Today, the family business companies are an important subject of study and research. They form th... more Today, the family business companies are an important subject of study and research. They form the backbone of the economy and represent 80% of worldwide companies according to the Institute for Family Business (IFB). These companies surf from a significant problem the conflicts between the family and the style of management. The different phases of business Development as the transmission are dominated by emotions. This is why the learning Institutes and consultants as IEF, OSEO, INSEE, IFA, KMPG and INSEAD were founded to help entrepreneurs and family businesses and to support their families regarding conflicts, transmission, funds transfer, properties. The main objective of this paper is to shed light on the common factors and characteristics that contribute into the success of family business companies.
This unique book provides an overview of the need to alleviate poverty and what methods have been... more This unique book provides an overview of the need to alleviate poverty and what methods have been used in the past to do so (e.g. microcredit). It then introduces the concept of the microfranchise and discusses how this business model can be used in poverty alleviation. Different models of microfranchising are reviewed and specific case studies highlighted to show how it has worked in different parts of the world. The book concludes with a discussion of the advantages as well as the potential problems and pitfalls that accompany microfranchising.
Family firm advisors have expertise and skills that can significantly contribute to the long-term... more Family firm advisors have expertise and skills that can significantly contribute to the long-term success of family-owned and/or family-managed enterprises. However, as noted by Strike (2012), so far there has been very little research attention focused on these advisors and the services they provide. In the early days of Family Business Review (FBR), many advisors contributed articles describing their practice in an effort to share knowledge and improve their collective ability to provide helpful services for clients (Sharma, Chrisman, & Gersick, 2012). In fact, providing assistance to advisors in understanding family firms was one of the many reasons cited for FBR’s creation in the first issue: “Hence, lawyers and accountants as well as business consultants and family therapists are seeking to learn more effective ways of helping their clients” (Lansberg, Perrow, & Rogolsky, 1988, p. 4). Strike (2012) reports in her thorough and insightful review on family firm advising: Early articles were based on personal consulting experiences whereas more recent ones used surveys. The majority of articles focused on offering prescriptions (64), followed by surveys (22), conceptual (8), qualitative (6) interviews, and one literature review with a section on advisors. (p. 157) This has changed over time as FBR became much more research focused, turning attention to quantitative empirical research that follows the strong tradition of theory building and testing expected in high-quality business journals (Sharma et al., 2012). As a result, the role of the advisor remains somewhat cloaked in mystery—from a research perspective it is not clear what family firm advisors really do and how they bring value to the firm. Although Family Firm Institute (FFI) conferences provide an excellent opportunity for advisors to share their practices with others, what is still missing is a systematic database that can advance knowledge about advisors and the process of advising. We believe that it is time to refocus attention on family firm advisors themselves and to do so from a research perspective. This significant gap in the literature has propelled our editorial team to take on the adventure of a special issue focused on advisors themselves. Thus, we are very pleased to introduce this special issue, Advising Family Enterprise, in FBR! In response to our call for papers, we received a wide variety of empirical and conceptual papers addressing different types of advisors and different ways of accomplishing their work. All submitted articles were scrutinized by all editors, and those selected to be peer reviewed underwent multiple rounds of revisions. This special issue contains five empirical articles that provide important insights into what family firm advisors do and how they do it. Consistent with the goals of FBR to “advance the understanding of family enterprise around the world,” we are proud to showcase articles that make theoretical contributions to the literature (Reay & Whetten, 2011); rely on high-quality methodology, both quantitative and qualitative (Chenail, 2009; Pearson & Lumpkin, 2011); and give us a sense of the international context through studies based in Australia, Italy, Canada, and the United States. Furthermore, this issue illustrates the success of advisors and researchers working together to enhance the research agenda (e.g., Davis et al., 2013). The important point overall is that all the articles published here highlight the role of family firm advisors—giving us a platform to spur further research. Family firms, family offices, and family business groups operate within the interface of family, business, and ownership dynamics. Because of this, they face a unique set of dilemmas that necessitate decisions likely to significantly affect not only their enterprises but also University of Alberta, Edmonton, Alberta, Canada Mississippi State University, Starkville, MS, USA Brigham Young University, Provo, UT, USA
Under which conditions can professional knowledge and values be integrated successfully into the ... more Under which conditions can professional knowledge and values be integrated successfully into the organization and management of a family firm?
Much of the recent research on family businesses has focused on how the family affects business p... more Much of the recent research on family businesses has focused on how the family affects business performance. This commentary suggests that researchers should also consider how certain variables affect both the business and the family. Suggestions for how to do such research are presented.
Theories and methods in the field of organization development have historically been based on the... more Theories and methods in the field of organization development have historically been based on the experience of researchers and practitioners studying and consulting with large organizations. However, the vast majority of firms in the world today are small, entrepreneurial ventures. Thus the purpose of this article is to articulate an alternative framework for diagnosis and intervention in these kinds of organizations.
Little is known about the impact of family ownership and management on corporate social performan... more Little is known about the impact of family ownership and management on corporate social performance. Some scholars have suggested that family firms are not likely to act in a socially responsible manner, while others have indicated that socially responsible behavior on the part of the family firm protects the family's assets. This preliminary study compares the degree to which family and nonfamily firms are socially responsible using data from 1991 to 2000 from the S&P 500. Two hundred sixty–one firms (202 nonfamily and 59 family) appeared in the S&P 500 for the 10–year period. Findings show that family firms are more socially responsible than nonfamily firms along several dimensions. This is likely due to family concern about image and reputation and a desire to protect family assets.
This article will describe the trends in the field of family business over the past forty years i... more This article will describe the trends in the field of family business over the past forty years in terms of theory and practice. Topics such as succession, consulting with family businesses, the effectiveness of family firms, the role of socio-emotional wealth in family firms, heterogeneity in family businesses, and the impact of family capital on the business and the family will be discussed.
Over my 36-year academic and consulting career, I've spent most of my time studying and helping f... more Over my 36-year academic and consulting career, I've spent most of my time studying and helping family-owned businesses. From my experience, one thing is abundantly clear: families often provide the key resources that entrepreneurs need to launch a successful business. I call these resources "family capital": the human, social, financial, and other resources that are available to individuals or groups as a result of family affiliation. "Family human capital" consists of the skills, knowledge, and labor of family members; "family social capital" refers to the social connections and reputation shared by family members, and "family financial capital" encompasses a family's financial and other tangible assets. In many instances a business couldn't be founded or succeed without family capital. For example, one of my early family business clients was General Growth Properties (today, Brookfield Properties), founded by Martin and Matthew Bucksbaum. These two brothers were joined at the hip as they started their real estate empire in the 1950s. Martin had great vision regarding various commercial real estate projects while Matthew was more adept at running the day-today operations of the business. Together, they made a formidable team as they turned their shopping malls into a multi-billiondollar business. In the case of Bill Gates, he likely wouldn't have been able to
Few studies in the mainstream management literature have included the family as a variable. The f... more Few studies in the mainstream management literature have included the family as a variable. The focus of this article is to describe (1) why there is a dearth of research using family as a variable; (2) how failing to use the family as a variable in organizational research can lead to incomplete or misleading findings; (3) the issues and concerns related to using the family as a variable in organizational research; and (4) options in research design for using the family as a variable. Given that the vast majority of organizations can be classified as “family firms,” including the family as a variable in research designs will provide researchers with theories that are more robust and that can be generalized to a larger population of organizations. Twenty years ago, Mintzberg and Waters published an article in the Academy of Management Journal titled “Tracking Strategy in an Entrepreneurial Firm” (1982). In the article, the authors chronicle the development and execution of the busine...
As a consultant to family businesses for almost 3 decades, I have found trust to be a fundamental... more As a consultant to family businesses for almost 3 decades, I have found trust to be a fundamental issue in these types of organizations. One example of a family business that faced a breakdown of trust is a company that I will call the Jackson Corporation (all names disguised). Jim Jackson, the company founder, worked in the business with his wife, Stella, his two sons, Fred and Tim, and his daughter-in-law, Sarah. One day I received a phone call at my office from Jim asking me to meet with him for lunch to discuss his family business and some of the problems that he faced. Since I rarely turn down a free lunch, I agreed to meet with Jim. During lunch Jim discussed his family’s history: he had gone into business early in his career with his brother, but eventually they couldn’t work together, so Jim left the business to start a new firm that competed with his brother. This, of course, caused hard feelings between Jim and his brother, and they never spoke to one another again. After starting the new business, Jim’s wife, his two sons, and eventually his daughter-in-law went to work for him. However, over time, Jim believed that his son Fred was behaving unethically, so he fired him. This upset Stella so much that she kicked Jim out of the house, and Jim confessed that he was now sleeping on the couch at his office. Jim asked me: “What should I do now? How can I repair the trust that’s been lost?”
Abstract : With increasing frequency the term 'organizational culture' is being used as a... more Abstract : With increasing frequency the term 'organizational culture' is being used as an explanatory concept in organizational analysis. This paper examines the concept of organizational culture and suggests that current formulations of this concept are inadequate because they tend to neglect the pattern of tacit assumptions that is at the core of any culture. A framework for deciphering the patterning of cultural assumptions is presented and this framework is used to describe the culture of one organization and delineate the boundaries of that culture.
Today, the family business companies are an important subject of study and research. They form th... more Today, the family business companies are an important subject of study and research. They form the backbone of the economy and represent 80% of worldwide companies according to the Institute for Family Business (IFB). These companies surf from a significant problem the conflicts between the family and the style of management. The different phases of business Development as the transmission are dominated by emotions. This is why the learning Institutes and consultants as IEF, OSEO, INSEE, IFA, KMPG and INSEAD were founded to help entrepreneurs and family businesses and to support their families regarding conflicts, transmission, funds transfer, properties. The main objective of this paper is to shed light on the common factors and characteristics that contribute into the success of family business companies.
This unique book provides an overview of the need to alleviate poverty and what methods have been... more This unique book provides an overview of the need to alleviate poverty and what methods have been used in the past to do so (e.g. microcredit). It then introduces the concept of the microfranchise and discusses how this business model can be used in poverty alleviation. Different models of microfranchising are reviewed and specific case studies highlighted to show how it has worked in different parts of the world. The book concludes with a discussion of the advantages as well as the potential problems and pitfalls that accompany microfranchising.
Family firm advisors have expertise and skills that can significantly contribute to the long-term... more Family firm advisors have expertise and skills that can significantly contribute to the long-term success of family-owned and/or family-managed enterprises. However, as noted by Strike (2012), so far there has been very little research attention focused on these advisors and the services they provide. In the early days of Family Business Review (FBR), many advisors contributed articles describing their practice in an effort to share knowledge and improve their collective ability to provide helpful services for clients (Sharma, Chrisman, & Gersick, 2012). In fact, providing assistance to advisors in understanding family firms was one of the many reasons cited for FBR’s creation in the first issue: “Hence, lawyers and accountants as well as business consultants and family therapists are seeking to learn more effective ways of helping their clients” (Lansberg, Perrow, & Rogolsky, 1988, p. 4). Strike (2012) reports in her thorough and insightful review on family firm advising: Early articles were based on personal consulting experiences whereas more recent ones used surveys. The majority of articles focused on offering prescriptions (64), followed by surveys (22), conceptual (8), qualitative (6) interviews, and one literature review with a section on advisors. (p. 157) This has changed over time as FBR became much more research focused, turning attention to quantitative empirical research that follows the strong tradition of theory building and testing expected in high-quality business journals (Sharma et al., 2012). As a result, the role of the advisor remains somewhat cloaked in mystery—from a research perspective it is not clear what family firm advisors really do and how they bring value to the firm. Although Family Firm Institute (FFI) conferences provide an excellent opportunity for advisors to share their practices with others, what is still missing is a systematic database that can advance knowledge about advisors and the process of advising. We believe that it is time to refocus attention on family firm advisors themselves and to do so from a research perspective. This significant gap in the literature has propelled our editorial team to take on the adventure of a special issue focused on advisors themselves. Thus, we are very pleased to introduce this special issue, Advising Family Enterprise, in FBR! In response to our call for papers, we received a wide variety of empirical and conceptual papers addressing different types of advisors and different ways of accomplishing their work. All submitted articles were scrutinized by all editors, and those selected to be peer reviewed underwent multiple rounds of revisions. This special issue contains five empirical articles that provide important insights into what family firm advisors do and how they do it. Consistent with the goals of FBR to “advance the understanding of family enterprise around the world,” we are proud to showcase articles that make theoretical contributions to the literature (Reay & Whetten, 2011); rely on high-quality methodology, both quantitative and qualitative (Chenail, 2009; Pearson & Lumpkin, 2011); and give us a sense of the international context through studies based in Australia, Italy, Canada, and the United States. Furthermore, this issue illustrates the success of advisors and researchers working together to enhance the research agenda (e.g., Davis et al., 2013). The important point overall is that all the articles published here highlight the role of family firm advisors—giving us a platform to spur further research. Family firms, family offices, and family business groups operate within the interface of family, business, and ownership dynamics. Because of this, they face a unique set of dilemmas that necessitate decisions likely to significantly affect not only their enterprises but also University of Alberta, Edmonton, Alberta, Canada Mississippi State University, Starkville, MS, USA Brigham Young University, Provo, UT, USA
Under which conditions can professional knowledge and values be integrated successfully into the ... more Under which conditions can professional knowledge and values be integrated successfully into the organization and management of a family firm?
Much of the recent research on family businesses has focused on how the family affects business p... more Much of the recent research on family businesses has focused on how the family affects business performance. This commentary suggests that researchers should also consider how certain variables affect both the business and the family. Suggestions for how to do such research are presented.
Theories and methods in the field of organization development have historically been based on the... more Theories and methods in the field of organization development have historically been based on the experience of researchers and practitioners studying and consulting with large organizations. However, the vast majority of firms in the world today are small, entrepreneurial ventures. Thus the purpose of this article is to articulate an alternative framework for diagnosis and intervention in these kinds of organizations.
Little is known about the impact of family ownership and management on corporate social performan... more Little is known about the impact of family ownership and management on corporate social performance. Some scholars have suggested that family firms are not likely to act in a socially responsible manner, while others have indicated that socially responsible behavior on the part of the family firm protects the family's assets. This preliminary study compares the degree to which family and nonfamily firms are socially responsible using data from 1991 to 2000 from the S&P 500. Two hundred sixty–one firms (202 nonfamily and 59 family) appeared in the S&P 500 for the 10–year period. Findings show that family firms are more socially responsible than nonfamily firms along several dimensions. This is likely due to family concern about image and reputation and a desire to protect family assets.
This article will describe the trends in the field of family business over the past forty years i... more This article will describe the trends in the field of family business over the past forty years in terms of theory and practice. Topics such as succession, consulting with family businesses, the effectiveness of family firms, the role of socio-emotional wealth in family firms, heterogeneity in family businesses, and the impact of family capital on the business and the family will be discussed.
Over my 36-year academic and consulting career, I've spent most of my time studying and helping f... more Over my 36-year academic and consulting career, I've spent most of my time studying and helping family-owned businesses. From my experience, one thing is abundantly clear: families often provide the key resources that entrepreneurs need to launch a successful business. I call these resources "family capital": the human, social, financial, and other resources that are available to individuals or groups as a result of family affiliation. "Family human capital" consists of the skills, knowledge, and labor of family members; "family social capital" refers to the social connections and reputation shared by family members, and "family financial capital" encompasses a family's financial and other tangible assets. In many instances a business couldn't be founded or succeed without family capital. For example, one of my early family business clients was General Growth Properties (today, Brookfield Properties), founded by Martin and Matthew Bucksbaum. These two brothers were joined at the hip as they started their real estate empire in the 1950s. Martin had great vision regarding various commercial real estate projects while Matthew was more adept at running the day-today operations of the business. Together, they made a formidable team as they turned their shopping malls into a multi-billiondollar business. In the case of Bill Gates, he likely wouldn't have been able to
Few studies in the mainstream management literature have included the family as a variable. The f... more Few studies in the mainstream management literature have included the family as a variable. The focus of this article is to describe (1) why there is a dearth of research using family as a variable; (2) how failing to use the family as a variable in organizational research can lead to incomplete or misleading findings; (3) the issues and concerns related to using the family as a variable in organizational research; and (4) options in research design for using the family as a variable. Given that the vast majority of organizations can be classified as “family firms,” including the family as a variable in research designs will provide researchers with theories that are more robust and that can be generalized to a larger population of organizations. Twenty years ago, Mintzberg and Waters published an article in the Academy of Management Journal titled “Tracking Strategy in an Entrepreneurial Firm” (1982). In the article, the authors chronicle the development and execution of the busine...
As a consultant to family businesses for almost 3 decades, I have found trust to be a fundamental... more As a consultant to family businesses for almost 3 decades, I have found trust to be a fundamental issue in these types of organizations. One example of a family business that faced a breakdown of trust is a company that I will call the Jackson Corporation (all names disguised). Jim Jackson, the company founder, worked in the business with his wife, Stella, his two sons, Fred and Tim, and his daughter-in-law, Sarah. One day I received a phone call at my office from Jim asking me to meet with him for lunch to discuss his family business and some of the problems that he faced. Since I rarely turn down a free lunch, I agreed to meet with Jim. During lunch Jim discussed his family’s history: he had gone into business early in his career with his brother, but eventually they couldn’t work together, so Jim left the business to start a new firm that competed with his brother. This, of course, caused hard feelings between Jim and his brother, and they never spoke to one another again. After starting the new business, Jim’s wife, his two sons, and eventually his daughter-in-law went to work for him. However, over time, Jim believed that his son Fred was behaving unethically, so he fired him. This upset Stella so much that she kicked Jim out of the house, and Jim confessed that he was now sleeping on the couch at his office. Jim asked me: “What should I do now? How can I repair the trust that’s been lost?”
Abstract : With increasing frequency the term 'organizational culture' is being used as a... more Abstract : With increasing frequency the term 'organizational culture' is being used as an explanatory concept in organizational analysis. This paper examines the concept of organizational culture and suggests that current formulations of this concept are inadequate because they tend to neglect the pattern of tacit assumptions that is at the core of any culture. A framework for deciphering the patterning of cultural assumptions is presented and this framework is used to describe the culture of one organization and delineate the boundaries of that culture.
Uploads
Papers by Gibb Dyer