Basics factors of success in family-owned businesses from second to third generation

Hamrouni, Amel Dakoumi; Mnasser, Karima

doi:10.1504/ijesb.2013.050752

Cited by 9 publications

(13 citation statements)

References 18 publications

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“…The pivotal role that family businesses play in both the stability and health of the global economy has been reiterated in entrepreneurship discourse (e.g. Ramadani et al, 2017;Hamrouni & Mnasser, 2013;Duh, Tominc, & Rebernik, 2009). Reinforcing the importance of family businesses to global economies, more recent literature documents that several studies conducted in varied countries underline the significance of family businesses to national economies.…”

Section: Family Businessmentioning

confidence: 99%

African Immigrant Entrepreneurship in the UK

Opute¹,

Iwu²,

Khosa³

et al. 2021

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The importance of ethnic minority businesses (EMBs) has been lauded in the entrepreneurship discourse. Building on entrepreneurial orientation theory, this study seeks to understand family influence on the entrepreneurial processes, practices, and decision-making activities in a relatively under-explored social group. The methodological approach in this study involved in-depth interviews with 10 entrepreneurs based in the United Kingdom. This study found strong social identity congruence behaviour of explored entrepreneurs from the point of how their entrepreneurial orientation is family-influence driven. For the entrepreneurs, the family is a central behaviour factor that exerts significantly on their entrepreneurial processes and decision making. As a result, actual judgement and decision making of entrepreneurs may not necessarily be driven by economic logic but largely by family control factors that even exert more significantly on entrepreneurial behaviour. This study contributes to the psychological and family control perspectives on entrepreneurship discourse. This study has two core limitations: it is based on the qualitative approach and explores only one social group. Future research in the form of quantitative studies that also examine other cultural enclaves would therefore help to enhance the causes and effects conclusions suggested in this study.

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Section: Family Businessmentioning

confidence: 99%

African Immigrant Entrepreneurship in the UK

Opute¹,

Iwu²,

Khosa³

et al. 2021

hdbr

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“…In South Africa, family-owned enterprises are also common (Venter and Farrington, 2009, p. 145); the estimated figure is 80%. Hamrouni and Mnasser (2013, p. 58) put forth that in Africa, family-owned enterprises are given little importance, unlike in the USA and Europe where a sizable number of studies have looked at succession in such businesses.…”

Section: Review Of Literaturementioning

confidence: 99%

Intra-transfer of ownership factors and external transfer of ownership effects: evidence from the Gauteng enterprising community, South Africa

Khosa

2020

JEC

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Purpose This paper aims to determine the perceptions of family-owned small enterprises on the external transfer of ownership and intra-transfer of ownership using empirical data. This permitted the research to successfully point out the factors that influence the internal transfer of ownership, and also, the effects of intra-transfer of ownership from a viewpoint of both family members and non-family members in small family-owned enterprises. Design/methodology/approach A quantitative research design was used to conduct this research, where primary data was gathered from a sample of 257 respondents using convenience and snowball sampling techniques. Data was collected through a survey instrument distributed via internet-based surveys (SurveyMonkey) and through a drop-off method. The gathered data was then captured, coded and analysed using Stata (version 15) statistical software. Findings The results divulged that intra or internal transfer of ownership is the preferred avenue compared to external transfer of ownership. This is because, when a family business is transferred to the next generation, it presents some benefits to family members working in the business and to the family at large. As a result, the empirical results show that factors that influence the internal transfer of ownership include: favouritism; security, stability and growth; a formal and structured succession plan. Business improvement and organisational change are then the effects of external transfer ownership. Although these effects make business sense, family members will advocate for internal transfer of ownership for them not to lose the benefits that come with the internal transfer of ownership. Research limitations/implications This paper adds to the current family business research in South Africa, thus reducing the shortage of such research. Moreover, the paper proposes further research that will provide tested, practical and detailed guidelines of survival in the next generation. Practical implications The paper empirically highlights the perils of selecting a successor based on favouritism rather than merit and possible consequences, thereby assisting those involved in family enterprise succession to make an informed decision when choosing a successor. Originality/value This research paper provides empirical evidence of the internal transfer of ownership factors and external transfer of ownership effects from a South African perspective.

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“…The succession of authority in family businesses has been studied by the academic community since the 1950s, with considerable attention being paid to family business related issues in Asian countries in recent years. Simply put, a family business is a business run by a group of individuals with a blood relationship [7]. Although the definitions of family businesses might be different, the judgment as to what is a family business is based on ownership, management and control.…”

Section: Family Business Development Governance and Successionmentioning

confidence: 99%

An Integrative Conceptual Framework for Sustainable Successions in Family Businesses: The Case of Taiwan

Liu

2018

Sustainability

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Family businesses have long been one of the mainstream business models in developing countries. The smooth succession of control in family businesses is the key to their sustainable development. However, compared with other companies, succession in family business has demonstrated unique complexity, which also affects the development of the business. The paper is based on a review of the existing literature, starting from the theory of family business succession and combining with grounded theory. After that, we conducted field interviews of experts, coding the key factors affecting succession in family businesses in Taiwan. Finally, we explored the considerations and implications of the succession for inheritance planning. The results of this study show that consideration of succession in family businesses involves a multi-dimensional and complex decision-making process. Among the key considerations, it is found that corporate characteristics, family capital and niche inheritance are the most important without consideration of whether the continuation of the business after succession will be doomed to failure. In addition, the family relationship of affection and trust and commitment between both predecessor and successor are important factors that cannot be ignored, especially in a rapidly changing competitive market environment.

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Basics factors of success in family-owned businesses from second to third generation

Cited by 9 publications

References 18 publications

African Immigrant Entrepreneurship in the UK

African Immigrant Entrepreneurship in the UK

Intra-transfer of ownership factors and external transfer of ownership effects: evidence from the Gauteng enterprising community, South Africa

An Integrative Conceptual Framework for Sustainable Successions in Family Businesses: The Case of Taiwan

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