Are Family Businesses Long-Lived?

Jerzy Węcławski

Abstract


Theoretical background: Striving to maintain family ownership of the enterprise and to perform its succession is one of the main characteristics of this types of business entities Sustainability of family businesses fosters economic stability, intergenerational transfer of systems of family values and building a brand. However, implementing a strategy of development and expansion necessitates financing with external equity as well as professional management with the involvement of external managers, which leads to weakening or losing control of the family over the enterprise.

Purpose of the article: The study aims to increase the knowledge on the family business’s age with taking into account the inflence that external factors as well as social and economic environment have on it.

Research methods: The analysis of subject literature on family entrepreneurship and statistical data including international comparisons were applied.

Main conclusions: A fairly common perception of family businesses as firms with long traditions is not fully appropriate. Within this groups, the most frequently quoted examples of family businesses existing for years are exceptional. A family nature that stabilises the existence of the firm gets weaker along with the intergeneration transfer of the ownership. Longevity occurs in small and medium enterprises, while large and professionalized ones lose their family nature preserving “familiness” as a brand along with their development.


Keywords


family business; family business age; family business generation

Full Text:

PDF

References


Achleitner, A.-K., Bock, C., Braun, R., Schraml, S., & Welter, J. (2010). Zielstrukturen in Familienunternehmen: Empirische Hinweise auf die Beziehung zwischen Unternehmens- und Familienzielen. Zeitschrieft für KMU und Entrepreneurship, 58, 227–258. doi:10.3790/zfke.58.3.227

Anderson, R.C., Mansi, S.A., & Reeb, D.M. (2003). Founding family ownership and the agency cost of debt Journal of Financial Economics, 68(2), 263–285. doi:10.1016/S0304-405X(03)00067-9

Andrade, L.F., Barra, J.M., & Elstrodt, H.-P. (2001). All in the familia. The McKinsey Quarterly, 4, 81–89.

Ang, J.S., Cole, R.A., & Lin, J.W. (2000). Agency Costs and Ownership Structure. Journal of Finance, 55(1), 81–106.

Bettermann, C. (2009). Finanzierung von Familiengesellschaften nach Basel II und IFRS. Frankfurt am Main: Peter Lang Verlag.

Chua, J.H., Chrisman, J.J., & Steiner, L.P. (2003). Extending the theoretical horizons of family business research Entrepreneurship Theory and Practice, 27(4), 331–338. doi:10.1111/1540-8520.00012

Donnelley, R.G. (1964). The Family Business. Harvard Business Review, 42(4).

EY Family Business Yearbook. (2017).

Familienunternehmen in Österreich. Status quo 2013. (2013). Wien: KMU Forschung Austria.

Familienunternehmen in Österreich 2019. Endbericht. (2020). Wien: KMU Forschung Austria.

Felden, B., & Hack, A. (2014). Management von Familienunternehmen. Wiesbaden: Springer Gabler.

Frey, U., Halter, F., & Zellweger, T. (2004). Bedeutung und Struktur von Familienunternehmen in der Schweiz. St. Gallen: Schweizerisches Institut für Klein- und Mittelunternehmen an der Universität St. Gallen.

Fukuyama, F. (1997). Zaufanie. Kapitał społeczny a droga do dobrobytu. Warszawa – Wrocław: Wyd. Nauk. PWN.

Gomez-Mejia, L., Haynes, K.T., Núñez-Nickel, M., Jacobson, K.J.L., & Moyano-Fuentes, J. (2007). Socioemotional wealth and business risks in family-controlled fims: Evidence from Spanish olive oil mills Administrative Science Quarterly, 52(1), 106–137. doi:10.2189/asqu.52.1.106

Goto, T. (2006). Longevity of Japanese family fims. In P.Z. Poutziouris, K.X. Smyrnios, & S.B. Klein (Eds.), Handbook of Research on Family Business (pp. 517–535). Cheltenham, UK – Northampton, US: Edward Elgar.

Gottschalk, S., Lubczyk, M., Hauer, A., & Keese, D. (2019). Die volkswirtschaftliche Bedeutung der Familienunternehmen. München: Stiftung Familienunternehmen.

Hadryś-Nowak, A. (2019). Międzynarodowe przedsiębiorstwo rodzinne. Warszawa: CeDeWu.

Herz Brown, F. (2009). Growing beyond: Governance and the economic family. Family Business Autumn issue.

Hommelhoff, P. (2006). Die Finanzierung des Familienunternehmens. In T. Tröger & W. Rüdiger (Eds.), Rechtsfragen der Familiengesellschaften (pp. 65–78). Heidelberg: C.V. Müller Wissenschaft.

How the world’s largest family businesses are responding to the Transformative Age. (2019). Insights from the 2019 EY and University of St. Gallen Global Family Business Index. Universität St. Gallen.

Jaskiewicz, P., González, V.M., Menéndez-Requejo, S., & Schiereck, D. (2005). Long-run IPO performance analysis of German and Spanish family-owned businesses. Family Business Review, 18(3), 179–202.

Jaskiewicz, P., & Klein, S.B. (2007). The impact of goal alignment on board composition and board size in family businesses Journal of Business Research, 60(10), 1080–1089. doi:10.1016/j.jbusres.2006.12.015

Jeżak, J., Popczyk, W., & Winnicka-Popczyk, A. (2004). Przedsiębiorstwo rodzinne. Funkcjonowanie i rozwój. Warszawa: Difin.

Kalss, S., & Probst, S. (2013). Familienunternehmen. Gesellschafts- und zivilrechtliche Fragen Wien: MANZ.

Kersting, H., Bitzer, S., & Dupierry, R. (2014). Nachfolgemanagement in Familienunternehmen Berlin: Erich Schmidt Verlag.

Klein, S.B. (2010). Familienunternehmen. Theoretische und empirische Grundlagen. Lohmar – Köln: Eul Verlag.

Kormann, H. (2013). Gewinnverwendung und Vermögen. Zukunftssicherung für das Familienunternehmen und seine Inhaber. Wiesbaden: Gabler Verlag.

Le Breton-Miller, I., Miller, D., & Steier, L.P. (2004). Toward an integrative model of effective FOB succession Entrepreneurship: Theory and Practice, 28(4), 305–328. doi:10.1111/j.1540-6520.2004.00047.x

Leible, S., & Windthorst, K. (Eds.). (2014). Nachfolgeplanung in Familienunternehmen Jena: Jenaer Wissenschaftliche Verlagsgesellschaft.

Making a Difference. The PwC Family Business Survey 2007/08.

Mutter, Ch. (2011). Vermögensmanagement für Familienunternehmer. 2. Aufl Stuttgart: Schäffer-Poeschel Verlag.

Neubauer, F., & Lank, A.G. (1998). The Family Business. Its Governance for Sustainability. London: McMillan Business.

O’Hara, W.T. (2004). Centuries of Success: Lessons from the World’s Most Enduring Family Businesses Avon, MA: Adams Media.

O’Hara, W.T., & Mand, P. (2004). The World’s Oldest Family Companies. Convincing Evidence that Smaller Firms Usually Outlast Larger Ones. Smithfield: Bryant University, College’s Institute for Family Enterprise

Overview of Family Business Relevant Issues. Final Report. (2008). Wien: KMU Forschung Austria.

Pernsteiner, H., & Węcławski, J. (Eds.). (2016). Finansowanie i corporate governance w przedsiębiorstwach rodzinnych. Warszawa: C.H. Beck.

Petzinger, T. Jr., (1999). The New Pioneers: The Men and Women Who Are Transforming the Workplace and Marketplace. New York: Touchstone.

Sadkowska, J. (2021). Kultura ryzyka w przedsiębiorstwach rodzinnych. Warszawa: Difin.

Safin, K. (2007). Przedsiębiorstwa rodzinne, istota i zachowania strategiczne. Wrocław: Wyd. AE.

Schröder, M., & Westerheide, P. (Eds.). (2010). Wirtschaftliche und gesellschaftliche Bedeutung von Familienunternehmen. Baden-Baden: Nomos Verlag.

Schulze, W.S., Lubatkin, M.H., & Dino, R.N. (2003). Toward a theory of agency and altruism in family firms. Journal of Business Venturing, 18(4), 473–490. doi:10.1016/S0883-9026(03)00054-5

Schwass, J., Hillerström, H., Kück, H., & Lief, C. (2011). Wise Wealth. Creating it – the Entrepreneur. Managing it – the Family Business. Preserving it – the Family Office. London: Palgrave Macmillan.

Schweinsberg, K., & Koenen, L.M. (2010). Fremdmanagement in Familienunternehmen. Ergebnisse und Handlungsempfehlungen Bonn: INTES.

Simon, F.B. (Ed.). (2011). Die Familie des Familienunternehmens. Ein System zwischen Gefühl und Geschäft. Heidelberg: Carl-Auer Verlag.

Sobiecki, R. (Ed.). (2014). Przedsiębiorstwo rodzinne w gospodarce globalnej. Warszawa: Oficyna Wyd. SGH.

Upton, N., & Petty, W. (2000). Venture capital investment and US family business. Venture Capital, 2(1), 27–39.

Villalonga, B., & Amit, R. (2006). How do family ownership, control and management affect firm value? Journal of Financial Economics, 80, 385–417. doi:10.1016/j.jfieco.2004.12.005

Ward, J.L. (1987). Keeping the Family Business Healthy: How to Plan for Continuing Growth, Profitability and Family Leadership San Francisco: Jossey-Bass.

Welsch, J. (1991). Family enterprises in the United Kingdom, the Federal Republic of Germany, and Spain: A transnational comparison Family Business Review, 4(2), 191–203. doi:10.1111/j.1741-6248.1991.00191.x

Winnicka-Popczyk, A. (2016). Finansowanie innowacji w polskich firmach rodzinnych. Łódź: Wyd. UŁ.

Zajkowski, R. (2018). Transfery władzy, własności i wartości w przedsiębiorstwach rodzinnych. Efekt drugiego pokolenia. Warszawa: C.H. Beck.

Zellweger, T.M., & Astrachan, J.H. (2008). On the emotional value of owning a firm. Family Business Review, 21(3), 347–363. doi:10.1177/08944865080210040106




DOI: http://dx.doi.org/10.17951/h.2022.56.1.107-118
Date of publication: 2022-09-05 12:06:29
Date of submission: 2022-03-30 19:22:17


Statistics


Total abstract view - 611
Downloads (from 2020-06-17) - PDF - 0

Indicators



Refbacks

  • There are currently no refbacks.


Copyright (c) 2022 Jerzy Węcławski

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.