Prelims

Half Title Page

The Power of Inclusion in Family Business

Endorsement Page

Praise for The Power of Inclusion in Family Business

“Through facts, professional experiences and rigorous research, this easy-to-read book stands as a ground-breaking contribution to the family business field and practice, highlighting how women owners’ inclusion is strategic, profitable and harmonizing. A must read for families-in-business and their family firms’ executives, board members and advisors.”

Andrea Grobocopatel, President of FLOR Foundation and AMPATEL, Argentina

“Smart and extremely timely! Rosa Nelly and Miguel Ángel remind us of our responsibility, as entrepreneurs, to be involved in understanding and addressing correctly issues like inclusion, equity and diversity. Smart, extremely timely and brilliantly supported by great family business experts, this book leads us into a more inclusive environment.”

José Antonio Fernández Carbajal, Executive Chairman of the Board, FEMSA, México

“The Power of Inclusion in Family Business provides an insightful roadmap for implementing diversity and genuine inclusion in family-owned businesses. The book guides us on how companies should prepare its next generation female leaders, shining a light on recognizing and consciously involving daughters in the succession line. More than a trend, diversity and inclusiveness are major assets for family enterprises to thrive and survive in a fast-changing world.”

Rita Nabeiro, Grupo Nabeiro – Delta Cafés Board Member, Portugal

“This wonderful collection of essays on women in business families is a new reference in the family business field. Truly insightful and impactful, this is a must read for members of business families, advisors, and scholars alike.”

John A. Davis, MIT Sloan School of Management, United States (U.S.)

“An impressive, accomplished and complementary team! Professor Gallo, a forerunner in the field of family business and a seasoned advisor, finds in the academic qualification, social sensitivity and hands-on experience of Dr. Rosa Nelly Trevinyo-Rodríguez the perfect tandem to address and expand an essential and unprecedented topic: women owners’ inclusion in family firms.

Using a precise, powerful and simple language, this book is a practical guide not only for planning and implementing family business succession processes but also, and more importantly, to prepare daughters for occupying leadership positions in their family-owned firms. Female next generation members will find in this text a description of what is expected of them as potential responsible business owners and a roadmap to achieve it.

Moreover, The Power of Inclusion in Family Business offers an especially interesting view on the role of family business most trusted advisors, who by means of well-thought, gender sensitive mentoring processes, can help families-in-business train and empower next gen women owners so they can achieve the necessary moral authority to influence consensus building about what is reasonable, legitimate, beneficial and authentic for the family enterprise.”

Javier Ormazabal Echevarria, President & CEO at VELATIA Group, Spain

“This book is an outstanding collection of equity and inclusion research in family firms, being a valuable guide book for practitioners. The Power of Inclusion in Family Business addresses critical, family and business-related issues that influence and shape the sustainability of 21st century family companies.”

Su-Lee Tsai, Former Chairman & President; Board Member of Eastern Advertising Co., Ltd., Taiwan.

Title Page

The Power of Inclusion in Family Business

EDITED BY

Rosa Nelly Trevinyo-Rodríguez

Founding Partner and CEO, R.N. Trevinyo-Rodríguez & Associates, Monterrey, México.

AND

Miguel Ángel Gallo

Professor Emeritus, IESE Business School, University of Navarra, Barcelona, Spain.

United Kingdom – North America – Japan – India – Malaysia – China

Copyright Page

Emerald Publishing Limited

Howard House, Wagon Lane, Bingley BD16 1WA, UK

First edition 2022

Editorial matter, Selection, Introduction, Chapter 1 and Conclusion © 2022 Rosa Nelly Trevinyo-Rodríguez and Miguel Ángel Gallo. Published under exclusive licence by Emerald Publishing Ltd

Individual chapters © 2022 Emerald Publishing Limited.

Reprints and permissions service

Contact: permissions@emeraldinsight.com

No part of this book may be reproduced, stored in a retrieval system, transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without either the prior written permission of the publisher or a licence permitting restricted copying issued in the UK by The Copyright Licensing Agency and in the USA by The Copyright Clearance Center. Any opinions expressed in the chapters are those of the authors. Whilst Emerald makes every effort to ensure the quality and accuracy of its content, Emerald makes no representation implied or otherwise, as to the chapters’ suitability and application and disclaims any warranties, express or implied, to their use.

British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

ISBN: 978-1-80117-579-1 (Print)

ISBN: 978-1-80117-578-4 (Online)

ISBN: 978-1-80117-580-7 (Epub)

Dedication Page

To All the Families-in-Business we have had the privilege to serve worldwide.

To All the Women Owners we have had the honor to work with and learned from.

To All the Next Generation Members who we have had the joy to positively impact.

To All the Practitioners and Scholars who diligently nurture and build up the family business field.

To All Family Business Passionates and Entrepreneurship Enthusiasts who are currently transforming our societies.

Contents

List of Figures

List of Tables

About the Contributors

Hikari Akizawa, PhD, is the President of Oikos Research. She was a Professor at Chuo University, Visiting Scholar at HEC Montreal, and the President of the Japan Academy of Family Business. She received her PhD from the Department of Value and Decision Science at Tokyo Institute of Technology. She has written many publications, her articles are grounded on Japanese cases and mostly written in Japanese. She studies traditional practices in family firms and their relationship with the market economy. Moreover, she regularly holds executive seminars and dialogues with family business managers and owners.

Ethel Brundin, PhD, is a Professor in Entrepreneurship at Jönköping International Business School, Jönköping University Sweden, and at the Centre for Family Entrepreneurship and Ownership (CeFEO), one of the world-leading family business centers. She is Standing Visiting Professor at Witten Herdecke University, Germany and appointed Extraordinary Professor at the University of the Western Cape, South Africa. She is a recognized emotion researcher with an interest in the micro processes of strategic leadership and entrepreneurship with an emphasis on the role of emotions. She publishes on a regular basis in international journals and book collections and is an experienced advisor to family businesses.

Christina Constantinidis, PhD, is a Professor of Entrepreneurship in the School of Management at the University of Quebec in Montreal (ESG UQAM), where she leads the Entrepreneurship Certificate and is a Permanent Member of the GEST Research Group (Entrepreneurship, Society & Transformations Group). She focuses on studying gender dynamics in entrepreneurship and family business. Her research has been published in international academic journals, book chapters and reports. She is a Member of the editorial board of the Revue internationale PME and a Review Board Member of the Family Business Review. She is actively engaged in a diverse set of professional networks.

Hung-bin Ding, PhD, is the Associate Dean of the Sellinger School of Business and Management of Loyola University Maryland. He received his PhD in Management from the Rensselaer Polytechnic Institute. His research interests are in the areas of family business, family office, entrepreneurship, and corporate sustainability. His recent research projects focus on family offices and sustainability practices in family businesses. He has taught strategic management, corporate strategy, international business, and entrepreneurship courses at the undergraduate, graduate, and executive levels in the United States, China, and Taiwan.

Neus Feliu, PhD, is a Consultant, Researcher and Educator in the area of family enterprises. She is a Partner at Lansberg, Gersick and Associates. Building on her background in economics and organizational psychology, she has developed an expertise in the governance, long-term sustainability planning, and ownership strategies of family enterprises, specializing in large Latin American and European Family Businesses. She holds an MA in Family Mediation and a Postgraduate in Family Systems (Georgetown Family Center, Washington DC). She obtained her PhD from ESADE Business School (Barcelona, Spain) with a specialization in philanthropy in family enterprises from a governance perspective.

Miguel Ángel Gallo, PhD, is a Professor Emeritus of General Management at IESE Business School (Spain), where he served as a Full Professor (1975–2003) and IESE PhD Program Director (1980–1990). He was the Founding Director of the first Family Business Chair in Europe – acting as its chairman from its inception (1987) until September 2003. His areas of specialization include strategic management, boards of directors and family business. He is a Fellow of the Royal European Academy of Doctors, Strategic Management Society and serves as the Honorary President of the International Family Enterprise Research Academy (IFERA). He has participated on the boards of prominent firms: Grupo VELATIA, Fuertegroup, Grupo Senda.

Kelsey Hahn is the Co-Founder and CEO of Monark, an on-demand, digital leadership training and development platform, providing real and measurable growth using behavioral science. Prior to Monark, Kelsey spent seven years in a Canadian single-family office as Managing Director, Research, overseeing the birth, growth, and strategic direction of the research center, and a team dedicated to evolving society’s knowledge about business leadership and evidence-based management. Kelsey continues to act as a strategic resource and trusted advisor for leaders in energy and investment, and regularly speaks in the areas of organizational behavior and leadership. Kelsey holds a MSc in Management from Queen’s University.

Matti Koiranen, PhD, Professor Emeritus, has worked in the paper industry during 1970–1984 and as a Finnish Consul and Trade Commissioner for Scotland and Northern Ireland during 1984–1988. He has acted as a Professor in three Finnish universities: Eastern Finland (1989–1992), Tampere (1993–1994), and Jyväskylä (1994–2012), and as a Visiting Professor both in Lugano, Switzerland, and in Hasselt, Belgium. He has guided and supervised more than 70 PhD theses, and authored a variety of research publications, academic text books, and case study exercises. His research interests are mainly related to Entrepreneurship; Intrapreneurship: Family Business, Ownership, and Creative Industries.

Eric R. Kushins, PhD, is an Assistant Professor of Management at the Campbell School of Business at Berry College, in Mount Berry, Georgia, USA. He teaches undergraduate and MBA courses in HR, Social Entrepreneurship, and The Art of Negotiation. He engages sociological theories and methods in his research, publishing articles ranging from race and discrimination in hiring practices to family influence on R&D in Chinese manufacturing firms. He completed his joint-PhD in Sociology and Management from Rutgers University. He is a Six Sigma Black Belt and a HRM Senior Certified Professional. He actively consults and teaches executive education courses.

Ivan Lansberg, PhD, is a Founding Partner at Lansberg, Gersick and Associates. He has consulted with complex family businesses globally, and has made significant contributions to the understanding of family business governance and succession. He was one of the founders of the Family Firm Institute and the first editor of the Family Business Review. After receiving BA, MA and PhD degrees from Columbia University, he taught at the Columbia Graduate School of Business and at the Yale School of Organization and Management. He is on the faculty of Kellogg School of Management at Northwestern University where he serves as Academic Director of family enterprise programs.

Kandarp Harsiddh Mehta, PhD, is a Senior Lecturer of the Entrepreneurship Department at IESE Business School (Spain) since October 2009. His research focuses on creativity in organizations and negotiations. He has been a Visiting Fellow at the Dispute Resolution Research Center of Kellogg School of Management, Chicago, USA. He received his PhD from IESE Business School, Barcelona; his Mediation certification from the Center of Conflict Resolution, Chicago, and his MBA from Gujarat University, Ahmedabad, India. He is also a theatre and television actor. He works as consultant with startups and family businesses on issues related to innovation and creativity.

Marjo Miettinen, PhD, is a Co-owner and Chair of Ensto Group, an international technology company. In 2019, she became the Chair of the Board of the Federation of Technology Industries in Finland; the first female Chair in this 125-year-old organization. She is also the Chair of the Board of TT-Foundation, a Board Member in Confederation of Finnish Industries, Technology Academy Finland TAF, Finnish Business and Policy Forum EVA, Economic Research ETLA, EM Group Oy, P2X Solutions Oy, Solidium Oy and partner at Boardman Oy. She is the Co-founder of the Women in Tech network in Finland and former Chair of Family Business Network, Finland.

Teresa Nelson, PhD, is a Full, Tenured Professor of Strategic Management and Entrepreneurship in the Business School at Simmons University in Boston, Massachusetts, USA. She also collaborates with the GEST Research Group at the University of Quebec in Montreal. She is internationally recognized for her work on gender, diversity & inclusion and entrepreneurship. She has published extensively in top academic journals. Being active in research, policy and practice, she served as an appointed member of the National Women’s Business Council in the Obama Administration, and is Senior Research and Policy Director for Astia, an investing organization in women-led entrepreneurship ventures.

Issaka Oumarou Harou completed his Master thesis on the role of cultural diversity in managerial practices, and currently pursues doctoral studies in the family business research field at the University of Quebec in Montreal, where he is a Member of the GEST Research Group (Entrepreneurship, Society & Transformations Group). He has advised and supported organizations in the implementation of gender equality programs, as part of a cooperation program jointly conducted by the Center for International Studies and Cooperation, and the World University Service of Canada. In May 2021, he won the best research award on Family Firm Entrepreneurship & Innovation at the FERC conference.

Markus Plate, Dr, Dipl-Psych, is an Assistant Professor in Business Administration at Jönköping International Business School, Jönköping University, Sweden, and at the Centre for Family Entrepreneurship and Ownership (CeFEO), one of the world-leading family business centers. His research focus is on the interaction of identity, relationships and emotions in the family business, in particular in the owning family, family leadership and succession processes. He also works as communication trainer, counseling owning families on how to develop their business family strategy.

Ernesto J. Poza, PhD, is a Global Leader in family business education, research and consulting. He is Professor Emeritus of Global Family Enterprise, Thunderbird School of Global Management, author of the best-selling textbook, Family Business 5^th edition, 2018, and five other books on family business management. His work has been featured by CNN, NBC, The New York Times, Business Week and The Wall Street Journal. As the third recipient ever of the coveted Richard Beckhard Award, the Family Firm Institute recognized him as one of the top three consultants in the field. He serves on the boards of several family-controlled corporations.

Myriam Quispe-Agnoli, PhD, is an Associate Professor in Economics and Business Analytics of the Stetson-Hatcher School of Business at Mercer University. She earned her PhD in Economics from the University of North Carolina at Chapel Hill and her MA in Economics from Vanderbilt University. She worked as a Research Economist and Assistant Policy Adviser at the Federal Reserve Bank of Atlanta. She, a native from Lima, Peru, has worked in the Corporation for Financial Development (COFIDE) for several years and was a Faculty Member at the Pontifical Catholic University of Peru, her undergraduate alma mater.

Pramodita Sharma, PhD, is the Schlesinger-Grossman Chair in Family Business at the Grossman School of Business (GSB), University of Vermont and is a Visiting Professor at the Kellogg School of Management and the Indian School of Business. A PhD from the University of Calgary, she has received honorary doctorates from the Jönköping University in Sweden, and the University of Witten/Herdecke in Germany. She is a well-regarded scholar with over 50 scholarly articles and 10 books including: Entrepreneurial Family Firms (w. Hoy), the SAGE Handbook of Family Business (w. Melin and Nordqvist), and Pioneering Family Firms’ Sustainable Development Strategies (w. Sharma).

Salvatore Tomaselli, PhD, is a Tenured Associate Professor of Business Administration at the University of Palermo (Italy), and a Globetrotter Advisor to business families. He holds a PhD in Business Administration from IESE Business School, Barcelona, Spain. He is a Founding Member and Fellow of IFERA (International Family Enterprise Research Academy). He has developed a rich consulting and academic experience throughout Europe, Latin America (Mexico, Guatemala, Honduras, Costa Rica, Colombia, Ecuador, Argentina), Asia (China, Indonesia, Myanmar, Taiwan), Middle East (Jordan), Sub Saharan Africa (Nigeria), Australia, both in cooperation with top ranking consulting companies and as a free-lance consultant.

Rosa Nelly Trevinyo-Rodríguez, PhD, is the CEO of Trevinyo-Rodríguez & Associates – a global consulting firm advising multigenerational enterprising families – the Founding Director of the countrywide Tec de Monterrey (ITESM) Family Business Center, the Former Holder of the first ITESM Family Business Research Chair, and author of the bestseller “Family Business: A Latin-American Perspective” (Spanish). A PhD from IESE Business School (Spain), Prof. Trevinyo-Rodríguez became the first Hispanic President of the Academy of Management International Theme Committee and the Chair of the Management Consulting Division. She is a Visiting Professor in numerous universities worldwide, and a renowned Most Trusted Advisor and Board Member in leading family-owned companies and single-family offices.

Foreword

Pramodita Sharma

In today’s fast-changing society, increasing numbers of well-educated and talented women are steadily progressing toward ownership and leadership positions in the world’s smallest to largest business enterprises.

For family business leaders, the demographic, environmental and social trends together indicate that encouraging the development of women as responsible leaders, owners and wealth stewards is not only the right thing to do, but critically essential for their family wealth preservation plus business success and longevity.

In their superbly-timed book, an iconic octogenarian of family business education, Professor Miguel Ángel Gallo collaborates with his remarkable quadragenarian protégé Dr. Rosa Nelly Trevinyo-Rodríguez to address a provocative question: How can enterprising families strategically capitalize on the gender diversity within their family to develop productive and confident next-generation family members capable of building functional families and overseeing and/or operating high performing businesses?

Twenty active consultants and scholars from 10 countries spread across 4 continents collaborate with Professors Gallo and Trevinyo-Rodríguez to bring their transcultural perspectives on women owners’ involvement in family enterprises. Authors like Ethel Brundin, Ivan Lansberg, Matti Koiranen and Ernesto Poza whose professional journey extends as far as six decades, have not only observed, but contributed to the evolution in female education, ownership of property and inclusion in management and leadership in family firms.

Other emerging stars of family business research and advising share insights not only regarding the inclusion of daughters in family firms, but also about their preparedness and self-efficacy in making a substantive difference. Examples include a focus on the role and possibilities of women’s inclusion in operational enterprises and investment arms like the single-family offices. Stark differences are noted between symbolic and strategic inclusion of females within their family-owned companies.

Anyone – men and women alike – planning to own, lead, advise or work with a successful, long-lasting multigenerational family firm should definitely read The Power of Inclusion in Family Business from cover to cover. This easy-to-navigate book is full of practical tips to understand and traverse common stumbling blocks to empower authentic family business leaders to build a talented, collaborative and collegial next generation, coupled with a gender-inclusive architecture.

The forces of change are in motion and gaining rapid momentum. Ignoring them or doing nothing is not an option. Mindful of the once-in-a-lifetime opportunity to make a substantial difference for their families-in-business and their family firms, astute purpose-driven owners are reimagining and transforming their families-in-business’ culture and practices, along with their firms’ business models and structures into more female-inclusive contexts, reaping, in turn, economic and social returns.

Professor Pramodita Sharma

Schlesinger-Grossman Chair of Family Business

Grossman School of Business, University of Vermont

Vermont, USA