On the expansion of the market and the decline of the family

Over the past two hundred years, large, modern firms have tended to replace small, family businesses. In parallel, the family has declined as a social institution. We suggest that these developments are interrelated. Because information of cheating in market transactions spreads only gradually in large markets, the reputation of the family firm could support contractual performance only in small, traditional markets. As markets grew in size, this reputational mechanism could no longer operate. The small, family firm was then replaced by the large, modern firm. This transition led to a decrease in the importance of the family.      

Too close and too rigid: applying the Circumplex Model of Family Systems to first-generation family firms

Despite growing research interest in family businesses, little is known about the characteristics of the families engaging in them. The present paper uses Olson's (Journal of Psychotherapy & the Family, 1988, 4(12), 7-49; Journal of Family Therapy, 2000, 22, 144-167) Circumplex Model of Marital and Family Systems to look at first-generation family firms. We describe existing typologies of family businesses and discuss similarities between the characteristics of first-generation family firms and the rigidly enmeshed family type described in the Circumplex Model. The Steinberg family business (Gibbon & Hadekel (1990) Steinberg: The breakup of a family empire. ON, Canada: MacMillan) serves to illustrate the difficulties of rigidly enmeshed first-generation family firms. Implications for understanding troubled family businesses are discussed together with guidelines for the assessment of a family business in crisis and for intervention: enhancing open communication; allowing for more flexible leadership style, roles, and rules; and maintaining a balance between togetherness and separateness.     

Small Business Success Among Men- and Women-Owned Firms in Rural Areas1

Abstract Rural women have difficulty finding good jobs. Ownership of small businesses offers an alternative but the sales and income of women-owned firms are significantly lower than those of men-owned firms. Compared with men, women owners are more likely to operate smaller and newer businesses; however, these differences do not completely account for the gap in gross sales between men- and women-owned businesses. The strongest influences on business success are firm size, corporate status, and industrial sector. Though significant, the owner's gender is less important than these organizational characteristics. The factors influencing success of small businesses generally are the same for men- and women-owned businesses. More research on business networks and the start-up phase of small businesses is necessary for a better understanding of the sources of gender differences in success.     

Adjustment Strategy Use in Minority Family Businesses: Differences Across Gender

The objectives of this study were to explore the adjustment strategies employed by minority female owners of small family firms and to compare their use of adjustment strategies with those of their male counterparts. There were significant gender differences in the adoption of adjustment strategies among minority-owned family firms. The major findings of this study suggest that minority female business owners were more likely to reallocate family resources to help with business tasks and were more likely to intertwine both tasks than minority male business owners when demands were particularly great for the family or the firm. In addition, compared to male business owners, a relatively higher proportion of female business owners used volunteer help without pay during hectic times. Implications for business consultants and educators working with minority business owners are discussed.     

Uniqueness of family therapists as family business systems consultants: a cross-disciplinary investigation

The purpose of this study is to address how the consulting approaches of family therapists working with family businesses differ from those of business consultants. The logic of analytic induction was used to analyze qualitative data from family business consultants with and without training in family therapy. Consultants were asked to respond to two vignettes: one emphasized primarily family system problems, whereas the other emphasized business problems with influencing issues at the family/business intersection. Both similarities and differences were found in reference to problem assessment, consulting goal orientation, intervention strategy focus, consultant role and function, and consulting setting preference between consultants with and without family therapy training. Results indicate that consultants of each discipline provide a unique perspective and expertise that allow them to successfully address the spectrum of issues that family firms face. Further, findings highlight the unique contribution of family therapists to an interdisciplinary consulting team.     

Collecting family network data

Contemporary family contexts are characterized by a complex web of relationships, which goes beyond the household boundaries. Indeed, individuals develop meaningful relationships with non-residential family members, close friends, neighbors, colleagues, etc. Unfortunately, most surveys dealing with family ties focus on households and study a few dyads, mainly couple and parent–child relationships. This contribution addresses the use of social network methods for the understanding of the social matrix of family interdependencies in which individuals are embedded. Social network methods broaden the definition of family by starting with the individuals’ own definition of their meaningful family context. They also allow the mapping of family networks based on the interdependencies existing among all family members. This contribution describes the use of social network methods in relation to three main settings: individuals in national representative surveys, individuals facing a family recomposition after divorce, and individuals in psychotherapy. In the light of the pluralization of life trajectories and the individualization of personal relationships, the proposed approach may significantly contribute to the understanding of the relationships that matter for individuals in contemporary societies, and of the creation of family-based social capital.     

Social firms: Building cross-sectoral partnerships to create employment opportunity and supportive workplaces for people with mental illness

A major barrier to employment for people with mental illness is limited access to supportive and non-discriminatory workplaces. Social firms are businesses committed to employing up to 50% of people with a disability or other disadvantage and to providing supportive work environments that benefit workers. Little research has been conducted to understand the features and social processes that support the vocational experiences of employees with mental health issues in social firms. Objective: This ethnographic study sought to explore the experiences of nine employees at one Australian social firm. Participants: Nine employees of a social firm, with and without mental illness. Methods: Study methods used included participant observation, interviewing and document analysis. Results and conclusions: The study highlights the complexity of running a socially-invested business, and the importance of cross-sectoral partnerships to support their operational success. Natural workplace supports, adequate training and support infrastructure and enabling participation in the business, were identified as important to creating a supportive workplace. Partnerships within the workplace and in support of the workplace are discussed. Future growth and development of partnerships are recommended to support the establishment of social firms.     

Women in Business-owning Families: a Comparison of Roles,Responsibilities and Predictors of Family Functionality

The purpose of this study is to compare groups of women associated with family businesses and ascertain predictors of functionality. The sample consisted of 589 women divided into five groups based on their roles in the business. Of interest were various combinations of work at home, in the family business, and outside the business and how multiple roles affect the family. The women varied on several characteristics with female business managers less likely to be married than other women and generally operating smaller businesses. The women were not significantly different on levels of family functioning. Family goal success, satisfaction with business role, and being married were positive significant predictors of family functionality. Higher levels of household tension were negatively associated with family functionality. Family therapists and family business consultants must be cognizant of the multiple role responsibilities of women associated with a family firm.     

Les réseaux de PME en Argentine : une voie alternative ?

Do small businesses in Argentina really form “local networks of production” similar to those in Italy? Institutional, regional (public or private) networks of support for small businesses are identified along with the strategies of various parties and the sorts of agreements worked out between them. A survey of small business networks in four areas chosen for the variety of their output and for their positions in the market and in the chain of production shows that regional networks lack consolidation, except in the Mendoza area, where small businesses, big firms, universities and private as well as public institutions function in an “integrated” network. — Special issue: Latin America.     

Social and human capital in immigrant adaptation:: The case of Canadian business immigrants

Purpose: With the resurgence of immigration to North America in the past three decades, research on immigrant adaptation and the attendant issues of assimilation has burgeoned. A prevailing assumption of much of this research is that social capital is a vital resource enabling immigrants to find their economic and social niches in the host society. In a word, social capital is a key factor in the immigrant adaptation process. This assumption has been especially prominent in research focusing on one specific subset of immigrants: entrepreneurs. Social capital in the form of ethnic networks and family ties is assumed to function critically in the establishment and operation of immigrant-owned businesses. This paper argues that although the formation and expenditure of social capital may typify the experiences of many or even most immigrant entrepreneurs, some enter the host society with sufficient human and/or financial capital that enables them to forego the utilization of social capital in the adaptation process.Methods: To demonstrate, I draw upon in-depth interviews conducted with 70 immigrant entrepreneurs in the province of Ontario, Canada between 1993 and 1995. All interviewees entered Canada under the auspices of the Canadian Business Immigration Program, a federal program designed to attract immigrants with demonstrable business and managerial skills that presumably will lead to the establishment of a firm and thus to the subsequent creation of jobs and economic activity. A formal requirement of their entrance, then, is the possession of proven business skills, a critical form of human capital that facilitates successful economic adaptation in the host society.Forms of social capital are described and their applicability to the adaptation experiences of the interviewees is analyzed. What is found among these business immigrants is a minimal reliance on social capital in establishing and operating their firms. In securing investment capital, finding a work force, and acquiring information, ethnic and family ties, the most common forms of social capital for immigrants generally and for immigrant entrepreneurs in particular, do not play a major role. Solidarity with co-ethnics and the use of family labor, so common among conventional immigrant entrepreneurs, are not of significant import in the economic adaptation of these business immigrants. Moreover, ties to coethnics are only minimally significant in patterns of social adaptation as well.Results: It is concluded that immigrants entering the host society with pre-migration intentions of business ownership possess sufficient human capital that enables them to disregard the formation and utilization of social capital in their economic and social adaptation. In this they differ from immigrants who take a more conventional path to business ownership, that is, laboring in the mainstream work force following entrance into the host society and gradually accumulating resources that lead to entrepreneurship.For business immigrants with children, however, social capital does play a key role in the decision to immigrate. Business immigrants are prepared to abandon successful firms in the origin society in order to provide their children with a more promising socioeconomic environment, including above all what is viewed as superior opportunities for education. Hence, the social capital that inheres in close-knit family arrangements provides incentive for parents to accept losses in financial capital in order to increase their children’s human capital.Conclusion: The context of the receiving society may also be seen as a form of social capital for Canadian business immigrants. All declare that quality of life, rather than the lure of financial success, serves as their major incentive to immigrate to Canada. Moreover, the fact that they enter a society that officially proclaims its multicultural character offers them the opportunity to become Canadian but to retain their ethnicity. The source of social capital in this case, then, is not the ethnic community, but the broader society.     

Employee work-to-family role boundary management in the family business

Family-owned organizations present a unique opportunity to study work-to-family boundary management. Boundary theory suggests that work-to-family boundary dynamics may be different in family businesses, and that family businesses are not a neutral ground for individual employees’ segmentation preferences. The present study draws on the sociocognitive processes underlying boundary theory to explain how the family business context may affect family and nonfamily employees’ work-to-family role management differently. The study examines the work-to-family role boundary configurations of 149 family and non-family employees in family businesses. Results suggest that family employee status buffers against undesirable effects of segmentation preferences in the family business context. For family employees, segmentation preferences were associated with lower work-to-family conflict and unassociated with turnover intentions. For non-family employees, segmentation preferences were associated with higher work-to-family conflict and turnover intentions. Implications for work–family theory and family business successorship and work–family policy are discussed.     

Spatial distance and mobile business social network density

Following the increasing adoption of mobile communication, scholars have shown interest in the role of place on the structure of mobile social networks. The purpose of this study is to investigate the association between spatial distance and the closure and diversity of businesses mobile social networks. We used a database that aggregates actual mobile communication patterns of business users of a large Israeli cell phone company (n?= 16,199). Our findings, among a large sample of businesses, provide support for the place and mobile communication perspective. The results reveal a negative association between spatial distance and mobile business communication networks. As spatial distance between business network members increases, business social ties through mobile communication decreases. Furthermore, the results also revealed a negative association between spatial distance and mobile network density. As the spatial distance between business users increases, the density of the mobile communication network diminishes. Physical proximity promotes the development of dense business networks. The implications of the findings are discussed.     

Internal vs. External Successions and Their Effect on Firm Performance

An examination of 165 top management successionsin U.S. firms during 1989-91 reveals that externalsuccessions are more likely in small firms, in firmswith poor economic performance, and in firms which offer the successor several top positions (forexample, Chairman and CEO). This last findingillustrates that successor's interests and demands (suchas organizational power) are also important indetermining the final match between manager and firm. Wealso find that, on average, the postsuccessionperformance of external successors is superior to thatof internal successors. This could indicate that theBoard of Directors faces an agency problem, leadingit to appoint too often from inside.     

Business Collaboration within the Nazi War Machine: Corporations and the State in the Austrian Semiperiphery

The military strength of German National Socialism was based on the collaboration of large corporations with the Nazi state. Business provided capital, loans, taxes, managerial expertise and production for war industries. I elaborate four ideal‐typical modes of business collaboration. Each mode is illustrated by a case study of a German corporation that acquires an Austrian firm: Krupp (traditional mode); the Reichswerke state conglomerate (coercive); Deutsche Bank (managerial nationalist); and IG Farben (competitive investment mode). The first and the last modes occurred when the state was highly dependent on large businesses for the economic requisites of war. The acquired firms in the Austrian semiperiphery contributed to Nazi war mobilization, as they exploited labor and resources from the peripheral regions of southeastern Europe. Patterns of the state's resource dependency on business led to bargaining interactions between state and business, over time shaping the mix between state and private ownership of war industry.     

The Peer Context of Adolescent Substance Use: Findings from Social Network Analysis

To examine the peer context of adolescent substance use, social network analysis was used to measure three domains of attributes of peer networks: social embeddedness, social status, and social proximity to substance users. The sample was a panel of 5,104 sixth, seventh, and eighth graders in three public school systems surveyed every 6 months for five assessments. Hierarchical generalized linear models showed that adolescents less embedded in the network, with greater status, and with closer social proximity to peer substance users were more likely to use substances. Also, adolescents in less dense networks and networks with higher smoking prevalence were more likely to smoke and use marijuana. Results establish the utility of social network analysis for measuring peer context and indicate that conventionality of relationships—having friends in the network, being liked but not too well liked, and having fewer friends who use substances—is most beneficial.     

Secondhand social capital: Boundary spanning,secondhand closure,and individual performance

We move beyond the performance returns of individuals’ direct network connections to study the effects of “secondhand” social capital, i.e., from the networks of one’s contacts. We propose that certain colleagues may be more valuable to one’s job performance than others when their spillovers of novel information combine with spillovers of the cooperation needed to obtain that novelty. In a study of 1273 research and development employees across 16 business units, we find that the most benefit to one’s own performance comes from having ties that span business units and that also include secondhand closure (i.e., where one’s contacts are each embedded in a constrained, dense network). Bridging the organizational boundary provides the novelty; and secondhand closure provides the cooperation. Further, by examining who in the network is constraining these contacts, we are able to trace their cooperative motivation both to reputational and organizational identity concerns, which each create a spillover of cooperation toward the focal individual, who reaps the returns.     

The institutional antecedent to firms’ interorganizational network portfolios: Evidence from China

Although the amount of research on interorganizational networks has increased significantly in recent years, few studies have examined the antecedents to interorganizational network portfolios—organizations’ configuration of their relationship networks with other organizations. To address this gap, this study examines how firms’ interorganizational network portfolios vary across three types of ownership structures (i.e., state-owned, private, and multinational enterprises) in China. Cluster analysis of the data on 212 leading firms operating in China revealed two types of network portfolios firms maintain. Specifically, firms maintaining robust cross-sector portfolios had more extensive networks with organizations in the nonprofit and public sectors than firms maintaining limited cross-sector portfolios. Moreover, regression results suggested that firms across different ownership structures had distinct numbers and types of organizational partners, particularly nongovernmental organization (NGO) partners. Theoretical and practical implications are derived from the findings.     

The Use of Owner Resources in Small and Family Owned Businesses: Literature Review and Future Research Directions

This paper integrates relevant literature and the Sustainable Family Business Model regarding interchange of financial resources between family and business. Two distinct literatures on the use of owner resources in small businesses are examined: the intermingling of business and household resources from the family firm literature and financial bootstrapping studies from the small business finance literature. What has not been addressed in both literatures about the use of owner resources is discussed and the risks that owner resource bootstrapping and intermingling may place on the household and the business are considered. Recommendations and propositions for future research are suggested. To fully understand the makeup and success of household financial portfolios and family businesses, it is important to understand the use of owner resources in a holistic manner.     

The adoption of family-friendly practices in family-owned firms

Most family business research on managing work and family conflict focuses on the family unit while ignoring non-family employees. This study investigates how family businesses manage the work and family conflicts facing non-family employees by examining the adoption of work–family practices in family-owned firms. Two research questions are addressed. First, to what extent do family-owned firms adopt work–family practices? Second, do family-owned firms offer the same level of work–family practices as non-family-owned firms? Results indicate that when family-owned firms do adopt work–family practices, they favour flexible scheduling arrangements for non-family employees to reduce work–family conflict. In general, however, work–family practices are used less in family-owned firms than non-family-owned firms.