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.      

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.     

Social network and family business: Uncovering hybrid family firms

What does it mean for a private enterprise in China to be embedded in a family? Our purpose here is twofold: (1) use social network analysis to describe what it means for a firm to be embedded in a family, (2) reveal from the application a new kind of firm, not family, yet akin to family. Armed with data on a large probability sample of private enterprises — a third of which meet ownership and employment criteria of being family businesses — we uncover a category of “hybrid family firms” that look modern in the style of firms that exclude family, but operate socially in ways similar to family firms. Our conclusion from summary statistics on the sample is that there are no differences in average performance level or network advantage for the three categories of businesses: family firms, hybrid family firms, and family-excluded firms. The fact that CEOs of family firms and hybrid family firms more often turn to family as key business contacts is a fact about network composition that raises no question about network mechanisms. Whether the CEO turns to more or fewer family contacts, government help is more likely with stronger political connections, and business success and survival are more likely with a large, open network. That said, the look-modern, act-traditional hybrid family firms stand alone in prospering with a CEO embedded in a closed business network. Recognition of hybrid family firms adds to the literature’s illustrations of social network analysis used to distinguish types of businesses and business people, and extends the population of organizations within which governance and strategy are likely to be better understood when viewed through a family logic.     

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.     

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.     

Merging Family and Firm: An Integrated Systems Approach to Process and Change

The blurring of family and business in family businesses can create tremendous stress for all family members. Scholars have been unsuccessful in applying task-oriented, business-based models to a business in which the boundaries between task and family blur and overlap. This article integrates current research and theory related to family interaction, organizational dynamics, and family businesses to present a conceptual framework that details the complex inner workings of family businesses and helps guide those who study and work with them.     

DYNASTIC MANAGEMENT

The most striking difference in corporate‐governance arrangements between rich and poor countries is that the latter rely much more heavily on the dynastic family firm, where ownership and control are passed on from one generation to the other. We argue that if the heir to the family firm has no talent for managerial decision making, dynastic management is a failure of meritocracy that reduces a firm's total factor productivity (TFP). We present a simple model that studies the macroeconomic causes and consequences of dynastic management. In our model, the incidence of dynastic management depends, among other factors, on the imperfections of contractual enforcement. A plausible calibration suggests that, via dynastic management, poor contract enforcement may be a substantial contributor to observed cross‐country differences in aggregate TFP. (JEL O43, O47, G32)     

A cross‐cultural test of the work‐family interface in 48 countries

This study tests a cross‐cultural model of the work‐family interface. Using multigroup structural equation modeling with IBM survey responses from 48 countries (N= 25,380), results show that the same work‐family interface model that fits the data globally also fits the data in a four‐group model composed of culturally related groups of countries, as well as a two‐group gender model. This supports a transportable rather than a culturally specific or gender‐specific work‐family interface model: notably, job flexibility related to reduced work‐family conflict, reduced family‐work conflict, and enhanced work‐family fit. Work‐family fit related to increased job satisfaction. Findings suggest that investment by multinational companies in job flexibility initiatives may represent a dual‐agenda way to benefit men, women, and businesses in diverse cultures.     

Effects of Conflict Styles and Conflict Severity on Quality of Life of Men and Women in Family Businesses

Studies show that family businesses need to manage conflict, but there has been little research on different conflict manifestations and their impact on families involved in businesses together. This study investigates the impact of six conflict styles on severity of conflict and quality of life for husbands and wives in 206 farm family businesses. Data analysis was done using structural equation modeling, with independent models for each gender. For men, the assertion style negatively impacted, and aggression positively impacted the severity of conflict; for women, aggression and withdrawal styles positively impacted, and denial negatively impacted severity of conflict. There was a strong negative relationship between severity of conflict and quality of life for both men and women in family businesses.     

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.     

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 Impact of Family Functioning on Caregiver Burden among Caregivers of Veterans with Congestive Heart Failure

A cross-sectional study of 76 family caregivers of older veterans with congestive heart failure utilized the McMaster model of family functioning to examine the impact of family functioning variables (problem solving, communication, roles, affective responsiveness, and affective involvement) on caregiver burden dimensions (relationship burden, objective burden, stress burden, and uplifts). Regression analyses indicated that the five dimensions of family functioning were significantly related (p < 0.01) to relationship burden (R ² = .27) and uplifts (R ² = .29). More specifically, increased relationship burden was associated with problems in family roles, and increased uplifts was related to higher levels of affective responsiveness.     

The Times They are A’changing: Multigenerational Family Simulations

Multigenerational households are increasingly affecting both the individual and family as well as community organizations and social policies. Social work and other family studies students can profit from educational modalities that use adult learning applications through a systems life-course perspective, the whole family aging over time. Family simulation software—addressing multigenerational families, such as two or more adult generations living together—builds on a previous paper (Marriage & Family Review, Feb. 2015). Social class, among other demographic and environmental variables, is emphasized. Agent-based family social network simulation of multigenerational families can facilitate experiential learning. An automatically generated life events report, based on both factual data and specific family characteristics, can be used as a classroom case study for role playing and assessing.     

Entrepreneurial human capital accumulation and the growth of rural businesses: a four-country survey in mountainous and lagging areas of the European union

The paper presents the processes of entrepreneurial human capital accumulation and its impact on rural business growth. Data are derived from four surveys on rural businesses in mountainous and less favoured areas in Southern Europe. Formal pathways of entrepreneurial human capital accumulation refer to education and training, while informal pathways include the cognitive processes of work and managerial experience acquisition and the non-cognitive processes of being raised within an entrepreneurial family environment and/or being raised in the area within which the business is later set-up. The studies reveal that there is a variety of processes of entrepreneurial human capital and knowledge accumulation that are case study specific. Human capital accumulation processes related to education and training or to work and managerial experience still plays the prime role in predicting successful businesses. Results indicate the need for decentralised, flexible and selective entrepreneurial human capital accumulation support programmes that take into account local idiosyncrasies and needs.     

Capital Usage in Adverse Situations: Applying Bourdieu’s Theory of Capital to Family Farm Businesses

The paper applies Pierre Bourdieu’s theory of capital to explore how farming family businesses respond to critical changes by using different forms of capital. The paper tells the story of three cases from the United Kingdom (UK): case one lost the entire farm business in the 2001 Foot and Mouth Disease (FMD) crisis; case two the family had to overcome the sudden death of the farmer; and in case three the farmer was diagnosed with a terminal illness. The results indicate that levels of economic capital are adversely affected, whilst social and symbolic capitals are important in assisting family members to cope and continue the business operations. The paper raises questions for future research and provides interesting findings for those involved with family business.     

REVIEWS

Book Reviewed in this Article: Barsky, A. E. & Gould, J. W. (2002). Clinicians in Court: A guide to subpoenas, depositions, testifying and everything else you need to know. New York, Guilford, 256 pp. Hilburt‐Davis, J. & Dyer, W. G. Jr. (2003) Consulting to family businesses: A practical guide to contracting, assessment, and implementation. San Francisco: Jossey‐Bass/Pfeiffer, 270 pp., $ 35.00. Flemons, D. (2002) Of one mind: The logic of hypnosis, the practice of therapy. New York: Norton. Clift, E. (Ed.) (2002). Women's encounter with the mental health establishment: Escaping the yellow wallpaper. New York: Howarth Press, 217 pp.     

Practices of Dual Earner Couples Successfully Balancing Work and Family

Researchers have long explored conflict and strain in dual-career couples. Recently, the focus has begun to shift toward documenting the adaptive strategies of dual-earner couples in balancing family and work. The current study investigates workplace practices perceived as supportive in balancing work and family. Respondents were middle-class, dual-earner couples (N=47) who described themselves as successful in balancing family and work. These supportive practices include: flexible work scheduling, non-traditional work hours, professional/job autonomy, working from home, supportive supervisors, supportive colleagues and supervisees, and the ability to set firm boundaries around work. Additionally, many participants describe their efforts to actively secure employment at workplaces that offered family–friendly alternatives, and describe the tradeoffs they are willing to make.     

Home equity lending,credit constraints and small business in the US

We use Texas's constitutional amendment in 1997 that expanded the scope of home equity loans as a source of exogenous variation to estimate the effects of relaxing credit constraints on small businesses. We find, using standard panel data methods and restricted-use microdata from the US Census Bureau, that the Texas amendment increased the use of home equity finance by small businesses, increased new business and job creation and reduced firm exit and job loss. The effects are larger and significant for businesses with fewer than 10 employees.     

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.