ejercer como profesional en un entorno laboral.
... Planning in family firms has been represented with relative paucity in the literature (Upton, Teal and Felan, 2001;Ibrahim, Angelidis and Parsa, 2008). Due to certain particularities of family firms such as the reciprocal relationship between family and firm (Stafford, Duncan, Dane and Winter, 1999), the different goals and orientations (Jorissen, Laveren, Martens and Reheul, 2001;Duller, 2010) as well as their specific governance systems (Jaskiewicz and Klein, 2007;Klein, 2009), one can assume there are unique planning features in family firms. The role and involvement of the family in management and governance is expected to further influence the choice of planning mechanisms and the way planning is implemented in family firms. ...
... Obtaining legitimization might be more important for non-family firms as, due to the information asymmetry and divergent goals, professional managers have to prove their commitment to the firm and to justify their actions to shareholders. Consequently, they initiate many formalized planning activities (Cromie, Stephenson and Monteith, 1995;Jorissen et al., 2001). Thus, from the point of view of agency theory, one can assume a higher utilization of planning instruments as well as a higher degree of formalization and detailedness of these instruments on the part of nonfamily firms than in family firms. ...
... Family businesses with external managers bear a closer resemblance to non-family firms as the hiring of non-family managers leads to a "professionalization" of family firms (Dyer, 1989). The delegation of the management activities to non-family executives leads to a high degree of formalization (Salvato and Melin, 2008), due to the above-mentioned pressure on professional managers to justify and legitimize themselves (Cromie et al., 1995;Jorissen et al., 2001), as well as because of the greater agency problems in family firms with external managers (Gallo and Villaseca, 1998;Chua, Chrisman and Sharma, 2003). In contrast to this, stewardship theory argues that in family firms qualities such as integrity and character are considered important characteristics of external leaders as well and valued more highly than in publicly traded firms (Blumentritt et al., 2007). ...
... Nivel de estudios del gerente: la variable se mide a través del nivel de estudios que el gerente posee. Jorissen et al. (2001), Barth, Gulbrandsen y Schone (2005), y Duréndez, García y Madrid (2008) encontraron que la profesionalización de la gestión se relaciona con un mejor rendimiento de las empresas familiares. ...
... Lo anterior nos permite aceptar la hipótesis (H 1 ). Los resultados coinciden con los obtenidos por Daily y Dollinger (1991), Jorissen et al. (2005), Kotey (2005), Moilanen (2008) ...
... Los resultados obtenidos muestran que existe evidencia significativa de que las empresas familiares instrumentan en menor medida los SCG que las no familiares. Lo anterior está en consonancia con los resultados obtenidos por Daily y Dollinger (1991), Jorissen et al. (2005), Kotey (2005), Laitinen (2008), Moilanen (2008). Ello se debe a la escasa profesionalización de la gestión (Duréndez et al., 2008) y al escaso desarrollo de los SCG como herramientas que les permitan conseguir un mayor rendimiento organizacional y, por consiguiente, obtener información esencial para la toma de decisiones. ...
The aim of this work is to analyze the main differences of the implementation
of management control systems (MCS) and its relation with the performance
of the micro, small and medium (MSME) family and non-family
Mexican tourist firms. In this empirical research, a sample of 122 tourist
MSMEs family tourist from Quintana Roo state (México) was used,
composed by 72 family and 50 non-family firms. The results show that
the family firms implement MCS to a lesser extent than non-family firms.
Additionally, it was obtained empirical evidence that the non-family firms
that implement MCS obtain higher performance.
... Goffee (1996) señala la importancia de la formación de los gerentes e indica que la falta de educación podría ser la causa de quiebra de la empresa. Jorissen et al (2001) encuentran que los gerentes de las empresas familiares poseen un menor nivel educativo que los de las empresas no familiares. Matlay (2002) demuestra que los gerentes familiares no dan suficiente importancia a la formación porque no lo consideran como un elemento crucial dentro la estrategia corporativa. ...
... Tabone y Baldacchino (2003) mencionan que a las empresas familiares les falta profundizar en conocimientos de principios de contabilidad, lo que dificulta controlar las decisiones de gestión. Jorissen et al (2001) verifican que las empresas familiares cumplen con menos controles financieros que las empresas no familiares, adicionalmente, Willingham y Wright (1985) señalan que las pequeñas empresas tienen pocos controles contables. Gallo et al (2004) en su estudio denominado una "peculiar lógica financiera", ponen de manifiesto que estas peculiaridades entre empresas familiares y no familiares no se deben tanto a la falta de conocimientos de quienes dirigen la empresa como a la influencia personal de ellos y de otros miembros de la familia que tienen el poder. ...
... Así, se demuestra que las empresas familiares utilizan en menor medida las herramientas de gestión, contables y financieras para la adecuada toma de decisiones. Estos resultados corroboran los obtenidos por Tabone y Baldacchino (2003); Jorissen et al (2001) y Trostel y Nichols (1982). Esto implica una debilidad en la gestión de las empresas familiares para su permanencia y competitividad empresarial. ...
El objetivo de este artículo es analizar las principales diferencias de la gestión estratégica y competitiva de las micro, pequeñas y medianas empresas (MiPyME) familiares y no familiares turísticas del estado de Quintana Roo (México). Para llevar a cabo este trabajo, se utilizó una muestra de 138 MiPyMEs turísticas, distribuidas en 92 familiares y 46 no familiares. Los resultados muestran que no existen diferencias significativas entre las empresas familiares y las no familiares, en cuanto a la orientación de la estrategia, el nivel tecnológico y la certificación de la calidad; sin embargo, se obtuvo evidencia de que los gerentes de las empresas familiares realizan menos planificación estratégica y le dan menos importancia a los programas para la formación de los recursos humanos, además que utilizan en menor medida las herramientas de gestión, contables y financieras para el proceso de toma de decisiones.
... In addition, Gaidienié and Skyrius (2006), in a study developed with owners-managers of small and medium enterprises in Lithuania, found that managers and accountants perceived the accounting information systems as being useful in the decision making process. Jorissen et al. (2001),in a study of Belgian family firms, showed that these companies use management accounting information systems to a lesser extent than non-family firms. Tabone and Baldacchino (2003) argued that family firms' lack of deep knowledge of accounting principles makes it more difficult to control management decisions. ...
... Therefore, we fail to reject the first null hypothesis (H 1 ). Our results are in agreement with the ones previously obtained by Trostel and Nichols (1982) and Jorissen et al. (2001). ...
This study analyses how the implementation of accounting and financial information and management control systems affect the performance of family and non-family micro, small and medium-sized enterprises (MSMEs) in the hospitality sector in Quintana Roo State (Mexico). The authors carried out a cross-sectional study with a sample of 122 family and non-family tourism MSMEs (composed of 72 family and 50 non-family firms). A survey was used to collect the data. The results show that managers of family firms in the hospitality sector use less accounting and financial information in their decisions than those of non-family firms. The findings also imply that hospitality family firms maintain less formalized management control systems than non-family firms in terms of the timeliness, aggregation and integration of economic and financial information in the decision making process.
... Once again, with the exception of the production plan, the product portfolio plan and the R&D plan, operational plans are relied upon more among founding generation firms. While this stands in contrast to our proposed hypothesis, Jorissen et al. (2001) using a sample of Belgian wholesale companies, found that the first-generation is more aware of the usefulness of planning than later generations. In Austria, the significantly higher use of the budgeted balance sheet among founders might be explained by the fact that this instrument is encouraged within the process of forming a company and the process of applying for a business loan. ...
This paper reports on findings from a survey of Austrian family businesses analyzing differences in
corporate governance structures, namely the top management and supervisory board, as well as
management accounting practices among generations. The results indicate that as ownership of
family firms is transferred to successive generations there is no discernible positive or negative trend
concerning the percentage of non-family managers and supervisory board members; nor is there a
discernible trend concerning the type of strategic and operational management accounting instruments
employed. In fact, it is apparent that, to a large extent, generations differ from each other significantly
and that from the first to the fifth generation and later, the development of the family firm with
respect to the percentage of non-family members serving as managers and supervisory board members
as well as the establishment of a management accounting department is approximately Ushaped.
Thus, the study demonstrates the importance of a comprehensive and profound analysis of
generation-specific characteristics.
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