Activities involved in succesion process among asian and african owned business


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Activities involved in succesion process among asian and african owned business

  1. 1. © Copyrighted Material om b.c rpu we go m .co ub erp ow gFather–Daughter om b.c rpu weSuccession in go m .co ubFamily Business erp ow g om b.c rpu we goA Cross-Cultural Perspective om b.c rpu weEdited by go m .co ubDaphne Halkias, erpPaul W. Thurman, ow gCelina Smith and om b.cRobert S. Nason rpu we go om b.c rpuwego © Copyrighted Material
  2. 2. © Copyrighted Material omPreface: b.c rpuWhere Culture, Family and Business Meet: we goDeveloping Cross-National Research on m .cothe Father–Daughter Succession Process ub erpin Family Firms ow g om b.cDaphne Halkias rpu we go m .co ubWhy Focus on Culture in the Succession Process of Family Business? erp owThe family firm is an increasingly vital player in the global economy. One of the events g omthat may disrupt the smooth evolution of a family business is a generation transition and b.csuccession. An important issue that is evolving in the family business literature is the rpuincreasing involvement of women in leadership/management roles in businesses and, wemore specifically, the family firm. In the developing economies of Asia and Africa as well goas the developed ones in North America, Europe, Australia, and New Zealand there is m sparse case study research in the extant literature on cross-cultural gender issues in the o b.cfamily firm ownership and succession (Halkias et al., 2008; 2010). rpu If entrepreneurship can be considered as an event induced by socio-cultural factors we(Shapero and Sokol, 1982), the cultural variable gains greater significance when applied goto the quality of the relationship between family members involved in the succession m process and specifically, in this book, for the case of father to daughter. National culture .cogenerates behavioral changes through family, training, education, traditions, lifestyles, ubpolitics, religion and degrees of masculinity–femininity, individualism–collectivism erp(Hofstede, 1997; Trompenaars and Hampden-Turner, 2003). Within family firms, the owcultural context can affect behaviors and, in the same way, management styles, be gthey an individual’s, the family’s or the firm’s (Barbot, 2004). In line with this, other omrecent research has addressed the issue of national cultural attitudes influencing the b.centrepreneurial behavior and outcomes of an ethnic or regional population (Ibid.). rpu With respect to the lack of research integrating culture on one hand and the wespecificity of females taking over family businesses, the research presented in this book go m by an eminent group of scholars aims at exploring the influence of culture—ethnic, oregional, religious—on the process of father–daughter succession in family firms. We were b.cparticularly interested in exploring the cultural variables influencing father–daughter rpusuccession in family businesses across 14 cultural settings never before considered in the weextant literature.go © Copyrighted Material
  3. 3. 4 Father–Daughter Succession in Family Business © Copyrighted Material m Entrepreneurship is truly a phenomenon which is above all cultural. With this in mind, the .co successful transmission of a firm involves respecting the national culture in which it is found. ub (Barbot et al., 2004:4) erp owThe research model used as a foundation for developing a methodology for these case gstudies was presented in a landmark cross-national study conducted by Barbot et al., om(2004) exploring the influence of culture among father–daughter succession in France b.cand Tunisia. This study identified factors which influence the succession process rpuaccording to two different cultural contexts. Its hypotheses highlighted that beyond wesexual diversity (female/male), the stages of the succession process could change within gothe same gender of successors (females) due to cultural factors. Within the succession omframe of the daughter taking over, differences can be stated and explained through b.cthe predominance of national culture in family and managerial relationships. On the rpubasis of these observations and adopting a comparative approach, Barbot et al. (2004) weinvestigated differences and/or similarities between how father to daughter successions gooccur in Tunisian and French family businesses. m In their conclusions, Barbot et al. (2004) stated that with respect to entrepreneurship .coin general and family business succession in particular, their investigation illuminated ubthat researchers must take into account the cultural context. erp ow g The recognition of the importance of tradition leads us, by no means, to consider societies as om motionless, mere reflections of folkloric caricatures. Finally, we may conclude that best practice b.c research cannot be undertaken as an end to itself. Indeed, instead of imitating other countries, rpu it is necessary to identify the value of one’s own traditions. Each country is characterized by we “fundamental traits which pass the test of time.” go (D’Iribarne, 1989) om b.c rpuA Defining Model to Research the Cultural Variable in Family weBusiness Succession go m .coIn order to address the question of the specificity of father–daughter transfer, while ubconsidering the impact of the cultural variable, Barbot et al. (2004) adopted a dialectic erpmodel (see Figure P.1) stressing the character of the two types of transmission ow(managerial and patrimonial) and the psychological characteristics of the key actors. By gdepicting the succession process as based on two principal actors (in this case father and omdaughter), the retained model integrates both the psychology of the actors and their b.cintertwining (which constitutes one of the essential characteristics of family business). rpuEqually demonstrated is the impact of culture on relationships between the primary wesubjects of the process. go m .co ub werpgo © Copyrighted Material
  4. 4. Preface 5 © Copyrighted Material om Enterprise b.cCompany culture (steeped with Company culture (steeped with the family culture) the family culture) rpu Managerial transmission we Patrimonial transmission go Manager Successor m National socio-culture/ .co tradition/lifestyle/ education/training ub erp Culture ow gFigure P.1 A multidimensional model of succession in family businesses omSource: Barbot, Bayad and Bourguiba, 2004 b.c rpu we Family relationships change and vary across cultures. This difference will eventually gogive way to modifications in father–daughter succession across culture. On the basis m of this model and in line with a comparative framework, our study aimed to be cross- .cocultural in nature. The main interest of this book’s contribution lies in illustrating the ubimportance of the cultural dimension in the process of handing over family businesses erpfrom father to daughter. The cultural approach chosen seeks to better understand the owsystems of representation, the internal reasoning of each firm (the ways of being together) g omso as to adapt management practices to national/cultural particularities. The case studies b.cpresented differences and/or similarities between how 14 family businesses, representing rpudifferent ethnic cultural value systems, are passed on from father to daughter. we goBiographical Narration: Giving Voice to the Daughter Chief om Executive Officer and Father’s Legacy b.c rpu weBiographical data for the case studies of the father–daughter succession process across gocultures as personated in this book were collected through the qualitative method of m biographical narration. This method follows a swiftly increasing interest on the part of .cosocial sciences in the study of lives. Among others, methods of oral history, ethnography, ubnarrative, and autobiography are relaying how individuals give meaning to their life erpexperiences. Methodological and theoretical developments in this kind of research within owthe social sciences have given rise to an increase in literature addressing issues regarding g m the collection of materials, the use and interpretation of oral and written biographical .coaccounts, audience, and reflexivity. Biographical narrations draw out common themes uband emerging concerns between the subject and the researcher on his/her environment, rppast history, present moment, and future life path (Halkias and Caracatsanis, 2011; Lund weThomsen, 2006). The biographical narrative method presents a viable research method go m for understanding how the past lives of family firm leaders allow us to make sense of the .coreasoning behind certain actions in the father–daughter succession process, as well as ubhighlight cultural elements of this succession process. erp wgo © Copyrighted Material
  5. 5. 6 Father–Daughter Succession in Family Business © Copyrighted Material m If one is to understand how daughter–successors navigate in diverse national and .cocultural settings, it is methodologically sound to gather data on their personal history. ubBy this approach, a researcher can assign pertinence to the daughter’s recounting of erpexperiences and interactions. Such modes of investigation further allow for similarities owand differences among the daughter–successors being studied cross-nationally to gemerge and, through this undertaking, cultural influence, entrepreneurial dynamics, omand common practices can be identified. Researchers can then also link personal value b.csystems and exogenous factors relating to cultural, political and/or social movements and rpuhow interplay in these areas influences identity construction of the individual daughter– wesuccessor in the family business. go om b.cEpilogue rpu weThe told story of the father–daughter succession must first be presented from the goindividual daughter–successor’s biographical account. This takes us to an innovative m research approach for holistically studying the father–daughter succession process in .cofamily businesses across cultures. In this book, we combine the two variables of enduring ubcultural values and the daughter’s biographical narration into a single story presented in erpeach of these case studies. The methodological significance of bringing these two variables owtogether lies in giving researchers the means to explore the personal evolution of these g omwomen and thus give meaning to the family and managerial imperatives inherent in b.cenabling a smooth father–daughter succession for family businesses across cultures. rpu weBibliography go om b.cBarbot, M.C., Bayad, M. and Bourguiba, M. 2004. Transmission, des PME Familiales: Étude Exploratoire rpu de la Relève Père-Fille en Tunisie. Paper presented at the Actes du Séminaire, l’Entrepreneuriat en we Tunisie, Quelles Recherches? Quelles Formations ?. ENIT, Tunis, 29–30 April 2004. goD’Iribarne, P. 1989. La Logique de l’Honneur - Gestion des Entreprises et Traditions nationals. Paris: Seuil. m p. 280 .coHalkias, D. and Caracatsanis, S. 2011. The Evolution of Researching Female Immigrant ub Entrepreneurship: A Commentary, in Female Immigrant Entrepreneurs: An Economic and Social erp Phenomena (pp. 3–7), edited by D. Halkias, P. Thurman, N. Harkiolakis, and S. Caracatsanis. ow Farnham: Gower Publishing. gHalkias, D., Thurman, P., Harkiolakis, N., Katsioloudes, M., Stavrou, E., Swiercz, P.W. and Fragoudakis, M. om 2010. Father–Daughter Succession Issues in Family Business among Regional Economies of Asia. b.c International Journal of Entrepreneurship Venturing, 2(3/4), 320–346. rpuHalkias, D., Thurman, P., Abadir, S., Katsioloudes, M. and Harkiolakes, N. 2008. Daughters’ Intentions we to Succeed Fathers in the Family Business: Securing the Future of the Family Enterprise in the Local go m Economies of Asia. Paper presented at the 2emes Journees Georges Doriot, HEC, Paris, 15–16 May .co 2008. ubHofstede, G. 1997. Cultures and Organizations. New York: McGraw-Hill. erpLund Thomsen, T. 2006. Self-employment Activities Concerning Women and Minorities: Their Success and w Failure in Relation to Social Citizenship Policies, PhD Defence, March 3. Available at: http://www.go [last accessed December 2009]. © Copyrighted Material
  6. 6. Preface 7 © Copyrighted Material omShapero, A. and Sokol, L. 1982. The Social Dimensions of Entrepreneurship, in The Encyclopaedia b.c of Entrepreneurship (pp. 72–90), edited by C. Kent, D. Sexton and K. Vesper. Englewood Cliffs: rpu Prentice-Hall. weTrompenaars, F. and Hampden-Turner, C. 2003. L’Entreprise Multiculturelle. New York: McGraw-Hill. go m .co ub erp ow g om b.c rpu we go m .co ub erp ow g om b.c rpu we go om b.c rpu we go m .co ub erp ow g m .co rpub we go m .co ub erp wgo © Copyrighted Material