Strategic renewal in a mature family-owned company – A resource role of the owners

Sievinen, Hanna Maria; Ikäheimonen, Tuuli; Pihkala, Timo

doi:10.1016/j.lrp.2019.01.001

Cited by 27 publications

(38 citation statements)

References 56 publications

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“…Carpenter and Westphal 2001;Huse 1998Huse , 2005Huse and Zattoni 2008;Krause et al 2013;Lynall et al 2003;Machold and Farquhar 2013;Minichilli and Hansen 2007;Pye and Pettigrew 2005) as well as on case-based research on family firm renewals (e.g. Bégin et al 2010;Canterino et al 2013;Cater and Schwab 2008;Salvato et al 2010;Sievinen et al 2019). While the role of the outside CEO in family firm renewals has been highlighted by scholars (Canterino et al 2013;Salvato et al 2010), we provide evidence of how non-family board members can also support the CEO and the family firm owners in rejuvenating the firm's strategies.…”

Section: Introductionmentioning

confidence: 53%

“…The data also shows that there was interaction between the individual non-family board members and the owners outside the board meetings. While the owners' influence on the proposals of a family firm CEO can be significant (Sievinen et al 2019), the data suggests that the nonfamily board members can play a role in supporting the CEO helping to ensure that the decision-making is not narrowed down too early to too few and obvious alternatives. For example, while the CEO was preparing a proposal on the R&D site strategy between the UK and Finland, the non-family board members with extensive experience in research, product development and multi-site strategies played a key role in facilitating a thorough analysis prior to the plan being presented at the board meeting.…”

Section: Strategic Renewal States III and Iv-envisioning Renewal Altementioning

confidence: 95%

“…While family firms and other SMEs may share characteristics such as their size and focused ownership, family ownership may play a particularly important role when a firm is attempting a strategic renewal (Canterino et al 2013;Cater and Schwab 2008). A family firm's characteristics, such as the importance of tradition, a long-term perspective and strong mental models (Jensen 2003;Le Breton-Miller and Miller 2006;Miller and Le Breton-Miller 2005) can influence the renewal process, even when the owners are highly committed to necessary changes (Sievinen et al 2019). Research on the role of boards in the strategic renewal of family firms is scarce.…”

Section: Empirical Evidence On the Board's Advisory Role In The Contementioning

confidence: 99%

“…In this research, a family member considered the well-functioning board to have improved the quality of strategic decisions. Sievinen et al (2019) in turn have shown that in an attempted family firm strategic renewal, owners that serve on the board play a key role in triggering and facilitating the change both inside and outside the boardroom. However, based on our review of the relevant literature, we argue that the role of non-family board members in the strategic renewal of family firms is still mostly uncharted in strategic renewal research.…”

Section: Empirical Evidence On the Board's Advisory Role In The Contementioning

confidence: 99%

“…The extant literature offers several possible interpretations for this. Sievinen et al (2019) suggest that non-family board members may not know the owners' true expectations. Consequently, the outside advisors may compare a firm's performance against redundant benchmarks.…”

Section: If the Non-family Board Members Think That We [Owners] Are Vmentioning

confidence: 99%

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The advisory role of non-family board members: a case-based study of a family firm

2019

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The objective of this case-based study is to provide insights into the advisory role of non-family board members in a family firm attempting strategic renewal. By studying the non-family board members of a family firm in a Nordic country, we suggest that non-family board members' advisory role evolves in a dynamic way. We show at the micro-level how the role, content, intensity, and locus of advice change and how it can be both inertia-and stress-inducing. This facilitates the renewal and hence a firm's capacity to improve its alignment with changing external demands. We highlight the collaborative nature of the advisory role and the importance of the non-family member chair in ensuring effective board processes. Through our research we contribute to the understanding on the contextual nature of the board roles and tasks and on family firm renewals. We provide insights into how the family firm owners and the chair of the board can enhance the prospects that the non-family board members create value through their advisory role.

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Section: Introductionmentioning

confidence: 53%

Section: Strategic Renewal States III and Iv-envisioning Renewal Altementioning

confidence: 95%

Section: Empirical Evidence On the Board's Advisory Role In The Contementioning

confidence: 99%

Section: Empirical Evidence On the Board's Advisory Role In The Contementioning

confidence: 99%

Section: If the Non-family Board Members Think That We [Owners] Are Vmentioning

confidence: 99%

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The advisory role of non-family board members: a case-based study of a family firm

2019

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Positioning for optimal distinctiveness: How firms manage competitive and institutional pressures under dynamic and complex environment

Su,

Gao,

Tan

2023

Strategic Management Journal

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Research SummaryHow firms strategically balance legitimacy and distinctiveness has garnered significant attention but reflects inconsistent perspectives. This inconsistency may stem from the inherent complexity of optimal distinctiveness (OD), which are sensitive to both the context and temporality. This article explores dynamic changes in institutional and competitive pressures and how they co‐evolve with different OD strategies. Through an exploratory, multi‐case study, we propose a pressure‐response model to uncover how firms dynamically pursue OD in response to different combinations of pressures. Furthermore, our findings reveal the mechanisms that drive the dynamic interactions between distinctiveness and legitimacy across different OD strategies. In essence, this study contributes to the OD research agenda by providing insights into the evolution of OD strategies, addressing the how and why behind their development.Managerial SummaryCan enterprises effectively balance their needs for legitimacy and distinctiveness by achieving an optimal level of similarity and differentiation from their competitors? This article demonstrates that, in the face of multiple pressures with varying intensities, enterprises continuously adapt their strategic choices to achieve optimal distinctiveness (OD). As institutional and competitive pressures gradually intensify, an enterprise's OD strategies may transition from isomorphic and balancing approaches toward deviation. However, when accumulated inertia hinders the enterprise's ability to respond to emerging pressures, adjustments to the OD strategy may become necessary. Therefore, this study offers entrepreneurs a practical guide on how to dynamically maintain their enterprise's OD by selecting appropriate strategies based on the specific circumstances at hand.

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Conceptualising the Governing Ownership System in a Family Business Group

Ikäheimonen

Rautiainen

Goel

2022

The Palgrave Handbook of Managing Family Business Groups

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Strategic renewal in a mature family-owned company – A resource role of the owners

Cited by 27 publications

References 56 publications

The advisory role of non-family board members: a case-based study of a family firm

The advisory role of non-family board members: a case-based study of a family firm

Positioning for optimal distinctiveness: How firms manage competitive and institutional pressures under dynamic and complex environment

Conceptualising the Governing Ownership System in a Family Business Group

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