scholarly journals Portuguese and Brazilian Family Business: in Between Urgency and Delay Perceptions in the Succession Process

2020 ◽  
Vol 3 (2) ◽  
pp. 24
Author(s):  
Ana Paula Marques ◽  
Leandro Alves da Silva
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Family Businesses ◽  
Executive Succession ◽  
Family Conflicts ◽  
The Family ◽  
Management Succession ◽  
Business Succession ◽  
Depth Interviews

Family business has been the focus of several studies over the last two decades and its relevance has been supported by the interdisciplinary perspectives in the fields of management, entrepreneurship, economics, psychology, and sociology. Despite that, there is still insufficient knowledge about the key role of family influences in the business, namely the intergenerational management succession, its planning and effectiveness. According to a recent research focused on the entrepreneurial succession in Portugal (AEP, 2011), 50 percent of family businesses are not passed on to the second generation and only 20 percent reach the third generation. In fact, business succession planning has been identified as one of the most challenging steps in the life of the family firm, both in maintaining the competiveness of the business, and in overcoming intra/ inter family conflicts. Nonetheless, resistance to succession, relationship founder/ successor, planning of succession, and type of organisational culture, among others, explain how executive succession is one of the most important and hardest tasks in organisational life (Zahra, 2005). This paper will be supported mainly by qualitative data, taking into account the main results from the project “Roadmap for Portuguese Family Businesses” (NORTE2020/FEDER) developed in Portugal (Marques, 2018) and in Brazil (Silva, 2018), which analyses in-depth interviews conducted to Portuguese (N 23) and Brazilian (N 11) founders/managers/owners. In the present article we wish to discuss the main management challenges of a family business, particularly the importance of succession preparation and the role of the family in the socialisation of the second (third or subsequent) generation.

scholarly journals Intergenerational Management Succession: Specificities of the Portuguese Family Business

2020 ◽  
Vol 6 (1) ◽  
pp. 43
Author(s):  
Ana Paula Marques ◽  
Ana Isabel Couto
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Online Survey ◽  
Family Firms ◽  
Family Businesses ◽  
Executive Succession ◽  
Business Organisation ◽  
The Family ◽  
Management Succession ◽  
Business Succession

Family firms are considered the world’s most predominant form of business organisation. Notwithstanding the fact that there is a lack of consensus with regards to their definition, on recognise that family firms are different from non-family businesses due to their specific relations at three levels, namely ownership, business and family. It would appear that the family influences, shapes and conditions both the firm and its continuity, mainly through the intergenerational management succession, its planning and effectiveness. According to a recent research focused on the entrepreneurial succession in Portugal (AEP, 2011), 50% of family businesses are not passed on to the second generation, and only 20% reach the third generation. Also, taking into account the main results from the project “Roadmap for Portuguese Family Businesses” (NORTE2020/FEDER), the empirical findings have proved that the business succession planning has been identified as one of the most challenging steps in the life of the family firm, which demands for appropriate analysis. In fact, resistance to succession, relationship founder/ successor, planning of succession, type of organisational culture, among others, explain how executive succession is one of the most important and hardest tasks in organisational life. In this article, we aim to discuss the main management challenges of a family business, particularly the importance of succession preparation and the role of the family in the socialisation of the second (third or subsequent) generation. Based on an online survey (N 1148) and on in-depth interviews conducted to founder/ manager/ owner (N 23), we will seek to point out major challenges faced by the Portuguese family business, as far as this matter is concerned.

scholarly journals Knowledge Management Untuk Menciptakan Daya Saing Bisnis Keluarga Pada Pengelolaan Bisnis Kuliner di Kota Palembang

MBIA ◽  
2020 ◽  
Vol 19 (1) ◽  
pp. 66-74
Author(s):  
Trisninawati Trisninawati ◽  
Dina Mellita
Keyword(s):  
Knowledge Management ◽  
Human Resources ◽  
Family Business ◽  
Human Resources Management ◽  
Family Businesses ◽  
Resources Management ◽  
The Family ◽  
The City ◽  
Depth Interviews

The culinary business in the city of Palembang is one of the family businesses that has been passed down for generations, the culinary business in recent years can create growth opportunities for employment and increase the ability of human resources. Management of many family businesses is controlled and operated by one member or several families and many family businesses have non-family members as employees. This study aims to determine the role of knowledge management in creating human resources who are ready to compete in the culinary industry in the city of Palembang. by analyzing the factors that must be considered such as the next generation development factors, information technology, and business development. This research uses a qualitative approach through in-depth interviews and direct observation. The results of this study indicate that the culinary business in the family business is still carried out traditionally the application of technology is still limited so the need for the role of knowledge management in order to be able to identify knowledge can realize competitiveness and sustainability as a benchmark for the success of the family business especially the culinary business in the city of Palembang   Abstrak Bisnis  kuliner di kota Palembang merupakan salah satu bisnis keluarga yang sudah turun temurun,  bisnis kuliner tersebut dalam beberapa tahun ini dapat menciptakan peluang pertumbuhan bagi lapangan kerja dan peningkatan kemampuan sumber daya manusia. Manajemen bisnis keluarga banyak dikendalikan dan dioperasikan oleh  satu anggota atau beberapa keluarga dan banyak bisnis keluarga memiliki anggota non keluarga sebagai karyawan. Penelitian ini bertujuan untuk mengetahui peran knowledge management dalam  menciptakan sumber daya manusia yang siap untuk berdaya saing  pada industri kuliner di kota Palembang. dengan menganalisis  faktor- faktor yang harus diperhatikan seperti faktor pengembangan generasi penerus, teknologi informasi,dan  pengembangan usaha. Penelitian ini menggunakan pendekatan kualitatif melalui wawancara mendalam dan observasi langsung. Hasil penelitian ini menunjukkan bahwa bisnis kuliner dalam bisnis keluarga masih dilakukan tradisional penerapan teknologi masih terbatas sehingga perlu adanya peran knowledge management agar   mampu mengidentifikasi pengetahuan dapat mewujudkan daya saing dan berkelanjutan  sebagai  tolak ukur keberhasilan bisnis keluarga khususnya bisnis kuliner  di kota Palembang.

Next-generation leadership development: a management succession perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Joseph Kie Kuong Tang ◽  
Wan Sabri Hussin
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Family Businesses ◽  
Chinese Family ◽  
Next Generation ◽  
Content Type ◽  
The Family ◽  
Management Succession ◽  
Inclusive Approach ◽  
Malaysian Chinese

PurposeThis research study focusses on the succession challenges in small-medium outboard marine businesses of Malaysian Chinese family ownership. The founder-owners face challenges in convincing the next-generation members to establish their careers within the family business and to ensure successions are in place to safeguard the family's wealth. A gap exists in the research literatures concerning such family business owners; and their experiences would provide valuable information to other Malaysian Chinese family businesses planning to start the succession journey.Design/methodology/approachAn exploratory case study methodology to research five Malaysian Chinese family businesses cases in Klang Valley, Selangor, Malaysia, is used in this study. The primary qualitative data were obtained through in-depth, semi-structured interviews and observations. The research data lead to the identification of the following themes: generational change affects the survival of small-medium Malaysian Chinese family-owned businesses; the founder-owners' intention and desire for business to pass to the next generation give rise to the imperative of succession; the founder-owners' motive and goals, family context and the business nature would determine a large part to how the succession plans are carried out and the upbringing, expectation and obligations would determine how the next generations of children would view the prospect of taking over the family business. From this, a succession model that detailed an inclusive approach to succession planning process between the two generations is established.Research limitations/implicationsA small purposive sample is included, and it is recommended that a larger and more diverse sample be collected in future studies. This study follows a nuclear family structure of parents and children. If more Chinese family businesses are selected based on a wider set of family members such as uncles and cousins, the findings may differ.Social implicationsThis research study could also facilitate other Malaysian family businesses to rethink and refocus on the importance of undertaking an inclusive approach to succession planning and also help potential next-generation successors in understanding and working towards attaining the qualities that family firms look for in future leaders.Originality/valueThe researcher summarizes the study findings into a management succession model. An inclusive succession approach is needed to overcome these challenges and would enable sustainability, continuity and longevity of the family business. This would help the family business to understand that succession is not a single event but a process that needs to be planned together with the next-generation family members over a certain period of time.

Shareholder Foundations of enterprises: the North European style of securing family businesses for the long term—rising up to the global challenge

2020 ◽  
Vol 26 (7) ◽  
pp. 654-662
Author(s):  
Ineke A Koele ◽  
Rasmus K Feldthusen
Keyword(s):  
Family Business ◽  
Ownership Structure ◽  
Family Businesses ◽  
Family Conflicts ◽  
Global Challenge ◽  
The North ◽  
The Family ◽  
Business Succession ◽  
Dispersed Ownership

Abstract This article explores how and why the traditional business succession system within family businesses needs to be reconsidered. Holding Foundations are generally overlooked although they provide a purpose-driven ownership structure with a stewardship governance that avoids family conflicts, taxation and dispersed ownership affecting the family business. In this article, the authors combine their experiences and insights from Denmark and the Netherlands with shareholder foundations of enterprises.

scholarly journals BISNIS KELUARGA TANPA “PUTERA MAHKOTA”

2018 ◽  
Vol 11 (1) ◽  
Author(s):  
Andreas Heryjanto
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Business Owners ◽  
Family Conflicts ◽  
Succession Plan ◽  
The Family ◽  
Family Harmony ◽  
Business Succession ◽  
Fatal Consequence ◽  
Family Business Succession

<p>Business viability is a main goal of family business. However, leaders are usually reluctant to let<br />off their power, even tend to be in charge beyond the age of retirement. The most fatal consequence of<br />reluctancy to hand over the leadership to his successor is the occurrence of "Prince Charles Syndrome".<br />Viability of family business requires a mature succession plan, maintaining family harmony, the<br />responsibility and unity of ownership, and maintaining superior resources. Succession plan becomes a<br />crucial issue in this family business. Succession planning should be a priority, by clarifying who the real<br />"Crowned Prince" appointed to continue the family business. In order for business viability to running<br />well, the second generation as a business successor must be well prepared, i.e. the process of the tacit<br />knowledge transfer, the full involvement of the next generation, and the planned regeneration. It is<br />needed of the willingness and magnanimity of current business owners and leaders to gradually let off<br />business de-facto and de-jure to the "Crowned Prince". With well-prepared succession planning, it will<br />avoid potential prolonged family conflicts.<br />Keywords: Business viability, succession plan, family conflict</p>

scholarly journals The Transition of Family Business Leadership:

2018 ◽  
Vol 2 (3) ◽  
pp. 101-104
Author(s):  
Dahliana Kamener ◽  
Norasekin Ab. Rashid ◽  
Daniati Puttri
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
First Generation ◽  
Second Generation ◽  
Family Businesses ◽  
Business Leadership ◽  
The Family ◽  
Family Leadership ◽  
Business Succession ◽  
Family Business Succession

The issue of succession is very important because the successful succession leads to the sustainability of a family businesses (Sharma & Dave, 2013). Generally, the family businesses are difficult to flourish and even many have bankrupt. Some family businesses are bound on the first generation  and some have collapsed in the second generation.  Literature shows that just 30 percent of family businesses can be passed along to the second generation, and 70 percent fail after first generation step down because there are no preparation for succession and inability  of the next generation to control and run the company (Aronoff, (2004).  The study purposed to examine six hypotheses and the result showed the succession planning, non-family leadership, and decision making authority unsignificantly affect on the succession of the family business. Nevertheless, founder's influence, successor and strategic planning variable affect significantly to the success of family business succession at Padang city, West Sumatera.  

scholarly journals An assessment of the determinants of successor development in family businesses

2010 ◽  
Vol 10 (1) ◽  
Author(s):  
S. P. Van der Merwe
Keyword(s):  
Factor Analysis ◽  
Family Business ◽  
Family Members ◽  
Family Businesses ◽  
The Family ◽  
Management Succession ◽  
Generation Family ◽  
Successor Development ◽  
Measuring Scale

Purpose: The primary objective of this study is twofold: Firstly, to assess some of the determinants of successor development in family businesses with the focus on the role of the senior generation family members, and secondly, to make practical recommendations on actions that families can take to ensure successful management succession. Research methodology: The construct validity of the measuring scale was assessed by means of an exploratory factor analysis and by calculating Cronbach alpha coefficients. Thereafter, the correlation between the variables was explored by means of correlation analysis, t-tests and effect sizes. Findings: In this study the exploratory factor analysis provides some evidence of construct validity, but further research is needed before the measuring scale can be utilised to diagnose these issues in small and medium-sized family businesses. It is recommended that more advanced statistical procedures for scale validation, such as structural equation modelling, should be utilised in further development of the questionnaire. Supplementary research on the use of the measuring scale is also necessary to refine its norms. Practical implications: The importance for family businesses is that a better understanding of the determinants of the senior generation's role in the development of the prospective successor could contribute to the successful transfer of the business from the senior to the younger generation family members. It is, however, important to provide feedback on the diagnosis based on the proposed scale to individual family businesses. Originality/Value: Understanding the determinants of the role of the senior generation owner-manager in the development of the prospective successor is important to sensitise both role-players', as well as the senior and younger generations regarding their expectations, fears and needs in the process. This makes this measuring scale a useful tool to identify the state of these factors in the family business. Conclusion: This study confirms the important role that the senior generation family members play in the development of the younger generation successors to ensure that the prospected successor is competent to successfully manage the family business after management succession and to ensure the sustainability of the family business.

Successful family business succession: Utilizing peer groups for critical leadership skills development

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jenell Lynn-Senter Wittmer ◽  
Clinton Oliver Longenecker ◽  
Angie Jones
Keyword(s):  
Leadership Development ◽  
Family Business ◽  
Succession Planning ◽  
Leadership Skills ◽  
Peer Groups ◽  
Family Businesses ◽  
Business Leaders ◽  
Content Type ◽  
Critical Leadership ◽  
Business Succession

Purpose The current study explores the necessary leadership skills required for leadership succession in family businesses as well as best development activities for each skill. The current study provides suggestions for best practices in developing and utilizing peer groups as a leadership development method. Design/methodology/approach A needs assessment was conducted by surveying 150 family-business leaders. Leaders were asked, “What are your most pressing leadership development needs for your organization as you move toward succession? A follow-up question was then asked: “For each of these skills, what method would best help develop this skill for family business leaders?” The responses were content analyzed, placed into themes, and rank ordered. Findings High agreement amongst business leaders was found as eight leadership skills were cited by high percentages of family-business leaders. Leaders overwhelmingly reported peer developmental activities as being the best method for developing these skills. Originality/value Succession planning in family-businesses is critical as many family business fail to make it past the first or second generation. However, little research explores what specific leadership skills are necessary for optimal succession. As well, many leaders in public organizations seek individual methods of development, such as executive coaching, whereas family business leaders seek group activities to learn with/through their peers.

Passing on the legacy: exploring the dynamics of succession in family businesses in Pakistan

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asma AbdulRahim Chang ◽  
Muhammad Shujaat Mubarik ◽  
Navaz Naghavi
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Design Methodology ◽  
Family Firms ◽  
Family Members ◽  
Family Businesses ◽  
Content Type ◽  
Traditional Family ◽  
Interviewing Technique

PurposeBy taking the theory of entrepreneurial legacy as the baseline, this study explores the various aspects of succession planning in indigenous family businesses especially the role of female family members in succession and conflicts in family businesses.Design/methodology/approachThe study is qualitative in nature and adopts narrative inquiry to explore the aspects of succession planning. In doing so, the study utilizes an in-depth interviewing technique with nine participants who run their family-owned firms which are mostly in their second or third generation for analysis.FindingsThe findings are concurrent with the literature that indicates a lack of strategic succession planning although ordinary or natural succession does occur in some firms. The study also reports a lack of consideration for female members in succession, daughters in particular, for traditional family firms (FFs) in contrast to entrepreneurial FFs.Research limitations/implicationsThe study has many implications for family-owned firms in Pakistan as they need to align their family business with the theory of entrepreneurial legacy and its three strategic activities in order to ensure the longevity of their business.Originality/valueExploring how succession planning takes place in family indigenous family businesses and what is the role of female family members in succession and conflicts in family businesses are original contributions of this study.

Direct and indirect effect of entrepreneurial orientation, family involvement and gender on family business performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Erny Rachmawati ◽  
Suliyanto ◽  
Agus Suroso
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Family Businesses ◽  
Future Research ◽  
Content Type ◽  
The Family ◽  
The Relationship

PurposeThis study aims to determine the direct effect of entrepreneurial orientation on family business performance. This study also discusses the role of family involvement as a mediating variable and the role of gender as a moderating variable in the relationship between entrepreneurial orientation and family business performance.Design/methodology/approachA total of 328 hotels in Yogyakarta, Indonesia, were selected as samples by the convenience sampling method. Primary data is collected through structured questionnaires that are delivered by themselves to key people in the hotel such as owners, directors and key staff (HRD, financial, relationship). Hypotheses are tested by structural equation modeling procedures using AMOS 22.0. Sobel test is used to determine the indirect effect of the mediation variable.FindingsThe results showed that entrepreneurial orientation had no significant effect on family business performance. Family involvement acts as a full mediation in the relationship between entrepreneurial orientation and family business performance. Gender acts as a moderating variable that can strengthen the relationship between entrepreneurial orientation and family business performance. The results showed support for previous research.Research limitations/implicationsThe results of the study cannot conclude the national family business because it adopts convenience sampling and the sampling area is limited in Yogyakarta. Future research can use a larger sample. This study only researches hotels managed by family businesses, so it is not feasible to conclude for family businesses in general. Future research may choose to use several types of family businesses so that more varied results can be obtained. Future research could also compare hotels managed by family businesses with non-family businesses. The results also found that in addition to gender roles, respondent heterogeneity was an important component in the study of social identity. Therefore, research examining the influence of different cultures on the relationship between entrepreneurial orientation and family business performance should be an extraordinary topic for future study. Other results from this study also indicate that there is a role for religion in improving hotel performance. Future research is needed to further explore Islamic business modeling for family businesses.Practical implicationsThis finding has significant implications that can help family businesses in developing strategies that are suitable for business management. Entrepreneurial orientation occupies a strategic position in developing sustainable competitive advantage in the family business of the tourism sector especially the hotel business in Yogyakarta for the better. Besides, the results of the study also showed that entrepreneurial orientation had no significant effect on performance. This relationship becomes significant when combined with active family involvement. This finding also shows that entrepreneurial orientation has the potential to have a more beneficial effect because of the active involvement of the family in helping with business management, alleviating business-related problems, and having a significant influence when the family also acts as management.Social implicationsResearch findings indicate the role of gender in strengthening the relationship between entrepreneurial orientation and family business performance. This provides a good position for women in the social environment to show achievement. To place women on the side of gender equality and justice in the family business in Indonesia. By opening wider access for Indonesian women in the realm of business management, expanding women's participation in a family business, increasing the role of control for women, and increasing women's knowledge and skills to increase the benefits in managing family businesses so that they have sustainable resilience in the face of global competition.Originality/valueThe results of this study provide a new model in providing an overview of the direct and indirect roles (mediating and moderating) in the assessment of family business performance. This study uses three variables which are important in performance appraisal, namely entrepreneurial orientation (independent variable), family involvement (mediating variable) and gender (moderating variable). Where research that combines these four variables, directly and indirectly, has never been done before.

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