Entrepreneurial Family Businesses: A Textbook on Innovation, Governance, and Succession, with Case Studies (Springer Texts in Business and Economics)

This book provides an extensive overview of family business-related topics such as context and uniqueness, lifecycle and ownership configurations, conflict management, corporate governance, succession challenges, internationalization, innovation, and socioemotional wealth. Each chapter features clear learning objectives, key concepts and terminology, and dedicated case studies to demonstrate the main messages. The book not only considers the day-to-day dynamics in family businesses but also places substantial emphasis on the entrepreneurial skills needed for these businesses to survive and thrive, today and tomorrow. In addition, it elaborates and discusses a number of best practice examples, which offer valuable guidance not only for scholars but also for students who wish to study these challenges. This new edition includes new topics, such as open innovation, sustainable and green family entrepreneurship, digital aspects in the family business, estate planning, and strategic HR. Specially curated case studies, and additional tasks and activities for classrooms will be particularly useful for MBA students and lecturers. Foreword Preface References Acknowledgment Contents About the Authors Part I: Essentials 1: Nature of Family Business 1.1 Introduction 1.2 Nature and Uniqueness of Family Businesses 1.2.1 Definition Approaches 1.2.2 Family Businesses Versus Non-family Businesses 1.2.3 Roles in Family Business 1.2.4 Family Business Goals 1.3 Family Business Systems 1.4 Family Business Theoretical Frameworks 1.4.1 Three-Circle Model 1.4.2 Developmental Model 1.4.3 Balance Point Model 1.5 Entrepreneurship in Family Business 1.6 Economic Contribution of Family Businesses 1.7 Advantages and Disadvantages of Family Business 1.8 Summary Appendix 1.1 The World’s Top 30 Family Businesses Ranking Appendix 1.2 The World’s Oldest Family Businesses Ranking References 2: Governance in the Family Businesses 2.1 Introduction 2.2 Importance of Governance in Family Firms 2.3 Types of Family Involvement 2.3.1 Family Ownership 2.3.2 Family Management and Board Membership 2.3.3 Intra-family Succession Intention 2.4 Private Versus Publicly Traded Family Firms 2.4.1 Private Family Firms 2.4.2 Publicly Traded Family Firms 2.5 Family Governance Mechanisms and Tools 2.5.1 Family Council and Assembly 2.5.2 Family Constitution and Charter 2.6 Summary References 3: Socioemotional Wealth in Family Businesses 3.1 Introduction 3.2 Defining Socioemotional Wealth 3.3 Socioemotional Wealth (SEW) Dimensions 3.4 Importance of Family’s Business Reputation, Social Status, and Image 3.4.1 Developing Family-Branded Business Via SEW Dimensions 3.5 Family Versus Non-Family Socioemotional Wealth 3.6 Socioemotional Wealth Mechanisms and Tools 3.6.1 Family’s Board of Directors 3.6.2 Family’s Social and Corporate Responsibilities 3.6.3 Family’s Unity 3.6.4 Family’s Transparency, Honesty, and Trust 3.7 Best Practices of Socioemotional Wealth in Family Business 3.8 Summary References Websites Part II: Strategic Aspects 4: Strategic Management in the Family Businesses 4.1 Introduction 4.2 The Strategy Within the Domain of Family Firms 4.3 Family Firms’ Internal Organization 4.3.1 Resources and Capabilities 4.3.2 Competitive Position and Advantages 4.4 Risk-Taking in Family Firms 4.5 Family Firm Strategy Implementation 4.6 Summary References 5: Succession and Family Businesses Longevity 5.1 Introduction 5.2 Succession Puzzle Challenges 5.3 Succession Process Models 5.4 Preparing for Succession 5.5 Developing Effective Successors 5.6 Implementing Succession 5.7 Summary References 6: Human Resource Management in Family Businesses 6.1 Introduction 6.2 HRM in Family Businesses 6.2.1 Defining HRM in Family Business 6.3 Why Is HRM Important in Family Businesses? 6.4 Recruitment of Talents in Family Businesses 6.4.1 Mindfulness of Family Business in Recruiting and Keeping Talents 6.5 Compensation, Welfare, Rights and Obligations, Appraisals, Training and Development in Family Businesses 6.6 Positive Practices in Family Businesses: What Should Be Done? 6.7 Summary References Part III: Implementation 7: Conflict Management in Family Businesses 7.1 Introduction 7.2 Why Is Conflict Management Important in Family Businesses? 7.3 Nature of Conflict Management in Family Businesses 7.3.1 Definition of Conflict Management 7.3.2 Types of Conflicts 7.4 Conflict Sources in Family Business 7.4.1 Possible Implications of Having Conflicts in Family Businesses 7.5 Role of Organizational Culture in Mediation, Negotiation, and Group Problem Solving 7.6 Positive Practices in Conflict Management References 8: Innovation in Family Businesses 8.1 Introduction 8.2 Why Innovation Matter in the Family Business? 8.3 Types of Innovation 8.3.1 Similar Offering 8.3.2 Product and Process Innovation 8.3.3 Incremental and Radical Innovations 8.4 The Product Life Cycle 8.5 Family Involvement 8.6 Implementation and Goals 8.6.1 Sustainability 8.7 Summary References 9: Internationalization of Family Businesses 9.1 Introduction 9.2 The 750 Largest Family Businesses in the World 9.3 A Model for International Expansion 9.4 Family Assessments for Internationalization 9.4.1 The Motivations for Expanding Abroad 9.4.2 The Challenges to Overcome 9.5 The Nature of the Expansion 9.6 Entry Modes 9.6.1 Exporting 9.6.2 Licensing and Franchising 9.6.3 Strategic Alliances and Joint Ventures 9.6.4 Acquisitions and Wholly-owned Subsidiaries 9.7 The Strategy Approach 9.8 The Family Support 9.9 Summary References Part IV: Cases 10: Case Study 1: Antigua Relojería: A Lauded Centenary Watchmaking Family Business 10.1 Business Overview 10.2 Hundred Years-Old Shops in Madrid 10.3 Hundred Years-Old Shops and Tourism in Madrid 10.4 Summary References 11: Case Study 2: ESOF Savvy Entrepreneurial Family Firm: From the Local Market to the International Arena 11.1 Background of the Case: ESOF’S Business Environment 11.2 Entrepreneurship Ecosystem 11.3 ESOF, the Bosnian Tiger 11.3.1 Company’s Profile 11.3.2 Business Portfolio 11.3.3 Drivers Behind ESOF’s Success 11.3.4 Challenges in the Industry: Local and International Competitors, and Government Policies References 12: Case Study 3: Legacy and Transition—The Case of Batik Katura in Trusmi, Indonesia 12.1 A Glance of Batik Katura 12.2 Family Business: Legacy and Cultural Values 12.3 Transition in the Katura Family Business: Challenges and Opportunities 12.4 The Successor’s Agility in Maintaining the Family Business References 13: Case Study 4: QCamel—Growing and Expanding 13.1 Ethical Farming Practices and Products 13.2 Camel Milk = The White Gold 13.3 The Australian Camel Milk Market 13.4 From Happy Farming to TikTok Sensation References 14: Case Study 5: Pollo Campero—More Than Chicken in Overhead Bins 14.1 Introduction 14.2 The Early Years 14.3 Pollo Campero USA 14.4 Expansions and Retractions 14.5 Refocusing the US Expansion After Covid-19 14.6 Retaking the Guatemalan Market References 15: Case Study 6: Marfrig and the Revolution Burger References