The purpose of this paper is to investigate the theory of family business, examine the crucial role of the family system in family business, and determine whether the adaptation of executive coaching can successfully support leadership transition in family enterprises…
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The paper tells that the family business is an enterprise governed and managed for the purpose of pursuing and developing the vision of the business “held by a dominant coalition controlled by members of the same family or a small number of families” for its potential sustainability across generations of the family, sometimes in business association with some of its extended families. Most definitions of family business centre around the kinship of family members owning and managing a venture, state Rogoff and Heck. According to Habbershon, Williams and MacMillan, it is the intersection between family members, the family, and the business that epitomises the distinctive set of characteristics that explain performance differences between family and nonfamily businesses. The intersection may also be a source of conflict within the family and the business. In the domain of family business leadership transition, Hartel, Bozer and Levin consider an adaptation of executive coaching to be helpful in the process. Family systems are important in family enterprises. Further, family businesses form the foundation stones of evolving economies state Gomez-Mejia, Takacs, Nunez-Nickel et al as well as Hunter and Wilson. Two-thirds of organisations are family-owned and managed. The fact that this segment of the economy is facing an impending crisis is disquieting, particularly in view of the fact that there is little governmental assistance for family business owners to resolve the emerging threat successfully. Thesis Statement: The purpose of this paper is to investigate the theory of family business, examine the crucial role of the family system in family business, and determine whether the adaptation of executive coaching can successfully support leadership transition in family enterprises. The Theory of Family Business The lenses through which academic research and literature on family businesses are viewed and interpreted is the theory explaining different aspects of family business management. Research helps to reinforce theory. For example, Sharma, Chrisman and Chua (2003) use the theory of planned behaviour to help explain the extent to which family businesses engage in succession planning. At the same time, a broad theory of family business is more important because it will help in setting the parameters for research in the domain of family businesses. A broad theory will also function as a tool for retaining, expanding, and propagating knowledge on the field. The theory of the family firm explains the concept of the family business, the reason for the existence of the same, and the determinants of their scale and scope. It is a comparatively new area of study in relation to rigorous theoretical investigations. However, there are identifiable trends in defining family business, and in differentiating between family firms and non-family firms, thereby addressing the existence of family firms, the factors that support their survival, growth, and the creation of long-lasting economic and non-economic value. Habbershon (2006) as well as Chrisman, Chua and Litz (2003) reiterate that the family business exists because of the reciprocal economic and non-economic value created through the integration of family and business systems. The joining of the two systems leads to capabilities of “familiness” that cannot be duplicated, and which contribute to the survival and growth of family businesses. A resource-based view of the family business explains how it identifies and develops capabilities of familiness, how they transfer those capabilities to new leaders and new family business structures, and their methods of renewing their capabilities during the transformation in circumstances and conditions. On the other hand,
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(“Family Business Essay Example | Topics and Well Written Essays - 2000 words”, n.d.)
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(Family Business Essay Example | Topics and Well Written Essays - 2000 Words)
“Family Business Essay Example | Topics and Well Written Essays - 2000 Words”, n.d. https://studentshare.org/business/1395605-literature-review.
It is as a result of this that methods can be observed, recorded and assessed, as well as evaluated in that they all hold a common agenda and ground in looking after the functionality of family businesses. Consequently, these criteria can be identified and discussed to determine the successes and failures of family businesses, as we seek to find out.
It is worth mentioning in this context that with the growing uniformity in the global context, with respect to the structuring and legalization of family businesses, these firms have to witness significant challenges. THESIS STATEMENT The aim of this essay is to compare and contrast the common issues faced by the family businesses when operating in their respective national systems, based on the survey results of International Centre for Families in Business, KPMG and John R.
Only 30% of family-owned businesses successfully transition to the second generation of family ownership. Less than 5% successfully transition to the third generation of family ownership.
Succession planning in family business is an issue of growing importance.
1A family business can be defined as a business the is governed and managed on a sustainable and potentially cross generational bases in order to ensure that the business achieved a formal or implicit vision that has been held by the family member. 2This means that a family business is based on a vision that is held by all the family members.
Now the success of such businesses cannot be measured using the same conventional factors by which we measure success of non family businesses. Before we determine the success of a family business it is essential to know what differences
ined as a business corporation where one or more members of a single family have a notable ownership interest in the business and have some level of control over strategic decisions. In a family business, usually one of the family members may be the controlling shareholder, that
However, in some cases, family business often fails after the death of some important member of the family who also played critical role in the family business. The failure often results from poor management and
which control the major part of the assets of Rupert Murdoch. The Murdoch Family Business is of Australian origin because the family belongs to Melbourne, Australia and is one of the most renowned family businesses across the globe.
The Murdoch Family Business has been run
12 Pages(3000 words)Essay
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