Family Businesses: The Extensiveness of Succession Problems and Possible Solutions

Duh, Mojca

doi:10.5772/36284

Cited by 14 publications

(11 citation statements)

References 44 publications

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“…Lack of awareness of the importance of successors' involvement in broad range of knowledge creation activities could have important implication for practice on how to improve organizational knowledge creation and competitiveness during and after the transfer of leadership in family businesses. This is of special importance for Slovenia and other post-socialist countries where family business succession issues are rarely the subject of a topic of policy discussions and only occasionally a topic of public discussions (e.g., Duh, 2008;Duh, 2012).…”

Section: Resultsmentioning

confidence: 99%

Knowledge Creation in Family Businesses and Its Importance for Building and Sustaining Competitive Advantage during and after Succession

Duh¹,

Letonja²

2013

IJBA

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The family business's tacit knowledge, embedded in its founder, and its transmission is found to be important for building and sustaining competitive advantage since this type of knowledge is difficult to trade and imitate, scarce, appropriable and specialized. The purpose of our research was to broadening our understanding of family businesses tacit knowledge and its creation during the succession process by applying the concept of knowledge creation through so called SECI process. The case study-based findings showed that founders and successors find mentoring, internal/individual training, and involving in the meetings with business partners as the most used knowledge creating activities. We suggest that tacit knowledge creation during succession should be placed in broader context of organizational knowledge creation in order to raise the total quality of successor's knowledge and adding new knowledge thus contributing to building family business's competitive advantage.

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Section: Resultsmentioning

confidence: 99%

Knowledge Creation in Family Businesses and Its Importance for Building and Sustaining Competitive Advantage during and after Succession

Duh¹,

Letonja²

2013

IJBA

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“…Last but not least of the problems addressed by EO is the so-called ownership succession problem for SMEs (Močnik et al, 2019;Duh, 2012;Malinen, 2001;Hnátek, 2013). EO through ESOP trusts is a time-tested mechanism for (gradual) employee buyouts without depending on the employees mortgaging or risking their personal assets.…”

Section: Arranging Ownership Successionmentioning

confidence: 99%

Coronavirus Crisis: Government Aid That Also Promotes Employee Ownership

Ellerman

Gonza

2020

Intereconomics

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The premise of this paper is that state aid to distressed companies should benefi t not only the current owners but also the employees, who are the ones taking personal risks to continue or restart companies. Government aid during the Great Recession was aimed primarily at restoring the status quo. In the current deeper crisis, aid should be designed to create a fairer, more inclusive and more socially responsible economy by promoting employee ownership as both an incentive and a reward. We show how the Employee Stock Ownership Plan, which has been pioneered in the US for 40 years and can be adapted to the European legal context, can be used as the vehicle for structuring this aid.

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“…Indeed, the strong emphasis on daily processes and the entrepreneur's lack of awareness in planning management transfer to successive generations might negatively influence the sustainability of a firm (Duh, 2012). Accordingly, sustainability is of the utmost significance for determining the adequate continuity and survival of both family and business systems.…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

Sustainability, longevity and transgenerational value in family firms. The case of Amarelli

Falco¹,

Vollero²

2018

Sinergie Italian Journal of Management

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Purpose of the paper:In family business research, sustainability has never received as much attention as large corporations despite the relevance of their global economic impact. Thus, the paper's aim is to investigate this issue by taking two key structures into consideration: longevity and trans-generational value.Methodology: Drawing on systems theory, we developed an exploratory conceptual framework (Trans-generational Sustainability Model -TSM) for family firms. We argue that the three pillars for the creation of trans-generational value, representing a longstanding value for family businesses, are growth, family success and local embeddedness quality. An exploratory case study on a long-lived Italian family firm (Amarelli) belonging to the Henokiens association, has been conducted to investigate some of the hypotheses that have been developed in relation to this preliminary model.Findings: In the case of Amarelli sustainability seems to be the result of the combination of a unique strategic orientation and distinctive competences. The presence of family members in management positions is a major concern for the "enlarged" family and high quality of local embeddedness which are likely to support the creation of trans-generational value.Practical implications: The balance between the three components of family firms' sustainability may provide directions for entrepreneurs in their family firms management, particularly during the succession phase or other disruptive changes involving their businesses.Originality of paper: This article provides a review of significant trends in the strategic management approach by studying family firms' sustainability. Its original contribution is twofold: firstly by its accumulating evidence that the creation of "enlarged" trans-generational value may determine family businesses' longevity and sustainability, and secondly, system theory seems as the leading theoretical perspective.

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Family Businesses: The Extensiveness of Succession Problems and Possible Solutions

Cited by 14 publications

References 44 publications

Knowledge Creation in Family Businesses and Its Importance for Building and Sustaining Competitive Advantage during and after Succession

Knowledge Creation in Family Businesses and Its Importance for Building and Sustaining Competitive Advantage during and after Succession

Coronavirus Crisis: Government Aid That Also Promotes Employee Ownership

Sustainability, longevity and transgenerational value in family firms. The case of Amarelli

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