by Marita Rautiainen (Editor), Peter Rosa (Editor), Timo Pihkala (Editor), Maria José Parada (Editor), Allan Discua Cruz (Editor)
About the Author
Marita Rautiainen is a post-doctoral researcher in the School of Engineering Science at Lappeenranta University of Technology (LUT), Finland. With a background as an entrepreneur, Marita teaches entrepreneurship theory and family business, and her research focuses on the development of the family business group.
Peter Rosa is the George David Emeritus Professor of Entrepreneurship and Family Business at the University of Edinburgh, UK. He specialises in portfolio entrepreneurship and family business groups in Europe and East Africa.
Timo Pihkala is Professor of Entrepreneurship at Lappeenranta University of Technology (LUT), Finland, where he is currently Head of the Entrepreneurship Masters programme. His research interests revolve around entrepreneurship education, SME innovation, small business networks, and family business and ownership.
Maria José Parada is a Lecturer in the Department of Strategy and General Management at ESADE, Spain. She is also Co-Director of the ESADE Family Business Lab, having previously studied at ESADE Business School and Jönköping International Business School, Sweden.
Allan Discua Cruz is a Lecturer in the Department of Entrepreneurship and Strategy at Lancaster University Management School, UK. He has published on the topics of portfolio entrepreneurship and family business groups in Latin America.
About this book
This edited collection analyses the unexplored concept of the family business group, evaluating the opportunities and advantages that it creates for entrepreneurs. Raising a number of important questions, the authors construct a new research agenda for the complex topic of the family business group, which will ultimately assess its contribution towards the economy and society in general. The chapters provide a core understanding of the phenomenon and cover its formation, nature and complexities, as well as offering a holistic perspective and exploring factors such as scale, size and regional contexts. A useful tool for those researching small businesses, organisation, and business strategy, this book highlights the key advantages of family business group structures in both developed and developing countries, and local and national contexts.
Table of contents
1 Introduction: Presenting the Case for Studying the Emergence and Development of Family Business Groups 1
1. 1 The Vision and Organization of the Book 7
References 11
Part I Theoretical and Methodological Reflections 15
2 Theoretical Insights into the Nature, Diversity and Persistence of Business Groups 17
2. 1 Introduction 17
2. 2 The Emergence of Business Groups and the Role of Portfolio Entrepreneurship 22
2. 3 Conclusion 30
References 31
3 The Methodological Challenges of Researching Family-Owned Business Groups 37
3. 1 Introduction 37
3. 2 Methodological Challenge 1: Identifying and Refining Key Research Questions and Theories 39
3. 3 Methodological Challenge 2: Definitional Challenges 40
3. 3. 1 Unpacking the Definitional Complexities of Business Groups and Family Business Groups 41
3. 3. 2 Unpacking the Complexities of Legal Entities and Affiliates 43
3. 3. 3 Defining Portfolio Entrepreneurship 46
3. 4 Methodological Challenge 3: Family Business Databases Amenable to Rigorous Statistical Analysis Are Difficult to Find and Access 48
3. 5 Methodological Challenge 4: The Phenomenon Is a Difficult Process to Research Rigorously Over Time 52
3. 6 Methodological Challenge 5: Researchers of Family Business Groups and Portfolios Encounter the Challenges of Mapping, Recording and Analysing Complexity 55
3. 6. 1 Identifying, Describing and Mapping Complex Family Business Groups 57
3. 7 Conclusion 60
References 60
Part II The Emergence of Family Business Groups Through Portfolio Entrepreneurship 63
4 The Emergence of a Family Business Group: The Role of Portfolio Entrepreneurship 65
4. 1 Introduction 65
4. 2 Business Group Emergence Through Portfolio Entrepreneurship : A Case Study 67
4. 2. 1 The Portfolio Entrepreneur 67
4. 2. 2 The Entrepreneurial Model for Diversification 68
4. 2. 3 The Emergence of a Family Business 72
4. 2. 4 Balancing Entrepreneurship and Retaining Wealth 74
4. 3 Discussion of the Case Study 75
4. 3. 1 Building the Portfolio 75
4. 3. 2 The Characteristics of Family Business Entrepreneurship and Business Group 79
4. 3. 3 The Complex Group Structure, Organized According to the Family Members 80
4. 4 Conclusion 83
References 84
5 Managing Portfolio Entrepreneurship : A Case Study 89
5. 1 Introduction 89
5. 2 Research Method 93
5. 3 The Pigini Group: History Outline 95
5. 4 New Venture Creation and Entrepreneurial Team Formation 100
5. 5 The Dynamics of Entrepreneurial Teams in Knowledge-Intensive Businesses 105
5. 6 Conclusions 107
References 108
6 Entrepreneurial Growth Through Portfolio Entrepreneurship : The Entrepreneurial Career Ladder 111
6. 1 Introduction 111
6. 2 Learning from Indigenous Entrepreneurship 115
6. 3 East African Indigenous Entrepreneurship Systems 117
6. 4 Conceptualising the Entrepreneurial Career Ladder (ECL) 120
6. 5 Case Studies to Illustrate the “Ladder Process” at Work 126
6. 5. 1 Case Study One: Moses the Skinner 126
6. 5. 2 Case Study Two: Jeremiah Butchery: Fred Ngombo (Name Changed) 127
6. 5. 3 Case Study Three: Sudhir Ruparelia: Starting Again Through Cash Flow and Property 129
6. 5. 4 Case Four: The ECL and a Trans-generational Ugandan Family—The Madhvanis 131
6. 6 Business Failure 134
6. 7 Case Examples of a Mismatch of Entrepreneurial and Business Levels 135
6. 7. 1 Analysis 136
6. 8 Example of Squandering Inheritance by Starting at the Wrong Level 137
6. 8. 1 Analysis 138
6. 9 Conclusion 138
References 143
7 Resourcefulness and Informal Economy: From Pluriactivity to Portfolio Entrepreneurship 145
7. 1 Introduction 145
7. 2 Theoretical Background 147
7. 2. 1 Pluriactivity and Portfolio Entrepreneurship 147
7. 2. 2 Informal Economies and Entrepreneurial Resourcefulness 152
7. 3 Proposition Development 156
7. 4 Discussion 163
7. 4. 1 Further Research 165
7. 4. 2 Concluding Remarks 165
References 166
Part III Complexity and the Development of Family Business Groups 175
8 The Dynamics and Complexity of Family Business Groups 177
8. 1 Introduction 177
8. 2 Family Business Group Complexity 180
8. 3 Research Methodology 182
8. 4 The Empirical Setting 183
8. 5 Conceptualizing the Case Family Business Group as a Complex Adaptive System 190
8. 6 Accepting the Complexity of the Family Business Group 194
8. 7 Conclusion 195
References 197
9 Understanding the Dynamics of Business Group Development: A Transgenerationa l Perspective 201
9. 1 Introduction 202
9. 2 Literature Review 203
9. 2. 1 Family Firms 203
9. 2. 2 Transgenerationa l Entrepreneurship and Family Business Groups 205
9. 3 Method and Case Analysis 208
9. 4 Discussion 211
9. 4. 1 Ability to Transform the Business Model 212
9. 4. 2 Ownership Concentration 213
9. 4. 3 Familiness 214
9. 4. 4 Entrepreneurial Orientation 214
9. 4. 5 Value Transformation 215
9. 5 Conclusion 216
References 217
10 Deciphering Ownership of Family Business Groups 223
10. 1 Introduction 223
10. 2 About the Concept of Ownership 226
10. 3 Family Business Group as a Set of Legal Ownership 227
10. 3. 1 The Benefits of Controlling the Business and Its Resources in Family Business Groups 228
10. 3. 2 The Benefits of Including Outside Investors in the Distinct Businesses in the Group 230
10. 3. 3 The Benefit of Operating on the Levels of Collective Ownership and Individual Ownership 231
10. 4 Emotional and Social Benefits of Owning a Family Business Group 233
10. 4. 1 The Benefits of Owning Family Business Group on Personal Goals 234
10. 4. 2 The Benefits of Family Business Group Ownership on Family Cohesion and Business Continuity 236
10. 4. 3 Social Benefits of Owning a Family Business Group 239
10. 5 Managing the Complexity of the Ownership of Family Business Groups 240
10. 6 Future Directions for Research 243
10. 7 Conclusions 245
References 247
11 Governance in Family Business Groups: Resolving Multiple Contingencies to Sustain Entrepreneurial Capability 253
11. 1 Introduction 253
11. 2 The Meaning of the Context and Goals for Governance 255
11. 2. 1 Family Business Governance 257
11. 2. 2 FBGs Emerge for a Variety of Reasons 259
11. 2. 3 Goals Create the Basis for Governance 263
11. 2. 4 A Governance System Consists of Structures, Mechanisms and Processes 266
11. 3 FBG Governance 267
11. 4 Discussion and Future Research 274
11. 5 Conclusions 278
References 280
Part IV Family Business Groups in Different Local Contexts 285
12 The Contribution of Family Business Groups to the Local Innovation Environment 287
12. 1 Introduction 287
12. 2 Family Business Groups and Innovation 288
12. 3 Family Businesses in a Regional Innovation System 291
12. 4 Methodology and Data 294
12. 5 Case Lahti: Description and Empirical Findings 297
12. 5. 1 The Characteristics of the Lahti Region 297
12. 5. 2 Measuring Innovation Activity of Family Business Groups in Lahti 298
12. 6 Discussion and Conclusions 305
12. 6. 1 Limitations 307
References 308
13 Resilience and Family Business Groups in Unstable Economies 315
13. 1 Introduction 316
13. 2 Literature Analysis 317
13. 2. 1 Resilience 317
13. 2. 2 The Family Business and Resilience 321
13. 2. 3 Uncertain Environments, Risk and Instability 323
13. 3 A Model to Understand Family Portfolio Entrepreneurship in Uncertain Contexts 325
13. 3. 1 Risk Mitigation Strategies and Resources 329
13. 4 Methodological Approach 331
13. 4. 1 Honduras: Distribution Group: Asturias Family 332
13. 4. 2 Venezuela: Agricultural-Based Group: Perez Diaz Family 333
13. 4. 3 Sharjah: Diversified Portfolio Group: Al-Qassimi Family 335
13. 4. 4 Malawi: Tambala Portfolio—Tambala Family 336
13. 5 Analysis 337
13. 6 Conclusion and Future Research 343
References 346
14 Entrepreneurship and Rural Family Identity: Understanding Portfolio Development in a Family Farm Business 353
14. 1 Introduction 353
14. 2 A Brief Review of Portfolio Entrepreneurship and Its Role in the Family Business 356
14. 3 Identity and the Family Business 358
14. 4 Portfolio Development and Family Business: A Case Illustration of the Svensson Farming Family 361
14. 4. 1 Farming and the Family Business 361
14. 4. 2 The Svensson Business Family 363
14. 5 Understanding Portfolio Development in the Family Business 365
14. 5. 1 Family Involvement and Identity Structures 366
14. 5. 2 The Cognitive Element of Identity 371
14. 5. 3 The Affective Element of Identity 373
14. 6 Discussion and Conclusion 374
References 377
Part V Conclusion 385
15 Conclusions: Researching Family Business Groups: Lessons Learned and Avenues for Further Research 387
15. 1 Limitations and Further Research 394
Index 397
Length: 400 pages
Publisher: Palgrave Macmillan; 1st ed. 2019 edition (October 31, 2018)
Language: English
ISBN-10: 3319985418
ISBN-13: 978-3319985411
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