Effort, loyalty and idealism

The purpose of this pioneering study in the field of family business is to measure the degree of commitment to the family business among family members who do not actually work in the firm. After analyzing the characteristics of these people, we identify four very different groups. The existence of these four groups suggests that there is a "natural evolution" in relations between families and their businesses. Based on the behavior of the people in each of the four groups, we aim to identify the factors that can significantly affect the degree of commitment of family members.family business; non-active members; family commitment; unity;

Ethics of personal behaviour in family business.

This paper summarizes the preliminary findings of a research project of an exploratory nature currently being conducted by IESE's Family Business Chair into violations of ethics in Spanish family businesses. The main results indicate that ethics violations are perceived to be most frequent in behaviors such as delaying succession, preventing the implementation of a strategy that would be beyond one's own capacities or ambitions, and building an organization by buying loyalty. These types of behavior are perceived in different ways, depending on the age of the person who is judging them.ethics; family business;

Characteristics of successful family businesses

In response to the statistics showing high mortality among family businesses, this study looks at a group of Spanish family businesses (FBs) that have demonstrated an ability to grow and innovate. Typically, these FBs have gained prestige in the Spanish economy not only because they have reached the top 1000, but also because they have stayed there for over 30 years. We collected data from interviews with the managers of 21 of the 64 companies that fulfilled both these conditions. Our aim was to learn from these successful business leaders what, in their personal opinion, had been the driving force behind their firms' success. The factors they mentioned included a set of values that successful business families have made a way of life. They are what we have called the "ELISA" values. These values are the bedrock of these firms' culture, inspiring top performance, reducing the cost of capital, and resolving other related issues that are made easy to deal with by adherence to these values.family business; success factors; business culture;

Family members who do not work in the family business: How to enhance their "unity" and "commitment"

This study builds on the results of a recent international study, "Success as a Function of Love, Trust and Freedom in Family Business" (Gallo et al., 2001), which introduced a new conceptual model identifying family unity and commitment as driving forces behind the success of Family Businesses (FBs). Whereas the earlier research dealt with family members who are active in the business, this study aims primarily to reflect what non-active family members, from their position as "outsiders," think about the business of which they, too, are a part. One of our principal hypotheses is that successful FBs are supported by families that place an emphasis on family unity and commitment. Secondly, based on a typology of family members according to their levels of effort, loyalty and idealism, the study identifies a number of rewards or motivators that can help to raise these levels over generations.Family business; family values; agents commitment; sustainability family unity;

Internationalization via strategic alliances in family businesses.

It has been observed in previous studies that certain characteristics of family businesses may impede internationalization. These characteristics include the concentration of decision-making in the hands of a single shareholder or small group of shareholders, delays in the succession process, aversion to internationalization, etc. Despite these obstacles, a large number of family businesses have chosen to internationalize as a means of revitalizing themselves. The results of the study reported here indicate three important pre-requisites for family businesses that are seriously considering internationalization as an aid to growth: they need to have a market-leading product, adequate financial resources, and a suitable organizational structure. Apart from these preliminary conditions, the example of the family businesses studied here demonstrates that success in forming and developing strategic alliances for internationalization also leads to: 1) an enhanced ability to manage in contexts in which objectives are not necessarily shared; 2) stronger personal preferences for the use of alliances; and 3) a deeper trust in the partner organization. The most interesting result of this study is that, contradicting previous literature in the family business field, it shows that family firms' intrinsic characteristics are not the real barrier to internationalization. Rather, the most powerful determinant of successful internationalization appears to be the owner-manager's personal commitment to the long-term survival of the family business.family business; strategic alliances; internationalization; emerging economies;

Ethics of personal behaviour in family business (II): Differences of perception

The results presented in the following research paper are based on information collected by means of a questionnaire sent to 1,800 medium-sized and large Spanish family businesses. The owners and managers of these firms were asked about their perceptions of the frequency of violations of ethics in personal behaviour in family businesses. A total of 33 types of behaviour to do with ways of obtaining ownership, ways of gaining power, business strategy, company organization and shareholders was listed. This study reveals a number of factors that influence perceptions of ethics violations in family businesses. Level of education is without any doubt the factor with the greatest influence on the perception of ethics violations in family businesses: the more highly educated a person is, the more violations he or she perceives. Other statistically significant factors include: wh ether or not the respondent is a shareholder in the family business, what share he or she has in the ownership of the business, the respondent's age, the latest generation to join the family business, and whether any one shareholder owns over 50% of the company capital.Family business; ethics; personal behaviour;

El compromiso de los familiares con la empresa familiar

La unidad es una de las fortalezas principales de la empresa familiar. Mantener esta unidad, a medida que la familia crece, requiere una actitud concreta de la familia tanto como de la empresa enfocadas a que todos los miembros de la familia, incluso a los que no trabajan en ella, se mantengan comprometidos con su futuro. El compromiso, función de esfuerzo lealtad e ilusión, no es algo que puede darse por sentado. Al contrario, los resultados indican que la existencia de unas determinadas infraestructuras como de un consejo de administración que a su vez garantiza una distribución de información formal y unas actividades familiares son claves en fomentar este compromiso familiar a lo largo de las generaciones.La unitat és una de les fortaleses principals de l'empresa familiar.Mantenir aquesta unitat, a mesura que la família creix, demana una actitud concreta de la família tant com de l'empresa, enfocada a que tots els membres de la família, fins i tot els que no hi treballen, es mantinguin compromesos amb el seu futur. El compromís, funció d'esforç, lleialtat i il·lusió, no és una cosa que es pugui donar per establert .Al contrari, els resultats indiquen que la existència de unes determinades infraestructures, com un consell d'administració, que a la seva vegada garanteix una distribució d'informació formals, i unes activitats familiars, són clau per fomentar aquest compromís familiar al llarg de les generacion

Essasys on family business: internationalization through strategic alliances and social responsibility

La força única de presentar aquestes dues publicacions com un compendi d’articles és doble: en primer lloc serveix per mostrar trets fascinants de l’empresa familiar espanyola (FBs), i en segon lloc representa algunes de les diferents etapes en el desenvolupament natural de les principals estratègies de recerca en aquesta àrea relativament jove. El primer estudi presentat a continuació, ens dóna saber que al contrari del que ens diu la percepció general, el distanciament cultural no és un factor real que rellenteix el procés d’internacionalització, ni tampoc ho són les característiques intrínseques d’aquests tipus d’empreses, suggerides per una literatura extensa, Però en canvi, i això és a la vegada una de les principals contribucions d’aquest estudi, és el fet que el compromís del director propietari serà determinant en les aliances estratègiques amb socis en els mercats emergents. A més els líders han de convèncer al Consell Familiar per suportar els sacrificis i garantir el creixement a llarg termini quan sigui necessari. El nostre segon estudi article presentat analitza els resultats d’un estudi que s’ha desenvolupat a la província de Guipúzcoa, on los Petites i Mitjanes Empreses (PYMES) constitueixen el cor de l’economia local, sent les empreses familiars la gran majoria. La mostra estava formada per un total de 402 PYMES, en que un 68% eren empreses familiars i un 32% empreses no-familiars. propietaris-directius, sovint implementen la Responsabilitat Social Corporativa (RSC) conduïts per la intuïció personal. Això passa perquè normalment no estan familiaritzats La literatura empresarial ens insinua que les PYMES, i especialment les empreses familiars en virtut de la seva complexitat menor i amb el paper fonamental dels seus en el que constitueix precisament el RSC en les PYMES. Principalment hem dissenyat una estructura de RSC pel nostre grup específic de PYMES familiars de Guipúscoa (PYMEFS de Guipúscoa) localitzant la literatura existent en RSC. En segon lloc avaluàrem aquest nou model per saber quines empreses estaven dotades d’unes característiques intrínseques que presentaven una sensibilitat per la RSC. En l’última part proposem com la RSC pot ser desenvolupada per generar valor a la firma i ajudar a les PYMEs a implementar-la més efectivament. D’altre banda generar incentius per al desenvolupament estable, coherent d'aquesta classe d'activitat a llarg termini. Un tercer artícle, que complementa els dos que formen aquesta tesi, identifica algunes de les principals difèrencies entre les empreses familiares (FBs) i les que no ho son (NFBs), pel que far a les seves polítiques financeres. D’una mostra de 305 empreses espanyoles, 204 no familiars i 101 empreses familiars, hem estudiat un conjunt d’indicadors (edat de l’empresa, ingressos, empleats, capital, i internacionalització) i ratis. En general les empreses familiars tendeixen a ser més antigues, a tenir menors ingressos i empleats amb contractes permanents, menor capital social i menys accionistes, i una alta proporció d’accionistes entre els membrs del consell d’adminsitració. No obstant després d’interpretar el conjunt d’indicadors, hem arribat a la conclusió de què les preferències personals dels responsables de les empreses familairs pel que fa al risc, creixement i propietat-control podrien ser les forçes que expliquen la peculiar lògica financera de les empreses familiars.The unique strength of presenting the following three publications as one is twofold: it reveals fascinating features of the Spanish family business (FBs), and represents different stages in the natural evolvement of research strategies that have clearly marked this field. The first study illustrates that, contrary to a general perception, cultural distances are not the real factors that slow down the process, nor are the intrinsic characteristics of this type of businesses, as suggested by extensive literature. Hence the main contribution of this study lies in the fact that instead it is the owner-manager’s personal commitment to the continuity of the business which will be determinant when undertaking strategic alliances with partners in emerging markets. Moreover, leaders must be convinced to follow these practices and the owning family committed to support the sacrifices, where needed to guarantee long-term growth. The second article presented, analyses the results from a study that has been developed in the geographic area of Gipuzkoa, where Small and Medium sized Enterprises (SMEs), the majority being family-owned, constitute the core of the local economy. Therefore, our sample consisted of a total of 402 SMEs, with 68% being family businesses and 32% non-family businesses. The business literature insinuates that SMEs and especially the family businesses among them, by virtue of their minor complexity and the fundamental role of the owner-manger, often implement social responsible practices, driven mostly by personal intuition. This happens because they are usually not very familiar with the content of what precisely constitutes corporate social responsibility (henceforth SR) among SMEs. Primarily, we have designed a SR model for our specific group of interest, Family-owned Small and Medium sized Enterprises of Gipuzkoa (hereafter Guipuzkoan SMFEs), by tracing the existing literature on SR. Through this model we then evaluated to what extent these businesses, gifted with a particular set of intrinsic characteristics, presented a special sensibility for SR. And in the last part, we propose how SR should be developed in order to generate value for the firm and to help SMEs to engage more effectively in SR and to generate incentives for the stable, coherent and long-term development of this kind of activity. A third article, complementary to the two articles that form this thesis, identifies some of the main differences between family businesses (FBS) and non-family businesses (NFBs), so far as in its financial policies. In a sample of 305 Spanish companies, of which 204 were non-family businesses and 101 family businesses, we studied a group of indicators, such as age of business, revenue, employees, capital, internationalization and ratios. In general, family businesses tend to be older, lower revenue, less employees with permanent contracts, less capital and fewer shareholders, though a high proportion (rate) of shareholders belong to the Board of Directors. But after having interpreted this set of indicators, we concluded that the personal preferences of the responsible family firms with regard to risk, growth and ownership-control may be forces that explain the peculiar financial logic family businesses

El compromiso de los familiares con la empresa familiar

La unidad es una de las fortalezas principales de la empresa familiar. Mantener esta unidad, a medida que la familia crece, requiere una actitud concreta de la familia tanto como de la empresa enfocadas a que todos los miembros de la familia, incluso a los que no trabajan en ella, se mantengan comprometidos con su futuro. El compromiso, función de esfuerzo lealtad e ilusión, no es algo que puede darse por sentado. Al contrario, los resultados indican que la existencia de unas determinadas infraestructuras como de un consejo de administración que a su vez garantiza una distribución de información formal y unas actividades familiares son claves en fomentar este compromiso familiar a lo largo de las generaciones.La unitat és una de les fortaleses principals de l’empresa familiar.Mantenir aquesta unitat, a mesura que la família creix, demana una actitud concreta de la família tant com de l’empresa, enfocada a que tots els membres de la família, fins i tot els que no hi treballen, es mantinguin compromesos amb el seu futur. El compromís, funció d’esforç, lleialtat i il·lusió, no és una cosa que es pugui donar per establert .Al contrari, els resultats indiquen que la existència de unes determinades infraestructures, com un consell d’administració, que a la seva vegada garanteix una distribució d’informació formals, i unes activitats familiars, són clau per fomentar aquest compromís familiar al llarg de les generacion

Women behind the Scenes in Family Businesses

The success of family businesses is largely due to a circular relationship in which three intangible factors enhance each other: love for the family business, trust among different business factors, and freedom of behaviour for family members (Gallo et al., 2001). These values are the cornerstone on which family members base their commitment to the business. But how can family members of advanced generations, especially those who are not active in the business, become more committed to the success of the family business? And are there gender-specific roles, as the literature on this subject seems to indicate? The research outlined in this document seeks to enlarge the current pool of knowledge, offering the results of a study involving 98 Spanish family businesses, in which a total of 200 non-active family members responded to a questionnaire about their relationship with the family business and their associated relatives. The main results confirm the existing literature by revealing that women are expected to play certain roles such as managing the household and child-rearing. Even though these roles are not clearly defined, women perceive numerous obstacles when attempting to assume roles beyond the domestic sphere. Nevertheless, our results confirm that, regardless of the degree of women’s direct participation in the family business, their strong commitment towards the business as well as their other qualities can permeate the family relationship to the point of affecting the business performance by influencing the entrepreneur’s motivation and businessrelated decisions. Through her passion for the family she provides the business with a powerful asset: the strong “family glue”