Transition dilemma in a closely held family business: A case of Excel Transporters

• Autores: Manoj Joshi, Rajiv K. Sinha, Shailja Dixit, Balvinder Shukla
• Localización: European Journal of Family Business, ISSN-e 2444-8788, ISSN 2444-877X, Vol. 8, Nº. 1, 2018 (Ejemplar dedicado a: Creativity and Family Business), págs. 17-32
• Idioma: inglés
• DOI: 10.24310/ejfbejfb.v8i1.4939
• Enlaces
  • Texto completo (pdf)
• Resumen
  • español

    El objetivo de este estudio de caso es investigar los problemas que surgen en el momento de la transición de propiedad, negocios y riqueza en una Empresa Familiar multigeneracional que sea Sociedad Anónima cerrada. Esto es particularmente relevante si el propietario-gerente fundador tiene que pasar el heredero a la descendencia y específicamente si el titular es una mujer. A través de este caso, los autores han intentado discutir la importancia de la estructura de propiedad, planear la transición y mitigar los conflictos en elmomento de la transición generacional.El caso se basa en la investigación primaria y la información secundaria, y se ha probado varias veces después de la publicación, donde se identificaron y completaron las lagunas. Los resultados indican que la ausencia de la estructura de gobierno corporativo (propiedad) genera conflictos durante la transferencia de la posición de poder en una empresa de este tipo. Esto refleja la necesidad de profesionalizar el negocio familiar para evitar el colapso de la comunicación y la confianza dentro de la unidad familiar. Los herederos preparados inadecuadamente, las entradas forzadas de hermanos en el negocio sin competencia además de la distribución de propiedad y negocios de los patriarcas son una gran preocupación en una empresa familiar de este tipo.

  • English

    The purpose of this case study is to investigate issues that arise at the time of transition of ownership, business and wealth in a multigenerational closely held family business (CHFB). This is particularly relevant if the founder owner-manager has to pass the heir-ship to the offspring and specifically if the incumbent is a women. Through this case, authors have made an attempt to discuss the significance of ownership structure, to plan transition and to mitigate conflicts at the time of generational transition.

    The case is based on primary research and secondary information, and has been tested several times post, which the gaps were identified and filled. The results indicate that absence of the corporate governance (ownership) structure leads to conflicts during transfer of power position in a CHFB. This reflects the necessity of professionalizing the family business to avoid breakdown of communication and trust within the family unit. Inadequately prepared heirs, forced entries of siblings in the business with no competence besides the patriarchs’ distribution of ownership and business were of major concern in a CHFB.

• Referencias bibliográficas
  • References
  • Abidi, S, & Joshi, M. (2015). The VUCA Company, Jaico publishing house
  • Aguilera, R.V. & Jackson, G. (2003). The cross-national diversity of corporate governance: Dimensions and determinants. Academy of Management...
  • Bain, D. (2015). The top 500 family businesses in the world. Retrieved from https://familybusiness.ey-vx.com/pdfs/182- 187.pdf
  • Barnes, L. B., & Hershon, S. A. (1976), Transferring power in family business. Harvard Business Review, July-August, 105-114 http://www.iiis.org/CDs2011/CD2011SCI/SCI_2011/PapersPdf/SA110RC.pdf...
  • Berrone, P., Cruz, C., & Gomez-Mejıa, L.R. (2012). Socioemotional wealth in family firms: Theoretical dimensions, assessment approaches...
  • Brush, C. (1992), Research on women business owners: Past trends, and new perspectives and future directions. Entrepreneurship Theory and...
  • Blumentritt, T., Mathews, T., and Marchisio, M. (2013). “Game Theory and Family Business Succession”. Family Business Review. 26(1), 51-67.
  • Buang, N. A., Ganefri, and Sidek, S. (2013), “Family business succession of SMEs and post-transition business performance”, Asian Social Science,...
  • Chrisman, J. J., Chua, J. H., Sharma, P., and Yoder, T. R. (2009), “Guiding family businesses through the succession process”. The CPA Journal....
  • Chua, J.H., Chrisman, J.J., & Sharma, P. (1999). Defining the family business by behavior. Entrepreneurship Theory and Practice. 23(4),...
  • Churchill, N. C., & Hatten, K. J. (1987), Non-market based transfers of wealth and power: A research framework for family businesses....
  • Daspit, J. J., D. T. Holt, J. J. Chrisman, and R. G. Long. (2016). “Examining Family Firms Succession from a Social Exchange Perspective:...
  • Decker, C., Heinrichs, K., Jaskiewicz, P. and Rau, S.B. (2017), “What do we know about succession in family businesses? Mapping current knowledge...
  • De Massis, A., Chua, J.H., & Chrisman, J.J. (2008). Factors preventing intra-family succession. Family Business Review. 21(2), 183–199.
  • Donnelly, R.G. (1964), The Family Business. Harvard Business Review, Vol. 42, pp. 93-105.
  • Dumas, C. (1998). Women’s pathways to participation and leadership in the family-owned firm. Family Business Review. 11, 219-228.
  • Dumas, C., Dupuis, J., Richer, F., & St-Cyr, L. (1995). Factors that influence the next generation’s decision to take over the family...
  • Fang, H.C., Randolph, R.V.D.G., Memili, E. and Chrisman, J.J. (2015), “Does size matter? The moderating effects of firm size on the employment...
  • Fernández-Aráoz, C., Iqbal, S., & Ritter, J. (2015). Why family firms in East Asia struggle with succession. Harvard Business Review....
  • Folker, C. A. (1999), Female vs. male family business owners: Exploring the differences through a trust/ distrust framework. USASBE Proceedings....
  • Galiano, A., & Vinturella, J. (1995). Implications of gender bias in the family business. Family Business Review, 8, 177-188
  • Gatamah, K. (2008), Corporate Governance in the African Context. Centre for International Private Enterprise, Washington DC.
  • Gersick, K.E. (2015). Essay on practice: Advising family enterprise in the fourth decade. Entrepreneurship Theory and Practice, 39, 1433–1450.
  • Gilding, M., Gregory, S., & Cosson, B. (2015). Motives and outcomes in family business succession planning. Entrepreneurship Theory and...
  • Gompers, P.A., Ishii, J.L. and Metrick, A. (2003), Corporate Governance and Equity Prices. The Quarterly Journal of Economics. 118, 107-156....
  • Gulzar, M.A. and Wang, Z.J (2010), Corporate Governance and Non-Listed Family Owned Businesses: An Evidence from Pakistan. International Journal...
  • Guo, C. (2011) Inherit from Father or Develop New Machines—The Value Deviation of Second Generation Successor and the Transformation of Family...
  • Haberman, Heather & Danes Sharon M. (2007), Father-Daughter and Father-Son Family Business Management Transfer Comparison: Family FIRO...
  • Handler, W. C. (1990), Succession in family firms: A mutual role adjustment between entrepreneur and next-generation family members. Entrepreneurship...
  • Handler, W. C. (1994), Succession in family business: A review of the research. Family Business Review, 7(2), 133-157.
  • Harveston, P. D., Davis, P. S., & Lyden, J. A. (1997), Succession planning in family business: The impact of owner gender. Family Business...
  • Helgesen, S. (1990), The female advantage: Women’s ways of leadership. New York: Doubleday.
  • Helin, J., and Jabri, M. (2015), “Family business succession in dialogue: The case of differing backgrounds and views”, International Small...
  • Hishrish, R. D., & Brush, C. (1984), The woman entrepreneur: Management skills and business problems. Journal of Small Business Management....
  • Holland, P. G., & Oliver, J. E. (1992), An empirical examination of the stages of development of family business. Journal of Business...
  • Hugron, P., & Dumas, C. (1993), Modélisation du processus de succession des entreprises familiales québécoises. (Cahier de Reherche No....
  • Koh, A., Ling, C., Kong, E., & Ejercito, J. (2015). Riding on Asia’s economic transformation: Growth strategies of Asian business families....
  • Lee-Gosselin, H., & Grisé, J. (1990), Are women owner-managers challenging our definition of entrepreneurship? An in-depth study, Journal...
  • Longenecker, J. G., & Schoen, J. E. (1978), Management succession in the family business. In C. E. Aronoff, J. H.
  • Astrachan, & J. L. Ward (Eds.), Family business sourcebook II (pp. 87-92). Marietta, GA: Business Owner Resources.
  • Long, R. G., and J. C. Chrisman. (2014). “Management Succession in Family Business.” In The Sage Handbook of Family Business (pp. 371-387)....
  • Nordqvist, and P. Sharma. London, UK: Sage Publications.
  • Louise, C., Lorrain, J., & Hugron, P. (2002). Succession in Women-Owned Family Businesses: A Case Study. Family business review, 15(1),...
  • Joshi, M., Dixit, S., & Sinha, A. (2017). "Comfort & shelter for all: a case of an entrepreneurial firm", Journal of Entrepreneurship...
  • McMullen, J.S. & Warnick, B.J. (2015). To nurture or groom? The parent-founder succession dilemma. Entrepreneurship Theory and Practice,...
  • Mehrotra, V., Morck, R., Shim, J., & Wiwattanakantang, Y. (2011). Must love kill the family firm? Some exploratory evidence. Entrepreneurship:...
  • Morck, R. & Steier, L. (2005). The global history of corporate governance: An introduction. In R. Morck (Ed.), The history of corporate...
  • Mozhdeh Mokhber, Tan Gi Gi, Siti Zaleha Abdul Rasid, Amin Vakilbashi, Noraiza Mohd Zamil, Yee Woon Seng, (2017) "Succession planning and...
  • PwC Family Business Survey. (2013). Family firm: The India perspective. Retrieved from https://www.pwc.in/ assets/pdfs/family-business-survey/family-business-survey-2013.pdf
  • Ratte, S. (1999), Les femmes entrepreneures au Québec: Qu’en est-il? Fédération Canadienne de l’entreprise indépendante (Ed.). Montréal in...
  • Sarbah Alfred and Xiao Wen (2015), Good Corporate Governance Structures: A Must for Family Businesses, Open Journal of Business and Management....
  • Schröder, E., Schmitt-Rodermund, E., & Arnaud, N. (2011). Career choice intentions of adolescents with a family business background. Family...
  • Sharma, P., & Irving, P. G. (2005). Four bases of family business successor commitment: Antecedents and consequences. Entrepreneurship:...
  • Sirmon, D.G. & Hitt, M.A. (2003). Managing resources: Linking unique resources, management and wealth creation in family firms. Entrepreneurship...
  • Stewart, C. C., & Danes, S. M. (2001). The relationship between inclusion and control in resort family businesses: A developmental approach...
  • Stavrou, E.T., Kleanthous, T. and Anastasiou, T. (2005), “Leadership personality and firm culture during hereditary transitions in family...
  • The Pearl Initiative & PricewaterhouseCoopers, (2012), Family Matters Governance Practices in GCC Family Firms. http://www.pwc.com/en_M1/m1/publications/documents/pipwc-report.pdf
  • Vera, C. F., & Dean, M. A. (2005). An examination of the challenges daughters face in family business succession. Family Business Review,...
  • Ward, J.L. (2001), The Role of Owners, Directors and Managers in Family Business Governance. Research Note 10/05/2001
  • Yoo, S. S., Schenkel, M. T., and Kim, J. (2014), “Examining the impact of inherited succession identity on family firm performance”, Journal...
  • Zhao, J., Zhang, S. and Zhu, L. (2015) The Influence of the Inheritor’s Legitimacy on the Strategic Change of Family Business. China Industrial...