Transgenerational Entrepreneurship and Family Constitution: An Exploratory Case Study Analysis
Research shows that family owned businesses are less entrepreneurial on average, especially after the founder departs. Despite agreement on the importance of adopting governance structures and mechanisms for the survival of family businesses, there is still a lack of togetherness or cohesion among the family members across generations, which leads to confusion and conflicts and poses a serious threat to the sustained growth and long-term survival of the business. The aim of this paper is to explore the role of family constitution for transgenerational entrepreneurship in family businesses by examining how family governance practices can contribute to strengthening the transgenerational entrepreneurship. In this regard, family constitution of a family owned business located in İzmir, was examined and in-depth interviews and exploratory case study analysis from qualitative research methods were applied.
Transgenerational Entrepreneurship and Family Constitution: An Exploratory Case Study Analysis
Research shows that family owned businesses are less entrepreneurial on average, especially after the founder departs. Despite agreement on the importance of adopting governance structures and mechanisms for the survival of family businesses, there is still a lack of togetherness or cohesion among the family members across generations, which leads to confusion and conflicts and poses a serious threat to the sustained growth and long-term survival of the business. The aim of this paper is to explore the role of family constitution for transgenerational entrepreneurship in family businesses by examining how family governance practices can contribute to strengthening the transgenerational entrepreneurship. In this regard, family constitution of a family owned business located in İzmir, was examined and in-depth interviews and exploratory case study analysis from qualitative research methods were applied.
___
- Arteaga, R. & Menendez-Requejo, S. (2017). Family Constitution and Business Performance: Moderating Factors. Family Business Review, 30(4), 1-19.
- Berent-Braun, M. M. & Uhlaner, L. M. (2012). Family Governance Practices and Teambuilding: Paradox of the Enterprising Family. Small Business Economics, 38, 103-119.
- Bhatnagar, N. (2019). Family Togetherness. Asian Management Insights, 6(1), 26-31.
- Chang, Y. & Luo, Z. (2013). Endogenous Division Rules as a Family Constitution: Strategic Altruistic Transfers and Sibling Competition. Journal of Population Economics, 28(1), 173-194.
- Collins, J.D., Worthington, W.J. & Schoen, J.E. (2016). Family Business CEO Succession: Examining Personal Retirement Expectations. Journal of Small Business Strategy, 26(2), 51-70.
- Dao, B.A.K. (2018). “Danny Miller (1983) and the Emergence of the Entrepreneurial Orientation (EO) Construct” in G. Javadian et al. (eds.), Foundational Research in Entrepreneurship
Studies, London, UK: Palgrave Macmillan.
- Davies, J. (2019). Preventing and Solving Issues in Family-Run Businesses. NRC, 21(3), 168-171.
- Davies, J. (2001). Governing the Family-Run Businesses. HBS Working Knowledge: Business Research for Business Leaders, https://hbswk.hbs.edu/item/governing-the-family-run-business (Accessed: 10/08/2019).
- Dirin, F. & Tutan, M.U. (2015). Ekonomik Krizlerin Ardından Büyük Aile İşletmesi Anayasası: İzmir İli Merkezli Üç Aile İşletmesi Örneği. Journal of Yaşar University, 10(38), 6478-6554.
- Genç, N. & İyigün, N.Ö. (2011). The Role of Organizational Learning and Knowledge Transfer in Building Strategic Alliances: A Case Study. Procedia - Social and Behavioral Sciences, 24, 1124-1133.
- Gonzalez L. & K. Ramachandran (eds), Exploring Transgenerational Entrepreneurship: The Role of Resources and Capabilities, Cheltenham, UK and Northampton, MA, USA: Edward Elgar Publishing.
- Habbershon, T.G.; Nordqvist, M. & Zellweger M. (2010). “Transgenerational Entrepreneurship” in M. Nordqvist & T.M. Zellweger (eds), Transgenerational Entrepreneurship: Exploring Growth and Performance in Family Firms Across
Generations, Cheltenham, UK and Northampton, MA, USA: Edward Elgar Publishing.
- Habbershon, T.G. & Pistrui, J. (2002). Enterprising Families Domain: Family-Influenced Ownership Groups in Pursuit of Transgenerational Wealth. Family Business Review, 15(3), 223–237.
- Hanson, S. K. & Keplinger, K. (2020). The Balance that Sustains Benedictines: Family Entrepreneurship Across Generations. Entrepreneurship & Regional Development, UK: Taylor & Francis Online, 1-15.
- İyigün, N.Ö. (2015). What could Entrepreneurship do for Sustainable Development? A Corporate Social Responsibility-Based Approach. Procedia - Social and Behavioral Sciences, 195, 1226-1231.
- Jakob, D. (2020). The Role of Foundations in Family Governance. Trusts & Trustees, 26(1), 4-10.
- Jaskiewicz, P.; Combs, J.G. & Rau, S.B. (2015). Entrepreneurial Legacy: Toward a Theory of How Some Family Firms Nurture Transgenerational Entrepreneurship, Journal of Business Venturing, 30(1), 29-49.
- Kellermanns, F.W.; Eddleston, K.A.; Sarathy, R. & Murphy, F. (2012). Innovativeness in Family Firms: A Family Influence Perspective. Small Business Economics, 38(1), 85–101.
- Koeberle-Schmid, A. (2018). “Organizing the Family: Family Governance” in B. Cannessa, J. Escher, A. Koeberle-Scmid, P. Preller & C. Weber (eds), The Family Office: A Practical Guide to Strategically and Operationally Managing Family Wealth, Switzerland: Palgrave Macmillan.
- Kurtaran-Öntaş, Ö. & Akçay, S. (2014). Niklas Luhmann’ın Sistem Teorisi ve Teorinin Sosyal Hizmet Disiplinindeki Yansımaları. Toplum ve Sosyal Hizmet, 25(2), 97-110.
- Luhmann, N. (1984). Soziale Systeme: Grundriß Einer Allgemeinen Theorie, Suhrkamp: Frankfurt.
- Lumpkin, G.T. & Dess, G.G. (1996). Clarifying the Entrepreneurial Orientation Construct and Linking it to Performance. Academy of Management Review, 21(1), 135-172.
- Maturana, H. (1980). Autopoiesis and Cognition, Reidel, Dordrecht.
- Miller, D. (2011). Miller (1983) revisited: A Reflection on Entrepreneurial Orientation Research and Some Suggestions for the Future. Entrepreneurship Theory and Practice, 35(5), 873–894.
- Montemerlo, D. & Ward, J.L. (2005). The Family Constitution: Agreements to Secure and Perpetuate Your Family and Your Business, London, UK: Palgrave Macmillan.
- Mustakallio, M.; Autio, E. & Zahra, S.A. (2002). Relational and Contractual Governance in Family Firms: Effects on Strategic Decision Making. Family Business Review, 15(3), 205-222.
- Nason, R.S.; Gonzalez L.A.C. & Sharma, P. (2014). “Introduction: Exploring Transgenerational Entrepreneurship: The
Role of Intangible Resources” in P. Sharma, P. Sieger, R.S. Nason, A.C.G. Leon and K. Ramachandran (eds), Exploring Transgenerational Entrepreneurship: The Role of Resources and Capabilities, UK: Edward Elgar.
- Ramadani, V., Memili, E., Palalic, R. & Chang, E. P. C. (2020). “Governance in the Family Business” in V. Ramadani, E. Memili, R. Palalic & E. P. C. Chang (eds), Entrepreneurial Family Business, Switzerland: Springer.
- Randerson, K.; Bettinelli, C.; Fayolle, A. & Anderson, A. (2015). Family Entrepreneurship as a Field of Research: Exploring Its Contours and Contents. Journal of Family Business Strategy, 6(3), 143-154.
- Sacristan-Navarro, M. & Cabeza-Garcia, L. (2020). When Family Firm Corporate Governance Fails: The Case of El Corte Inglés. Journal of Family Business Management, 10(2), 97-115.
- Scherrer, S. & Astrachan, C.B. (2018). “Sustainable Entrepreneurship: Family Firms as Sustainability Pioneers” in R. Altenburger (eds), Innovation Management and Corporate Social Responsibility: Social Responsibility as Competitive Advantage, Switzerland: Springer.
- Schumpeter, J.A. (1934). The Theory of Economic Development, Cambridge, MA: Harvard University Press.
- Seidl, D. (2004). Luhmann’s Theory of Autopoietic Social Systems. Müncher Betriebswirtschaftliche Beiträge Munich Business Research, Germany: LMU München.
- Sorenson, R. L. (2014). Values in Family Business in L. Melin, M. Nordqvist, & P. Sharma (eds), SAGE Handbook of Family Business, London: SAGE.
- Suess-Reyes, J. (2017). Understanding the Transgenerational Orientation of Family Businesses: The Role of Family Governence and Business Family Identity. Journal of Business Economics, 87(6), 749-777.
- Tobak, J.; Nagy, A.; Petö, K.; Fenyves, V. & Nabradi, A. (2018). The Main Factors Determining Effective Operation in Case of a Family Business. International Journal of Entrepreneurial Behavior & Research, 24(6), 1065-1074.
- Wulf, V. (1999). Evolving Cooperation when Introducing Groupware: A Self-Organization Perspective. Cybernetics & Human Knowing, 6(2), 55-75.
- Yükselen, C. & Yıldız, E. (2014). The Role of Family Constitution in Sustainability of Family Businesses and Evaluation in light of Implementation Problems. Research Journal of Business and Management, 1(1), 14-28.
- Zahra, S.A. (2005). Entrepreneurial Risk Taking in Family Firms. Family Business Review, 18(1), 23-40.
- Zellweger, T.M.; Nason, R.S. & Nordqwist M. (2012). From Longevity of Firms to Transgenerational Entrepreneurship of Families: Introducing Family Entrepreneurial Orientation. Family Business Review, 25(2), 136-155.