Family Cohesion as a Longevity Factor of Business with Intergenerational Transmission

Abstract

This article contributes to a line of research in Business History that aims to determine the factors of family business longevity in the long term with the study of individual cases. The literature has identified family cohesion as one of the essential factors for survival. Cohesion may be reinforced or broken at the time of the intergenerational transfer. This study finds that a critical response on the part of the business family to the difficulties associated with intergenerational transfer of control, including modifications to the original plan, is usually based on trust between generations. Within the business family cohesion facilitates intergenerational transfers and, consequently, allows the family to evolve and transform itself into a business dynasty.

A Review of Conflict and Cohesion in Social Relationships in Family Firms

“…Therefore, we provide a review of studies dealing with conflict and cohesion in social relationships, i.e., social interactions between individuals or groups of individuals (Westphal & Zajac, 2013) in the specific context of FFs. Some scholars see conflict as the source of all evil (a main cause of FF failure) (e.g., Jayantilal et al, 2016) and cohesion as the source of all good (a main cause of FF success) (e.g., Fernández-Roca et al, 2014). We argue that these assumptions are too simplistic and misleading, and are one of the main reasons why the literature on this topic remains largely undertheorized and fragmented, resulting in theoretical limitations and empirical indeterminacy.…”

“…Successful intergenerational transfer is more likely in FFs with cohesive family structures and harmony 14 among successors. Conversely, hostile family rivalries reduce the likelihood of succession (Nazer & Llorca-Jaña, 2020) and can lead to the breakup of a group business assets (Fernández-Roca et al, 2014). Highly cohesive family structures facilitate FFs in overcoming critical financial periods (Nazer & Llorca-Jaña, 2020).…”

“…Highly cohesive family structures facilitate FFs in overcoming critical financial periods (Nazer & Llorca-Jaña, 2020). Moreover, FF longevity is a positive outcome of generational cohesion (Fernández-Roca et al, 2014; Nazer & Llorca-Jaña, 2020), while respecting the founder’s premises increases generational cohesion (Fernández-Roca et al, 2014).…”

“…Some scholars see conflict as the source of all evil (a main cause of FF failure; e.g., Jayantilal et al, 2016) and cohesion as the source of all good (a main cause of FF success; e.g., Fernández-Roca et al, 2014). We argue that these assumptions are too simplistic and misleading, and are one of the main reasons why the literature on this topic remains largely undertheorized and fragmented, resulting in theoretical limitations and empirical indeterminacy.…”

Accounting information as a facilitator of inter-generational transfer in family businesses: The case of an Andalusian business family

“…With this purpose, the patriarch had molded the next generation from a technical, intellectual and emotional point of view. Thus, his five sons received both theoretical and practical training and learned discipline and hard work, like other young men belonging to business families, and he often insisted on the "union between the five brothers", which should remain unbroken under any circumstances and which actually influenced very positively the development of Casa Ybarra (Torres, 1998;Díaz Morlán, 2002;Valdaliso, 2013;Fernández-Roca et al, 2014).…”