The interface of the organization and its industry constitutes a vital space for development. Conducting a systematic literature review, we confirm that management research has paid rather little attention to exploring the relationship between the industry context and family business management to date (see also Le Breton Miller & Miller, 2015). Despite this lack of research, many scholars and practitioners alike could name numerous family businesses that hold world class in their niches. Given the pace of environmental changes, there is a clear need to better understand the interface of family business and industry over time. Building on our findings from a longitudinal, in-depth case study of a 4th generation family business and its niche of high-quality Scandinavian Design furniture, we propose a multi-level model of co-evolution that comprises not only the micro- and macro-levels of family business and its industry, but also the meso-level of inter-actor cooperation in its market niche.
Kapitel 8: Generationsskifte till vardags
Kajsa Haag berättar från en ingående studie av ett möbelföretag (Karl Andersson & Söner) hur nya generationer succesivt insocialiserats i verksamheten genom att äldre och yngre familjemedlämmar arbetar sida vid sida. Genom att knyta sitt resonemang till strategi som praktik klargör författaren hur det är möjligt att organisera både generationsskifte och verksamhetsförnyelse på ett sätt som är till gagn för både företag och familj. Den stora dramatik som vanligen omger ett generationsskifte kan alltså omformas till en kreativ kraft som leder till att traditioner bevaras och nödvändig förnyelse kommer till stånd. På så sätt kommer familjeföretagets särart - genuint engagerade ägare och ledare - till sin rätt.
As the title denotes, I suggest we think differently about family business succession. I propose to rethink succession from a problem to a practice. This means that succession is not a problem to solve but something people do in family business; it is ongoing, it is integrated and it is ordinary. It poses an alternative to the common view of succession as something problematic, separate and extraordinary to handle in order to carry on with the business. To view succession as a practice opens up new understanding of succession as a continuing flow of activities embedded in the everyday life of business families instead of a problem to overcome through succession planning. This notion is philosophically inspired by sociology of practice, theoretically based in a practice perspective of strategy, and empirically explored in a case of succession at Karl Andersson & Söner. Three conceptions are developed that aid the analysis of succession, framing it as originating from socialization, included in everyday routines and progressing without design. The study shows how succession evolves as family members are socialized, engaged and trained through the durée of daily life. Beyond that, it shows how succession is not just about handing the business over from one generation to the next. It is also about working together in the moment, developing the business while preserving its essence. Engaging in the family business to be part of developing it is fundamentally different from joining because transfer of leadership and/or ownership is needed. It questions the idea of succession as a purpose in itself and suggests a shift from “taking over” to “being part”.
Family business are known to rely on informal ways of working. For several decades now, also scholars have challenged conventional planning-approaches to strategy. Wayfinding has been introduced as an alternative that takes social practice seriously and focuses on strategy-making from activities unfolding in the everyday. Drawing on socialization theory and a real-time case study in a family business, I elaborate upon three socialization processes significant to better understand strategy-making as wayfinding: Strategy as embedded in daily practice; renewal when family members manage together; and strategy-making as an ordinary part of family business life. This paper thereby contributes by applying wayfinding thinking empirically and by adding socialization theory for further understanding of the unintentional and indirect aspects of strategy-making. By exploring organizational life in the family business of Karl Andersson & Söner, it is illustrated how strategy and succession is ongoing and embedded in daily routines and unfolding without planning.
Family businesses are known to rely on informal ways of working for maintaining their entrepreneurial spirit over time. In recent decades, scholars have challenged conventional planning-approaches to strategy and proposed alternatives to it, such as wayfinding. This approach centers around social practices, focusing on strategy- making unfolding from everyday activities. Drawing on socialization theory and a real-time case study in a family business, we elaborate upon three socialization processes to better understand entrepreneurial strategy- making: Strategy as embedded in daily practice; renewal when family members manage together; and strategy- making as an ordinary part of family business life. This paper’s contribution lies in exploring socialization theory for improving our understanding of the unintentional and indirect aspects of strategy-making.
Purpose – The purpose of this paper is to explore the case of divorce in family business from a legal perspective and highlight the problems of applying family law in the family business context.
Design/methodology/approach – The authors rely on legal analysis and interviews with estate distribution executors to discuss problems with the legal rules and how they are practiced.
Findings – The findings show that the law is ill fitted to the situation where there is a family business included in the division of marital property. In divorce, family law dictates the division of marital property and the family business is reduced to an asset to be divided like any other. Critical issues are identified and elaborated.
Research limitations/implications – Divorce and other disruptions to the family system should be considered in family business consultancy among other threats to the business. The legal perspective on divorce in the family business offered here primarily concerns ownership issues. The impact of divorce on management is equally in need of exploration, which is the suggestion for further studies.
Practical implications – The paper illuminates in which ways the business is hampered from divorcing owners and discuss critical issues with applying family law in a family business context. Social implications – Policymakers should establish rules in which shares in an unlisted business are by default assigned to separate property until something else is contracted.
Originality/value – New light is shed on the practical problems of interpreting family law in a family business context advancing the understanding of family aspects in family business management.
Small- and medium-sized enterprises (SME's), of which most are family owned businesses (FOB's), play a crucial role in upholding many of the topics at the heart of the International Conference on Applied Business Research. They are especially noteworthy in relation to economic development, growth and innovation, sustainable development and rural development. The practice of FOBs is quite different from large companies with scattered ownership (Nordqvist, Hall & Melin, 2009). The practice turn in social science, well embraced in management studies (Vaara & Whittington, 2012), is relevant to develop new knowledge in the field of business law. We study the practice of shareholder protection and aim to narrow the gap between theory and practice regarding business law and FOBs. An entrepreneurially friendly and inspiring environment presupposes that business owners can protect their ownership positions against unwanted acquisitions of shares, as well as that they are not unwillingly locked-in in a position as minority owners. In addition, this requires legal rules that are not unnecessarily costly, time and energy consuming to comply with, administer and uphold. Legislators should, if possible, thus provide a set of rules that facilitates for owners to effectively avoid both unwanted acquisitions of shares and locked-in positions. We conclude that default rules in the form of e. g. a right of first refusal should be included in the articles, since the lack of an open market place anyhow makes it highly difficult to sell the shares. Furthermore, we find it important to allow also clauses that enhance the possibility to avoid locked-in positions in the articles whereas most national legislations today permit only clauses that contribute to the protection of ownership positions. Key words: family business development, small-medium sized enterprises (SME), business law, share transfer restrictions, minority shareholders, articles of association, shareholder's agreement, practical implications.
This article contributes to the family business succession literature by (1) addressing ownership succession rather than management succession, (2) recommending a combination of legal and psychological perspectives on ownership to advance our understanding and (3) suggesting a preparatory approach to succession. Measuring the success of management succession has mainly been undertaken by assessing outcomes. Learning retrospectively why a succession was (un)successful may deepen our understanding of the process, but it is not particularly helpful to the business in question. We propose an alternative method for ownership succession: a preparatory approach that establishes requirements to fulfill before the succession takes place. These requirements are presented in a model that considers both the legal/financial and the psychological aspects of ownership and are formulated to improve intergenerational ownership succession and the post-succession prosperity of the firm.