Family Business Heterogeneity in Latin America : A Historical Perspective

The authors have done what we should all have been doing in studying families in business -- they have documented how the larger social, legal, economic environments impact the formation and growth of family enterprises. I hope scholars learn the lessons this book has to offer. --Frank Hoy, Beswick Professor of Innovation and Entrepreneurship, Foisie Business School, Worcester Polytechnic Institute, USA. The authors of this must-read book are to be complemented for bringing to life migratory flows and idiosyncratic fascinating journeys of families featured in it! A delightful thought-provoking reading! --Pramodita Sharma, Schlesinger Grossman Chair of Family Business, Grossman School of Business, University of Vermont, USA This book explores the emergence and evolution of family firms throughout Latin America, from the colonial period to the modern day. In the course of Latin American history, institutions evolved to create order and reduce the uncertainty of the market. Using institutional change theory, social capital theory in organizational settings and resource-based view as organizing frameworks, the authors show how differences among family business in the region developed by examining the influx of foreign settlers, the shift from state-owned enterprises to privatized family business groups, and the effect of globalization. This text, presenting cases of family firms across several countries, offers entrepreneurship scholars a fresh perspective of a neglected region. Claudio G. Müller is Professor of Management at School of Business and Economics at University of Chile. He is co-editor of Family Firms in Latin America (2018). Fernando Sandoval-Arzaga is Academic Director of the Institute of Enterprising Families for Mexico and Latin America at the Tecnologico de Monterrey, Mexico. Series Editors’ Preface Acknowledgments Praise for Family Business Heterogeneity in Latin America Contents List of Figures List of Tables 1 Introduction References 2 Theoretical Perspectives on Heterogeneity in Latin American Family Businesses 2.1 Theoretical Perspectives 2.2 Identity Theory for n-Culturals 2.3 Lee’s Theory 2.4 Internal Social Capital 2.5 Resource-Based View 2.6 Theory of Institutional Change 2.7 The Theory of Uncertainty and Profit 2.8 Schumpeter’s Theory of Economic Development References 3 The Syncretism (The First Wave): The First Family Business in the Region 3.1 The Notion of the Latin American Concept 3.2 The Origin of the Latin American Economy 3.2.1 Pre-Columbian Economy 3.2.2 Colonial Economy 3.3 The Cultural Heritage of the Oldest Family Business in Latin America 3.4 Case Studies 3.4.1 Grupo Cuervo 3.4.2 Hacienda Los Lingues 3.5 Conclusions References 4 First Migration Flows (the Second Wave): A New Culture of Family Businesses 4.1 The Migration Flows 4.1.1 Migration from Spain and Portugal 4.1.2 Other European Regions 4.1.3 Central Europe, Eastern Europe, and the Middle East 4.1.4 Africa and Asia 4.2 From the Diaspora to the Enclave 4.3 Migrant Family Businesses and Their Social Capital 4.4 Next Generations: First Economic Groups of Migrant Families 4.5 Case Studies 4.5.1 Dimare Family, Rusti Company—Argentina 4.5.2 Nishimura Family, Jacto—Brazil 4.6 Chapter Summary References 5 The Emergence of the Family Group (the Third Wave): From State-Owned Companies to Large Family Groups 5.1 Latin American Institutional Environment 5.2 From State-Owned Companies to Large Family Groups 5.3 Family Business Group Diversity 5.4 Latin American Multinational Family Business 5.5 Case Studies 5.5.1 Carvajal Group—Colombia 5.5.2 Carso Group—Mexico 5.6 Chapter Summary References 6 The New Wave of Global Family Entrepreneurs (the Fourth Wave) 6.1 Family Entrepreneurship: The Key to Generational Continuity 6.2 The Takeoff of Family Entrepreneurship in Latin America 6.2.1 Social and Technological Megatrends 6.2.2 The New Generation of Entrepreneurs 6.2.3 Learning to Be an Entrepreneur Inside the Business Family 6.3 The Challenges of Latin American Entrepreneurial Families: Balance and Dualities 6.4 Case Studies 6.4.1 Fernando Fischmann: Crystal Lagoons 6.4.2 Rene Freudenberg: Interlub 6.5 Chapter Summary References 7 Conclusions, Lessons Learned, and New Avenues for Further Research 7.1 A Summary of the Characteristics of Each Wave 7.1.1 First Wave—“The Syncretism” 7.1.2 Second Wave—First Migration Flows 7.1.3 The Third Wave: Mapping the Formation of the Family Group 7.1.4 The Fourth Wave: The New Wave of Global Family Entrepreneurs 7.2 Explanatory Tables and Quadrants 7.3 Lessons Learned 7.4 Limitations and Further Research References Index The authors have done what we should all have been doing in studying families in business -- they have documented how the larger social, legal, economic environments impact the formation and growth of family enterprises. I hope scholars learn the lessons this book has to offer. --Frank Hoy, Beswick Professor of Innovation and Entrepreneurship, Foisie Business School, Worcester Polytechnic Institute, USA. The authors of this must-read book are to be complemented for bringing to life migratory flows and idiosyncratic fascinating journeys of families featured in it! A delightful thought-provoking reading! --Pramodita Sharma, Schlesinger Grossman Chair of Family Business, Grossman School of Business, University of Vermont, USA This book explores the emergence and evolution of family firms throughout Latin America, from the colonial period to the modern day. In the course of Latin American history, institutions evolved to create order and reduce the uncertainty of the market. Using institutional change theory, social capital theory in organizational settings and resource-based view as organizing frameworks, the authors show how differences among family business in the region developed by examining the influx of foreign settlers, the shift from state-owned enterprises to privatized family business groups, and the effect of globalization. This text, presenting cases of family firms across several countries, offers entrepreneurship scholars a fresh perspective of a neglected region. Claudio G. Müller is Professor of Management at School of Business and Economics at University of Chile. He is co-editor of Family Firms in Latin America (2018). Fernando Sandoval-Arzaga is Academic Director of the Institute of Enterprising Families for Mexico and Latin America at the Tecnologico de Monterrey, Mexico.