Family business in transition: a case of PAL

Abstract

Access to this document was granted through an Emerald subscription provided by emerald-srm:448207 [] For AuthorsIf you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The case aims to deal with multi generation entrepreneurship. Families are about people and businesses are about money, therefore, conflict between the two is inevitable. Family-owned businesses develop competitive edges when they align values, vision, strategy, investment and governance to make both family and business activities more professional and mutually supportive. It is a belief that "treating the business like a family", driven by values and concern for human needs, creates an organization with motivated people working together to create long-term value. Jitesh Ghai is the MD of Panchamrit Asbestos Ltd (PAL), which stands for PAL. Jitesh has an "experiential learning" with the cement sheet business and has understood the nuances of the business. It is supposedly required that PAL ought to professionalize owing to market infeasibility. Shashwat, his son has diversified interests and therefore desires to spin-off to "Big Apple". Design/methodology/approach -The case is based on research and secondary information, which has been tested several times, while filling the case gaps during the process. To authenticate information, multiple sources (vendors and customers) of information have been used. Findings -There is a dilemma between the father-son relationship and decision to professionalise or spin-off! It is understood that in multigenerational business, it is not necessary that the subsequent generation keep the same business, but must preserve wealth and traditions.Research limitations/implications -The findings are based on observations on one organisation and research carried through secondary sources, which may limit to theory building. Practical implications -An enterprise largely competes on the basis of available talent, knowledge, competency and capability. Therefore, knowledge must be managed. For survival and growth, business transition must be handled effectively. Originality/value -The case is original with the business family in its second generation striving to survive.

Impact of family involvement on strategy and CEO compensation

“…This inter-generational succession, in turn, brings about a change in the company's strategy, as the descendants of the founder formulate and implement their own strategic vision and values (Le Breton-Miller et al, 2011;Joshi and Srivastava, 2014;Holt et al, 2017). The first-generation founder entrepreneurs, who shape the enterprise, are willing to undertake innovative pursuits and are prepared to bear the risk with the sole purpose of business "growth" (Anderson and Reeb, 2003;Poutziouris et al, 2015;Jaskiewicz et al, 2017).…”

Women Entrepreneurship in Family Business

“…Based on a sample of Korean family firms, Yoo et al (2014) find support for the hypothesis that a non-first-son-based succession identity disproportionately better positions successors to take advantage of the informational exchange relationships and entrepreneurial opportunities, while simultaneously avoiding the pressures and constraints associated with 'family tradition' aspects of the family business system. Different types of father-son relationships are studied by Joshi and Srivastava (2014), Spraggon et al (2012), Afghan (2012) and Laakkonen et al (2011). The performance of blood-related sons versus other successors in Japan is discussed by Mehrotra et al (2013).…”

The father’s role in supporting the son’s business knowledge development process in Vietnamese family businesses

“…Nevertheless, there are only a few family companies that survive to the second generation and even fewer to the third generation (De Massis et al, 2014;Sonfield and Lussier, 2004). Although this succession failure has many root causes, unsuccessful planning for the next generation's succession is one of the most significant reasons impacting on the longevity of the family business (Breton-Miller et al, 2004;Eddleston et al, 2013;Joshi and Srivastava, 2014;Lu and Wang, 2011).…”