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Article
Publication date: 15 August 2019

Gérard Hirigoyen and Sami Basly

The purpose of this paper is to assessthe probable influence of some of the emotional costs and returns expected by owners on their family business sale decision; and…

Abstract

Purpose

The purpose of this paper is to assessthe probable influence of some of the emotional costs and returns expected by owners on their family business sale decision; and examine if the perceived economic environment during the economic and financial crisis of 2008 had an impact on the intention to sell their family business.

Design/methodology/approach

The research is based on a sample of 69 family businesses responding to a postal questionnaire survey. The empirical study is made up of a descriptive analysis of the factors influencing the intention of a family business sale and an explanatory analysis of the sale intention.

Findings

The desire for family business renewal through family generational succession is the main emotional factor lying behind the decision to continue/sell the business. Furthermore, the financial and economic crisis does not seem to be a factor that accentuates the intention to sell the family business even if firms’ financial performance has declined.

Research limitations/implications

Future research could implement a direct measure of owners’ performance thresholds and explicitly integrate the moderating role of “Perceived economic environment.”

Practical implications

By showing that continuity is a key concern for family business owners, the research invites them to effectively prepare their succession instead of postponing this strategic process given its significance in guaranteeing the survivability of the family business.

Originality/value

Executives who perceived economic conditions as very poor are less likely to consider the sale of the business in the horizon of two years than executives perceiving them as “normal.” The study confirms that in family-owned businesses, for the owner-managers and the active and serene family shareholders, the sale price does not compensate for their emotional regret evaluated through the loss of the family business’ emotional value.

Details

Journal of Small Business and Enterprise Development, vol. 26 no. 4
Type: Research Article
ISSN: 1462-6004

Keywords

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Case study
Publication date: 8 October 2014

Caroline Minialai and Gérard Hirigoyen

Intergenerational transmission is a paramount managerial and patrimonial issue. Although planning and governance tools are being developed and spread in business, the…

Abstract

Subject area

Intergenerational transmission is a paramount managerial and patrimonial issue. Although planning and governance tools are being developed and spread in business, the handling of emotions often remains the key to a successful process. It is within the framework of the paternalistic Moroccan society that we are led to question the psychology and emotions of the stakeholders in the transmission of this small services business.

Study level/applicability

Masters students in Family Business, Management Science, Entrepreneurship, Small Business Management.

Case overview

After 19 years of existence, Moroccan Shipping is confronted at the beginning of 2010 to the issue of the sustainability of the family business. The founder directs his affair with an iron fist, and his sons, who were educated abroad, are determined not to get fooled. The father claims he wishes to be relieved from daily operations and handover part of his responsibilities to his second son. At the same time, the youngest doesn't feel like he fits in the present firm's configuration and is ready to quit.

Expected learning outcomes

This case study will lead users to work on several managerial dimensions of small family businesses in emerging economies. At first, the entrepreneur's traits might be highlighted, as they deeply affect the way the succession process may be handled. However, as the Middle East and North Africa (MENA) specificity, the Moroccan family system will be taken into consideration to better analyse both the incumbent and the successor behaviours. Management tools may then be discussed to help with the transfer of both power and ownership in family businesses.

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.

Details

Emerald Emerging Markets Case Studies, vol. 4 no. 5
Type: Case Study
ISSN: 2045-0621

Keywords

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Article
Publication date: 22 May 2007

Sami Basly

Owing to its specificities, the family small and medium enterprise (SME) shows a particular behavior as for the creation, development, sharing, protection and transmission…

Abstract

Purpose

Owing to its specificities, the family small and medium enterprise (SME) shows a particular behavior as for the creation, development, sharing, protection and transmission of knowledge. The purpose of this paper is to study the specificities of the processes of knowledge creation and development in family firms.

Design/methodology/approach

Through a questionnaire, hypotheses of the model were tested. The study is based on 118 firms belonging to various industries. After evaluating the reliability and validity of the items through exploratory and confirmatory factor analysis, the model was tested through structural equation modeling (LISREL).

Findings

The model retained induces the following conclusions. Internationalization knowledge positively influences internationalization degree of the firm. The conservatism of family SME does not directly influence the level of internationalization knowledge. The influence of conservatism on internationalization knowledge is exerted only through the decisional dimension of independence orientation. The independence orientation of family SME, then with its two dimensions simultaneously (decisional and resource independence), does not significantly influence internationalization knowledge. Contrary to decisional independence which influences indirectly the degree of internationalization (through the intermediation of internationalization knowledge), resource independence influences directly the dependant variable. The mediation of internationalization knowledge is thus not totally proven. Social networking positively influences the amount of internationalization knowledge.

Research limitations/implications

A major weakness is the absence of a synchronic approach as the dependent and independent variables are measured at the same moment. A more longitudinal approach would be valuable to analyze the causal relationships between the independent variables and internationalization knowledge and internationalization degree. A second limitation is that the characteristics of the sample may limit the generalizability of the results.

Originality/value

To the author's knowledge, the paper is the first of its kind to examine the knowledge‐based processes in family businesses.

Details

Baltic Journal of Management, vol. 2 no. 2
Type: Research Article
ISSN: 1746-5265

Keywords

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Article
Publication date: 1 August 2004

Yvon Pesqueux

Performance measurement and evaluation systems cannot be taken as “pure” tools because they are the product of a given society. That is why they take their meanings and…

Abstract

Performance measurement and evaluation systems cannot be taken as “pure” tools because they are the product of a given society. That is why they take their meanings and their sense from this society. They are particularly linked with corporate governance which is also linked with the contemporary developments of capitalism seen as a political order. That is why performance measurement and evaluations sytems in today’s companies are the production of a social game which has to be understood. Key indicators like shareholder’s value and actors like auditing firms play a specific role which has to be evaluated. This paper will introduce the discussion about these systems (and moreover management tools) as the production of their society from a posture taken from Political Philosophy. They will be evaluated in relation which what is capitalism today (which has to be understood in relation with what it was yesterday). That is why notions like shareholder’s value will be linked with the increasing weight of investments funds and with the systematic search for financial surplus. It will be induced that all these “concrete” notions build a system and are reciprocally re‐enforced. A special mention will be made to auditing firms as a cartel. Corporate governance will, as well as auditing firms, be presented as the concretisation of a new social game.

Details

Managerial Finance, vol. 30 no. 8
Type: Research Article
ISSN: 0307-4358

Keywords

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