The main factors determining effective operation in case of a family business

Abstract

Purpose The purpose of this paper is to present the experience, successful management and the succession of generations in a Hungarian corporation in the food industry through the “Best Practice” model. Design/methodology/approach The chosen methodology for this paper is “The best practice model” prepared by The Solutionist Group. The model presents the characteristics of family businesses and illustrates how the process of sustainable enterprise differs in different fields concerning family and non-family businesses. In applying this model, the experience, successful management and the succession of generations will be presented in the case of a large Hungarian enterprise which has a determining role in the Hungarian food industry. The results are based on the question framework of the expert interviews. Findings The history of family-owned firms shows that in order to maintain appropriate business succession activity the family management has to plan in advance. Passing the baton to the next generation successfully is a complex and long-term family management role and it has strategic importance. To ensure business continuity, the successor has to take over the business and operate it well. That is why the sharing of knowledge, the innovation performance and the best practice are important parts of family company’s culture, and they consequently play an important part in the pass the baton project within family-owned firms. Originality/value This paper expands the knowledge about the succession of family businesses.

Transgenerational Entrepreneurship and Family Constitution: An Exploratory Case Study Analysis

“…The governance of a family owned business is more complex than other forms of business due to family influence. The literature supports the crucial role of family governance and succession mechanisms in increasing business performance in different studies like Sacristan-Navarro and Cabeza-Garcia (2020) and Tobak et al (2018). The lack of governance in family owned businesses creates organizational problems, therefore it is needed by the business, family and the ownership group in family business (Davies, 2001).…”

“…The family has a great impact on developing entrepreneurial behaviors through transferring the values by communication (Randerson et al, 2015:144;Sorenson, 2014:463). In other words, family owned businesses try their best to preserve the family values that shows the key role of succession of generations (Tobak et al, 2018(Tobak et al, :1068.…”

Vitality and Continuity of Family Businesses

“…They are also ready for the creation of a financial plan and investment issues. The managerial area showed an even distribution of weaknesses and strengths, however, the most significant End of Table 4 weakness of family business lied in strategic planning, including the existence of a succession plan and the creation of a strategic financial plan (Dalpiaz et al, 2014;Tobak et al, 2018;Cabrera-Suarez et al, 2018). When evaluating the strengths and weaknesses of family business vitality, it is necessary to view the given system as a whole.…”

“…Other studies also point out this factor -e.g. Craig and Moores (2006), Craig and Dibrell (2006), and Tobak et al (2018). The influence of the family business interruption in post-communist is only in one publication: Family Business in Transition from Dana and Ramadani (2015).…”

Controlling módszerek ismerete és alkalmazásuk az Észak-alföldi régió kis- és középvállalkozásainak gyakorlatában

“…Ilyen az utódlás tervezése: ésszerű, de ritka helyzet, amikor a családon belüli utód legalább annyira elkötelezett és alkalmas a cégvezetésbe történő bevonódásra, mint a felmenő generáció (Tobak et al, 2018). A magántulajdonú vállalkozások esetén hazánkban legfeljebb 1/5-e az utódok aránya, akik tudatosan készek átvenni a vállalkozás irányítását!…”