Family Businesses and Interfirm Cooperation

Abstract

The objective of this article is to formulate hypotheses as to cooperation tendencies and capabilities in family businesses. As a first step, the circumstances under which intercompany cooperation arrangements originate are presented on the basis of an analysis of the relevant literature. Then, these circumstances are compared to cooperation‐related characteristics of family businesses, thus identifying factors that hinder or encourage cooperation. This leads to the hypothesis that family businesses tend to be less willing to enter into cooperation arrangements as many characteristics of family businesses have a hindering effect on cooperation.

Core Values, Culture and Ethical Climate as Constitutional Elements of Ethical Behaviour: Exploring Differences Between Family and Non-Family Enterprises

“…Sharma (2004) and Klein (2000) exposed the influential role that family businesses' founders play on family businesses' values; due to their long tenures and the centrality of their positions in their family and firm, founders exert considerable influence on the culture, values and performance of their firms during and beyond their tenure. The fundamental values in family businesses are largely determined by myths and legends centred on certain 'reference figures' in the company history (in many cases these are founders) who have attained mythological status due to their pioneering achievements for the company (Roessl, 2005). Koiranen (2002) identified the top values of old Finnish family firms (based on self-assessments of the present active family executives working at the top level) -namely, honesty, credibility, obeying the law, quality and working hard, which are all modes of good ethical conduct.…”

Network ties in the international opportunity recognition of family SMEs

“…As regards networking, family SMEs are less likely to form networks with other businesses than are non-family SMEs (Graves & Thomas, 2004;Roessl, 2005). This can be seen as a consequence of the strong internal ties of family firms -a phenomenon also termed "family capital" (e.g.…”

“…Arregle et al, 2007;Salvato & Melin, 2008). Family firms are oriented towards personal relationships, with a focus on interpersonal trust (Roessl, 2005). The internal ties between family members are extremely strong and they naturally affect decisions on the firm's strategy, operations, and administrative structure (Chrisman et al, 2005).…”

Managing uncertainty and expectations: The strategic response of U.S. agricultural cooperatives to agricultural industrialization

“…The ''family'' metaphor reflects how cooperatives personalized the connection between cooperative and farmer-member to position themselves as the exact opposite of serfdom. Hypotheses advanced by Roessl (2005) and Goel (2013) suggest that intrinsic characteristics of family businesses such as a resistance to change and operating according to a myth of unlimited choice and independence reinforced the risk of institutional lock-in posed by agrarian ideology.…”