Knowledge and the Family Business: The Governance and Management of Family Firms in the New Knowledge Economy (Innovation, Technology, and Knowledge Management)

Family businesses—the predominant form of business organization around the world—can make numerous, critical contributions to the economy and family well-being in both financial and qualitative terms. But dysfunctional family businesses can be difficult to manage, painful experiences at best, and they can destroy family wealth and personal relationships. This book explores the dynamics of family business management, in the context of constantly changing market conditions and the role that knowledge management plays in strategic planning and adaptation. Integrating the literature from family business, entrepreneurship, industrial psychology, and knowledge management, and with illustrative examples from a variety of enterprises, the authors address such topics as: •__How family businesses can compete in the new knowledge economy__ •__How to manage a family business when knowledge is its main asset__ •__How to transfer knowledge (and how to keep it alive) through family generations__ Within this framework, the authors argue that effective resource management—especially intangible resources—is central to enabling a family-run organization to maintain a sustainable competitive advantage over time. They note that families often develop systemic, intuitive, or tacit knowledge that transcends rational decision making and needs to be recognized and nurtured as a distinctive asset. The authors demonstrate that trans-generational value is achieved when the family firm innovates and adapts itself to changing external and internal conditions. This kind of entrepreneurial performance requires dynamic capabilities and processes designed to acquire, exchange, combine and even shed knowledge and practices; and, in turn, dynamic capabilities result from mechanisms of knowledge sharing, collective learning, experience accumulation, and transfer. Cover 1 Innovation, Technology, and Knowledge Management 2 Knowledge and the Family Business 4 ISBN 9781441973528 5 Series Foreword 6 Notes 9 Contents 10 1 Introduction: Mapping the Paths Through the Handbook 11 References 16 Part I Family Businesses in the New Knowledge Economy: Governance and Management 19 2 Knowledge Management and Family Business 21 2.1 Knowledge: Sources and Typologies 21 2.2 Phenomenology of the Infra-organizational Cognitive Flows 30 2.3 Family Business and Knowledge Transfer 34 Case Study: Wal-Mart and Information Technology 36 Case Study. Ikea: Interaction Patterns Between PIA and the Surrounding Resources 39 2.3.1 Interaction Patterns Between PIA and the Surrounding Resources 40 Notes 41 References 53 3 Learning Processes and Social Implications in Family Organizations 57 3.1 Individual and Organizational Learning 57 3.2 Inertia and Change 59 3.3 The Social Constitution of Family Organizations and Its Implications for Organizational Learning 62 3.4 Conflict, Identity and Organizational Learning 66 3.5 Success, Failure and Organizational Learning 69 Case Study: The LOral Group and My Learning Program 72 Case Study. Michelin: Learning to Create Value from Experience Accumulation 74 Case Study: Samsungs Key Issues for Success 76 Notes 77 References 79 4 Family Business: Leadership and Succession 83 4.1 Unique Features of Family Business and the Concept of Leadership 83 4.2 Leadership Styles for Family Business 86 4.3 Succession Management in the Family Business and Leadership 89 4.4 Succession, Leadership and Gender Issues 91 Case Study. Olivetti S. p. a.: Leadership in Crisis 94 4.4.1 The Reasons for the Crisis 98 Case Study: Entrepreneurial Regeneration Ability and the Case of Manifattura Lane Gaetano Marzotto and Figli 100 Case Study: Dr. Ing. h. c. F. Porsche AG, the Leader 101 4.5 Case Study. Bertone: A Conflictual Succession 107 Notes 108 References 114 5 Family Business in the World 119 5.1 The Development of the Family Business Around the World 120 5.2 The Family Business in Germany 122 5.3 The Family Business in UK 124 5.4 The Family Business in Lebanon 128 Case Study: LCF Rothschild Group 130 Case Study: Toyota Motor Company 131 Case Study: Wendel Investment Company 132 Note 133 References 133 6 The Italian Entrepreneurial Outlook 135 6.1 The Italian Family Business Model 135 6.2 Family Business in Italy: Traits, Configurations and Path to Sustainable Competitive Advantage 139 6.3 Generational Succession: Under the Banner of Continuity and Cognitive Heritage 145 6.4 Finance and Family Business 153 6.5 The Family Office 162 Case Study: Pyrotechnics, the Art of Manufacturing Fireworksand the Italian Family Business “Pirotecnica Iannotta ” 165 Case Study: Giorgio Armani S. p. a.: Made in ItalyConquers the World 171 Case Study. Gianni Versace S. p. a.: Managerial Cognition and Strategic Action 176 Case Study: Fendi and the Female Leadership 178 Notes 180 References 193 Part II Family Business Entrepreneurs as Creative Destroyers and Knowledge Weavers 197 7 Definition of Terms and Concepts 199 7.1 Heterogeneity and Socioeconomic Analysis 200 7.2 "MODE 3" Innovation Ecosystem: Perspectives from Socioeconomics and Biology 203 7.3 Evolutionary Economics 205 7.4 An Open System Perspective 207 7.5 Co-opetition, Co-specialization and Co-evolution of Technology and Institutions 208 7.6 Closed Systems of Human Knowledge? 209 7.7 Opening up Through Increasing System-Internal Heterogeneity 210 7.8 Open and Close as Strategic Options 210 7.9 Benefits of Managing Organizational Knowledge 216 7.10 The Role of Learning in Building and Maintaining Strategic Advantage 217 7.11 Technology Transfer and Commercialization, Modalities, Metrics 219 7.11.1 Cooperative Research and Development Agreements (CRADAs) 219 7.11.2 Spin-Offs 220 7.11.3 Strategic Alliances 221 7.12 Intellectual Property and Intellectual Capital 222 7.13 Implications of Intellectual Capital for Firm Strategy 223 7.14 The Concept and Practice of Knowledge Management 224 7.15 Concepts in the Management of Technology 225 7.16 Developing an IP Technology Strategy: Disclosure as Strategic Choice 226 7.17 Constructing an IP Portfolio 228 7.18 Evaluating Appropriate IP Strategies 230 Notes 232 References 234 8 Insights from Theory and Practice 239 8.1 Increased Licensing Activity in the USA: Motivations and Implications for Technology Management 239 8.2 The Licensee Perspective: Licensing for Technology Acquisition 241 8.3 The Licenser Perspective: Licensing for Technology Exploitation 243 8.4 Firm Size and Licensing Practices 244 8.5 Knowledge Management and Intellectual Capital in Collaborative Settings: Trust and Co-opetition 245 8.6 Licensing and Research Collaboration 247 8.7 NASA Originating Case Studies 248 8.7.1 MacNeal-Schwendler Corporation 249 8.7.1.1 MSC Case Analysis 249 8.7.2 Pressure Systems Incorporated 250 8.7.2.1 PSI Case Analysis 250 8.7.3 TΘcnico 251 8.7.3.1 TΘnico Case Analysis 252 8.8 New Mexico Federal Laboratories Originating Case Studies 253 8.8.1 Amtech Corporation 253 8.8.1.1 Amtech Case Analysis 253 8.8.2 Permacharge Corporation 253 8.8.2.1 PC Case Analysis 254 8.8.3 Radiant Technologies Incorporated 255 8.8.3.1 Radiant Technologies Case Analysis 256 8.8.4 Yamada Science &Art Corporation 257 8.8.4.1 Yamada Art &Science Case Analysis 257 Note 257 References 258 9 Critical Success and Failure Factors and Lessons Learned 261 9.1 Knowledge Sharing and International IPR for the Family Business 261 9.2 General Findings from Case Studies 264 Note 269 References 269 Index 271 1441973524,9781441973528 Springer Front Matter....Pages i-ix Introduction: Mapping the Paths Through the Handbook....Pages 1-7 Front Matter....Pages 9-9 Knowledge Management and Family Business....Pages 11-46 Learning Processes and Social Implications in Family Organizations....Pages 47-72 Family Business: Leadership and Succession....Pages 73-107 Family Business in the World....Pages 109-123 The Italian Entrepreneurial Outlook....Pages 125-186 Front Matter....Pages 187-187 Definition of Terms and Concepts....Pages 189-228 Insights from Theory and Practice....Pages 229-249 Critical Success and Failure Factors and Lessons Learned....Pages 251-260 Back Matter....Pages 261-267 This is the first book to explore the dynamics of family business from a knowledge management perspective. It integrates the literature from family business, entrepreneurship, industrial psychology, and knowledge management.