The Succession Process from a Resource- and Knowledge-Based View of the Family Firm

2001 ◽  
Vol 14 (1) ◽  
pp. 37-46 ◽  
Author(s):  
Katiuska Cabrera-Suárez ◽  
Petra De Saá-Pérez ◽  
Desiderio García-Almeida
Keyword(s):  
Organizational Performance ◽  
Family Business ◽  
Theory Of The Firm ◽  
Family Firm ◽  
Transfer Of Knowledge ◽  
Knowledge Based ◽  
Theoretical Approaches ◽  
The Family ◽  
Succession Process ◽  
Critical Process

A major challenge facing the family firm is the succession process. One reason for this challenge might involve the successor's ability to acquire the predecessor's key knowledge and skills adequately to maintain and improve the organizational performance of the firm. This paper uses two theoretical approaches from the strategic management field to explore this critical process and analyze how it can be managed effectively: the resource-based theory of the firm and the emergent knowledge-based view. This conceptual framework provides a powerful tool for understanding the nature and transfer of knowledge within the family business, which becomes the basis for developing competitive advantage over nonfamily businesses.

Socioemotional Wealth in Family Firms

2012 ◽  
Vol 25 (3) ◽  
pp. 258-279 ◽  
Author(s):  
Pascual Berrone ◽  
Cristina Cruz ◽  
Luis R. Gomez-Mejia
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Firm ◽  
Socioemotional Wealth ◽  
Future Studies ◽  
Theoretical Approaches ◽  
The Family ◽  
Different Dimensions ◽  
Dominant Paradigm

This article makes the case for the socioemotional wealth (SEW) approach as the potential dominant paradigm in the family business field. The authors argue that SEW is the most important differentiator of the family firm as a unique entity and, as such, helps explain why family firms behave distinctively. In doing so, the authors review the concept of SEW, its different dimensions, and its links with other theoretical approaches. The authors also address the issue of how to measure this construct and offer various alternatives for operationalizing it. Finally, they offer a set of topics that can be pursued in future studies using the SEW approach.

Loss and Continuity in the Family Firm

1993 ◽  
Vol 6 (2) ◽  
pp. 111-130 ◽  
Author(s):  
Fredda Herz Brown
Keyword(s):  
Family Business ◽  
Family Firm ◽  
Business Systems ◽  
The Family ◽  
Succession Process

There is little in the family business literature that focuses on the greatest impediment to the succession process: actual, anticipated, or denied losses. In order to successfully handle the issues related to continuity, the consultant must understand and be able to help the family deal with the issues related to loss—particularly the ultimate loss, death. This article examines factors that determine how losses affect family business systems and offers suggestions for consultants about assessment and intervention in these situations.

scholarly journals Modelling the knowledge transfer process between founder and successor in Vietnamese family businesses succession

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Robin Bell ◽  
Thanh Trung Pham
Keyword(s):  
Knowledge Transfer ◽  
Family Business ◽  
Transfer Process ◽  
Transfer Of Knowledge ◽  
Content Type ◽  
Business Context ◽  
The Family ◽  
Succession Process ◽  
Business Succession ◽  
Family Business Succession

PurposeThe transfer of knowledge has been identified as an important part of the family business succession process. This paper examines the knowledge transfer process from the founder to the successor to understand and model the factors that influence the knowledge transfer process in the Vietnamese family business context.Design/methodology/approachThis research adopts an inductive qualitative approach, conducting face-to-face semi-structured interviews with five father-son succession pairs. The interviews with founders and successors, ten in total, formed the basis of five case studies. The cases were all at an advanced stage of the process of business knowledge transfer and family business succession.FindingsA contextualized model was developed, highlighting the main factors that influence the knowledge transfer process from the founder to the successor in a Vietnamese family business context. This model identifies the influence of factors, some of which are not commonly presented in western family business literature. These include the importance of the role of the mother in mediating the relationship quality between the founder and the successor and the successor pursuing education and external work experience to improve their cognitive and reflective abilities. The need for the affinity between family members is also highlighted as important.Originality/valueIn Vietnam, most family-run businesses are still under the control of the founder. This research provides insight into the succession process in Vietnam. This research addresses calls for further exploration into the factors that influence the transfer of knowledge in the family business succession process and to research this process in a collectivist society, both of which remain under-researched.

“We are a family firm”

2018 ◽  
Vol 8 (1) ◽  
pp. 2-21 ◽  
Author(s):  
Claudia Binz Astrachan ◽  
Isabel C. Botero
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Firm ◽  
Business Owners ◽  
Public Companies ◽  
Content Type ◽  
Brand Building ◽  
Depth Interview ◽  
The Family ◽  
Family Associations

Purpose Evidence suggests that some stakeholders perceive family firms as more trustworthy, responsible, and customer-oriented than public companies. To capitalize on these positive perceptions, owning families can use references about their family nature in their organizational branding and marketing efforts. However, not all family firms actively communicate their family business brand. With this in mind, the purpose of this paper is to investigate why family firms decide to promote their “family business brand” in their communication efforts toward different stakeholders. Design/methodology/approach Data for this study were collected using an in-depth interview approach from 11 Swiss and German family business owners. Interviews were transcribed and coded to identify different themes that help explain the different motives and constraints that drive their decisions to promote the “family business brand.” Findings The analyses indicate that promoting family associations in branding efforts is driven by both identity-related (i.e. pride, identification) and outcome-related (e.g. reputational advantages) motives. However, there are several constraints that may negatively affect the promotion of the family business brand in corporate communication efforts. Originality/value This paper is one of the first to explore why family businesses decide to communicate their “family business brand.” Building on the findings, the authors present a conceptual framework identifying the antecedents and possible consequences of promoting a family firm brand. This framework can help researchers and practitioners better understand how the family business nature of the brand can influence decisions about the company’s branding and marketing practices.

scholarly journals Tacit knowledge, as a source of competitiveness: case study

2021 ◽  
pp. 27-33
Author(s):  
Patricia RIVERA-ACOSTA ◽  
Rosa Elia MARTÍNEZ-TORRES ◽  
Maricela OJEDA-GUTIÉRREZ
Keyword(s):  
Tacit Knowledge ◽  
Family Business ◽  
Raw Materials ◽  
Talent Management ◽  
Formal Training ◽  
Case Study Methodology ◽  
Knowledge Based ◽  
The Family ◽  
Study Methodology

In the society of the XXI century it is generally accepted that a new intangible resource of organizations is knowledge, in addition to the other existing resources: human, capital, raw materials and equipment. This is particularly true in a knowledge-based society and economy, where knowledge has become an invaluable medium for all organizations, particularly businesses. The objective of this paper is to make a diagnosis to describe how to apply knowledge management in the family business Campechanas la Escondida de la Trinidad. This project is based on a case study methodology, with a descriptive type of research; the collection of information uses as instruments with a qualitative approach, observation and interviewing. The results obtained show a dependence on the tacit knowledge possessed by bakers who apply in the artisanal process, in addition to family members, lack human talent management, formal training and innovation, which has limited their competitiveness.

Does family involvement matter post IPO? Adding value through advertising in family firms

2018 ◽  
Vol 8 (3) ◽  
pp. 218-234 ◽  
Author(s):  
Atanas Nik Nikolov ◽  
Yuan Wen
Keyword(s):  
Firm Performance ◽  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
Family Firm ◽  
Family Businesses ◽  
Publicly Traded ◽  
Content Type ◽  
The Public ◽  
The Family

PurposeThis paper brings together research on advertising, family business, and the resource-based view (RBV) of the firm to examine performance differences between publicly traded US family vs non-family firms. The purpose of this paper is to understand the heterogeneity of family vs non-family firm advertising after such firms become publicly traded.Design/methodology/approachThe authors draw on the RBV of the firm, as well as on extensive empirical literature in family business and advertising research to empirically examine the differences between family and non-family firms in terms of performance.FindingsUsing panel data from over 2,000 companies across ten years, this research demonstrates that family businesses have higher advertising intensity than competitors, and achieve higher performance returns on their advertising investments, relative to non-family competitors. The results suggest that the “familiness” of public family firms is an intangible resource that, when combined with their advertising investments, affords family businesses a relative advantage compared to non-family businesses.Research limitations/implicationsFamily involvement in publicly traded firms may contribute toward a richer resource endowment and result in creating synergistic effects between firm “familiness” and the public status of the firm. The paper contributes toward the RBV of the firm and the advertising literature. Limitations include the lack of qualitative data to ground the findings and potential moderating effects.Practical implicationsUnderstanding how family firms’ advertising spending influences their consequent performance provides new information to family firms’ owners and management, as well as investors. The authors suggest that the “familiness” of public family firms may provide a significant advantage over their non-family-owned competitors.Social implicationsThe implications for society include that the family firm as an organizational form does not need to be relegated to a second-class citizen status in the business world: indeed, combining family firms’ characteristics within a publicly traded platform may provide firm performance benefits which benefit the founding family and other stakeholders.Originality/valueThis study contributes by highlighting the important influence of family involvement on advertising investment in the public family firm, a topic which has received limited attention. Second, it also integrates public ownership in family firms with the family involvement–advertising–firm performance relationship. As such, it uncovers a new pathway through which the family effect is leveraged to increase firm performance. Third, this study also contributes to the advertising and resource building literatures by identifying advertising as an additional resource which magnifies the impact of the bundle of resources available to the public family firm. Fourth, the use of an extensive panel data set allows for a more complex empirical investigation of the inherently dynamic relationships in the data and thus provides a contribution to the empirical stream of research in family business.

Die Krisenfestigkeit der Unternehmerfamilie – Haniel, Stumm und der «doppelte» Strukturwandel

2018 ◽  
Vol 63 (2) ◽  
pp. 185-219
Author(s):  
Thomas Urban
Keyword(s):  
Structural Change ◽  
Family Business ◽  
Family Policy ◽  
Early Stage ◽  
Belief System ◽  
Family Firm ◽  
Family Factors ◽  
The Family ◽  
Business Structure ◽  
Intra Family

AbstractThe resilience of business families in times of crisis. Haniel, Stumm and the «double» structural change.In order to promote the longevity of their family firm, business families must be able to cope successfully with external and internal stressors. Their resilience in times of crisis derives from a combination of organizational, individual and family factors. Based on these assumptions, the article examines the way in which two German business families, Haniel and Stumm, have dealt with the «double» structural change that they faced between the 1950s and 70s. The Haniel family succeeded in recognizing the necessary separation from their coal and steel heritage at an early stage. Moreover their leading representatives were able to adapt the family policy to the grown and recently reunited shareholder community. In contrast, the Stumm family lacked ideas for a sustainable renewal of its crisis-prone family business structure. In addition and paradoxically, their spokesman did not find a voice in his vain attempts to fight against the intra-family estrangement that weakened the «belief system» of the family. These contrasting examples show that the resilience of business families must be seen as a historically shaped resource that is heavily influenced by non-economic psychological abilities and accomplishments.

The 3D IFB SWOT Analysis as a Strategic Tool to Develop Entrepreneurial Plans for Family Businesses

2020 ◽  
pp. 363-389
Author(s):  
Luz Leyda Vega-Rosado
Keyword(s):  
Family Business ◽  
Swot Analysis ◽  
Three Dimensional ◽  
Family Firm ◽  
Second Phase ◽  
The Third ◽  
Third Phase ◽  
The Family ◽  
Generational Groups ◽  
The Individual

This chapter provides a framework that family business members can use to strategically and entrepreneurially evaluate themselves before they prepare the final strategic plan of the family firm. The tool consists of four phases. The first phase is the Strengths-Weaknesses-Opportunities-Threats (SWOT) analysis of the Individuals that are members of the family business. The second phase is the SWOT analysis of the Family's generational groups. Each generation in the family business will work in groups according to their year of birth. The third phase is the SWOT analysis of the Business. The fourth and most important phase is the integration called 3D IFB SWOT Analysis. It is 3D because it is three-dimensional, integrating the Individual, the Family's generations, and the Business.

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