Customer Relationship Management: A Comparative Analysis of Family and Nonfamily Business Practices*

It has been reported that family businesses perceive excellent customer service as critical to the future of their businesses. However, little research into the customer relationship management (CRM) practices of family businesses has been performed. In this study, we examine CRM implementation among 82 family and 370 nonfamily firms. Family and nonfamily businesses report similar attitudes toward the importance of CRM, their knowledge of CRM, and their success when they do implement it. However, using a logit regression model, we find that the actual implementation strategies of family businesses are significantly different from those of nonfamily businesses. These results remain constant when controlling for size and industry sector.     

The global family business: Challenges and drivers for cross-border growth

Globalization has become an imperative and is no longer avoidable as a strategic choice for family businesses. However, globalization strategies are far from the norm among small and medium-sized family enterprises. This article reviews the main drivers for globalization, highlights the distinct characteristics of family businesses that may enhance or constrain their global expansion, and provides a framework for strategically evaluating business capabilities and global market opportunities.     

Ethical Leader Behavior and Big Five Factors of Personality

Most research on ethical leadership to date investigates the consequences of ethical leadership rather than its antecedents. Here, we aim to contribute to this field by studying leader personality as a potential antecedent of ethical leader behavior. In two multisource studies, we investigated the relationships between personality traits and ethical leader behavior. Leader personality was measured through self-ratings using the five-factor personality framework. Two subordinates rated their leaders’ ethical behavior. Study 1 used a uni-dimensional Ethical Leadership Scale (ELS). In study 2 we used this scale as well as an instrument distinguishing three different ethical leader behaviors, namely, fairness, role clarification, and power sharing. Further, in study 2 we controlled for the influence of the relationship between leader and followers (LMX). As expected, conscientiousness and agreeableness were most consistently related to ethical leadership. In study 1, after controlling for the other personality traits, conscientiousness related positively with ethical leadership. In study 2, after controlling for other traits and LMX, conscientiousness related positively with ethical leadership and the behavior role clarification, and agreeableness with power sharing and fairness. Also, emotional stability related positively with ethical leadership and role clarification after controlling for LMX. As expected, openness to experience and extraversion were unrelated to ethical leader behaviors.     

Family Matters? Recruitment Methods and Cultural Boundaries in Singapore Chinese Small and Medium Enterprises

Singapore official discourse speaks of (Chinese) families as both cultural and economic assets and as vestiges of national identity. Chinese families are often described in traditional terms, namely as patrilinial, patrilocal, patriarchal and clearly hierarchical. In Singapore official discourse, the historical success of traditional family businesses is presented as a unique ethnic and national characteristic. Simultaneously, the Singapore state claims to be ‘modern’, ‘Western’, and ‘cosmopolitan’, allowing little space for ‘parochial practices’ and ‘archaic traditions’. Either praised or looked down on, family businesses occupy an ambiguous position within the ‘traditional’ and ‘modern’ discourses of the Singapore state. This article supplies the evidence of changing family and business relations in Chinese–Singapore firms. Three major factors are isolated that influence Singapore attitudes towards family businesses: Chinese culture, globalization and the logic of developing capitalism, and the role of the Singapore state.     

家族企业社会责任与企业绩效:内部能力与外部关系的调节效应

文章利用浙江和重庆两地351家家族企业调查数据,在将家族企业社会责任区分为内部人责任、外部人责任和公共责任的基础上,实证检验了家族企业社会责任与企业绩效关系及内部能力和外部关系的调节效应.结果显示:第一,高内部能力(制造能力、吸收能力)家族企业内部人责任对绩效的影响更大;高吸收能力家族企业公共责任对绩效的影响更小;具有丰富外部关系(高密度、大范围关系网络)家族企业外部人责任对绩效的影响更大.第二,高内部能力家族企业中,内部人责任对绩效有显著的正向影响,公共责任对绩效有显著的负向影响.低吸收能力家族企业中,内部人责任对绩效有显著的负向影响;具有低密度关系网络家族企业中,内部人责任对绩效有显著的正向影响,公共责任对绩效有显著的负向影响;具有大范围关系网络家族企业中,公共责任对绩效有显著的负向影响.     

When Servant Becomes Leader: The Corazon C. Aquino Success Story as a Beacon for Business Leaders

This article makes the case for servant leadership as a model for business in its analysis of the leadership style of former Philippine president, Corazon C. Aquino. Premised on the idea that self-management requires deep spirituality lived integrally (and sustained by an interior or inner life), we identify specific traits and virtues of Aquino and their implications on her leadership and effect on people. The article begins with an introduction to establish the contribution of servant leadership on business. It continues with a summary of key points in servant leadership literature. Then, we analyze Aquino as a person and leader and find that the former spilled over to the latter. We conclude by providing a model based on Aquino’s journey into the role of servant leader; thus, presenting a framework that charts the path toward servant leadership to help businesses address the leadership crisis brought on by an Enron-WorldCom-Tyco dominated business culture.     

The Performance of Europe-wide Businesses: Has the Single Market Led to Scale Economies?

This article follows up earlier research which had found that in the 1970s and 1980s the incentives to invest in Europe-wide businesses had often been lacking or even negative: for example, the most profitable Europe-wide businesses were less likely to be European market leaders and were likely to have lower market shares than their principal competitors; they were less likely to be innovative, having entered the market as follower rather than leader. The author finds evidence that this started to change even before the single market and that the change has continued. The key success factors for profit in European business are coming closer into line with the success factors for growth – innovation, quality and intellectual property.     

Transformational change and leader character

Leader character is foundational to good leadership. We define character as an amalgam of virtues, values, and personality traits that influence how leaders behave in various contexts. Our research identified 11 dimensions of leader character and 60-plus character elements that are illustrative of those dimensions. We integrate two frameworks: John Kotter’s eight-step model of leading change and our framework of leader character dimensions and associated elements. Specifically, the objective of this article is to illustrate which dimensions of leader character come into play at various points in the organizational change process and how their presence or absence affects the outcomes of the change process. Beyond that, we draw inferences about how organizations might develop character among all leaders but especially those younger, less experienced leaders who will become tomorrow’s leaders of change projects.     

Correlates of success in family business transitions

Fundamental differences are identified between the nature and functioning of family-owned and -managed businesses and those that are not familu-controlled. These differences include the time horizons of management, the implications of business failure, the degree of job security, the centralization of decision-making, accountability for decision-making, and the impact of the family system on the business system, among others. It is argued that the most significant of these differences concerns the way in which executive succession occurs, and specifically, unique aspects of the process of intergenerational transfer within family-owned businesses.Based on an initial round of interviews with second- and third-generation family business owners, and a detailed review of the extant literature, a model is proposed consisting of three sets of determinants of successful family business transitions: the preparation level of the heirs, the nature of relationships among family members, and the types of planning and control activities engaged in by the management of the family business. Successful transitions are further hypothesized to influence subsequent company performance.Much of the research to date on family business transitions has tended to be qualitative, case-oriented, and/or anecdotal in nature. The result has been a number of rich insights into the complexities and dynamics of the family enterprise, but limited in terms of the generalizability of the findings. Considerably less attention has been devoted to quantitative studies that employ larger samples and provide empirical tests of relationships between key variables. This lack of attention is traced to inherent measurement difficulties in the family business field, and to the relatively young status of the field itself as a distinct area receiving academic attention. The current study attempts to bridge this gap.The study provides a quantitative assessment of the proposed model using two cross-sectional sub-samples consisting of 209 second- and third-generation family-owned businesses. Both regression and structural equations (LISREL) analyses are employed. The results indicate support for the proposed model. Family business transitions do occur more smoothly when heirs are better prepared, when relationships among family members are more trust-based and affable, and when family businesses engage in more planning for taxation and wealth-transfer purposes. Of these factors, relationships within the family has the single greatest impact on successful transitions. At the same time, smoother transitions do not necessarily result in better post-transition performance by the enterprise. This linkage to performance appears to be more complex. One possibility is that some level of conflict or strife is a prerequisite for the transition to have a significant impact on subsequent performance.Based on these results, family business owners are encouraged to devote relatively more attention to relationship issues, and relatively less to estate and tax planning. It is suggested that a “relationship charter” be developed as a vehicle for strategically managing relationships within the family, much as relationships must be managed with suppliers or customers. Suggestions are also made for further research, and the study's limitations are denoted. Researchers are encouraged to devote efforts to exploring relationships among the exogenous variables in the research model, such as that between preparation levels of heirs and family relationships. Further, the issue of success and failure in second- and third-generation businesses warrants greater attention, including identification of key failure and success factors as well as determination of differences in failure rates for family— versus non-family—owned businesses and isolation of the reasons for such differences.     

Craft Retailers' Criteria for Success and Associated Business Strategies

This research was designed to fill the void in understanding how art–related retailers define and achieve success. A two–phase data collection process was implemented. Preliminary personal interviews were conducted with 12 craft retailers followed by a mailed survey to 1000 craft retailers in nine southeastern U.S. states. Factor analysis was employed to reduce the number of items for defining success. Cluster analysis followed to develop empirical groupings of craft retail businesses based on the success factor scores, of which four different groups were identified. Multivariate analysis of variance (MANOVA) and analysis of variance (ANOVA) were used to compare retail clusters related to business strategy variables of competitive strategies, product assortment, pricing, and distribution strategies, and networking activities. Significant differences were found in the craft retailers' business strategies used to achieve success. Craft retail entrepreneurs were found to define success with both traditional criteria such as profit and growth and also with intrinsic factors such as personal satisfaction and the opportunity to elevate the craft tradition. Successful small craft retail firms offered more focused product assortments of specialized craft products, implemented more differentiated strategies of stocking unique crafts in their assortments, as well as offering unique services to educate consumers about crafts, craft artisans, and a region's culture. Craft retailers who reported greater success did not engage in competitive pricing. Collaborative strategies included networking among family, friends, and business peers.     

Building Capability for Organizational Success: An Emerging Market Perspective

In the world of business, developing the capability to succeed in the marketplace is a sine qua non for most organizations. An examination of studies on firm competitiveness indicates that market orientation, outsourcing, and technology transfer provide firms with the basis for building capability to succeed in the business environment. Nonetheless, in a developing nation context, the comparative influences of market orientation, outsourcing, and technology transfer on organizational success among foreign and local firms when considered together in a combined framework is yet to be investigated empirically. To gain clearer insights, three pathways through which market orientation, outsourcing, and technology transfer improve organizational success in Ghana are postulated. Findings of this study suggest that among foreign and Ghanaian businesses, there are variations in the contributions of market orientation, outsourcing, and technology transfer to developing capability and impacting on organizational success.     

Internationalisation of family small and medium sized enterprises: The role of stewardship orientation,family commitment culture and top management team

The purpose of this paper is to determine how aspects of organisational culture, typical to family businesses, influence internationalisation. Proposing that stewardship orientation, family commitment culture and top management team related factors influence internationalisation; we empirically examine 80 internationalising family SMEs (FSMEs) from the manufacturing sector in Finland. Variance based structural equation modelling (PLS) shows that family commitment culture is negatively associated with the degree of internationalisation. On the other hand strategically flexible top management teams with industry experience in FSMEs are positively associated with the degree of internationalisation. Contributing to an understanding of the internationalisation of family businesses, the findings suggest that family commitment culture and stewardship orientation, often associated with an inward orientation, may operate against internationalisation, however when coupled with the strategic flexibility of the top management team, we found stewardship orientation to positively impact internationalisation suggesting that it provides an outward orientation. Implications for practice are advanced.     

Governance Structure and the Credibility Gap: Experimental Evidence on Family Businesses’ Sustainability Reporting

This paper examines the success of corporate communication in voluntary sustainability reporting. Existing studies have focused on the perspective of the communicators but lack an understanding of the perspective of information recipients to clearly evaluate this interactive communication process. This paper looks at the issue of a credibility gap perceived by external stakeholders when they doubt the authenticity of communicated information due to the reporting company’s governance structure. The paper uses family businesses to exemplify the emergence of such a gap when outsiders become concerned about the potential agency problem of the integrated ownership and management controlled by a few members of the same family. Following source credibility theory, these concerns raise a credibility gap associated with a family firm’s trustworthiness and goodwill, even if the family has the expertise to carry out sustainability reporting. The findings of two experimental studies indicate that family businesses suffer a greater credibility gap than non-family businesses. An external and independent assurance service can mitigate such gaps, especially when the service is comprehensive and targets family businesses. The paper provides a complete view evaluating corporate communication by looking at the interaction between the communicating company and the information recipients.     

Family Business in Sub-Saharan Africa Versus the Middle East

This paper examines the impact of culture on family businesses in two regions of Africa: sub-Saharan Africa and the Middle Eastern region. Nine cross-culturally comparable “etic” dimensions are used to assess characteristics of family firms in both regions, based on the Culturally-sensitive Assessment System and Education (CASE) project. Overall, the characteristics of family businesses in the regions are associated with their distinctive cultures. Several commonalities are found; however, the observed differences suggest directions for the African family businesses to become the engines for national and regional development. Implications for further research and for practice are identified.     

Consumer loyalty to family versus non-family business: The roles of store image,trust and satisfaction

This study sheds insight on how consumers perceive and relate to family and non-family grocery stores. Using a critical incident approach we show that—compared to non-family businesses—consumers evaluate family businesses better in terms of service, frontline employee benevolence, and problem-solving orientation, and worse in terms of selection and price/value. Results further indicate higher consumer trust in family business management policies and practices, frontline employee trust, and satisfaction but no differences in loyalty. Examining an integrative loyalty framework, the study finally shows differential effects in how image elements influence customer loyalty directly as well as indirectly through trust and satisfaction. Implications focus on advancing customer relationship management in retailing, and on successfully positioning family-owned and -operated businesses.     

Community Social Responsibility and Its Consequences for Family Business Performance*

Family‐centered businesses may have unique perspectives of socially responsible behavior due to family involvement and ties to the community. This research explored the antecedents and consequences of community social responsibility (CSR) for family firms operating in small and rural markets. Using a national sample from the 2000 wave of the National Family Business Survey (NFBS), researchers profiled family business operators' (n = 221) to determine if their CSR orientation contributed to family business performance. Enlightened self interest and social capital perspectives provide a framework for elaborating the role of CSR in sustaining family businesses in changing small communities. Results indicate that three dimensions, commitment to the community, community support, and sense of community, account for 43 percent of the variation in family business operators' CSR. Size of the business was significantly related to family firms' ability to give and receive community support. Further, commitment to the community was found to significantly explain perceived family business performance while community support explained financial performance. Findings suggest that socially responsible business behaviors can indeed contribute to the sustainability of family businesses in small rural communities.     

家族企业控制权继任分析模型研究

针对家族企业的传承是一个复杂的多阶段演进过程,文章在借鉴国外有关家族企业控制权继任模型的基础上,结合我国特有的文化、市场背景的实际情况,构建了家族企业控制权继任分析模型,并对家族企业控制权继任传递影响因素进行了分析,希望对中国家族企业解决代际传承问题有所借鉴。     

One Leader is Not Enough for Major New Service Development: Results of a Consumer Banking Study

This article reports the results of a study into leadership in retail bank product development. New product development is an increasingly important business activity in many services businesses. Financial services specialists involved in this activity are required to have an understanding of project working that aims to match new product concepts to potential customer needs. In the empirical study reported here all the new product projects were aimed at developing a new area of business and were of great potential importance to the sponsoring businesses in which they were pursued. It was found that success in completing a project efficiently was associated with effective co-leadership between different levels of the organisation. Lesser project success was found when leadership was confined to a single leader. Co-leadership involved a common leadership style that was enabling, participative and highly communicative. Empowering junior colleagues to act as co-leaders confronts top management with challenges to traditional concepts of authority. Our results show how enlightened top management turns these challenges to the best advantage of their business.     

Managing Family Businesses in Small Communities

Small businesses located in communities with populations of less than 10,000 were identified in a national sample of family businesses and examined for differences in their management strategies (n = 384). These businesses were first clustered by level and type of management strategy and then analyzed to ascertain differences and similarities in both personal and business firm characteristics among the family business manager groupings. Problems associated with small business management and sources of assistance were also identified. Findings suggest that managers of small family businesses located in small U.S. communities who practiced strategies focusing on extensive planning and controlling perceived their businesses to be successful; however, these managers noted that their greatest problem involved development of sound marketing strategies.     

Unpacking humility: Leader humility,leader personality,and why they matter

Humility has attracted increasing attention in discussions of leadership given the positive effects that humble leaders can have on team and firm performance. In spite of what we know about the favorable outcomes of leader humility, we do not know much about how personality influences humble behaviors. How is leader humility related to personality? How can leaders develop humility? In this article, we look at how the personality factors of Conscientiousness, Agreeableness, Neuroticism, Openness to Experience, and Extraversion lead to specific humble behaviors: self-awareness, appreciation of others, low self-focus, teachability, and self-transcendent pursuits. We find that the personality mix of Conscientiousness, Agreeableness, and Openness to Experience form a substantial base for developing leader humility. At the same time, a humble leader can be an introvert or an extrovert, and can demonstrate different degrees of emotional stability. We offer recommendations and a behavioral inventory of leader humility that can be used by leaders and by organizations to recruit for and promote humility, to engage in behavioral modeling and coaching, and to create interventions to develop leader humility.