Daughter Exclusion in Family Business Succession: A Review of the Literature

In family businesses, succession is very much biased by gender and daughters are almost always excluded as candidates. This paper provides a review of the literature on daughter succession. It finds that daughter exclusion results from an interaction of macro (societal/cultural attitudes toward women) and micro (individual and family) factors that both stereotype and discriminate against the daughter, and ensures that her capabilities and contributions in the business remain largely invisible. However, ascension to leadership and control for daughters can occur under “special circumstances” such as in the absence of male heirs or when the family business encounters a crucial transition or crisis event. Notwithstanding, daughter succession is defined by “complementarity” rather than conflict and offers potential advantages over sons.     

Effect of agricultural policy on succession decisions of farm households

Policymakers, economists, and researchers have recently been interested in assessing the impact of farm program payments on the growth and survival of farm businesses. Planning for succession is an integral part of managing a farm business. This study uses farm-level data to investigate the impact of government farm policy and farm growth on both succession decisions and the likelihood of intra-family transfers of the farm business. Results indicate that succession decisions are significantly influenced by government farm policy, farm wealth, age, and educational attainment of current farm operators. Results show that off-farm work by operators and spouses and regional location are positively correlated with non-family farm succession decisions. On the other hand, farm ownership, educational attainment, and marital status of the operator increase the likelihood of family-based succession decisions. However, in the presence of retirement income from other sources such as pension, parents are less likely to have a family successor.

Management and Succession:

Aspects of management and succession in any business can be analysed as though they involved intergenerational family relationships, whether in fact or by metaphor. Summaries are provided of research on management of offspring and intergenerational succession in business families and then extended metaphorically to managament and succession when the people involved are not relatives. Metaphoric analysis leads to a discussion of family of origin intrusions into work situations and the issues involved in succession when a successor and person succeeded are markedly different in age.     

WHERE ARE THE WOMEN ENTREPRENEURS? BUSINESS OWNERSHIP GROWTH BY GENDER ACROSS THE AMERICAN URBAN LANDSCAPE

This study identifies the determinants of growth for male and female business ownership in a subset of U.S. counties. The results indicate that there are important characteristic and behavioral differences between the male and female populations in each county that affect regional changes in business ownership for each gender. In particular, the education level of males and females as well as the local family structure impact the propensity for firms owned by each gender differently. A Blinder‐Oaxaca type decomposition, a novel approach in the context of regional outcomes, demonstrates that although the effect of characteristic differences is larger, the behavioral differences are key to narrowing the gender disparity in business ownership. (JEL L26, R2, R3)     

Goal Orientation and Performance of Family Businesses

Family businesses consist of family members pooling their resources together to achieve a particular goal for the family business. The objectives of this study were to profile the characteristics of the family businesses and business owners by owners’ goal orientation and to examine the influence of goal orientation on family business performance. The mean differences in values of business size, business age, and business liabilities were statistically significant by owners’ goal orientation. The major findings of this study suggest that owner goal orientation had a statistically significant effect on business performance. Specifically, setting a business goal such as growth or a positive reputation with customers had a significant and positive impact on family business performance.     

Grazing,exploring and networking for sustainability-oriented innovations in learning-action networks: an SME perspective

With sustainability-oriented innovations (SOIs) small- and medium-sized enterprises (SMEs) can conquer niche markets, cut resource usage and improve the quality of life. SMEs follow different strategic orientations for SOIs. They are conditioned by their organizational structures, capabilities and interaction with the business, regulatory and knowledge network. Usually, SMEs find it easier to span their boundaries to the business network. This research explores, in a longitudinal multi-case study, how the interaction with the knowledge network can condition an SME's strategic orientation. In the analysis of a learning-action network established by a research institute, three network-patterns (grazer, explorer and networker) are observed which result from different SME boundary-spanning processes. A central role is played by the boundary spanners who influence to which degree the SME can build up exploratory and exploitative learning capabilities to further deploy, push forward or generically develop its strategic orientation for SOIs in interaction with the knowledge network.     

Shifting values in agriculture: the farm family and pollution regulation1

It has long been acknowledged that the notion of family continuity of farm occupation through succession is one of the central tenets of the ethos of ‘family’ farming, but recent evidence suggests that it is being called into question by family members. Farming practices are being pursued in a rapidly changing world, an important feature of which is a greater level of public and political concern for protecting the rural environment. This paper examines a range of new influences affecting farming practice and environmental consciousness and the implications these have for farming values, particularly that of family succession. Using evidence from a study of dairy farm families and pollution regulation in Devon in South West England, it suggests that rural social change is providing new routes through which environmental values can flow through farm households, influencing the ways farmers understand the environmental implications of their practices, and the ways they and their families think about their long-term futures.     

Gender relations and the family farm in Western Europe

The paper focuses upon the impact of changing relations between farmers and spouses in the context of the restructuring of the rural economy and increasing female participation in labour markets. It is based upon a study of the connections between the succession process in agriculture and family relationships [Blanc, M. and Perrier-Cornet, P. (1989) Renouvellement des forces de travail et formes de production familiales en agriculture (les installations d'agriculteurs au cours de la decennie soixante-dix). Montpellier, INRA, Departement d'Economie et de Sociologie Rurales, Montpellier]. It argues that for farmer's wives, off-farm work, participation in other farm-based enterprises and occupational status result from a negotiation of power relations within the farm operating couple. Such changes are bringing about a distinct form of pluriactivity among farm families, with an emerging trend towards husbands being occupied full-time on-farm and wives off-farm.The paper deals with the future of family farming in connection with these changes. The role played by the ideology of family farming in sustaining these emerging forms of production is examined. The individuation of aspirations, especially for women, is considered an important factor in terms of labour market involvement. However, it is argued that the resolution of the impact of such changes on the domestic sphere and the farm is dependent upon a process of negotiation between the farmer and spouse.     

Socioeconomic implications of broadband services

Korea has shown rapid growth in the development of broadband services over the last several years. The Korean government and business have developed broadband services as a new business model, and the country has emerged as the world's undisputed leader in broadband services. Many media scholars, government telecom officials and information technology (IT) experts around the world are interested in how Korea has so quickly embraced broadband technology. They are also enthusiastic about seeing the fulfilment of their own vision of the information economy through the example of broadband service in Korea. This article explores key aspects of broadband services in Korea and its implications for the information economy. It examines why and how Korea has developed broadband service by examining several institutional factors. It also analyses whether government ICT policy frameworks have contributed to economic and social development. Then, it investigates how the government neoliberal economic policies have influenced the transnationalization of the broadband service market and the impact on the information economy.     

“It's Definitely a Good Time to Be a Farmer”: Understanding the Changing Dynamics of Successor Creation in Late Modern Society

This article considers the implications of the wider systemic shift from modernity to late modernity for the process of intergenerational farm transfer. The article argues that the shift from the collective to the individual, indicative of late modern society, is particularly pertinent in the context of intergenerational transfer, which has long been rooted in collective thinking. Drawing on the perspectives of incumbent farmers and potential successors, the article utilizes results from semistructured interviews with 29 farmers and 19 potential successors in Devon, England. Using a thematic analysis, the article provides a nuanced understanding of the impact of the systemic shift and the associated emphasis on the individual on successor identification. Although the article reaffirms understanding of successor creation as a collective process, determined by factors such as gender and birth order, it also identifies an emergent cohort of younger potential successors, for whom succession was the outcome of an evaluation of farming as a career. It concludes that, within the case study area, modernization is changing the way in which farm children are identifying themselves as “the successor.” The article suggests how this increasingly judicious approach to succession leaves reproduction of the family farm increasingly vulnerable to negative externalities.     

Leadership succession and the performance of nonprofit organizations: A fuzzy‐set qualitative comparative analysis

Leadership succession is critical to the performance of nonprofit organizations. Existing research has mostly treated leadership succession as an instantaneous event, and it has examined the independent effects of certain factors on organizational performance. However, little research has focused on the combinations of causally relevant factors. This article integrated organizational life cycle, resource dependence, and institutional theories, as well as the organizational fit literature, to explain how contextual and strategic factors combine to affect postsuccession performance. A fuzzy‐set qualitative comparative analysis (fsQCA) was used to analyze 15 succession events in Chinese environmental nongovernmental organizations (NGOs). The study identified four pathways to good NGO performance after succession. It also highlighted that it is not succession per se but the succession context (i.e. founders' control, board governance, professionalization, and political environment) and the strategic orientations of the successor that affect postsuccession performance in nonprofit organizations.     

The Role of Values and Unity in Family Businesses

This study tests the application of an ecosystems perspective on family businesses. Specific focuses are given to values, resources and unity within family businesses. Two separate samples are examined, the American Family Business Survey and a multilevel sample. Results from this study support the ecosystems perspective. Family businesses are shown to vary by their value for family growth in comparison to business growth. This value variation across family businesses was shown to predict internal goals and resource transfers within family businesses. This study also shows the benefit to family businesses in unifying values across individuals, as unity of values is a stronger predictor of satisfaction even when controlling for the family business’ tendency to privilege the family or business growth.     

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.     

The Working Family: Helping Women Balance the Roles of Wife,Mother, and Career Woman

This article reviews research literature of the past 15 years to assess the impact of four factors on women's career continuity: (a) husband's attitude toward his wife's paid employment, (b) financial considerations, (c) household responsibilities, and (d) wife's personality variables. Particular issues relevant to career counselors are highlighted throughout this review and a variety of career related strategies are presented that can be used to assist clients in achieving this balance. As the number of women in the labor force continues to increase, women's ability to effectively balance family and career concerns will be essential to successful and continuous employment.     

Modes of state intervention and business group performance in China's transitional economy

This paper examines the contingent nature of state intervention affecting business group performance in the context of a transition economy by identifying different modes of state intervention in China's transitional economy. Using data on China's 76 business groups collected in 2006, I find that, at the group level, modes of state intervention have different economic effects on business group performance, depending on the specific modes of intervention and the context of the institutional environment in China's transitional economy. Through direct intervention – such as ownership, officials, and Chinese Communist Party members at the group level – the Chinese state failed to provide positive economic effects. However, the result demonstrates the state's ability to provide positive economic effects by matching the functional demands of the emerging market, such as loans from state-controlled banks as financial support.     

Gender Differences in Perceived Business Success and Profit Growth Among Family Business Managers

Using data from the 1997–2000 National Family Business Surveys (NFBS), this study investigated the effect of gender on business success and profit growth among family businesses. The Ordinary Least Squares (OLS) results indicate that all else being equal, female managers perceived their businesses as more successful than male managers, and they reported more profit growth between 1996 and 1999 than male managers. The results of the dummy variable interaction approach also show that a differential response existed in profit growth over time between female and male managers in relation to health status, business liabilities, business size, and whether the business was home-based. This study concludes that there are many distinct differences between male and female managers in business performance.     

The Impact of Family Structure on Utilization of Preventive Care Services among Children under National Health Insurance in Taiwan

This study investigates the role of family structure in children’s access to preventive services in the context of a National Health Insurance (NHI) system. We analyzed the 2005 National Health Interview Survey in Taiwan to evaluate the impact of family structure on the utilization of preventive services, including well-child visits and non-free vaccinations. The extended family and single-father family were found to have a significant impact on care use in the unadjusted model even under NHI. However, after controlling for various health, demographic and socio-economic factors, our findings suggest that family structure does not influence the non-free use of vaccines, and financial constraints, instead, play an important role in making parents decide to have non-free vaccines. To further enhance the health and welfare of the children, our findings suggest that the NHI coverage of children’s vaccines might not be adequate and that non-free vaccines should be provided free to those families who cannot afford them.     

The Impacts of Gaming Expansion on Economic Growth: A Theoretical Reconsideration

This paper employs a general equilibrium framework to analyze the effects on economic growth of global expansions in casino gaming, which exports gambling services largely to non-residents. Both domestic and foreign investments in the gaming sector bring in not only substantial revenues but also positive spillover effects on related sectors and even on the entire local economy. However, an over-expansion of commercial gambling may lead to deterioration in the terms of trade with an adverse impact on real income. If this situation persists, it would not be impossible for immiserizing growth to occur. As a highly profitable sector, casino gaming may enable its operators to diversify out of this risk if they invest retained profits in non-gaming sectors to cash in on the spillover effects it has created. The gaming-dominant economy can then be directed on a more balanced and sustainable growth path, and will become less susceptible to business cycles. Indeed, economic experiences in the world’s major casino resorts are consistent basically with this argument for diversification. We believe that after the current global crisis fades away, economic growth and resulting surges in global demand for gambling services can provide further opportunities for the expansion of existing casino resorts and the development of new gaming markets.     

Where do i fit in? factors influencing women's participation in rural communities

Participation in community life has been a topic of interest for many researchers and theorists. In rural areas, in particular, women play a major role in their communities, participating in a voluntary network which contributes countless hours to maintain important community services. However, little research has been undertaken which addresses women's social involvement and the factors which may inhibit or facilitate participation. This is of particular interest, owing to the lack of women's participation in committees and boards relating to resource management at state and national levels in Australia. In the present study, women across six rural shires in the south of Western Australia were asked to comment on their participation in personal and community networks and on their individual and family histories. These structured interviews were designed to allow women to define participation in their own terms, and identify factors that limit or facilitate their involvement in their respective communities. Detailed qualitative analysis revealed that in order to determine a woman's degree of involvement in her community, it is inappropriate to focus solely upon formal membership in community organisations. Participation within a rural context is not unidimensional, involving participation in family life, the farm, personal business and the community. Furthermore, participation was influenced by a number of factors which enhanced or inhibited involvement such as family status, lack of privacy, distance and the rural economy. These findings are discussed in relation to the literature on participation and community structure.     

DOES BANKRUPTCY LAW AFFECT BUSINESS TURNOVER? EVIDENCE FROM NEW AND EXISTING BUSINESS

This study examines how differences in state bankruptcy laws, specifically the homestead exemption, affect business turnover by studying both new and existing businesses. We focus on areas just near state boundaries to control for unobserved local attributes to better isolate the effect of more wealth protection. We find that an increase in the homestead exemption attracts new businesses but also has a positive impact on existing businesses, suggesting that asset protection through bankruptcy law encourages successful entrepreneurs to incur the risks. Our results indicate that the personal bankruptcy law is an important policy tool that governments can use to encourage business growth without causing business turnover. (JEL K30, K36, R11, R1)