FAMILY BUSINESSES AND THE DIFFICULTIES ENCOUNTERED BY
There are few family owned businesses that survive to the next generation. In general, 30% of these businesses are passed on to second generation families and less than 15% survive to third generation families. There has been little research done on third generation family businesses. Therefore t...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Universidade Federal de Santa Catarina
2009-05-01
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| Series: | Revista de Ciências da Administração : RCA |
| Subjects: | |
| Online Access: | https://periodicos.ufsc.br/index.php/adm/article/view/10591 |
| Summary: | There are few family owned businesses that survive to the next generation. In general,
30% of these businesses are passed on to second generation families and less
than 15% survive to third generation families. There has been little research done
on third generation family businesses. Therefore the main purpose of this paper
is to identify the principal difficulties of passing on managerial skills to the third
generation owners. This study uses a case study of a Brazilian family organization
composed of twelve enterprises. The instrument to collect data was an individually
guided recorded interview with all of the family managers (1ª, 2ª e 3ª generation).
The technique applied, was suggested for Miles & Huberman (1994) to group the
data in analytical categories to facilitate the analyzed speeches contained in the
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blocks of responses. As a result, the transition the business to the third generation
owners has been strongly associated with the relation between family and business
by the following factors: a) the succession process influenced by emotional
and family values; b) conflicts, rivalries and divergences of strategic visions and
business goals between the family generations; c) lack of professional criteria to
hire relatives; and d) fragility of communication and consequent asymmetry of
information among the family members. |
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| ISSN: | 1516-3865 2175-8077 |