Copreneurships in South African small and medium-sized family business
- Authors: Eybers, Carey
- Date: 2010
- Subjects: Couple-owned business enterprises , Family-owned business enterprises -- Succession -- South Africa , Entrepreneurship -- South Africa , Small business -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9285 , http://hdl.handle.net/10948/1207 , Couple-owned business enterprises , Family-owned business enterprises -- Succession -- South Africa , Entrepreneurship -- South Africa , Small business -- South Africa
- Description: Taking cognisance of the increasingly important role that copreneurial businesses play in national economies, the unique challenges that they face, and the lack of research attention given to such spousal teams, the purpose of this study was to contribute to the more effective functioning of copreneurships in South Africa by identifying the factors that impact on their success. Consequently, the primary objective of this study was to investigate the factors that influence the Perceived success of copreneurships in South Africa, as well as the conditions required for the effective and harmonious functioning of such spousal partnerships. This study seeks to incorporate previous findings and studies on team effectiveness and spousal relationships into a comprehensive conceptual model. After conducting a comprehensive literature study, as well as examining the different teamwork models proposed and the study by Farrington (2009), it became clear that successful teams have validated their proficiency with regard to two types of factors, namely, relational-based and organisational-based factors. Within these two categories of factors, 14 independent variables were identified and hypothesised to influence the measures of effectiveness of copreneurships, namely the dependent variable Perceived success; and the intervening variable Financial performance. All of the factors in this study were clearly defined and operationalised. Reliable and valid items sourced from Farrington’s (2009) measuring instrument, as well as several measuring instruments used in other studies, were used in the operationalisation of these factors. In addition, several items were self-generated from secondary sources. Respondents were identified using the convenience snowball sampling technique, and a structured questionnaire was made available to them. The data gathered from the 380 usable questionnaires was subjected to various statistical analyses. The validity and reliability of the measuring instrument was confirmed by means of an exploratory factor analysis, and Cronbach-alpha coefficients were calculated for this purpose. The original intervening variable Financial performance could not be confirmed as originally intended in the conceptual model. Instead, Financial performance split into v two separate variables which were named Financial performance and Growth performance. The original dependent variable Perceived success was confirmed by the factor analyses. The relational- and organisational-based factors could not be confirmed as originally intended in the conceptual model. Instead, seven new relational- and seven new organisational-based factors emerged, and where necessary these factors were renamed. The primary statistical procedure used to test the significance of the relationships hypothesised between the independent and dependent variables in this study, was Structural Equation Modelling (SEM). Owing to the sample-size restrictions, the conceptual model could not be subjected to SEM as a whole. Instead, seven submodels were identified and subjected to further analysis. The following independent variables were identified as influencing the dependent and intervening variables in this study: • Spousal relationship • Commitment to spouse • Equal status • Commitment to the business • Emotional attachment • Non-family involvement • Personal needs alignment • Leadership • Competencies • Internal context In order to investigate the influence of the various demographic variables on the intervening and dependent variables, an Analysis of Variance (ANOVA), Multiple Linear Regression analysis and t-tests were performed. How leadership occurs in a copreneurial business, the tenure of the business, the location of the business, the status of the copreneurship, the level of spousal involvement in the business and the vi number of employees were found to have an influence on the intervening and dependent variables of this study. By empirically investigating copreneurships, this study has added to the limited amount of family business literature on these complex partnerships. By way of the conceptual models developed in this study a significant contribution has been made towards understanding the factors influencing the success of copreneurships. As a result, this study presents recommendations and suggestions to assist couples in managing their copreneurships in such a way as to nurture their marriage relationships and at the same time enhance the performance of their businesses.
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- Date Issued: 2010
Succession in a family business in the beer industry
- Authors: Human, Stephen Bertram
- Date: 2013
- Subjects: Family-owned business enterprises -- Succession -- South Africa , Family corporations -- South Africa -- Management
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8912 , http://hdl.handle.net/10948/d1021057
- Description: Every business organisation has a unique set of challenges and problems. The family business is mainly affected by personal factors and family political influences. Most family business political influences are based on succession. Many of these problems exist in corporate business environments, but can be exaggerated in a family business. Family businesses go through various stages of growth and development over time. Many of these challenges will be found once the second and subsequent generations enter the business. One of the key problems is succession planning. Most family organisations do not have a plan for handing the power to the next generation, leading to great political conflicts and divisions. Despite the foregoing problems, family business is the world’s dominant form of business organisation. Based on figures compiled by the Family Firm Institute (FFI), in the Barclays Wealth Insights 2009, family firms comprise 80% to 90% of all businesses in North America. In the United Kingdom 75% of all businesses are family businesses. Some of the world’s biggest and best-known companies are family-owned. In the United States, some 37% of Fortune 500 companies are family-owned. In the global beer industry there are two family owned businesses in the top five, namely the Anheuser Busch Inbev Brewing Company and Heineken Breweries. Charlene de Carvalho-Heineken, a Heineken family member is delegate member of the Board of directors of Heineken Holding N.V. (Heineken Annual Report, 2011).This research report investigated succession at Heineken (as a family business). The researcher employed a mixed methodology approach where both quantitative and qualitative data collection instruments were used to gather data from two different groups of respondents (Heineken Operational Company Executives and Heineken Expatriates). Numerous attempts were made to contact Mrs Charlene de Carvalho-Heineken as well as other members of the Heineken family, without success. None of the questionnaires were returned. The research concluded that despite the fact that Heineken management has been highly professionalised with the majority of senior management structures filled with non-family members; the company is still a family business because 50.005% of the shareholding is held by Mrs. de Carvalho Heineken who is a family member. The research also observed that Mrs. de Carvalho Heineken sits on the Heineken Board of Directors. There is also an interesting side to the family ownership of the Heineken business. According to the Heineken Group’s 2009 Annual Report, the Hoyer family and Heineken family own L’Arche Green, a company that holds 58.78% interest in Heineken Holdings. This scenario confirms earlier research findings that according to the Agency Theory, managers who are not owners will not watch over the affairs of a firm as diligently as owners managing the firm themselves. The placement of Mrs.de Carvalho Heineken and Mr. D.P. Hoyer on Board of Directors is therefore very strategic in terms of maintaining the “familiness” of the Heineken business. Although respondents were not as direct as to whether there was a succession plan at Heineken, available documents reveal that indeed there is a succession plan at the company. It is interesting to note that Mrs. de Carvalho Heineken has been a member of the Executive Board of Directors since the age of thirty-four (she was nominated in 1988). This type of exposure to the Heineken business would went a long way in preparing Mrs. de Carvalho-Heineken for future positions. Her experience as a member of the Executive Board of Directors therefore confirms results of studies that found that positive firm performance by family successors is associated with successor’s development and intergenerational relationships, succession planning, successor’s potential capability, commitment to the firm and successor’s business skills.
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- Date Issued: 2013
An examination of succession planning approaches in family owned businesses : a case study of two businesses in East London, South Africa
- Authors: Govender, Rowan
- Date: 2011
- Subjects: Family-owned business enterprises -- Succession -- South Africa , Family-owned business enterprises -- South Africa -- Management , Family corporations -- Management
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8589 , http://hdl.handle.net/10948/1621 , Family-owned business enterprises -- Succession -- South Africa , Family-owned business enterprises -- South Africa -- Management , Family corporations -- Management
- Description: Family businesses constitute a large number of businesses worldwide contributing significantly to the global economy. Succession planning is a key issue influencing the sustainability of these family businesses. According to research, approximately 30% of businesses fail due to matters related to succession planning (Grote, 2003). Further research indicated that approximately 50% of family businesses do not have adequate succession plans in place. Hence, family businesses are exposed to significant risk in sustainability due to insufficient succession planning. An effective approach to succession planning in a family business increases the chance of success of a family business in both the short and long term. The purpose of this study was to develop a better understanding of approaches to succession planning in two family businesses in East London, South Africa. This purpose was to improve the commercial viability of family businesses and improve the body of knowledge from an academic perspective. To this end, a detailed literature study was conducted on family businesses and succession planning. A qualitative case study research paradigm was implemented to ascertain the nature of the approaches adopted by the two businesses. An interview process was conducted with the incumbent founders (fathers) and successors (sons) of the family business. This process suggested that each business requires a unique approach to succession plan which may include aspects of formal and informal processes. It is necessary to understand the nature of the family business, its interrelated relationships and context to adequately determine the success of a succession approach. It is for this reason that families aspiring long term sustainability should invest in effective succession planning approaches that integrate the nuances of the individual family business.
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- Date Issued: 2011
Sibling partnerships in South African small and medium-sized family businesses
- Authors: Farrington, Shelley Maeva
- Date: 2009
- Subjects: Family-owned business enterprises -- South Africa -- Management , Family corporations -- South Africa -- Management , Families -- Economic aspects -- South Africa , Small business -- Management -- South Africa , Family-owned business enterprises -- Succession -- South Africa
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:9289 , http://hdl.handle.net/10948/952 , Family-owned business enterprises -- South Africa -- Management , Family corporations -- South Africa -- Management , Families -- Economic aspects -- South Africa , Small business -- Management -- South Africa , Family-owned business enterprises -- Succession -- South Africa
- Description: Given the predicted increase in the number of family businesses owned and/or managed by siblings (Sibling Partnerships), as well as the lack of understanding and research attention given to such sibling teams, the purpose of this study was to contribute to the more effective functioning of such family businesses in South Africa by identifying the factors that impact on their success. With this purpose in mind, the primary objective was to identify, investigate and empirically test the possible influences of, and relationships between, various factors and the Perceived success of Sibling Partnerships. This study sets out to integrate prior findings and theories on team effectiveness and family relationships, to find support for these theories in the family business literature, and to incorporate these findings into a comprehensive model. The literature study revealed 5 main categories (context, composition, structure, processes, and people) of constructs influencing the Perceived success of sibling teams. Within these 5 main constructs, 13 underlying independent variables were identified and hypothesised to influence measures of effectiveness of sibling teams, namely the dependent variable Perceived success, and the 2 intermediate variables Financial performance and Family harmony. Of the 13 underlying independent variables, 6 were categorised as task-based and 7 as relational-based factors. In addition, hypotheses were formulated for possible relationships between the various task-based constructs (context, composition and structure) and the processes and people constructs. Each construct was clearly defined and then operationalised. Operationalisation was done by using reliable and valid items sourced from tested measuring instruments used in previous studies, as well as several self-generated items based on secondary sources. A structured questionnaire was made available to respondents identified by means of the convenience snowball sampling technique, and the data collected from 371 usable questionnaires was subjected to various statistical analyses. An exploratory factor analysis was conducted, and Cronbach-alpha coefficients were calculated to confirm the validity and reliability of the measuring instrument. The 6 task-based latent variables were confirmed by the exploratory factor analysis. However, all the other latent variables, as originally intended in the theoretical model, could not be confirmed. Instead, 3 dependent variables were identified, namely Financial performance, Growth performance and Satisfaction with work and family relationships, and 6 relational-based constructs, with some changes, did emerge. Structural Equation Modelling (SEM) was the main statistical procedure used to test the significance of the relationships hypothesised between the various independent and dependent variables. Because of sample size restrictions the conceptual model could not be subjected to SEM as a whole; consequently 10 submodels were identified and subjected to further analysis. The following independent variables were identified as influencing the dependent variables in this study: • Internal context • Complementary skills • Leadership • Shared dream • Fairness • Sibling relationship • Non-family members • No other family members (spouses and non-active siblings) In addition, the factors Complementary skills, Leadership, Past parent involvement, No present parent involvement, and No other family members, were identified as significantly influencing the relationship between the siblings involved in the Sibling Partnership. Furthermore, an Analysis of Variance (ANOVA), Multiple Linear Regression analysis and t-tests were undertaken to determine the influence of demographic variables on the dependent variables. How ownership is shared in a family business involving siblings, the shareholding between the siblings themselves, and the nature of leadership between the siblings, has been found to influence the iv dependent variables in the present study. In addition, a Sibling Partnership is likely to perform most effectively when it is composed of a relatively young sibling team that has a small age gap between the members, and business performance will improve as the siblings gain work experience together, and as the number of employees increase. This study has added to the empirical body of family business research by investigating a particularly limited segment of the literature, namely Sibling Partnerships in family businesses. By identifying and developing various models that outline the most significant factors that influence the success of such family business partnerships, this study offers recommendations and suggestions for managing family businesses involving siblings, in such a way as to enrich their family relationships and to improve the financial performance of their businesses.
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- Date Issued: 2009
The moderation and mediation influence of dynamic capabilities and decision-making dimensions on South African family business performance
- Authors: Pike-Bowles, Angela https://orcid.org/0000-0003-4811-0455
- Date: 2023-07
- Subjects: Family-owned business enterprises -- South Africa -- Decision making , Family-owned business enterprises -- Succession -- South Africa , Management information systems
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/28684 , vital:74499
- Description: Family businesses are fundamental for any world economy where they contribute significantly to economic prosperity. However, family firms are faced with new obstacles that are directly affecting their business performance due to the current economic uncertainties and the rapidly changing environments. The implementation of dynamic capabilities is a fundamental strategic tool family firms can exercise to improve their competitive advantage. Although family business research has proliferated over the last 10 years, there are few studies in South Africa investigating the extent to which dynamic capabilities influence family business performance. This study, therefore, had a primary objective to investigate the determinants of family business performance and the role that dynamic capabilities play as mediators and moderators. Studying such a research theme has not received sufficient attention within the family business field, which emphasises the need for such a topic to be investigated. The independent variables for the study entailed dynamic capabilities and decision-making constructs while the dependent variable comprised family business performance. Consequently, the mediating variables included strategic foresight, strategic flexibility, and strategic creativity while the moderating variables included strategic creativity and strategic flexibility. This investigation followed a quantitative methodological logic by employing the questionnaire as the research instrument. In total, 347 family business managers and owners from the eight districts of the Eastern Cape participated in the study. The family businesses were accessed through a convenience sampling technique to identify if their business suited the inclusion criteria of the study. Data analysis was executed through SPSS where the moderation-mediation analysis followed the Hayes process macro through multiple regression analysis. The research findings revealed that there is both a significant positive and mediation relationship between the dynamic capabilities constructs entailing environmental scanning, scenario planning, knowledge creation, culture, and formal organisation with the decision-making constructs of strategic foresight, flexibility, and creativity with family business performance. Interestingly, a moderation relationship does not exist between these constructs and the strategic foresight of the family firm. However, a moderation relationship does exist between the dynamic capabilities constructs of knowledge creation and culture and strategic foresight when moderated by strategic creativity. Thus, family business performance is positively influenced by the said dynamic capabilities and decision-making constructs. The results ultimately provided implications for family businesses with practical advice on the successful implementation and monitoring of dynamic capabilities and decisionmaking in the family business. Lastly, this study makes recommendations for family and non-family business owners, government, and academics. These recommendations entail family businesses implementing a lucrative dynamic capability model to improve family business performance in the context of South Africa. , Thesis (PhD) -- Faculty of Management and Commerce, 2023
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- Date Issued: 2023-07