Alexandra Dawson

Advancing Family Business Research Through Narrative Analysis

Despite advances in family business research, the field would benefit from greater methodological rigor. However, rigor does not mean convergence of methodologies. In this article, the authors adopt a novel approach, based on narrative analysis, to address the succession process in a family business. This interpretive perspective is appropriate for family business studies, which address multifaceted and complex social constructs that are performed by different actors in multiple contexts. The analysis highlights five key themes centering on leadership style and succession, trust and communication, balance between agents, history and identity, and fear of losing one’s identity and social standing through the succession process.

Predictors of Later Generation Family Members’ Commitment to Family Enterprises

This study examines the antecedents of different bases of organizational commitment and intention to stay of later–generation family members who are currently working in their family firm. Evidence from 199 Canadian and Swiss firms indicates that when these individuals’ identity and career interests are aligned with their family enterprise, they experience affective commitment. Family expectations are associated with normative commitment. Individuals who are concerned about losing inherited financial wealth or who perceive a lack of alternative career paths stay with the family enterprise because of continuance commitment. Finally, individuals driven by desire or obligation exhibit low turnover intentions.

The Burden of History in the Family Business Organization

In this article we focus on the study of history through the use of narratives, within the context of the prevalent form of organization worldwide: the family business. Specifically we consider the dilemma of the impossible gift of succession using Nietzsche’s discussion of the burden of history and paralleling the story of a family business succession with that of Shakespeare’s King Lear. This way, we seek to make a contribution to organizational studies by answering recent calls to engage more with history in studies of business organizations. By implication, the study also initiates an integration of family business studies into organization studies.

Behavioural outcomes of next-generation family members’ commitment to their firm

Are there variations in behaviours and leadership styles of next-generation family members or descendants who join their family business due to different forms of commitment? Evidence from a dual respondent study of 109 Canadian and Swiss family firms suggests that descendants with affective commitment to their family firms are more likely to engage in discretionary activities going beyond the job description, thereby contributing to organizational performance. Next-generation members with normative commitment are more likely to engage in transformational leadership behaviours. Both affectively and normatively motivated next-generation members use contingent reward forms of leadership. A surprising finding of this study is the binding force of normative commitment on positive leadership behaviours of next-generation members. This study empirically tests the generalizability of the three-component model of commitment to family businesses, a context in which different forms of commitment may play a unique role.

Beyond knowledge bases: Towards a better understanding of the effects of M&A on technological performance

This chapter deals with the impact of mergers and acquisitions (M&A) on technological performance. We argue that, when it provides additional technological resources, M&A promote the creation of more value in the innovation process. Instead, when it allows the redeployment of complementary assets, M&A enable more value to be captured from the innovations, and hence foster firms’ incentives in the innovation process. Hypotheses are tested on a sample of deals that were completed in the U.S. “medical devices and photographic equipment” sector in the period 1988–1996.

Building family business identity through transgenerational narratives

Purpose The purpose of this paper is to understand how family businesses (FBs) build their collective identity through transgenerational narratives. The authors examine the processes through which organizational meanings are socially constructed through narratives about individuals who are closely linked to the organizations (and their family). Design/methodology/approach Based on qualitative research, the authors study a 180-year old Spanish Pharmaceutical FB. Using longitudinal data, the authors analyze the narratives of six family members and two non-family executives. The authors use open-ended questions to allow interviewees to elaborate their own stories, following previous studies using extended narratives that leave the stage to the narrator. Findings Findings based on the stories of the eight interviewees (voice) suggest that the FB identity was initiated by the founder’s way to grow the business (fictionality). In turn the family shaped the identity of the FB, being reshaped by the stories arising from next generations’ entry into the business (reflexivity). While the FB identity reflects that of the owners, this identity is enduring but dynamic (temporality), not only shaped by the business family behind, but also conditioned by the environment. Originality/value The authors contribute to the growing literature adopting a narrative method to study phenomena in FBs. Thanks to the richness of the empirical material, a narrative method is particularly suited – and novel – for understanding collective identity, a crucial organizational resource that is closely linked to leadership in the FB.

Corporate Governance in Family Businesses Across Generations: Exploring Intergenerational Issues

The presence of different generations in family businesses creates intergenerational issues that affect the dynamics of their governance structures. Bringing together literature on family business governance with studies of intergenerational relationships, we contribute to our understanding of governance structures and relationships in family businesses. We illustrate these dynamics through a qualitative approach using an in-depth, longitudinal case study of a 180-year-old family business, which we followed for 10 years. We focus on intergenerational and intertemporal dilemmas faced by the family throughout the generations, focusing on a shift away from ethical toward economic interests, as both family and business have grown in complexity.

Private equity investment in family firms: the role of stake size and deal syndication

ABSTRACT Private equity (PE) firms are increasingly investing in family firms, as these organizations look to grow and deal with ownership succession. In this study we contribute to the developing entrepreneurship literature on PE investment by addressing the heterogeneity of PE firms. We distinguish between private independent and captive PE firms to understand whether different types of PE firms select different (i.e. family vs. non-family) firms as their target. We also look at whether the relationship between the type of PE firm and likelihood of investing in a family firm (vs. a non-family firm) is moderated by two factors, which are related to risk reduction in PE deals, namely size of equity stake and deal syndication. Our analysis of all 902 PE deals that took place in Canada between 2009 and 2014 indicates that family firms are not the preferred investment choice for private independent PE firms, although taking a minority stake positively moderates this relationship.

Founder as Steward or Agent? A Study of Founder Ownership and Firm Value:

This study addresses the relationship between founder ownership and firm value in young and entrepreneurial businesses. We argue that a stewardship effect prevails when founders have low or high levels of ownership while an agency effect prevails at intermediate levels. Using a dataset of 1,269 firms with 11,645 firm-year observations, we find support for our hypothesis that there is a convex relationship between founder ownership and firm value. The agency effect at intermediate founder ownership is consistent with evidence indicating that these firms display lower leverage, greater unrelated diversification, and higher disproportionate board representation.