If we can't have it, then no one should : Shutting down versus selling in family business portfolios

How does a business family manage its business portfolio in times of declining performance to sustain the portfolio's long-term endurance? Drawing on social identity theory and six family business portfolios from Pakistan, we find that business families may prefer to shut down a satellite business rather than sell it, which is primarily driven by identity considerations. In addition, the family's goal to recycle the assets, the aim to restart the business later, and the increasing decline in performance are important contingency factors. This study contributes to the literature on portfolio entrepreneurship, business exit, and the enduring entrepreneurship of family firms.

Skapandet av ett webbaserat ärendehanteringssystem för affärssystemet Pyramid med Scrum : Creation of a web based case management system for the business system Pyramid with Scrum

The business system known as Pyramid does today not provide its user with a reasonable system regarding case management for support issues. The current system in place requires the customer to contact its provider via telephone to register new cases. In addition to this, current system doesn’t include any way for the user to view any of their current cases without contacting the provider.A solution to this issue is to migrate the current case management system from a telephone contact to a web based platform, where customers could easier access their current cases, but also directly through the website create new cases. This new system would reduce the time required to manually manage each individual case, for both customer and provider, resulting in an overall reduction in cost for both parties.The result is a system divided into two different sections, the first one is an API created in Pyramid that acts as a web service, and the second one a website which customers can connect to. The website will allow users to overview their current cases, but also the option to create new cases directly through the site. All the information used to the website is obtained through the web service inside Pyramid. Analyzing the final design of the system, the developers where able to conclude both positive and negative aspects of the systems’ final design. If the platform chosen was the optimal choice or not, and also what can be include if the system is further developed, will be discussed.The development process and the method used during development will also be analyzed and discussed, what positive and negative aspects that where encountered. In addition to this the cause and effect of a development team smaller than the suggested size will also be analyzed. Lastly an analysis of actions that could’ve been made in order to prevent certain issues from occurring will.

Agency theory and the family business

The conceptual domain of agency theory is one of the dominant organisational theory perspectives applied in current family business research (Chrisman et al., 2010). According to agency theory (Jensen and Meckling, 1976), agency costs generally arise due to individuals’ selfinterest and decision making based on rational thinking and oriented toward own preferences. With more people involved in decision making, such as through the separation of ownership and management, agency costs occur due to different preferences and information asymmetries between the owner (principal) and the employed management (agent) (Jensen and Meckling, 1976). In other words, agents take decisions based on their individual preferences (for example, short term, financial gains) instead of the owners’ preferences (for example, long term, sustainable development).

Behavioural theory and the family business

Fifty years have passed since Cyert and March’s 1963 A Behavioral Theory of the Firm. During this time, BTOF has been adopted across different research domains to investigate how organizations set goals, how they determine aspirations and how they finally react to performance aspiration discrepancies. Cyert and March’s framework has also recently emerged as one of the dominant paradigms to understand the ways in which family business organizations make decisions. In this chapter, I review the theoretical development and empirical results of BTOF and its application in the family business field of study in order to identify theoretical and empirical gaps and propose suggestions for future research. The conclusions suggest that BTOF is both a theoretically and empirically valid perspective in family business research, particularly when combined with other theoretical frameworks. The principal recommendation is to apply behavioral theory to enhance scholarly understanding of  how family organisations define their aspiration levels and respond to organizational problems.