Managing continuity in the family-owned business

Beckhard, Richard; Dyer, William G.

doi:10.1016/0090-2616(83)90022-0

Cited by 363 publications

(252 citation statements)

References 1 publication

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“…One of the primary manifestations is long-term orientation (Astrachan 2010;James 1999). The firm is managed with future generations in mind, often by CEOs whose job tenure greatly exceeds those of non-family firms (Beckhard and Dyer 1983). A long-term orientation ensures future returns and also lowers the risk level of the firm.…”

Section: Decision-making Factorsmentioning

confidence: 99%

Valuation of Family Firms: The Limitations of Accounting Information

Hasso

Duncan

2012

SSRN Journal

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This conceptual paper explores the extent to which reported accounting information captures unique family firm decision-making and intangible asset factors that impact financial value. We review the family firm valuation-relevant literature and identify that this body of research is predicated on the assumption that accounting information reflects the underlying reality of family firms. This research, however, fails to recognise that current accounting technology does not fully recognise the family firm factors in the book value of the firm or the implications for long run persistence of earnings. Thus, valuation models underpinning the extant empirical research, which are predicated on reported accounting information, may not fully reflect the intrinsic value of family firms. We present propositions on the interaction between accounting information, family factors and valuation as a road map for future empirical research with a discussion of appropriate methodologies.

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Section: Decision-making Factorsmentioning

confidence: 99%

Valuation of Family Firms: The Limitations of Accounting Information

Hasso

Duncan

2012

SSRN Journal

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“…In order to accomplish these goals, members of the next generation must be willing to continue the family business and be able to effectively recognise and exploit viable opportunities that ensure that the business continues after they have been given control (Kellermanns et al, 2008). Despite succession being an important goal in many family firms, approximately 70% of family firms do not make the transition from the first generation to the next (Beckhard and Dyer, 1983).…”

Section: Discussionmentioning

confidence: 99%

“…Indeed, recognising that family firm founders often rely on family members to operate the business throughout the life of the firm (Cruz, Justo and De Castro, 2012) and that the average lifespan of a family firm is approximately 23 years (Beckhard and Dyer, 1983), children raised in these environments will increasingly be exposed to entrepreneurial behaviours such as opportunity recognition, evaluation and exploitation, as time goes by (Chlosta et al, 2012;Kellermanns et al, 2008). It is likely that family routines in these family systems are more organised around business functions relative to family systems where parents are not self-employed (Bowen, 1993;Minuchin, 1974).…”

Section: Family Business Context Moderates Family Influences On Intenmentioning

confidence: 99%

Raising entrepreneurs: can parenting style amplify entrepreneurial intentions and behaviours?

Jiang

Hayward

Morris

2017

IJMED

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For years, family business researchers have argued that many areas of entrepreneurship research have unnaturally separated the social institutions of family and business, calling for more exploration of the pervasive effects of family on entrepreneurship. Recent research has started to explore these effects within a family business context, but scholars still do not know much about how other family environments influence entrepreneurship. Using a family systems theoretical perspective, this conceptual paper addresses how developmental aspects of parenting and family environments, both inside and outside a family business context, contribute to the expression of entrepreneurial intentions and behaviours in adulthood. The most theoretically novel aspects of this paper focus on how family business contexts amplify links between entrepreneurial intentions and behaviours.

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“…Managers and owners who want to reap the performance benefits of succession planning should consider involving family-member employees in regular conversations related to the firm's future because of the opportunities to learn from diverse viewpoints (Edmondson, 1999). Although managers may avoid these kinds of interactions to limit the painful effects of conflict (Beckhard and Dyer, 1983) that can be found in family firms (Eddleston and Kellermanns, 2007), or because control over family firms is often centralised in one manager even though ownership is dispersed across many family members (Gersick, 1997), they can still encourage beneficial interactions by providing open forums for employees to share ideas and information learned during conferences or interactions with clients and suppliers. Although leadership alone is insufficient for enforcing open knowledge-sharing environments, managers can help to foster these exchanges by listening to employees carefully, providing time for reflection, and encouraging employees with different points of view to share them (Garvin, Edmondson and Gino, 2008).…”

Section: Practical Implicationsmentioning

confidence: 99%

Psychological contract and social exchange in family firms

Madden

Strickling

et al. 2017

IJMED

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This study tests a social exchange theory model that links firm family members' transactional and relational psychological contract obligations to firm performance. Evidence supports the hypotheses that organisational obligations are antecedents of individual contributions to firm performance in the psychological contract model. When family firms meet the employees' perceived obligations to their employees, the employees meet their perceived obligations to their employers. Participative decision-making and succession planning are of particular importance to maintain transgenerational control and evidence is found to support succession planning as fully mediating the relationship between participative decision-making and firm performance.

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Managing continuity in the family-owned business

Cited by 363 publications

References 1 publication

Valuation of Family Firms: The Limitations of Accounting Information

Valuation of Family Firms: The Limitations of Accounting Information

Raising entrepreneurs: can parenting style amplify entrepreneurial intentions and behaviours?

Psychological contract and social exchange in family firms

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