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Article
Publication date: 18 May 2023

Okey Nwuke and Ogechi Adeola

This study explores the different survival strategies employed by family-owned small and medium-sized businesses in Nigeria. The study delves into the dynamics of ensuring business

Abstract

Purpose

This study explores the different survival strategies employed by family-owned small and medium-sized businesses in Nigeria. The study delves into the dynamics of ensuring business continuity from founders to successors and identifies the success factors that can facilitate seamless leadership transition outcomes.

Design/methodology/approach

This study utilised a qualitative multiple-case study approach, with the population consisting of founders from three medium-sized family businesses in Nigeria. Semi-structured interviews were the primary data collection tool used in the study. Furthermore, company documents were analysed to gain further insights into the leadership transition strategies employed in the selected businesses.

Findings

Successful transition and survival of family businesses are dependent on the founder's desire and support for transition, successor preparation, building trust and credibility in successors, and instilling a clear vision for the business.

Research limitations/implications

The study's findings will provide valuable insights to leaders of family-owned SMEs, specifically in the development of effective leadership transition action plans. It should be noted that the study is limited to three family-owned businesses in two locations in Nigeria, which may restrict the generalisability of the findings. Despite this, the study offers novel contributions to the current literature by presenting practical strategies for achieving the survival of family businesses in an emerging economy.

Originality/value

This study proposed strategies for business survival, continuity, sustainability and seamless leadership transition for small and medium-sized family-owned businesses. Importantly, the study recommends action plans for present and prospective family business leaders to deepen succession pathways.

Details

Journal of Family Business Management, vol. 13 no. 4
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 23 September 2022

Pattanapong Tiwasing, Yoo Ri Kim and Sukanlaya Sawang

This paper aims to examine the relationship between being members of social media business networks and SME performance by comparing business performance between family-owned SMEs…

Abstract

Purpose

This paper aims to examine the relationship between being members of social media business networks and SME performance by comparing business performance between family-owned SMEs that are members and non-members of social media business networks.

Design/methodology/approach

The analysis empirically draws on cross-sectional data of 9,292 English and Welsh family-owned SMEs from the UK's Government Small Business Survey 2015. Propensity Score Matching (PSM) is applied to control for selection bias and differences in firm characteristics before comparing business performance, measured in terms of annual turnover, sales-growth intention and innovation between family-owned SMEs that are members and non-members of social media business networks.

Findings

The findings show that family-owned SMEs that are members of social media business networks are more likely to have higher prior turnover and to grow their sales than non-members. Also, they are more likely to report being innovative in products and processes than non-members. The empirical results acknowledge the importance of online business networks and digital social capital on enhanced family-owned business performance.

Originality/value

This paper is the first to explore the comparative analysis of business performance between family-owned SMEs that are members and non-members of social media business networks. This paper is important for the development of family business research by providing a comprehensive evidence-based analysis regarding the importance of online business networks to improve family-owned business performance, given the significant contribution of digital business activities to the UK economy.

Details

Journal of Family Business Management, vol. 13 no. 4
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 30 December 2019

Rose Haynes Kiwia, Kenneth M.K. Bengesi and Daniel W. Ndyetabula

The purpose of this paper is to examine succession planning and performance of family-owned small and medium enterprises (SMEs).

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Abstract

Purpose

The purpose of this paper is to examine succession planning and performance of family-owned small and medium enterprises (SMEs).

Design/methodology/approach

The quantitative research approach and a cross-sectional research design were employed. The probability sampling technique was used to draw 219 respondents from the sampling frame. A structured questionnaire was used for data collection. Descriptive statistics and independent samples t-tests were used for data analysis.

Findings

It was revealed that most of family-owned SMEs founders in the study area had mechanisms for succession planning for their businesses. Also, there is a difference in business performance when successors are selected and prepared by business founders compared to when they are selected and prepared by other family members. Successors selected and prepared by business founders performed better in business than successors who were selected and prepared by other family members.

Research limitations/implications

This study employed a quantitative research paradigm methodology, which limits deep discussion with respondents. Future studies could consider using a qualitative research paradigm methodology.

Originality/value

The paper presents succession planning process experience in family-owned SMEs in the study area, specifically the existence of succession planning in family-owned SMEs. It also shows a difference in business performance between the two investigated groups. This paper will benefit business founders, family business successors and researchers.

Details

Journal of Family Business Management, vol. 10 no. 3
Type: Research Article
ISSN: 2043-6238

Keywords

Open Access
Article
Publication date: 23 August 2023

Alessandra Costa, Angelo Presenza and Tindara Abbate

This work aims to offer a better understanding of the inevitable challenges related to the digital transformation in the family-owned low-tech SMEs, examining the role assumed by…

1442

Abstract

Purpose

This work aims to offer a better understanding of the inevitable challenges related to the digital transformation in the family-owned low-tech SMEs, examining the role assumed by familiness in this specific context. To this end, it examines the main factors that influence the adoption and implementation of digital technologies in the family-owned low-tech SMEs.

Design/methodology/approach

The study uses a multiple case studies approach, by investigating the case of family-owned low-tech SMEs operating in the winery sector and located in the South-Italy area.

Findings

Based on the empirical evidence, findings show how familiness influence the digital transformation of family-owned SMEs and highlight three main factors – individual, process and organization – relevant for the introduction and use of digital technologies in the productive and innovative activities of these organizations.

Originality/value

This paper fills the research gap existing in the literature on the family business. Firstly, it focuses on the digital transformation phenomenon and underlines how familiness, within family-owned low-tech SMEs, can differently influence the firm's innovation processes primarly based on the use of digital technologies oriented to enable business improvements. Then, it identifies diverse dimensions that can act as “barriers” or “facilitators” for adopting advanced digital technologies within the organizations here examined.

Details

European Journal of Innovation Management, vol. 26 no. 7
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 30 August 2017

Suhail Sultan, André de Waal and Robert Goedegebuure

Many businesses in the world are family-owned. A family-owned business differs from other types of businesses in several ways, because it is composed of both a family and a…

Abstract

Purpose

Many businesses in the world are family-owned. A family-owned business differs from other types of businesses in several ways, because it is composed of both a family and a business. A recurring question in management research has been: which type of business performs better, the family-owned or the non-family owned? An alternative question which in this respect can also be asked, in the light of the high-performance organization (HPO) theory which has become popular these past years, is: which type of business is more likely to become and stay high performing, the family-owned or the non-family owned? To try to answer these questions, many studies have been done in which the performance of family firms was compared with firms that have no family ties, but these studies gave mixed results and conflicting opinions. The paper aims to discuss these issues.

Design/methodology/approach

It seems evident that a new research approach is needed. A way forward is to use the HPO concept which looks at the factors important for an organization to become an HPO. Thus, the research question which this study attempts to answer is: are there differences in performance between family and non-family businesses, and if so, can these be traced back to differences in the way these businesses deal with the factors of high performance? The research used the HPO questionnaire and interviews to collect data at Palestine family and non-family owned businesses.

Findings

The research shows that Palestine non-family businesses significantly outperform family-owned businesses. Family businesses thus seem “a living paradox.” Balancing family interest and business interest often requires a compromise between family and business goals. It seems that Palestinian family businesses focus more on family interest by putting the goal of survival and “keeping the business in the family” above (short-term) financial goals. Family businesses might also feel more that the company’s money is the family money, and as a result their investment and expenses strategies are more conservative thus missing possible economic investment opportunities.

Research limitations/implications

The study results add to the current debate in the literature about which type of business performs better, and at the same time they add knowledge because if there are differences these might be explained by the factors of high performance. In this vein, the study results also contribute to the literature on high performance, as the HPO framework has not been used before for this type of comparative research.

Originality/value

The study results have practical value because they yield knowledge about the ways to organize a business so it can achieve high organizational results which is of great value to managers attempting to make their organizations perform better.

Details

Journal of Family Business Management, vol. 7 no. 3
Type: Research Article
ISSN: 2043-6238

Keywords

Abstract

Subject area

The subject areas are family-owned business, entrepreneurship and strategic management.

Study level/applicability

The target audiences for the case study are BBA and MBA students and management trainees who are interested in learning about family-owned business and the problems faced by them when generations change. This case can be used to teach concepts in family-owned business and strategic management courses in the context of emerging markets. The case also introduces the problems faced by a traditionally operating organization which has to change to survive in the market. The case can be used to teach senior management teams participating in executive education programs on how problems arise in family-owned business. To successfully work with this case study, students need to have the basic theoretical understanding of family-owned business.

Case overview

Sree Subramania Ayurvedic Nursing home (SSANH), one of the most reputed Ayurvedic treatment centers in Kozhikode, Kerala in India, was converted into its present form in 1974 from Thekkayil Vaidyasala by Thekkayil Rajaratnam Vydiar. The latest addition to this family run nursing home is Dr Sananad Ratnam, who in continuity of his family tradition studied Ayurveda. Dr Sanand wanted to rethink the positioning of the 400-year-old family business system with an objective to increase the number of people served by SSANH. He is armed with ambitious plans to expand SSANH and increase the volume of patients served. Dr Sanand’s father, the second partner of SSANH, was not quite supportive of this idea. His father felt that the increase in scale without compromise in quality was impossible in Ayurveda. Dr Sanand felt handicapped with problems such as lack of marketing strategies, lack of standard managerial procedures, lack of innovation in processes and, more importantly, conflicting ideologies between father and son in the family-owned business. To address these problems, Dr Sanand has recently hired the services of a consulting firm. This case highlights how SSANH, in spite of being in an advantageous position, is unable to exploit its full potential. Further explaining the different ways in which different generations perceive business, this case invites the attention to the dilemma: Should the business proceed with its expansion plan? If it decides to expand, how it should convince the previous generation of the family that the expansion plan accommodates their concerns.

Expected learning outcomes

After completion of this case, students would be able to: gain a perspective on the problems faced by a family-owned business which has successfully survived for decades; understand how a family-owned business functions differently from other business models; evaluate different ways in which the organization can look to solve the dilemma by considering the different stakeholders in question; and apply the result of the literature on family-owned businesses to understand the dynamics of business of this specific setting, i.e. one that has a rich heritage, is in an emerging economy and is a family-owned business.

Supplementary materials

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Subject code

CSS 3: Entrepreneurship.

Details

Emerald Emerging Markets Case Studies, vol. 8 no. 3
Type: Case Study
ISSN: 2045-0621

Keywords

Article
Publication date: 18 August 2021

Huynh Thi Thuy Giang and Luu Tien Dung

The purpose of the present study is to examine the direct impact of transformational leadership on non-family employee intrapreneurial behaviour and through a mediating role of…

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Abstract

Purpose

The purpose of the present study is to examine the direct impact of transformational leadership on non-family employee intrapreneurial behaviour and through a mediating role of corporate adaptive culture and psychological empowerment in family-owned firms.

Design/methodology/approach

The study’s sample consisted of 368 key role non-family employees at 109 family export and import firms in the Ho Chi Minh City of Vietnam. The data is analysed using a partial least square–structural equation model (PLS-SEM).

Findings

This paper shows that transformational leadership had a positive and significant influence on non-family employee intrapreneurial behaviour directly and via adaptive corporate culture and psychological empowerment as a mediating influence mechanism.

Practical implications

Family-owned firms might balance the need to maintain traditional core values and requires innovation through the development of human capital with non-family employee intrapreneurship.

Originality/value

This paper grants a unique approach to studying intrapreneurial behaviour in the context of the family-owned business.

Details

Leadership & Organization Development Journal, vol. 42 no. 8
Type: Research Article
ISSN: 0143-7739

Keywords

Article
Publication date: 5 December 2017

George Saridakis, Yanqing Lai, Rebeca I. Muñoz Torres and Anne-Marie Mohammed

Drawing on the motivation theory and family business literature, the purpose of this paper is to investigate the influence of family effect in growth behaviour of…

Abstract

Purpose

Drawing on the motivation theory and family business literature, the purpose of this paper is to investigate the influence of family effect in growth behaviour of small-and-medium-sized enterprises (SMEs) in the UK.

Design/methodology/approach

The authors first compare the actual and expected growth of family and non-family-owned SMEs. The authors then compare the growth behaviour of small family firms managed by owner-directors and small family businesses co-managed by family and non-family directors with the non-family-owned SMEs.

Findings

The authors find a negative effect of family ownership on actual and intended small business growth behaviours. In addition, the findings also suggest that small family firms co-managed by non-family and family directors are no different from non-family-owned firms, in terms of reporting past actual growth in employment size and turnover as well as expecting growth in workforce size and turnover. The authors also observe a significant difference in anticipating sales growth between family-controlled and non-family-controlled firms. However, this difference is not explained by the heterogeneity of a top management team.

Practical implications

The study has important implications for managerial practice to family firms and on policies that improve the growth of SMEs. Specifically, the competence of managers and decision makers matters considerably in evaluating the efficient operation of the business and maximising the economic growth in SMEs.

Originality/value

The study makes two important theoretical contributions to small business growth literature. First, the findings underline a negative family effect in the actual and expected growth behaviour of SMEs. Second, the mode of family ownership alone may not sufficiently capture family effect and offer a thorough understanding of growth behaviour in SMEs.

Details

Journal of Organizational Effectiveness: People and Performance, vol. 5 no. 1
Type: Research Article
ISSN: 2051-6614

Keywords

Article
Publication date: 27 September 2023

Mohammad Alzbaidi and Abdallah Abu Madi

This study explores the influence of Wasta, informal social network on the retention of non-family talented employees in family-owned SMEs in Jordan. Despite the increased…

Abstract

Purpose

This study explores the influence of Wasta, informal social network on the retention of non-family talented employees in family-owned SMEs in Jordan. Despite the increased attention received by talent management (TM) in the last decade, limited attention has focused on family-owned-SMEs. This study demonstrates while resource-based view explains how human capital provides sustainable competitive advantage the lack of strategic retention management may lead to losing this competitive advantage.

Design/methodology/approach

A multiple case study approach underpinned by a qualitative orientation was utilized to help explore the dynamics of TM practices in greater depth. The authors conducted a series of 18 semi-structured in-depth interviews with HR managers, non-family junior and middle managers from six family-owned enterprises.

Findings

Evidence showed that family Wasta accelerate employee dissatisfaction among non-family talented individuals and in turn enhances their intention to leave due to organizational injustice and lack of organizational support.

Practical implications

This study could help managers in family-owned organizations enforce the concept of organizational justice by implementing solid performance management systems and talent reviews to strengthen the social exchange with non-family competent employees.

Originality/value

First, this study demonstrates how access to Wasta accelerate the mobility of non-family talented individuals and in turn enhances their intention to leave. Second, this study provides a theoretical and contextual framework to deepen the authors’ understanding of the impact of social networks on strategic retention performance.

Details

Employee Relations: The International Journal, vol. 45 no. 6
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 22 February 2022

Senthilkumaran Piramanayagam, Saurabh Kumar Dixit and Partho Pratim Seal

The purpose of this paper is to examine the crisis faced, strategies adopted, barriers for recovery and the future outlook by the operators of family-owned small foodservice…

Abstract

Purpose

The purpose of this paper is to examine the crisis faced, strategies adopted, barriers for recovery and the future outlook by the operators of family-owned small foodservice business firms in responses to COVID-19. The COVID-19 pandemic has unfolded unprecedented challenges, severely disrupted the family-run small foodservice business units and often put them on the brink of closure of business.

Design/methodology/approach

The methodology adopted is a qualitative research approach. The data for the research is collected through a semi-structured interview. The data was collected from the 13 family-owned foodservice providers. The data is collected through a semi-structured telephone interview as there is a restriction of travel between different regions.

Findings

The finding reveals that small family-operated foodservice firms faced multiple challenges, including threat for existence, the pressure of fixed cost, feeling unethical, financial instability, uncertainty on future and feeling of loss of goodwill with lenders.

Originality/value

The current research work is the first to discuss the impact of Covid-19 on small family-owned food services businesses in an Indian context.

Details

Journal of Family Business Management, vol. 12 no. 3
Type: Research Article
ISSN: 2043-6238

Keywords

1 – 10 of over 4000