Sibling Relationships, Fairness, and Conflict Over Transfer of the Farm

Taylor, Janet E.; Norris, Joan E.

doi:10.1111/j.1741-3729.2000.00277.x

Cited by 52 publications

(35 citation statements)

References 33 publications

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“…Yet, family firms often grapple with fairness issues; members of the younger generation often perceive their parents as unfair in family dealings and criticisms of their new ideas, while the older generation often sees their children as unfairly dismissive of their business achievements ( Van der Hayden et al 2005). Research on succession in family firms suggests that different viewpoints on fairness lead to conflict among family members (Taylor and Norris 2000). Accordingly, ''sustained violations of fair process are at the root of many family conflicts'' (Van der Hayden et al 2005, p. 7).…”

Section: The Mediating Role Of Relationship Conflictmentioning

confidence: 98%

Harmony, Justice, Confusion, and Conflict in Family Firms: Implications for Ethical Climate and the “Fredo Effect”

2011

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Family firm leaders acting as stewards of a close-knit enterprise may attempt to build a positive atmosphere of trust, clarity, and cohesiveness in the firm's operation. Yet, conditions unique to family firms may lead some family members to develop a heightened sense of entitlement and weaker bonds to the organization. This creates conditions for a Fredo effect, where a family member's incompetence, opportunistic behaviors, and/or ethically dubious actions can impede the firm's success, potentially resulting in a scandal that could lead to the firm's demise and negative economic impact on employees, customers, and other stakeholders. Surveying 147 family-firm members, we examine the role that linkages among perceptions of family harmony norms, distributive fairness, role ambiguity, and relationship conflict play in the emergence of a family member who acts as an impediment to the firm, which can be manifested in damaging unethical behaviors. As hypothesized, family harmony norms and fairness perceptions are negatively related to family impediment, while role ambiguity is positively related to family impediment. However, relationship conflict mediates these connections, underscoring the potential damage this type of conflict can create in a family firm, even if leaders of the firm attempt to establish conditions that reflect a stewardship approach to firm governance. We discuss how these findings impact the development of an ethical climate in the family firm and the implications for family business survival or scandal.

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Section: The Mediating Role Of Relationship Conflictmentioning

confidence: 98%

Harmony, Justice, Confusion, and Conflict in Family Firms: Implications for Ethical Climate and the “Fredo Effect”

2011

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“…The FBG can be defined as a set of legally separate firms under the strategic guidance of a family and its trusted intermediaries, which are bound together by both shareholdings and personal ties. While the overlapping of these types of relationships Leff (1978), Granovetter (1995), Ghemawat and Khanna (1998), Bebchuk (1999), Gomes (2000), Chung (2001), Friedman et al (2003), Gopalan et al (2007), Cestone and Fumagalli (2005) Levinson (1971), Davis (1983), Friedman (1991), Handler (1992), Harvey and Evans (1994), Shleifer and Vishny (1997), Claessens et al (1999), Harvenson (1999, La Porta et al (1999), Taylor and Norris (2000), Claessens et al (2000), Cabrera-Suarez et al (2001), Almeida and Wolfenzon (2006), Maury (2006), Eddleston and Kellermanns (2007), and Eddleston et al (2008) Steier (2001, Aldrich and Cliff (2003), Sharma (2004) Steers et al (1989), Veliyath and Ramaswamy (2000), and Granovetter (2005) Type Granovetter (2005) and Khanna and Rivkin (2006) Ben-Porath (1980), Pollak (1985), Harvey (1999), …”

Section: Theoretical Perspectivesmentioning

confidence: 95%

“…These conflicts, such as a conflict between siblings (Eddleston, Otondo, & Kellermanns, 2008;Friedman, 1991;Taylor & Norris, 2000) or a conflict between the founder and its successors (Cabrera-Suarez, Saa-Perez, & Almeida, 2001;Davis & Harveston, 1999;Handler, 1992), can give birth to new agency problems between the controlling family and the other shareholders (Claessens, Djankov, Fan, & Lang, 1999). Additionally, La Porta et al (1999) show that family-controlled firms often use pyramidal ownership structures to exert control over a large network of firms.…”

Section: Theoretical Perspectivesmentioning

confidence: 98%

Towards a better understanding of Family Business Groups and their key dimensions

Piana

Vecchi

Cacia

2012

Journal of Family Business Strategy

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“…Un processus de prise de décision mené de manière juste et équitable ne nie pas l'autorité mais s'intéresse plutôt à la façon dont l'autorité est exercée (Taylor et Norris, 2000).…”

Section: La Structure De La Familleunclassified

L’impact de la structure de la famille sur le développement des petites entreprises familiales en hypogroupe

Amar

Mezghani

2011

ipme

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La structure de la famille est le système d’interactions au sein de la famille qui influence le comportement de chaque membre et sa perception de la réalité (Todd, 1983). La diversité des structures peut avoir une influence sur le développement stratégique des entreprises familiales. En fait, le développement des entreprises familiales, notamment de petite taille, introduit l’idée de l’organisation stratégique en hypogroupe susceptible de permettre la mise en oeuvre des stratégies de croissance par création de nouvelles unités. Ainsi, notre ambition, à travers cette recherche, est d’étudier l’impact de la structure de la famille sur le développement de l’entreprise familiale en hypogroupe.L’information est collectée par le biais d’entretiens semi-directifs auprès des dirigeants propriétaires de cinq cas d’hypogroupes. Les données ont fait l’objet d’une analyse de contenu thématique. Nous avons pu conclure que l’organisation stratégique en hypogroupe est adoptée par les dirigeants qui souhaitent accorder à chacun des successeurs les mêmes opportunités pour réaliser les objectifs personnels de ces derniers. L’égalité entre les successeurs permet d’éviter les conflits internes qui peuvent peser sur la pérennité de l’entreprise. Le choix de l’activité de l’unité nouvellement créée dépend du profil du successeur. Étant donné que les successeurs ont des profils différents, le développement en hypogroupe se réalise à travers la diversification.The family’s structure is the system of interactions within the family that influences the behavior of each member and his/her perception of reality (Todd, 1983). The diversity of structures can have an influence on the strategic development of family firms. In fact, the development of family firms, in particular of small size, suggests the idea of the strategic organization of these firms into a hypogroup that allows the implementation of growth strategies by creation of new units. Thus, our ambition, through this research, is to study the influence of the family’s structure on the development of the family firm into a hypogroup.Information is collected through semi-oriented interviews conducted with owner-managers of five cases of hypogroups. The data were subject to thematic content analysis (TCA). It was possible to conclude that the strategic organization into hypogroup was adopted by managers that wanted to grant each of the successors the same opportunities to achieve his/her personal goals. The equity between successors permits to avoid internal conflicts that can impact the family firm perenniality. The choice of the activity of the newly created unit depends on the profile of the successor. Given that successors have different profiles, the development into hypogroup is conducted through a diversification strategy.La estructura de la familia es el sistema de interacciones en el seno la familia que influye sobre el comportamiento de cada miembro y su percepción de la realidad (Todd, 1983). La diversidad de las estructuras puede tener una influencia sobre el desarrollo est...

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Sibling Relationships, Fairness, and Conflict Over Transfer of the Farm

Cited by 52 publications

References 33 publications

Harmony, Justice, Confusion, and Conflict in Family Firms: Implications for Ethical Climate and the “Fredo Effect”

Harmony, Justice, Confusion, and Conflict in Family Firms: Implications for Ethical Climate and the “Fredo Effect”

Towards a better understanding of Family Business Groups and their key dimensions

L’impact de la structure de la famille sur le développement des petites entreprises familiales en hypogroupe

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