The succession decision in Chinese–Australian family businesses : an exploratory study

This article explores the factors used to make succession choices as ethnic Chinese family business founders integrate into their host country, Australia. An empirical study of six Chinese–Australian family businesses was used to analyse what factors influence the succession decision-making process. Results show three broad factors influenced the founders’ decisions, including the aspirations and visions of the business founders, cultural and individual values shaped in the integration process, and the options that are available for succession. Findings challenge the anticipated option of intergenerational succession, with its emphasis on family-oriented collectivistic values as expectations. It provides future support for considering how the cultural value orientation (collectivistic, individualistic, or transitional) has impacted on the founder’s succession choices. Further research is required to understand how the flexible, changing, situational founder’s succession intentions are manifested among family businesses in cultural transition.

Escalation of conflict in large private family businesses

This study investigates escalation of intra-familial conflicts in family top management teams. Using a Critical Incident Technique approach, this study uses interviews to collect data from 23 family and non-family individuals and groups within six large-scale privately-held family businesses in Indonesia. The study develops a theoretical model to explain why family business conflicts escalate and become destructive. An inductive content analysis found that the use of a dominating strategy by both parties in dealing with conflict, the expression of negative emotions, and the involvement of non-family employees are more likely to cause escalation. This study contributes to the theory of family business conflict to help family business more satisfying and productive.

The nature of intra-familial conflict in large-scale privately-held family businesses in Indonesia

This thesis is a qualitative study aimed at better capturing the complexity of conflict in family businesses. An inductive content analysis revealed two important issues: the dynamics of intergenerational conflicts and the escalation process of conflicts. The results demonstrated that conflicts are more likely to be intergenerational than intra-generational due to the role of senior members in daily business operations, generational differences, and a perception gap that exist between generations concerning each other’s competencies in doing the business. Furthermore, the set of factors contributing to conflict escalation is related to how family members handle the conflict, how they manage their emotions, and how they are able to avoid non-family employee involvement. These findings provide a foundation for taking preventative actions, implementing strategies for managing conflicts or devising effective solutions for resolving conflicts before they become more destructive.

Transfers of Family Businesses to Non-Family Buyers - The Selling Business Family Perspective

This study focuses on business families and how they handle transitions such as business transfers. It also tries to shift the balance of research away from successions and towards business transfers as a key topic for family business researchers. In addition, it contributes to the family business research field by further highlighting the importance of the various different contributions in the family business from business family members other than the entrepreneurial founder. Based on interviews with both business family members and business brokers, it appears as important for business families who are selling their family business that it is managed in a similar way in the future regardless of the shift in ownership and management. It is also important that the employees can stay with the business. However, employees are seldom regarded as potential buyers of the family business; most preferably, from the point of view of business family members, this should be somebody who is similar to themselves. Business transfers can be lengthy processes, but once the family business is sold, previous owners most often want to leave the family business. This disengagement can be difficult for business family members if they have not managed to build up some other identity outside the family business environment. Money may compensate for the loss in the short run, but something else is needed in the long run, since the management of money is usually not perceived as that interesting. A family business transfer can have great influence on the members of the business family who is selling, and therefore it is suggested that personal due diligence could be of some help when planning the transfer. That tool can help business family members to analyse their own personal situation, but it may also make it easier to understand how the other business family members feel about the forthcoming change. Everyone is influenced in different ways during a family business transfer, and awareness of this fact may make it easier for the whole business family to adjust to their new environment.

Priorities for Australian family businesses

This paper reports on a national survey which identified priorities that are considered important to the success of Australian family businesses. The FBA and KPMG Family Business Needs Survey 2005 targeted organisations of all sizes and industries across all states. Findings from the survey are extensive and provide noteworthy progress in understanding the issues deemed most important to family businesses, such as balancing family concerns and business interests, balancing short-term and long-term business decisions and increasing profits. As a result of this project, it has: provided an instrument that will allow research investigation on an annual basis; provided initial data sets that highlight key issues facing family business survival; and provided a substantial data set that can be utilised by a range of researchers and practitioners.

On the adoption of family-to-business governance mechanisms in Australian family businesses

This study seeks to identify the adoption of certain family-to-business governance mechanisms and whether the presence of these mechanisms assists family businesses with governance matters.

Planning practices in Australian family businesses

Australian family businesses have a poor track record of undertaking formal business planning. This paper reports on the business planning behaviour of
Australian family businesses from a survey of 5,000 businesses across all types and sizes of industries. Our survey found that around one-third of family
businesses undertake formal planning activities. Thus, there has been no improvement in family business planning practices from that reported in 2003. The reluctance of Australian family businesses to undertake contingency and risk planning, as well as human resources planning, leaves Australian family businesses highly exposed in these difficult economic times.

Book review : International entrepreneurship in family businesses

J.C. Casillas, F.J. Acedo and A.M. Moreno (2007) International Entrepreneurship in Family Businesses, Edward Elgar, Cheltenham, United Kingdom, ISBN 978 1 845428792