scholarly journals Internationalization of family firms-challenges and opportunities in Russia

2021 ◽  
Author(s):  
Shab Hundal ◽  
Tatyana Kauppinen
Keyword(s):  
Significant Contribution ◽  
Family Firms ◽  
Ceteris Paribus ◽  
Russian Economy ◽  
Family Enterprises ◽  
Governance Systems ◽  
The Family ◽  
Challenges And Opportunities ◽  
Mass Privatization ◽  
Economic Landscape

The family firms (FFs) play an instrumental role in the economic spectrum of the Russian economy with respect to their contribution to income, output, and employment, ceteris paribus. The FFs not only contribute the domestic business activities but also make a significant contribution to international business. Ever since the launch of the mass privatization program (MPP) in Russia during 1992–1994 numerous disruptions on the business and economic landscape of Russia have emerged, and as a result, the FFs in Russia have been experiencing several new opportunities and challenges in the international market. However, it is noticeable that corporate regulatory, and corporate governance systems do not even clearly define the FFs. The current study explores the following research objectives: first, the motivation of internationalization of family enterprises in Russia, second, their process of internationalization, and third, the problems and challenges faced by the family enterprises

scholarly journals Internationalization of family firms-challenges and opportunities in Russia

2021 ◽  
Vol 18 (4) ◽  
pp. 207-217
Author(s):  
Shab Hundal ◽  
Tatyana Kauppinen
Keyword(s):  
International Business ◽  
Family Firms ◽  
New Ventures ◽  
Structured Interview ◽  
Theoretical Perspectives ◽  
Challenges And Opportunities ◽  
Mass Privatization ◽  
Set Up ◽  
Economic Landscape ◽  
Taxation System

The family firms (FFs), especially the small and medium-sized enterprises (SMEs), play an instrumental role in the economic spectrum of the Russian economy with respect to their contribution to income, output, and employment, ceteris paribus. The FFs not only contribute the domestic business activities but also make a significant contribution to international business. Ever since the launch of the mass privatization program (MPP) in Russia during 1992–1994 numerous disruptions on the business and economic landscape of Russia have emerged, and as a result, the FFs in Russia have been experiencing several new opportunities and challenges in the international market. However, it is noticeable that corporate regulatory, and corporate governance systems do not even clearly define the FFs. The current study explores the following research objectives. First, the motivation of internationalization of FFs in Russia; second, their process of internationalization, and third, the problems and challenges faced by the FFs. Different theoretical perspectives have been discussed to problematize and analyze the research objectives of the study. The current qualitative study is based on the semi-structured interview method. As many as ten FF entrepreneurs, representing five different industries, have been analyzed. The findings show that there is neither clarity nor unanimity of the very meaning and understanding of FFs in Russia. The lack of regulated bank credit and the existence of a complex taxation system dissuade the FFs from investing in new ventures and undertaking innovative activities. Similarly, the government’s directives to set up business operations at certain specified business facilities, at the exorbitant costs though, has created downward pressure on the profitability of FFs. Many FFs have initiated their international business activities owing to their growing linkages with the external contingencies, developed over time. Similarly, internationalization has increased the competitiveness of the FFs in the Russian domestic market too.

The Family Owned Business: Capital Funding

1977 ◽  
Vol 2 (2) ◽  
pp. 30-39 ◽  
Author(s):  
Robert C. Dailey ◽  
Thomas E. Reuschling ◽  
Richard F. Demong
Keyword(s):  
Financial Management ◽  
Family Firms ◽  
Going Public ◽  
Advantages And Disadvantages ◽  
Business Environments ◽  
Family Enterprises ◽  
Capital Funding ◽  
The Family ◽  
Financial Privacy ◽  
External Interface

Family owned corporations face unique constraints in their external business environments. One particularly critical external interface exists with sources of capital funding. This paper discusses the advantages and disadvantages which exist in this interface for family enterprises. Based on interviews with 25 family corporation executives, the study concludes that family firms have the advantages of financial privacy, flexibility, and personalized relationships with local bankers. Disadvantages are also identified. This study concludes by offering the family corporation executive some general guidelines regarding financial management, going public, and corporate survival.

Family commitment and performance in private family firms: moderating effect of professionalization

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Rezaur Razzak ◽  
Suaad Jassem ◽  
Alima Akter ◽  
Syed Abdulla Al Mamun
Keyword(s):  
Firm Performance ◽  
Family Firms ◽  
Equation Modeling ◽  
Single Individual ◽  
Content Type ◽  
Family Commitment ◽  
Family Enterprises ◽  
The Family ◽  
The Impact ◽  
Privately Held

PurposeThe purpose of this research is to examine the interplay between family commitment as a family-centric resource and professionalization of the organization as a firm-centric resource to determine how the two phenomenon come together to enhance business performance in the context of privately held family firms.Design/methodology/approachDeploying the theoretical lens offered by the resource-based view, a conceptual link is developed between family commitment to the firm and firm performance with the potential moderating influence of firm professionalization. The hypotheses are tested using data collected from 357 privately held medium-to-large family-owned manufacturing companies in Bangladesh. The data are analyzed through structural equation modeling using SmartPLS (v.3.2).FindingsThe data analysis suggests that in absence of the moderator; professionalization, family commitment has a positive and significant association with firm performance. While in the presence of the moderator the above relationship is substantially stronger. The findings indicate that when family-specific resources and firm-specific resources are synchronized, it enhances performance of the family firm and puts it on a strong economic footing toward a more sustainable future.Research limitations/implicationsCross-sectional nature of the study exposes it to the specter of common method bias despite the fact that procedural remedies were initiated to minimize the impact of such occurrence. Furthermore, data were collected from a single individual in each organization. Therefore, a longitudinal study with data obtained from multiple individuals at different levels of the organization would possibly yield more robust findings.Practical implicationsLeaders of family firms may find pertinent clues from the outcome of this study. Particularly, the confluence of family commitment to the firm as a family-specific resource and professionalization as a firm-specific resource can be valuable, rare, difficult to imitate and substitute source of competitive advantage for the family business organization.Social implicationsSurvival of family businesses is vital to the global economy as one of the primary drivers of global gross domestic product growth and source of new employment. Policymakers can benefit from the findings of this study to customize policies to nurture growth of family enterprises and incentivize family firms to adopt professionalization through better governance and transparent managerial procedures.Originality/valueA nuanced understanding of how family commitment and firm professionalization combine to significantly improve performance of family firms has not been dominant in the literature. Therefore, findings of this study carry special theoretical implications, because it suggests that both family-specific features and firm-specific features are necessary for enhanced levels of firm-centric business outcomes such as economic performance.

Social capital drives SME growth: A study of family firms in Poland

2019 ◽  
Vol 33 (3) ◽  
pp. 280-304 ◽  
Author(s):  
Andrzej Marjański ◽  
Łukasz Sułkowski ◽  
Justyna Marjańska-Potakowska ◽  
Katarzyna Staniszewska
Keyword(s):  
Social Capital ◽  
Social Transformation ◽  
Family Firms ◽  
Enterprise Development ◽  
Family Enterprises ◽  
The Social ◽  
The Family ◽  
The Government ◽  
Polish Economy ◽  
Political Economic

Poland’s successful political, economic, and social transformation since the 1990s has seen the dynamic development of family enterprises. Most of them are in the small- and medium-sized enterprises sector and have become an important part of the Polish economy. What drives these family firms is not necessarily physical or even financial capital, but continuous human or social capital. We analyze how family businesses are based on the interdependence of family ownership and business with the social capital of the family. This article reflects on how the government, in encouraging small- and medium-sized enterprise development in an economy with traditionally low social capital, can benefit from the example of high social capital found in family firms. The article contains the interpretation of the results of research conducted in 2009–2010 and 2014–2016.

The Spare Heirs and Henriksen resort at Surprise lake

2014 ◽  
Vol 4 (2) ◽  
pp. 213-223 ◽  
Author(s):  
Catherine Pratt
Keyword(s):  
Leadership Development ◽  
Family Business ◽  
Family Dynamics ◽  
Family Firms ◽  
Leadership Transition ◽  
Business Leadership ◽  
Content Type ◽  
Family Enterprises ◽  
Challenges And Opportunities

Purpose – The purpose of this paper is to explore family business, leadership development, family dynamics, succession, and governance. It is appropriate for undergraduate and graduate family business and leadership courses; and to facilitate dialogue among members of family enterprises to introduce the need to address family dynamics and leadership issues. Design/methodology/approach – This case blends issues arising out of several family firms known to the author. Events, people, details, and location have been merged and adapted into this one case. The case method is used for the purposes of identifying key issues and provoking discussion on areas critical to multi-generational family enterprises. Findings – The case study method allows readers to explore and dialogue possible options for dealing with issues of unexpected family business leadership transition. Practical implications – Every family enterprise generation has unique challenges and opportunities. This case facilitates discussion that helps explore leadership succession issues and leadership development. For family business members, it is vehicle for neutral exploration of possible issues in their own organizations. Originality/value – This is an original case study based on the blending of issues and adaptation from several family firms.

The influence of family involvement on tax aggressiveness of family firms

2016 ◽  
Vol 6 (2) ◽  
pp. 143-168 ◽  
Author(s):  
Gregorio Sánchez-Marín ◽  
María-José Portillo-Navarro ◽  
José G. Clavel
Keyword(s):  
Family Involvement ◽  
Structural Equation ◽  
Family Firms ◽  
Family Influence ◽  
Equation Modeling ◽  
Content Type ◽  
Tax Aggressiveness ◽  
Family Enterprises ◽  
The Family ◽  
Different Levels

Purpose – The purpose of this paper is to analyze the tax aggressiveness among family firms considering their different levels of family involvement. Based on the family influence on power, experience, and culture approach proposed by Astrachan et al. (2002), this study examines to what extent the heterogeneity among family firms generates distinctive (and unique resource) combinations of family involvement that explain different levels of tax aggressiveness. Design/methodology/approach – A sample of 282 small and medium-sized family enterprises and a structural equation modeling approach have been used to study simultaneously the effects of family influence through the power, experience, and culture dimensions of tax aggressiveness in family firms. Findings – The family influences the business’ tax aggressiveness in different ways. As such, the greater the family experience, by the incorporation of second and subsequent generations, the greater the tax aggressiveness; in contrast, greater family power in terms of firm ownership and management negatively affects tax aggressiveness. Additionally, greater alignment of the family and business culture does not exert a significant effect on tax behaviors of family firms. Practical implications – Tax aggressiveness is a complex activity that should be managed from a global point of view in family firms. Managers should compensate for the negative influence of family governance on tax aggressiveness with the positive effect of the family generations in order to obtain proper and balanced tax management that contributes to the sustainability of family firms. Originality/value – This study contributes to the understanding of tax behavior heterogeneities among family firms by going further than most research (usually based mainly on comparative ownership aspects between large, publicly quoted family and non-family firms), considering some other more representative factors of family small and medium-sized enterprises, where the influence of characteristics of family management, family generation, and family values can be the main determinants of the firm taxation policies.

Family Firms, Social Responsibility, and Non-Family Member Employees Identification

Think India ◽  
2013 ◽  
Vol 16 (3) ◽  
pp. 10-19
Author(s):  
Ang Bao
Keyword(s):  
Resource Allocation ◽  
Social Responsibility ◽  
Family Member ◽  
Program Implementation ◽  
Social Identity Theory ◽  
Family Firms ◽  
The Family ◽  
Corporate Social ◽  
The Relationship ◽  
Csr Engagement

The objective of this paper is to find the relationship between family firms’ CSR engagement and their non-family member employees’ organisational identification. Drawing upon the existing literature on social identity theory, corporate social responsibility and family firms, the author proposes that family firms engage actively in CSR programs in a balanced manner to increase non-family member employees’ organisational identification. The findings of the research suggest that by developing and implementing balanced CSR programs, and actively getting engaged in CSR activities, family firms may help their non-family member employees better identify themselves with the firms. The article points out that due to unbalanced CSR resource allocation, family firms face the problem of inefficient CSR program implementation, and are suggested to switch alternatively to an improved scheme. Family firms may be advised to take corresponding steps to select right employees, communicate better with non-family member employees, use resources better and handle firms’ succession problems efficiently. The paper extends employees’ identification and CSR research into the family firm research domain and points out some drawbacks in family firms’ CSR resource allocation while formerly were seldom noticed.

Making gender visible in family business: past and present

2012 ◽  
Vol 13 (1) ◽  
Author(s):  
Paloma Fernández Pérez ◽  
Eleanor Hamilton
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Business Leadership ◽  
Legal Rules ◽  
Developed Economies ◽  
The Family ◽  
Interdisciplinary Synthesis ◽  
Complex Forms ◽  
Rules Of The Game

This  study  contributes  to  developing  our understanding of gender and family business. It draws on studies from the business history and management literatures and provides an interdisciplinary synthesis. It illuminates the role of women and their participation in the entrepreneurial practices of the family and the business. Leadership is introduced as a concept to examine the roles of women and men in family firms, arguing that concepts used  by  historians or economists like ownership and management have served to make women ‘invisible’, at least in western developed economies in which owners and managers have been historically due to legal rules  of  the  game  men,  and  minoritarily women. Finally, it explores gender relations and  the  notion  that  leadership  in  family business  may  take  complex  forms  crafte within constantly changing relationships.

Betwixt and Between

2018 ◽  
Author(s):  
Shenique S. Thomas ◽  
Johnna Christian
Keyword(s):  
Sense Of Belonging ◽  
Minority Groups ◽  
Family Members ◽  
Social Processes ◽  
Ethnic Minority Groups ◽  
The Social ◽  
The Family ◽  
Incarcerated Men ◽  
Challenges And Opportunities ◽  
Racial And Ethnic Minority

This chapter draws from a qualitative study of incarcerated men to investigate the social processes and interactions between both correctional authorities and family members that inform their sense of belonging and legitimacy. It reveals that prison visitation rooms present a complex environment in which incarcerated men have access to discreet periods of visibility and relevance to their family members and the broader community. There are, however, several precarious aspects to these processes. The family members who are central to enhancing men’s visibility and legitimacy are primarily women from economically disadvantaged, racial, and ethnic minority groups, resulting in their own marginalization, which is compounded within prison spaces. By illuminating both the challenges and opportunities of familial connections, this chapter informs a social justice framework for understanding the experiences of both incarcerated men and their family members.

The effects of goals attainment on CEO-owner satisfaction and the role of family involvement

2019 ◽  
Vol 10 (2) ◽  
pp. 116-127
Author(s):  
Ondřej Machek ◽  
Jiří Hnilica
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Firm Value ◽  
Family Firms ◽  
Hierarchical Regression ◽  
Content Type ◽  
Business Goals ◽  
Growth Increase ◽  
The Family ◽  
Owner Satisfaction

Purpose The purpose of this paper is to examine how the satisfaction with economic and non-economic goals achievement is related to the overall satisfaction with the business of the CEO-owner, and whether family involvement moderates this relationship. Design/methodology/approach Based on a survey among 323 CEO-owners of family and non-family businesses operating in the Czech Republic, the authors employ the OLS hierarchical regression analysis and test the moderating effects of family involvement on the relationship between the satisfaction with different goals attainment and the overall satisfaction with the business. Findings The main finding is that family and non-family CEO-owner’s satisfaction does not differ significantly when economic goals (profit maximisation, sales growth, increase in market share or firm value) and firm-oriented non-economic goals (satisfaction of employees, corporate reputation) are being achieved; both classes of goals increase the overall satisfaction with the firm and the family involvement does not strengthen this relationship. However, when it comes to external non-economic goals related to the society or environment, there is a significant and positive moderating effect of family involvement. Originality/value The study contributes to the family business literature. First, to date, most of the studies focused on family business goals have been qualitative, thus not allowing for generalisation of findings. Second, there is a lack of evidence on the ways in which family firms integrate their financial and non-financial goals. Third, the authors contribute to the literature on the determinants of personal satisfaction with the business for CEOs, which has been the focus on a relatively scarce number of studies.

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