Robert N. Lussier

First-, Second-, and Third-Generation Family Firms: A Comparison:

SAGE wishes to inform readers that the article titled “Bahavioral [sic] Characteristics of Entrepreneurs in the Gujrat, Gujranawala and Slalkot Industrial Clusters of Pakistan: A Comparisn [sic] of First, Second and Third Generation Family Firms,” by Shahid Qureshi, Sarfraz A. Mian, and Arif Iqbal Rana, published in Volume 1, Issue 2 (November 2010) of International Journal of Business and Social Science included substantial excerpts from this article, “First-, Second-, and Third-Generation Family Firms: A Comparison,” by Matthew C. Sonfield and Robert N. Lussier, Volume XVII, Number 3 (September 2004) of Family Business Review, without appropriate attribution to Drs. Sonfield and Lussier or authorization of the authors or SAGE. Numerous requests made by SAGE to the editor of International Journal of Business and Social Science to address the inappropriate use of this article have gone unanswered. SAGE has additionally been informed by the lead author of the IJBSS article, Shahid Qureshi, that Sarfraz A. Mian and Arif Iqbal Rana did not participate in the authorship of the IJBSS article, and authorship of the article was completed by Dr. Qureshi alone. There has been limited prior research into generational differences among family businesses. This study compared first-, second-, and third-generation family firms. Contrary to much of the current literature, only two significant differences were found when testing 11 hypotheses. As hypothesized, first-generation family businesses do less succession planning than second- and third-generation family firms, and there are no differences between first-, second-, and third- generation firms with regard to the influence of the firms founder. Also, first-generation firms had the highest use of equity versus debt financing. Although not tested as a hypothesis, demographic analysis indicated fewer first-generation firms using the corporation form of ownership. Analysis of covariance indicated no spurious relationships existing in the hypotheses.

A Crossnational Prediction Model for Business Success

In this study, the Lussier (1995) success prediction model, originally developed using U.S. data, is tested using a sample of firms from Central Eastern Europe. The same factors found to be predictors of success in the U.S. (staffing, education level, use of professional advice, and planning) were also predictors of success and failure in Central Eastern Europe. All these factors have to do with the firms human resources. These findings should lead to reconsideration of preconceptions existing in Central Eastern Europe regarding small business, as in many of its countries it is commonly believed that human resources have little to do with business success and failure.

Gender Comparisons in Strategic Decision-Making: An Empirical Analysis of the Entrepreneurial Strategy Matrix

The strategic decision‐making of male and female small businesspersons and entrepreneurs has been investigated in prior research, but the findings are mixed. This article reports on a gender comparison testing of the Entrepreneurial Strategy Matrix, a situational model which suggests strategies for new and ongoing ventures in response to the identification of different levels of venture innovation and risk. A national sample of 184 small firm owers (59 percent male/41 percent female) was tested. Results indicate that there are no significant gender differences in venture innovation/risk situation or in strategies chosen by business owners. Male respondents did indicate a higher overall satisfaction with venture performance than did females.

Entrepreneurs Use a Balanced Scorecard to Translate Strategy into Performance Measures

Although 50 percent of Fortune 1000 companies currently use a balanced scorecard (BSC), few small businesses are using a BSC. A review of the literature finds no BSC papers in leading small business/entrepreneurship journals. This article begins with a discussion of the BSC and why a small business should use it. Three small to medium‐sized enterprise (SME) case studies are presented, with a copy of their BSC, to illustrate how Hyde Park Electronics, Futura Industries, and Southern Gardens Citrus use a BSC to set strategy and align operations to achieve breakthrough results. Implications are, that like large businesses, SMEs can also benefit from using a BSC. Entrepreneurs of SMEs can use the case studies to develop their own BSC to improve performance. Implications for practice and research are discussed.

A Three-Country Comparison of the Business Success Versus Failure Prediction Model

Why do some businesses succeed and others end up bankrupt? There is great discrepancy in the literature as to which variables do in fact lead to success, thus, there currently is no theory. To move the field in that direction, this study tests the Lussier 15‐variable business success versus failure prediction model in Chile with a sample of 234 small businesses—131 failed and 103 successful. Results support the models validity in Chile. Thus, the model has been tested with significant results in three very different parts of the world; first in United States (North America), then in Croatia (Central Eastern Europe), and now in Chile (South America). The model will reliably predict a group of businesses as failed or successful more accurately than random guessing in all three countries over 96 percent of the time.

A Comparison of Business Success versus Failure Variables between U.S. and Central Eastern Europe Croatian Entrepreneurs

In this study, 15 success versus failure variables were tested for differences between U.S. and Central Eastern Europe Croatian (CEEC) entrepreneurs. Nine of the values were significantly different at the .05 level and two at the .10 level (73%). U.S. Entrepreneurs started with greater capital, had more years of management experience, developed more detailed planning, made greater use of professional advice, had more college graduates, sold products with better product life-cycle timing, started their business during better economic times, were older, included more partnerships, and had more parents who owned a business than CEEC entrepreneurs, while CEEC entrepreneurs had an easier time staffing than U.S. entrepreneurs. The Lussier (1995) U.S. success versus failure prediction model was tested using logistic regression (S/F = f staffing, education, use of professional advice, planning) and it was also a significant predictor in CEEC. The findings should help lead to redefining entrepreneurship in CEEC, as many of its countries commonly believe that human resources have little to do with business success and failure. As the view of human resources changes, more resources should be allocated to develop employees.

Management Textbooks as Propaganda.

Are management textbooks propaganda? Do textbook authors write to advance the interests of a particular group or groups (such as employees, organizations, and/or society)? Do they write to present the theory and research of the academic discipline? Do they write primarily to produce a product that consumers (faculty and students) will buy in sufficient numbers and at a price that will yield financial profit? This article explores these and related questions by asking four well-established management textbook authors—Kim Cameron, Duane Ireland, Bob Lussier, and Steve Robbins—to react to the metaphor of “management textbooks as propaganda or ideology.” Their responses provide insights into the role of textbook authors in shaping the direction of management education.

Family Business Management Activities, Styles and Characteristics: A Correlational Study

In the literature of family business, certain management activities, styles and characteristics have been most frequently examined. Yet no prior research focusing on the relationship between these family businesses variables has been found. This is a survey‐research correlation study of 149 family businesses. Of the twelve variables studied, twenty of the sixty‐six correlations were found to be significant. Major findings are the consistent use of professional management activities, styles and characteristics in family businesses, and that using non‐family members within top management does not significantly increase the professionalism of management of such businesses.

A model for predicting small firm performance

Purpose – This study aims to develop an ordered probit model to explain and predict small business relative performance in Chile, South America. Design/methodology/approach – The design is survey research. The sample includes 403 small businesses classified as 158 failed firms, 101 mediocre firms and 144 successful firms within all economic sectors. The model variables are: internet, starting with adequate working capital, managing good financial and accounting records, planning, owner formal education, professional advice, having partners, parents owning a business, and marketing efforts. Findings – The eight-variable model, tested with ordered probit, is a significant predictor of the level of performance at the 0.000 level. Also, six of the eight variables are significant predictors at the 0.05 level: internet, starting with adequate working capital, managing good financial and accounting records, owner, professional advice, having partners, parents owning a business, and marketing efforts. Two of the ...

Why businesses succeed or fail: a study on small businesses in Pakistan

Purpose – The aim of this paper is to examine the factors that lead to either success or failure of small firms in Pakistan. Design/methodology/approach – This study methodology is a survey research applying the Lussier Model of business success and failure with a sample of 143 small businesses to better understand the reasons of their success or failure using logistic regression statistical analysis. Findings – Results indicate that business planning, proper employee staffing, adequate capital inflows and partnerships are important for the viability and success of small businesses in Pakistan. Practical implications – Results provide further support for the validity of the Lussier Model in Pakistan and globally. Thus, small business owner/managers can use the model to help improve their chances of success and to avoid failure. Other stakeholders, including parties that assist and advise them, investors and institutions who/that provide them with capital and other resources and communities and society by ...