Using theories of control and self-regulation to examine the leadership transition between a parent and child in family-owned businesses

Family owned businesses are central to the economy (Astrachan & Shanker, 2003), yet have been historically understudied. Improving understanding of the challenges these companies face in the inter-generational succession process is vital as many fail at this point (Ward, 1987). While a field of family business research has emerged in recent decades (Sharma, 2004), little empirical research on the challenge of succession has been informed by theories from psychology. This research begins to bridge this gap by applying contemporary control theory to understanding business succession. This project involved three studies of Canadian family-owned businesses whose incumbent leader was at, or nearing, retirement age. The first considered the association between indicators of business readiness for succession and levels of control held in the business by the incumbent and successor. Results suggest indicators of succession are more reliably associated with control for the successor than for the incumbent. In addition, there were few associations between the levels of control of the two generations, implying succession may impact each differently. Study 2 was a longitudinal follow-up, and found indicators of succession readiness at Time 1 associated with change in the amount of control held by the successor at Time 2. As in the first study, there were very few associations between the predictors and the extent of control held by the incumbent. Study 3 considered the role that personality may play in incumbent beliefs and behaviors relating to retirement. Cross-sectional and longitudinal results indicate incumbent goal adjustment capacities are associated with their expectations and planning for retirement. Further, an interaction between disengagement and business performance was revealed, suggesting goal adjustment may protect leaders from an escalation of commitment if their business had been recently struggling. Overall, these findings clarify that progress towards succession has little effect on control for incumbent leaders, but theories of control may point to individual differences in self-regulation capacities among these leaders that may have a bearing on family business succession. Implications from these results are discussed

Business and well being : the experience of entrepreneurs

This study examined the role of self-regulation moderating the effects of business stressors on quality of life for Canadian entrepreneurs. Research finds the inability to make progress towards goals can negatively influence a person's quality of life (Carver & Scheier, 1998). It was predicted that business difficulties would deplete the emotional and physical resources of entrepreneurs. Challenges to the business were expected to affect the owner's experience of business regrets, and in turn, these would affect their well-being. Building on work demonstrating that self-regulation capacities involved in the adjustment of personal goals serve adaptive functions (Wrosch, Scheier, Miller, Schulz, & Carver, 2003), a theoretical model was elaborated, implying that the relations between business struggles, regrets and entrepreneurial well-being would be moderated by the entrepreneur's goal adjustment abilities. Findings are based on a cross-sectional sample of 140 entrepreneurs from across Canada. Analyses suggest the entrepreneur's health and well-being are adversely affected by negative business outcomes only for those who are not able to adjust their business goals. Further, it was found that among entrepreneurs facing business struggles, those who could reengage in new goals suffered fewer intrusions about their business regrets. Finally, the intensity of the negative emotions about a regret was a predictor of aversive outcomes for quality of life measures, and this was also moderated by the goal adjustment ability of the entrepreneur. The implications of the findings for adaptive self-regulation of business goals are discussed

Giving up on unattainable goals: benefits for health?

Three studies examined associations between goal disengagement and goal reengagement tendencies and indicators of physical health (e.g., health problems, cortisol rhythms, sleep efficiency). Based on research showing that goal adjustment tendencies are associated with subjective well-being, the authors predicted that people who are better able to disengage from unattainable goals and reengage with alternative goals also may experience better physical health. Across the three studies, the findings demonstrate that the ability to disengage from unattainable goals is associated with better self-reported health and more normative patterns of diurnal cortisol secretion. Goal reengagement, by contrast, was unrelated to indicators of physical health but buffered some of the adverse effects of difficulty with goal disengagement. The results also indicate that subjective well-being can mediate the associations between goal disengagement tendencies and physical health.</p

Family Structure and Ownership Transition as “Polar Opposites”: An Emotional Embeddedness Perspective

Family firms provide a fertile ground to study emotions as a source of contradiction. The interplay of a firm and an owner family exerts influence on strategic decisions in a way that differs from decision-making in non-family firms, such as ownership transition choices. I apply an emotional embeddedness perspective to explain ownership transition choices, which contradict the prevailing instrumental logic in management research. Repeated interactions between actors with different roles in a family firm shape the quality of the family's structure and its effect on important strategic outcomes. The interplay of family structure and emotional embeddedness can lead to ownership transition choices that contradict an instrumental logic of action. Although family structure might be conducive to internal ownership transition, this choice is not always the preferred option because of intervening conditions and the application of alternative principles of action. Researchers in the field of contradiction studies should probe into situations in the management context, in which circumstances may favour the application of an instrumental logic but actually lead to unexpected choices and outcomes. This would enhance our understanding of contingencies that foster alternative action principles in economic action and interaction