Family climate influences next-generation family business leader effectiveness and work engagement.

Effective next-generation leadership is central to the multi-generational survival of family businesses. This study of 100 next-generation family business leaders found that business-owning families that openly express their opinions, take time to listen to each other, and squarely address difficult issues positively influence the development of the emotional and social intelligence competencies in next-generation family leaders that drive their leadership effectiveness. That kind of open and transparent communication in the family also makes it more likely next-generation leaders will be held accountable for their leadership performance by others, which increases the degree to which they are positively engaged with their work in the family firm. On the other hand, the results suggest that senior-generation family leaders who lead autocratically, a leadership style often observed in entrepreneurs who found family firms, make it less likely that next-generation family leaders will learn the emotional and social intelligence competencies that predict their leadership effectiveness. The study also found that autocratic senior-generation leaders negatively affect next-generation leader self-efficacy and make it less likely that others will hold them accountable, which limits their engagement with work in the family business. One of the study's most important findings is that next-generation leader acceptance of personal responsibility for their leadership behaviors and results serves as a mediator through which the nature of the family climate influences their leadership effectiveness and work engagement. This suggests that while the nature of family relationships may make it easier or more difficult, next-generation family leaders have ultimate control over the development of their leadership talent and the inspiration, enthusiasm, energy, and pride they feel when working in the family business.

Corporate Social Responsibility in Family Firms: Status and Future Directions of a Research Field.

This systematic literature review contributes to the increasing interest regarding corporate social responsibility (CSR) in family firms-a research field that has developed considerably in the last few years. It now provides the opportunity to take a holistic view on the relationship dynamics-i.e., drivers, activities, outcomes, and contextual influences-of family firms with CSR, thus enabling a more coherent organization of current research and a sounder understanding of the phenomenon. To conceptualize the research field, we analyzed 122 peer-reviewed articles published in highly ranked journals identifying the main issues examined. The results clearly show a lack of research regarding CSR outcomes in family firms. Although considered increasingly crucial in family firm research, a study investigating family outcomes (e.g., family community status, family emotional well-being), as opposed to firm outcomes, is missing. This literature review outlines the current state of research and contributes to the actual debate on CSR in family firms by discussing how family firms can use CSR activities as strategic management tools. Moreover, our analysis shows a black box indicating how CSR links different antecedents and outcomes. The black box is significant since firms generally need to know where to allocate their scarce resources to generate the best outcomes. We identify nine research questions based on these findings, which we hope will inspire future research.

New value creation and family business sustainability: Identification of an intergenerational conflict resolution strategy.

Unresolved tensions frequently lead to the failure of family businesses. Parents and their children should be able to work together to resolve protracted problems. This study intends to explore the intergenerational conflict resolution strategy in an effort to develop new family business values and ensure the sustainability of family enterprises. The respondents in this study were 152 family business owners in Eastern Indonesia. The analysis used is PLS-SEM. The results of this study indicate that creating new value requires three intergenerational conflict resolution strategies: intergenerational collaboration, accommodation, and forcing. The results of this study also show that a family business that is able to create new value will be able to have an impact on the sustainability of the family business. This study contributes to the Thomas-Kilmann conflict mode approach, wherein the Thomas-Kilmann conflict mode instrument method leads to the creation of new values and sustainability in family enterprises.

Corrigendum: Does congruence between a descendant entrepreneur's personality traits and family business values matter for succession?

[This corrects the article DOI: 10.3389/fpsyg.2023.1043270.].

Identities of the incumbent and the successor in the family business succession: Review and prospects.

Introduction: The cognition and motivation of family business incumbents and the successors will directly influence succession behavior, yet they face identity challenges during succession due to the intersection of family and firm context, and their ability to overcome identity challenges will determine the success of the succession. However, as studies on their identity are fragmented and lack systematicity, there is a need to assess the relevant literature. Methods: Drawing from social identity theory (SIT) and role identity theory (RIT), this article adopts a systematic literature review approach to analyze 99 SSCI-indexed articles to explore family business succession from an identity perspective. Results: The article finds that the focus on the self-concept of the incumbent and the successor shifts from group identification to role identity perception and multi-roles, and succession behaviors are based on identity perception. Discussion: This article summarizes a knowledge framework of the antecedents, connotations, and behavioral consequences of identity perception, revealing that family business succession from an identity perspective exhibits psychological and multidisciplinary characteristics, highlighting iterative and mutual features. Based on identity theories and succession research, this article proposes future directions from the research topics, research methods, and theoretical perspectives within the existing knowledge framework, such as cross-cultural and diachronic analysis, as well as from the theoretical perspectives of family, personality development, and pedagogy.

Does congruence between a descendant entrepreneur's personality traits and family business values matter for succession?

Purpose: In this paper, we investigate two research queries pertaining to the success of small family business succession. First, we examine how the Big-5 personality traits of descendant entrepreneurs influence the success of their family business succession. Second, we investigate whether descendant entrepreneurs whose personality traits are congruent with the values of their family business, would lead to the success of their family business succession, through the mediating role of descendant entrepreneur-family business value congruence (DE-FBVC). Methodology: We rely on the person-organization fit theory for our conceptual framework and we collected primary data from 124 respondents designated as chairman and managing directors in small family businesses. Results: Our results show that a descendant entrepreneur's openness, extroversion, conscientiousness, and agreeableness traits are likely to lead to successful family business succession, but a descendant entrepreneur with neuroticism trait is unlikely to do so. In addition, our results reveal that the DE-FBVC mediates the relationship between openness and extroversion traits with succession success positively, but between neuroticism trait and succession success negatively. By contrast, we find that DE-FBVC does not mediate the relationship between conscientiousness and agreeableness traits with succession success. Originality: The findings of our study suggest that while four of the Big-5 personality traits matter for the success of small family business succession, specific personality traits of descendant entrepreneurs which are found to be congruent with the values of their family business, will also lead to succession success.

Digitalization and entrepreneurial firms' resilience to pandemic crises: Evidence from COVID-19 and the German Mittelstand.

While stressing the relevance of context, the organizational resilience literature has so far not extensively examined resilience in times of healthcare crises such as the ongoing COVID-19 pandemic. The Parasite Stress Theory of Values suggests that such pandemic crises have detrimental impacts on entrepreneurial activity due to social distancing and its effects on interaction, collaboration, and innovation. However, alternatives to personal contact now available thanks to digitalization, have not yet been examined. We expect entrepreneurial firms with more digitalized business models to show higher resilience to pandemic crises, especially those highly affected by globalization and more for non-family businesses than for family businesses. Based on a survey of German Mittelstand firms in the midst of the crisis induced by COVID-19, our findings broadly support our expectations and thus help qualify the Parasite Stress Theory of Values and contribute to a better understanding of organizational resilience in times of pandemic crises.

Communicating innovation and sustainability in family businesses through successions.

Small and Medium Enterprises (SMEs) contribute significantly to the economy despite the survival rate becomes lower through generations. This study aims to develop a communication model suitable for SMEs during succession for innovation and business sustainability. Nine innovative manufacturing family SMEs in Thailand are selected using assembled multiple-case study method, and in-depth individual interviews are conducted using data triangulation method which the incumbents, successors, and long-serving non-family employees as participants from each business. There are two main findings. Issues regarding organizational innovation, social capital in the form of internal and external network relationships, traditional and territorial knowledge, succession planning and procedure, and sustainability-driven mindset should be communicated, formally or informally, during the succession process. Secondly, the incumbent's contradiction between his intention and action, the successor's ability and willingness, and the staff's response to changes during the succession process, are the main communication barriers against achieving innovation and sustainability. By implementing the communication model to the family business, the incumbents and successors can maximize the business's structure and resources to be better understood throughout the firm with the business maintaining or reinterpreting its cultures, values, and traditions to the next generation. The model allows family businesses to have better awareness in terms of innovation management, social capital, innovation with their background knowledge as capital, succession, and business sustainability. Successful communication of the topics and concepts during succession should raise the standard and competitiveness of family businesses domestically and internationally.

Literature review on generational inheritance model and applications for Chinese family businesses.

At present, Chinese family businesses have ushered in the peak period of generational inheritance, so the issue of family business inheritance has become more and more important. The generational inheritance of family businesses is not something that can be accomplished in a short period of time, but requires a long process. There are many influencing factors, and how to choose an effective inheritance model for family businesses has always been the focus of academic circles and practitioners. At present, there is no unified conclusion about the choice of family business generational inheritance model and the factors that affect the model choice. By sorting out a large number of domestic and foreign literature, this paper summarizes the predecessors' perspectives on the inheritance model, discusses various driving factors that may affect the current inheritance model. By further analyzes the current influencing factors on the inheritance model, this paper discusses that inheritance intention of successor may be a research perspective that has not been valued, thus proposing an expandable direction in the field of family business inheritance research.

Identification positively affects the creativity of family business: The mediating role of family business support.

With the arbitrariness of family business decision-making and the complexity of interests become increasingly prominent, the transformation and innovation of family business are imminent. Under the above background, via analysis of data from 259 valid questionnaires from more than ten family businesses in China as a sample and with the help of the SPSS and AMOS, this study explored the impacts of identification on creativity of the family business as well as the mediating role of family business support by constructing a mediating model. The results show that the employee's identification has a positive impact on the creativity of the family business. Besides, identification has a positive impact on family business support and family business support has a partial mediating role between identification and family business creativity. Especially, the emotional support does not have a mediating role, whereas the instrumental support has a complete mediating role between identification and family business creativity.

Information disclosure, practical actions and dynamics of employees' health and safety issues in Chinese family businesses-Evidence based on Chinese a-share listed companies.

Introduction: Global health emergency as COVID-19 has brought unprecedented concerns to the health and safety of employees, which is important yet long-neglected. This paper studies the mechanism and influencing factors of Chinese family enterprises performance in employees' health and safety from information disclosure, practical action and dynamic change. And based on theoretical framework and empirical model, this paper provides feasible regulatory policies on the behavior of family business. Methods: This study construct a game theory framework and uses a sample of Chinese A-share listed companies. The database is provided by a third-party corporate social responsibility rating agency, SynTao Green Finance. We use empirical models to test the hypothesis from the theoretical model of game theory. Results: In practice, family businesses are less likely to fulfill the health and safety responsibilities of employees compared to non-family businesses. Family businesses are likely to be more motivated than other businesses to send signals that they are performing their responsibilities well. From the view of operation term, family businesses will be gradually inclined to better fulfill the health and safety responsibilities of their employees, while this process will show a "U" shape change over operation time. Conclusions: As there is inconsistency between the information disclosure and actual practice of family enterprises when it comes to the issue of employee health and safety, more related regulatory policies and stakeholder monitoring are needed. Although the performance of family enterprises in this regard will be better in the long run, it is still necessary to improve employees' legal and rights awareness and enhance the effectiveness of supervision over external stakeholders.

Managing Organizational Inertia: Indonesian Family Business Perspective.

The ability to transform on a regular basis is critical in the effort to adapt to external challenges; however, changes to an organization's fundamental characteristics may increase the likelihood of failure. Because of this, organizational restructuring efforts appear to engender cynicism, which appears to be one of the most significant obstacles facing contemporary businesses, particularly in this area. Organizational inertia is the term used to describe this aversion to change, as well as the desire to maintain the current status quo. A new organizational culture capable of combating the incidence of organizational stagnation is required by massive social, economic, and technological difficulties, and firms that employ the concept of empowering leadership will be able to meet these challenges. For the purposes of this study, a framework for discussing the phenomena of organizational cynicism was developed and implemented.

A Multivariate Analysis of the Interest in Starting Family Businesses within a Developing Economy.

The main objective of the research is to analyze the factors which influence the intention to start an intergenerational family business in a developing economy, highlighting the measures that can be implemented by decision-makers to stimulate these initiatives. PLS-SEM was used to analyze the data issued from 200 valid questionnaires. The survey was applied to 950 individuals from Romania. We focused on four variables: the closeness to family members, the financial support expected from family, the independence of individuals regarding the intention to start their own business and the intention to form partnerships with family members. All the hypotheses were validated, according to the final results. Thus, closeness to family members has a direct and positive impact on both the financial support expected from the family and the intention to form intergenerational family businesses. There is also a direct correlation between the financial support received from family and the intention to have partnerships with family members. Individuals who are closer to their families are not interested in developing independent businesses. There are several studies on family businesses in Romania, but there is no research analyzing the impact of closeness to family on the intention to develop an intergenerational family business. The study is useful for the decision-makers who can create national strategies in order to stimulate families to develop their own businesses.

Family ownership during the Covid-19 pandemic.

A growing literature is devoted to understand how companies react to major external shocks. Contributing to this research, we study how the presence of families in corporate ownership and leadership affected the reaction of firms to the Covid-19 pandemic. Using data from Italy, we find that family firms exhibited higher market performance and operating profitability than other firms during the pandemic period. This result is stronger for companies without relevant minority investors and with multiple family shareholders. Delving into the mechanisms, we show that the outperformance of family firms is driven by a more efficient use of labor and a lower drop in revenues. Collectively, our results expand existing research by showing how family ties shape the response to adverse events.

Cumplimiento de Gobierno Corporativo: un Análisis para Empresas Familiares y no Familiares Colombianas / Corporate Governance Compliance: an Analysis for Colombian Family and Non-Family Businesses / Conformidade com a Governança Corporativa: uma Análise para Empresas Familiares e não Familiares na Colômbia

Resumen Introducción. Recientemente el estudio del gobierno corporativo en las empresas familiares ha recibido mayor atención debido al predominio, la importancia y el impacto de estas empresas y a los problemas de agencia que por su estructura se presentan. En este sentido, el gobierno corporativo puede ayudar a las empresas familiares a monitorear eficientemente la gestión para reducir comportamientos oportunistas tanto de los gerentes como de aquellos accionistas que controlan la empresa. Objetivo. Estudiar la relación que se presenta entre el carácter familiar y la adopción de prácticas de gobierno corporativo en empresas listadas en el mercado de valores de Colombia. Materiales y métodos. Se realizó un análisis cuantitativo con datos de panel. Los modelos de regresión fueron estimados mediante efectos aleatorios para tratar la heterogeneidad no observable y las variables omitidas. La muestra correspondió a 479 observaciones-año de 124 empresas listadas en el mercado de valores de Colombia entre 2015 y 2018. Resultados. Se encontró un menor cumplimiento en cuanto a gobierno corporativo en las empresas familiares. Conclusión. El menor cumplimiento en las empresas familiares puede deberse a que estas empresas tienen menores incentivos para implementar buenas prácticas de gobierno corporativo dado que los costos de dicha implementación superan a los posibles beneficios, sumado a que estos beneficios terminan diluyéndose entre todos los accionistas que hacen parte de la familia.

Abstract Introduction. Recently, the study of corporate governance in family businesses has received greater attention due to the prevalence, importance, and impact of these companies and the agency problems that arise due to their structure. In this sense, corporate governance can help family businesses efficiently monitor management to reduce opportunistic behaviors both from managers and those shareholders who control the company. Objective. Study the relationship between family nature and the adoption of corporate governance practices in companies listed on the Colombian stock market. Materials and Methods. A quantitative analysis was performed with panel data. Regression models were estimated using random effects to deal with unobservable heterogeneity and omitted variables. The sample corresponded to 479 observations-year of 124 companies listed in the Colombian stock market between 2015 and 2018. Results. Lower compliance with corporate governance was found in family businesses. Conclusion. The lower compliance in family businesses may be since these companies have fewer incentives to implement good corporate governance practices given that the costs of such implementation exceed the possible benefits, added to the fact that these benefits end up being diluted among all the shareholders that are part of the family.

Resumo Introdução. Recentemente, o estudo da governança corporativa em empresas familiares tem recebido maior atenção devido à prevalência, importância e impacto dessas empresas e dos problemas de agência que surgem devido à sua estrutura. Nesse sentido, a governança corporativa pode ajudar as empresas familiares a monitorar de forma eficiente a gestão para reduzir comportamentos oportunistas tanto dos administradores quanto dos acionistas que controlam a empresa. Objetivo. Estudar a relação entre o caráter familiar e a adoção de práticas de governança corporativa em empresas listadas na bolsa de valores colombiana. Materiais e métodos. Uma análise quantitativa foi realizada com dados em painel. Modelos de regressão foram estimados usando efeitos aleatórios para lidar com heterogeneidade não observável e variáveis omitidas. A amostra correspondeu a 479 observações anuais de 124 empresas listadas na bolsa de valores colombiana entre 2015 e 2018. Resultados. Observou-se menor conformidade com a governança corporativa nas empresas familiares. Conclusão. A menor conformidade em empresas familiares pode ser devido ao fato de essas empresas terem menos incentivos para implementar boas práticas de governança corporativa tendo em vista que os custos dessa implantação superam os possíveis benefícios, somado ao fato de que esses benefícios acabam se diluindo entre todos os acionistas que fazem parte da família.

Exploring the growth process of successors in long-lived small and medium-sized manufacturing companies: a qualitative study.

Background: Japan is the world's largest country in terms of the number of long-lived companies, the majority of which are family-owned small and medium-sized enterprises. On the other hand, many business owners will be retiring without successors, and the closure of these small and medium enterprises may have a significant impact on the future economy. The purpose of this study is to explore the growth process of successors in long-lived small and medium-sized manufacturing companies so that potential successors can know what they will experience as managers and be prepared for the future, and professionals who support successors can be provided with information on the growth process of successors to provide appropriate support. Methods: Semi-structured interviews were conducted with six successors of small and medium-sized manufacturing companies that are more than half a century old. Their answers were analyzed using the modified grounded theory approach to construct a hypothetical model. Results: In total, 46 concepts, four categories, 17 subcategories, and one core category with an analysis result diagram were formed. The diagram shows the successors gained confidence in management through the dilemma between autonomy and constraint in the early stage of succession, which was found in previous research. Following the initial stage, the successors responded to the crisis caused by market constraints such as being stuck in a new market, unreasonable treatment from customers, and created autonomous strategies in their businesses. Conclusions: By experiencing repetitive crises, the successors tend to acquire new perspectives toward the naturally occurring crises. This change of premise by the successors is considered as the process of double-loop learning. Relationships inside and outside the company influence the generation of this viewpoint. From a long-term perspective, a sense of unity with employees, stable employment, and the pursuit of enjoyment constitute the successors' values in this model.

Mental Health in Family Businesses and Business Families: A Systematic Review.

Mental health issues in family businesses and business families have been studied in multiple disciplines within the past three decades. This article systematically reviews 51 articles on mental health issues in family businesses and business families, published in a wide variety of psychology, entrepreneurship, and management journals. Based on a systematic review of extant literature, this article first provides an overview of the state of the art, followed by specific suggestions on novel research questions, theoretical frameworks and study design. This way, the review systematizes evidence on known antecedents and consequences of mental health issues in family businesses and business families, but also reveals overlooked and undertheorized drivers and outcomes. The review reveals major gaps in our knowledge that hinder a valid understanding of mental health in the specific context of family businesses and business families, and articulates specific research questions that could be tackled by future research among management as well as mental health scholars. Finally, we point to the relevance of this study for policy makers, family business advisors, therapists and managers.

Family business research: Reviewing the past, contemplating the future.

This paper reviews articles published in the Journal of Family and Economic Issues (JFEI) from 2010 to 2019 and considers future research opportunities. The JFEI articles utilize theories and conceptual frameworks from several social science fields, to help readers understand the importance of including both the family and business in any discussion of family businesses. The literature review addresses four family business topical areas: (1) household and business economics, (2) business continuity and succession, (3) managerial and adoption strategies, and (4) values and goals. These JFEI articles have focused on differentiating family businesses from other types of businesses; explaining the unique interface between the family and the business; and identifying the characteristics (i.e., demographics, adjustment strategies, continuity, capitals, and values and goals) for family business survival and success. In the future, family business researchers have the opportunity to better understand the impact of community resources and climate; more carefully assess the challenges of women, minorities, and immigrants; understand the role of cultural capital; and explore the impact of innovation during rapidly changing times, such as those created by the pandemic.

Stewardship as process: A paradox perspective.

Long-term stewardship is usually represented as a stable structural condition and portrayed as a source of competitive advantage to firms (including family businesses) that use it as a mode of governance. Less is known about how organizations engage with stewardship as a process. We embrace a process approach to report a case study about the unfolding of stewardship in a multi-business family group. We conclude that stewardship is a process marked by critical tensions and paradoxes; by exploring the nature of these we uncover further dimensions and responses to the paradoxes of stewardship.

Process of Succession by Family Physicians in Their Family's Clinic: A Qualitative Study / 日本プライマリ・ケア連合学会誌

Introduction: The aim of this study was to clarify the process by which family physicians succeed their parents in their family's clinic and issues that successors experience during this process.Methods: Subjects were certified family physicians in Japan who either succeeded their parents in their clinics or were working regularly at their family's clinic and were planning to succeed their parents. Participants were recruited through a certified family physician mailing list or privately contacted, and participated in a semi-structured individual interview. The text of the interviews was thematically analyzed.Results: Twelve participants were interviewed. All were male. Seven participants succeeded their parents. Family physicians succeeding their parents in their clinics felt implicit expectations towards succession from their family members and communities, which made them think that succession was the goal. They realized that they had no ability to decide on the timing of succession, clinics have customs and continuity, predecessors have different ideas about professionalism, and family businesses are complex. They felt conflict, especially about predecessors, in their emotions towards family members and ideas based on professionalism.Conclusion: We clarified the process of succession by family physicians in their family's clinic, and the issues and conflicts they face during this process.