How Can Venture Capitalists-Owner Managers Conflicts Be Managed? If You Want Peace, Agree to Keep the Peace

Champenois, Claire; Devigne, Michel; Puyou, François-Régis

doi:10.1111/jsbm.12297

Cited by 3 publications

(3 citation statements)

References 92 publications

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“…In our coding and interpretation of these responses, we were open to the tension continuum from low, moderate-manageable, to disruptive. Only the latter level of tension is in line with the research of Champenois et al (2016) and interpreted as an ineffective relationship (hence, our cut-off deductively based on their study).…”

Section: Discussionsupporting

confidence: 53%

“…Based on the above results, we find evidence that FB owners and PE investors can apply various practices that allow them to prevent high tension or smoothen the relationship in each phase of the process. The effectiveness of the relationship is interpreted in line with the definition of Champenois et al (2016) indicating that low to moderate tensions can occur, but should be managed so that they do not escalate into destructive conflicts. It further emerges that several of the findings can be traced back to the agency perspective, focussing on avoiding or reducing information asymmetries in a business characterised by a culture of distrust or opportunism, and a control-oriented philosophy (Dawson, 2011;Panda and Dash, 2016).…”

Section: Discussionmentioning

confidence: 99%

“…Integrating both perspectives allows understanding how an effective relationship between the FB and the PE investor can be cultivated. Inspired by the tension continuum of Champenois et al (2016), we define an effective relationship as a relationship in which low to moderate tensions may occur, but can be managed so that they do not escalate into destructive conflicts.…”

Section: Introductionmentioning

confidence: 99%

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Building and maintaining the family business-private equity relationship

Molly

Arijs

Lambrecht

2017

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Purpose Adopting an integrated agency and stewardship perspective, the purpose of this paper is to understand the relationship between family businesses (FBs) and private equity (PE) investors at three stages: entry, cooperation, and exit. Design/methodology/approach This qualitative study combines the perspectives of 11 FB owners and/or managers, seven PE investors, and four intermediaries. The in-depth interviews of this purposive sample are analysed at the intra- and inter-case level using a template analysis approach up to reaching theoretical saturation. Findings Building and maintaining an effective relationship between the FB and the PE investor requires both a stewardship perspective (i.e. reciprocal principal-steward behaviour) and a necessary but insufficient agency perspective (i.e. principal-principal behaviour). Research limitations/implications More large-scale studies with an integrated agency-stewardship perspective on FBs using PE can increase the external validity of the insights from this research to build and maintain an effective relationship between both parties. Practical implications Providing insights into the relationship building process and best practices, this study helps reduce the knowledge and empathy gap that exists between FBs and PE. Originality/value The results clarify the need to reconcile an agency and stewardship perspective to thoroughly understand the relationship and behaviour of FBs and PE investors, and to help the parties understand and benefit from each other’s added value.

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Section: Discussionsupporting

confidence: 53%