[Familienunternehmen und KMU] Family Businesses’ Growth (Unpacking the Black Box) ||

Growth is one of the central strategic topics in management science. A growing enterprise embodies success and growth supports the longevity of the business. In her book Laura Seibold provides an overview of the literature on general growth components and different theoretical growth models with a special focus on family enterprises. The author formulates a comprehensive model of how growth can be achieved in family firms. This derived model combines the insights from general growth theory, family specific literature and the insights of top family firm leaders. Contents Goal Cascade of Family Enterprise´s Strategy Family Enterprises as Research Objects Theoretical Side: Results, Model Building and Discussion The Practical Side: Pragmatic-Normative Implications Target Groups Scholars and students of business sciences, family enterprise scholars Manager and owners of family enterprises About the Author Laura Seibold studied business administration and economics at the Universities of Frankfurt, Vancouver and Friedrichshafen. In her studies she focused on growth of large well-established family business which show growth spurts in later generation. She is member of a German business family, operating in mechanical and software engineering Dedication Foreword Acknowledgements Table of Contents Table of Contents Contents List of Abbreviations List of Figures List of Tables List of Equations 1 Introduction 1.1 The Phenomenon under Research 1.2 Developmental Stages of Organizations 1.3 Importance of Growth 1.4 Evolution of the Research Project 1.5 Brief Introduction to Grounded Theory Methodology 1.6 Development of Research Goals 1.7 Structure of the Dissertation 1.8 References 2 Definitions, Literature Reviews, Research Gaps and Research Questions 2.1 Overview of Chapter 2.2 Goal Cascade of Family Enterprise’s Strategy 2.3 Theoretical Perspectives on Growth 2.3.1 Neoclassical Business Theory 2.3.2 Evolutionary, Learning-Theoretical Approaches 2.3.3 Investment and Production Theory Models 2.3.4 Economies of Scale 2.3.5 Organically Oriented Growth Models 2.3.6 Growth Theory by Penrose 2.3.7 Behavioral Approaches 2.3.8 Critical Appraisal of General Growth Theories 2.4 Derivation of Framework 2.5 Importance of the Literature Reviews 2.6 Procedure of Literature Review 2.6.1 General Procedure 2.6.2 Characteristics of the Reviews Carried Out in this Dissertation 2.7 Results of Literature Review on Growth of Enterprises 2.7.1 Input Factors 2.7.1.1 Enablers 2.7.1.1.1 Age and Size 2.7.1.1.2 Location Factors and Industry Factors 2.7.1.1.3 Legal and Financial Constitution 2.7.1.1.4 Ownership and Management 2.7.1.1.5 Competition between Enterprises 2.7.1.1.6 Macroeconomical Determinants 2.7.1.1.7 Characteristics of the Entrepreneur 2.7.1.1.7.1 Sex 2.7.1.1.7.2 Educational Level 2.7.1.1.7.3 Attitude towards Growth 2.7.1.2 Growth Boundaries 2.7.2 Process 2.7.2.1 The Role of Strategic Choices and Decisions in the Growth Process 2.7.2.2 Different Modes of Growth 2.7.2.3 Areas of Growth 2.7.2.3.1 Market Penetration 2.7.2.3.2 Product Development: Innovations 2.7.2.3.3 Market Development 2.7.2.3.4 Diversification 2.7.2.3.5 Heuristics for Identifying and Developing Growth Areas 2.7.3 Output 2.7.3.1 Operationalization 2.7.3.1.1 Growth Indicator 2.7.3.1.2 Choice of Measurement 2.7.3.2 Growth Cube 2.8 Research Gap I: No Comprehensive General Growth Model 2.9 Family Enterprises as Research Objects 2.9.1 Uniqueness and Importance of Family Enterprises 2.9.2 Definition Concepts of Family Enterprises 2.10 Results of Literature Review on Family Enterprises and Growth 2.10.1 Theories Used in Studying Growth of Family Enterprises 2.10.1.1 Resourced-Based View 2.10.1.2 Agency Theory 2.10.1.3 Upper Echelon 2.10.1.4 Theory of Planned Behavior 2.10.1.5 Critical Appraisal of Theoretical Lenses on Growth 2.10.2 Growth Critical Attributes of Family Enterprises 2.10.2.1 Life Cycle as a Structuring Element 2.10.2.2 Family Enterprise Specific Input Factors 2.10.2.2.1 Personal and Contextual Factors of Family Enterprise’s Growth 2.10.2.2.2 Social Relationships and Family Enterprise’s Growth 2.10.2.2.3 Entrepreneurial Orientation in Family Enterprises 2.10.2.2.4 Goal Orientation in Family Enterprises 2.10.2.2.5 Growth Boundaries Influenced by the Family 2.10.2.3 Family Enterprise Specific Process Factors 2.10.2.3.1 Innovation in Family Enterprises 2.10.2.3.2 Internationalization in Family Enterprises 2.10.2.3.3 M&A in Family Enterprises 2.10.2.3.4 Diversification in Family Enterprises 2.10.2.3.5 Financing Strategy in Family Enterprises 2.10.2.3.6 High Growth Strategy in Family Enterprises 2.11 Research Gap II: No Comprehensive Growth Model of Family Enterprises 2.12 Research Questions 2.13 References 3 Methodology 3.1 Overview of the Chapter 3.2 Qualitative Research and Reasons for Its Application 3.3 Evaluation Criteria for Qualitative Research 3.4 Research Philosophy 3.4.1 Reviewed Philosophical Approaches 3.4.1.1 Positvism 3.4.1.2 Critical Realism 3.4.1.3 Interpretivism 3.4.1.4 Postmodernism 3.4.1.5 Pragmatism 3.4.2 Research Philosophy Used in this Dissertation 3.5 Research Strategy – Grounded Theory Approach 3.5.1 General Understanding and Application in Management Research 3.5.2 Historical Development of Grounded Theory 3.5.3 Constructivistic Approach and the Reason for its Application 3.5.4 Relevance and Procedure of Coding 3.5.4.1 Initial Coding Phase 3.5.4.2 Focused Coding 3.5.4.3 Theoretical Coding Phase 3.5.4.4 Memo-Writing 3.6 Time Horizon 3.7 Data Collection 3.7.1 Sampling 3.7.1.1 Focus on German Family Enterprises 3.7.1.2 Adjusted Method of Theoretical Sampling 3.7.1.3 Sample Characteristics of the Family Enterprises 3.7.2 Interviews 3.7.2.1 Interview Guideline 3.7.2.2 Selecting Interview Partners and Procedure of Interview 3.7.2.3 Reflexivity of Researcher 3.7.2.4 Reflections on the Sample Characteristics of the Interview Partners 3.7.3 Secondary Data 3.7.4 Theoretical Saturation 3.8 Summary of the Methodological Approach 3.9 References 4 The Theorectical Side: Results, Model Building and Discussion 4.1 Overview of Chapter 4.2 Reflexive Framework 4.3 Output 4.3.1 Comparison between Existing Literature and the Emerging Output-Category 4.3.2 Growth Rate 4.3.3 Growth Mode 4.3.4 Product and Technology Development 4.3.5 Geographical Focus 4.3.6 Diversification 4.4 Input 4.4.1 Comparison between Existing Literature and the Emerging Input-Category 4.4.2 Business Context 4.4.3 Options 4.4.4 Need to Grow 4.4.4.1 Business Context Driven Need 4.4.4.2 Family Driven Need 4.4.5 Available Capabilities 4.5 Process 4.5.1 Comparison between Existing Literature and the Emerging Process-Category 4.5.2 Relationship between Ownership and Management 4.5.2.1 Ownership Structure Following Different Succession Patterns 4.5.2.2 Family CEO and Perceived Sole Ownership 4.5.2.3 Sibling Management 4.5.2.4 Non-Family CEOs and Family Governance 4.5.3 Independence as Overriding Summary of Values, Traditions and Goal Setting 4.5.3.1 Multigenerational Mindset 4.5.3.2 Independence 4.5.3.3 Financial Goals 4.5.3.4 Non-Financial Goals 4.5.4 Navigating Management’s Influence on Deployment of Capabilities 4.5.4.1 Balancing Act to Include Family in Strategic Decisions 4.5.4.2 CEO Selection Process 4.5.4.3 Financial Capabilities 4.5.4.4 Market Share for Target Size 4.5.4.5 Diversification 4.5.4.6 Market Entry 4.5.4.7 Internationalization 4.5.4.8 Acquisitions 4.5.4.9 Product Innovation 4.5.4.10 Human Resources 4.5.4.11 Organizational Structure 4.5.4.12 Customer Relationship 4.5.4.13 Revitalizing or Changing the Extant Business Model 4.5.4.14 Special Findings Concerning the Roots of the Spurts 4.5.5 Navigating Management’s Willingness 4.6 Growth Equation 4.6.1 Multiplicative Linkage 4.6.2 Weight of Options 4.6.3 Weight of Need 4.6.4 Weight of Capabilities 4.6.5 Weight of Willingness 4.6.6 Summary of the Weights of all Dimensions 4.7 Evaluation of the Model 4.7.1 Compliance with the Evaluation Criteria of Qualitative Research 4.7.2 Validation of Model on a Different Sample of Growing Family Enterprises 4.8 References 5 The Practial Side: Pragmatic-Normative Implications 5.1 Reviewing the Model and the Growth Equation for their Practical Implications 5.2 Overview of Chapter 5.3 Implications of the Findings Concerning Strategy of Family Enterprises 5.3.1 The Crucial Role of Willingness and Its Implications 5.3.2 The Non-Crucial Role of Financing Growth and Its Implications 5.4 Implications of the Findings for Family Members 5.5 Implications of the Findings for Non-Family Management 5.6 Summary of the Voices of Strong-Willed Fast-Growing Executives 5.7 References 6 Conclusion 6.1 Limitations of the Study 6.1.1 General Limitations of Grounded Theory 6.1.2 Limitations of the Group of Respondents and Analyzed Time Frame 6.2 Theoretical and Practical Advancements and Avenues for Further Research 6.2.1 Theoretical Advancements 6.2.2 Practical Advancements 6.2.3 Avenues for Further Research 6.3 Answering the Research Questions 6.4 Concluding Summary 6.5 References 7 Complete Reference List Growth is one of the central strategic topics in management science. A growing enterprise embodies success and growth supports the longevity of the business. In her book Laura Seibold provides an overview of the literature on general growth components and different theoretical growth models with a special focus on family enterprises. The author formulates a comprehensive model of how growth can be achieved in family firms. This derived model combines the insights from general growth theory, family specific literature and the insights of top family firm leaders. Contents Goal Cascade of Family Enterprise ́s Strategy Family Enterprises as Research Objects Theoretical Side: Results, Model Building and Discussion The Practical Side: Pragmatic-Normative Implications Target Groups Scholars and students of business sciences, family enterprise scholars Manager and owners of family enterprises About the Author Laura Seibold studied business administration and economics at the Universities of Frankfurt, Vancouver and Friedrichshafen. In her studies she focused on growth of large well-established family business which show growth spurts in later generation. She is member of a German business family, operating in mechanical and software engineering