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INNOVATION
VS. TRADITION
IN FAMILY BUSINESSES

BRIGITA JURISIC
INTERNATIONAL BUSINESS DEVELOPER @ BRIDGE PARTNER / TECMINH...
FAMILY BUSINESS STATS
60-90% of nongovernmental
GDP

Family
businesses are
70-95% of all
business entities

85% of all
bus...
THE UNIQUE QUALITIES OF
THE FAMILY BUSINESS
- Long-term thinking and a broader perspective.

- Quicker and more flexible d...
PORTUGAL TODAY AND
FAMILY-OWNED SMES
CHALLANGES
- Globalisation causing highly competitive economic environment.
- World e...
At the time present due to internal market contraction and globalization
turning internal market more competitive these co...
LIMITED RESOURCES
FOR INVESTMENT IN
INTERNATIONALIZATION
AND INNOVATION
RELATIONSHIPS AS RESOURCES
Creation of a new business relationship is seen as a form of
organizational change and innovati...
FACILITATORS / CATALYSTS OF
INTERNATIONALIZATION
ACCELERATION AND BUSINESS
DEVELOPMENT
TRUST AND RELATIONSHIPS
Trust is a key mechanism of inter-firm relationships enabling
interaction and reducing transaction...
TRUST AND RELATIONSHIPS
RISK
UNCERTAINTY

Starting a new business relationships family-owned SMEs need to
be aware of thei...
RELATIONSHIPS AS A SOURCE
OF COMPETITIVE ADVANTAGE
Myers and Cheung (2008): Companies learn one from another. Types of

re...
CASE PRESENTATION:
QUINTA DOS FUMEIROS
October 2011
February 2012

October 2012

August 2012
DIAGNOSTICS
OR WHERE TO BEGIN
THE PLAN IS TO…
Co-work and co-evolve the company’s competences – resource fusion

7. Think things
through together

1. Ve...
…MARK THE DIFFERENCE
THE EXECUTION
-International food and beverage fair SISAB, February 2012
-Gourmet fair Peixe Lisboa, June 2012

-Portugal ...
DEVELOPING BUSINESS
RESULTS IN…
Company gaining recognition of its innovation
capacity between its peers.
Qualification fo...
DEVELOPING
BUSINESS RESULTS
IN…
Actual sales

2013* (till October)
347.870€

88.311€
2012
401.827€

France, Luxemburg,
Bel...
CHALLANGES
-Long and costly processes of obtaining the certificates to be able to
sell in Brazil and in Russia.
-Consolida...
Co-evolve by building relationships based on trust!

Brigita Jurisic
bj@bridge-partner.pt
www.bridge-partner.pt
brigita@te...
Innovation vs tradition
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Innovation vs tradition

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Small family-based manufacturers posses great production know-how but often fail in setting up a global business strategy that will guarantee company’s success on each day fiercer competitive global market. In an innovative model of intercompany collaboration we capacitate small businesses to be able to grow their business in a sustainable way. A case-study of a family-owned meat transformation company will be presented and the results achieved in 2 years work with the company.

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Innovation vs tradition

  1. 1. INNOVATION VS. TRADITION IN FAMILY BUSINESSES BRIGITA JURISIC INTERNATIONAL BUSINESS DEVELOPER @ BRIDGE PARTNER / TECMINHO
  2. 2. FAMILY BUSINESS STATS 60-90% of nongovernmental GDP Family businesses are 70-95% of all business entities 85% of all business startups started with family money 50-80%of all private sector jobs Source: European Family Business – Family business statistics
  3. 3. THE UNIQUE QUALITIES OF THE FAMILY BUSINESS - Long-term thinking and a broader perspective. - Quicker and more flexible decision-making. - An entrepreneurial mind-set. - A greater commitment to jobs and the community. - A more personal approach to business based on trust. - More profitable over the long term. - Less likely to lay people off and more likely to hire. - Use less debt and are therefore more stable. Particularly in economic times such as the ones we are in now.
  4. 4. PORTUGAL TODAY AND FAMILY-OWNED SMES CHALLANGES - Globalisation causing highly competitive economic environment. - World economic crisis and consumption decline in Portugal and in Europe in general. - IMF in Portugal since 2011 – trust level in Portugal drops – credit access difficulties. Portuguese family-owned SMEs are obliged to rethink their strategies, value propositions and target markets. Buzz words internationalisation and innovation start to appear on a daily basis.
  5. 5. At the time present due to internal market contraction and globalization turning internal market more competitive these companies have a need to internationalize and innovate. In order not to waste its scarce resources a need of defining a company’s internationalization and innovation strategy and action plan is crucial.
  6. 6. LIMITED RESOURCES FOR INVESTMENT IN INTERNATIONALIZATION AND INNOVATION
  7. 7. RELATIONSHIPS AS RESOURCES Creation of a new business relationship is seen as a form of organizational change and innovation (Huang and Wilkinson, 2007) bringing an important competitive advantage to the companies since they do not compete only at the level of price, but also in speed of delivery, quality and innovation (Humphrey and Schmitz, 1998). Relationships offer unique access to external resources of their partners’ and can be seen as valuable resources themselves. Companies co-evolve in the relationships (Huang and Wilkinson, 2007).
  8. 8. FACILITATORS / CATALYSTS OF INTERNATIONALIZATION ACCELERATION AND BUSINESS DEVELOPMENT
  9. 9. TRUST AND RELATIONSHIPS Trust is a key mechanism of inter-firm relationships enabling interaction and reducing transaction costs. A recent work review performed by Ekici (2013) demonstrates trust has been largely viewed as a construct that increases commitment, satisfaction, cooperation, performance, signals long-term orientation and propensity to stay in the relationship.
  10. 10. TRUST AND RELATIONSHIPS RISK UNCERTAINTY Starting a new business relationships family-owned SMEs need to be aware of their key resources and capabilities in order to be able to present their unique value proposition and generate fair incomes.
  11. 11. RELATIONSHIPS AS A SOURCE OF COMPETITIVE ADVANTAGE Myers and Cheung (2008): Companies learn one from another. Types of relationship learning within the buyer–supplier relationship: - information sharing, - joint sense making, and - knowledge integration. All three contribute to a company’s unique sales proposition based on competitive advantage achieved relationships with its key partners. through its involvement in
  12. 12. CASE PRESENTATION: QUINTA DOS FUMEIROS
  13. 13. October 2011
  14. 14. February 2012 October 2012 August 2012
  15. 15. DIAGNOSTICS OR WHERE TO BEGIN
  16. 16. THE PLAN IS TO… Co-work and co-evolve the company’s competences – resource fusion 7. Think things through together 1. Verbalize the core strategic premises 2. Define the target markets for internationalization 6. Adjust the marketing materials 5. Define the target partners and influencers 4. Marketing plan 3. Study the target markets
  17. 17. …MARK THE DIFFERENCE
  18. 18. THE EXECUTION -International food and beverage fair SISAB, February 2012 -Gourmet fair Peixe Lisboa, June 2012 -Portugal Gourmet, November 2012 -International food and beverage fair SISAB, February 2013 -Polagra food fair, Poland, September 2013 -Macau international fair, Macau, China, October 2013 -HORECA life, Belgium, October 2013
  19. 19. DEVELOPING BUSINESS RESULTS IN… Company gaining recognition of its innovation capacity between its peers. Qualification for The innovative product of the year 2012 at Masters of distribution. More contacts and visits of potential clients at the company. Qualified leads: October 2012 – Mozambique, Switzerland, Germany, Russia, Brasil, China, France, Luxemburg, Romenia, Spain, Angola, UK, Chech Rep., Macau October 2013 – China, Angola, Germany, Poland, France, Luxemburg, Belgium, Switzerland, Angola, Mozambique
  20. 20. DEVELOPING BUSINESS RESULTS IN… Actual sales 2013* (till October) 347.870€ 88.311€ 2012 401.827€ France, Luxemburg, Belgium, Switzerland, Angola, Mozambique 2011 431,382.42 € 36.300€ France, Luxemburg, Romenia, Spain, Angola, UK, Chech Rep., Macau
  21. 21. CHALLANGES -Long and costly processes of obtaining the certificates to be able to sell in Brazil and in Russia. -Consolidating the markets we have already entered. -Support the distributors to do a great job in brand consolidation. -Make the right balance between market prospection costs and limited resources available. -Close up the 2014 international promotion plan. -Continue optimizing internal processes in order to be able to serve the international market and evolve the company.
  22. 22. Co-evolve by building relationships based on trust! Brigita Jurisic bj@bridge-partner.pt www.bridge-partner.pt brigita@tecminho.uminho.pt www.tecminho.uminho.pt

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