Advertisement

Longevity and Success in Family Business

The Third Generation: The Custodians of a Legacy
  • Laura Hougaz
Chapter
First Online:
  • 745 Downloads
Part of the Management for Professionals book series (MANAGPROF)

Abstract

The aim of this chapter is to understand the extent of interest of the third-generation (G3) family members in engaging with their family firms, and explore their personal motivations for continuing their involvement in the family business, focussing on the family relationships and values that have supported effective intergenerational transmission, thus influencing the longevity of their family firms.

This chapter first introduces the seven individuals who form the G3 in this study from the perspective of their profile, focussing on their identity and sense of ethnicity (‘Italianness’): this shows the ability and will of the G3 to keep alive the connection with the G1 and with their roots. The chapter then investigates their justification for their sustained commitment to the family business, as well as their attitudes and motivations. The subsequent, and main, part discusses aspects of family and business life (values) that are inherent in family firms, have shaped the behaviour of this generation, and have contributed to the continued growth and success of the family business into its G3 and beyond.

Keywords

Family Firm Family Business Dual Identity Family Solidarity Postgraduate Qualification 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
This is a preview of subscription content, log in to check access.

References

  1. Alba, R. (2005). Bright vs. blurred boundaries: Second-generation assimilation and exclusion in France, Germany, and the United States. Ethnic and Racial Studies, 28(1), 20–49.CrossRefGoogle Scholar
  2. Alba, R., Logan, J., Lutz, A., & Stults, B. (2002). Only English by the third generation? Loss and preservation of the mother tongue among the grandchildren of contemporary immigrants. Demography, 39(3), 467–484.CrossRefGoogle Scholar
  3. Alexakis, E., & Janiszewski, L. (1998). Greek Australians: Beyond the stereotypes. In their own image. Alexandria: Hale & Iremonger.Google Scholar
  4. Anderson, R. C., & Reeb, D. M. (2003). Founding-family ownership and firm performance: Evidence from the S&P 500. Journal of Finance, 58, 1301–1328.CrossRefGoogle Scholar
  5. Andersson, T., Carlsen, J., & Getz, D. (2002). Family business goals in the tourism and hospitality sector: Case studies and cross-case analysis from Australia, Canada and Sweden. Family Business Review, 15(2), 89–110.CrossRefGoogle Scholar
  6. Aronoff, C. E. (1998). Megatrends in family business. Family Business Review, 9(3), 181–185.CrossRefGoogle Scholar
  7. Astrachan, J. H., & Jaskiewicz, P. (2008). Emotional returns and emotional costs in privately-held family businesses: Advancing traditional business valuations. Family Business Review, 21(2), 139–150.CrossRefGoogle Scholar
  8. Baldassar, L., & Skrbis, Z. (1998). The second generation and the transmission of culture. Proceedings: Refashioning sociology: Responses to a new world order, TASA Conference (pp. 454–459). Brisbane: Queensland University of Technology.Google Scholar
  9. Bandura, A. (1986). Social foundations of thought and action. Englewood Cliffs, NJ: Prentice-Hall.Google Scholar
  10. Barach, J. A., & Gantisky, J. B. (1995). Successful succession in family business. Family Business Review, 8(2), 131–155.CrossRefGoogle Scholar
  11. Bottomley, G. (1992). From another place: Migration and the politics of culture. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  12. Chrisman, J. J., Chua, J. H., & Sharma, P. (1998). Important attributes of successors in family business: An exploratory study. Family Business Review, 11(1), 19–34.CrossRefGoogle Scholar
  13. Danco, L. A. (1980). Inside the family business. Cleveland, OH: University Press.Google Scholar
  14. Davis, P., & Harveston, P. D. (1999). In the founder’s shadow: Conflict in the family firm. Family Business Review, 12(1), 311–323.CrossRefGoogle Scholar
  15. Davis, P., & Harveston, P. D. (2001). The phenomenon of substantive conflict in the family firm: A cross-generational study. Journal of Small Business Management, 39(1), 14–30.CrossRefGoogle Scholar
  16. Deux, K., & Ethier, K. A. (1998). Negotiating social identity. Prejudice: The target’s perspective. In J. K. Swim & C. Stangor (Eds.), Prejudice: The target’s perspective (pp. 301–323). San Diego, CA: Academic Press.Google Scholar
  17. Dyer, W. G., Jr., & Handler, W. C. (1994). Entrepreneurship and family business: Exploring the connections. Entrepreneurship Theory & Practice, 19(1), 71–83.Google Scholar
  18. Edwards, R. C., & Gillies, V. (2005). Resources in parenting: Access to capitals project report. Families & social capital. London: ESRC Research Group, London South Bank University.Google Scholar
  19. Favero, L., & Tassello, G. (1986). Demographic and social characteristics of the Italian community in Australia and its second generation. In Espresso, corretto or white? Melbourne: Catholic Intercultural Resource Centre.Google Scholar
  20. Filion, L. J. (1988). The strategy of successful entrepreneurs in small business: Vision, relationships and anticipatory learning. PhD thesis, University of Lancaster, Lancaster, Great Britain.Google Scholar
  21. Freeberg, A. L., & Stein, C. H. (1996). Felt obligation towards parents in Mexican-American and Anglo-American young adults. Journal of Social and Personal Relationships, 13(3), 457–471.CrossRefGoogle Scholar
  22. Glazer, N., & Moynihan, D. P. (1970). Beyond the melting pot. Cambridge: MIT Press.Google Scholar
  23. Greeley, A. (1970). Ethnicity as an influence on behaviour. In P. I. Rose (Ed.), The study of society. An integrated anthology. New York: Random House.Google Scholar
  24. Greenwald, M., & Associates. (1993). Major findings of the Mass Mutual family business survey. Springfield, MA: Massachusetts Mutual Life Insurance Co.Google Scholar
  25. Handler, W. C. (1989). Managing the family firm succession process: The next generation family member’s experience. PhD thesis, Boston University.Google Scholar
  26. Handler, W. C. (1990). Succession in family firms: A mutual role adjustment between entrepreneur and next generation family members. Entrepreneurship Theory & Practice, 15(1), 37–51.Google Scholar
  27. Handler, W. C. (1994). Succession in family business: A review of the research. Family Business Review, 7(2), 133–157.CrossRefGoogle Scholar
  28. Hornaday, J. A., & Aboud, J. (1971). Characteristics of successful entrepreneurs. Personnel Psychology, 24, 141–153.CrossRefGoogle Scholar
  29. Kellermanns, F. W., & Eddleston, K. A. (2004). Feuding families: When conflict does a family firm good. Entrepreneurship Theory & Practice, 28(3), 209–228.CrossRefGoogle Scholar
  30. Kirby, D. A., & Lee, T. J. (1996). Research note: Succession management in family firms in the north east of England. Family Business Review, 9(1), 75–85.CrossRefGoogle Scholar
  31. Lambrecht, J. (2005). Multigenerational transition in family businesses: A new explanatory model. Family Business Review, 18(4), 267–282.CrossRefGoogle Scholar
  32. Lambrecht, J., & Donckles, R. (2006). Towards a business family dynasty: A lifelong, continuing process. In P. Z. Poutziouris, K. X. Smyrnios, & S. B. Klein (Eds.), Handbook of research on family business (pp. 388–401). Northampton, MA: Edward Gale Publishing.Google Scholar
  33. Lansberg, I. S. (1999). Succeeding generations: Realising the dream of families in business. Boston, MA: Harvard Business School Press.Google Scholar
  34. Le Breton-Miller, I., & Miller, D. (2006). Why do some family businesses out-compete? Governance, long-term orientation, and sustainable capability. Entrepreneurship Theory & Practice, 30, 731–746.CrossRefGoogle Scholar
  35. Le Breton-Miller, I., Miller, D., & Steier, L. P. (2004). Toward an integrative model of effective FOB succession. Entrepreneurship Theory & Practice, 28(4), 305–328.CrossRefGoogle Scholar
  36. Lentz, B. F., & Laband, D. N. (1990). Entrepreneurial success and occupational inheritance among proprietors. Canadian Journal of Economics, 23(3), 563–579.CrossRefGoogle Scholar
  37. Light, I. H. (1984). Immigrant and ethnic enterprise in North America. Ethnic and Racial Studies, 7(1), 31–45.Google Scholar
  38. McClelland, D. C. (1961). The achieving society. Princeton, NJ: D. Van Nostrand.CrossRefGoogle Scholar
  39. Naldi, L., Nordqvist, M., Sjoberg, K., & Wiklund, J. (2007). Entrepreneurial orientation, risk taking, and performance in family firms. Family Business Review, 20(1), 33–47.CrossRefGoogle Scholar
  40. Olson, D. H. (1988). The circumplex model of family systems VIII: Family assessment and intervention. In D. H. Olson, C. S. Russell, & D. H. Sprenkle (Eds.), Circumplex model: Systemic assessment and treatment of families. New York: Harworth Press.Google Scholar
  41. Olson, P. D., Zuiker, V. S., Danes, S. M., Stafford, K., Heck, R. K. Z., & Duncan, K. A. (2003). Impact of family and business on family business sustainability. Journal of Business Venturing, 18(5), 639–666.CrossRefGoogle Scholar
  42. Pascoe, R. (1992). Place and community: The construction of an Italo-Australian space. In S. Castles, C. Alcorso, G. Rando, & E. Vasta (Eds.), Australia’s Italians: Culture and community in a changing society (pp. 85–97). St Leonard’s: Allen & Unwin.Google Scholar
  43. Perlmann, J. (2007). Italians then, Mexicans now: Immigrants origins and second generation progress 1890–2000. New York: Sage.Google Scholar
  44. Portes, A., & Rumbaut, R. G. (2001). Legacies: The story of the immigrant second generation. New York, NY: Sage.Google Scholar
  45. Portes, A., & Rumbaut, R. G. (2005). Introduction: The second generation and the children of immigrants. Longitudinal study. Ethnic and Racial Studies, 28(6), 983–999.CrossRefGoogle Scholar
  46. Ronstadt, R. (1984). Ex-entrepreneurs and the decision to start an entrepreneurial career. In J. A. Hornaday, F. A. Tardley Jr., J. A. Timmons, & K. H. Vesper (Eds.), Frontiers of entrepreneurship research (pp. 437–460). Babson Park, MA: Babson College.Google Scholar
  47. Sexton, D. L., & Bowman, N. B. (1983). Comparative entrepreneurship characteristics of students. In D. L. Sexton & N. B. Bowman (Eds.), Frontiers of entrepreneurship research. Wellesley, MA: Babson College.Google Scholar
  48. Sharma, P., Chrisman, J. J., & Chua, J. H. (2003a). Predictors of satisfaction with the succession process in family firms. Journal of Business Venturing, 18, 667–687.CrossRefGoogle Scholar
  49. Sharma, P., Chrisman, J. J., & Chua, J. H. (2003b). Succession planning as planned behaviour: Some empirical results. Family Business Review, 16(1), 1–15.CrossRefGoogle Scholar
  50. Smart, C. (2007). Personal life. Cambridge: Polity Press.Google Scholar
  51. Strahan, K. W., & Williams, A. J. (1988). Immigrant entrepreneurs in Australia: Report to the Office of Multicultural Affairs. Melbourne: Office of Multicultural Affairs, Productive Culture Australia.Google Scholar
  52. Triandis, H. C. (1995). Individualism and collectivism. Boulder, CO: Westview Press.Google Scholar
  53. Vasta, E. (1993). Multiculturalism and ethnic identity: The relationship between racism and resistance. Australian and New Zealand Journal of Sociology, 29, 209–225.CrossRefGoogle Scholar
  54. Vasta, E. (1994). Youth and ethnicity: The second generation. Family Matters, 38, 21–25.Google Scholar
  55. Ward, J. L. (1987). Keeping the family business healthy: How to plan for continuing growth, profitability and family leadership. Boston, MA: Jossey-Bass.Google Scholar
  56. Ward, J. L. (1997). Growing the family business: Special challenges and best practices. Family Business Review, 10(4), 323–338.CrossRefGoogle Scholar
  57. Ward, J. L. (2008). Introduction. In J. Tapies & J. L. Ward (Eds.), Family values and value creation: The fostering of enduring values within family-owned businesses (pp. 1–8). New York: Palgrave MacMillan.Google Scholar
  58. Ward, J. L., & Aronoff, C. E. (1994). Preparing successors to be leaders. Nation’s Business, 82, 54–55.Google Scholar
  59. Yang, C.-F. (1988). Familism and development: An examination of the role family in contemporary China mainland, Hong Kong and Taiwan. In D. Sinha & H. S. R. Kao (Eds.), Social values and development: Asian perspectives (pp. 93–123). New Delhi: Sage.Google Scholar
  60. Zahra, S. A. (2005). Entrepreneurial risk taking in family firms. Family Business Review, 18(1), 23–40.CrossRefGoogle Scholar
  61. Zellweger, T. M., & Astrachan, J. H. (2008). On the emotional value of owning a firm. Family Business Review, 21(3), 347–363.CrossRefGoogle Scholar
  62. Zontini, E. (2010). Enabling and constraining aspects of social capital in migrant families: Ethnicity, gender and generation. Ethnic and Racial Studies, 33(5), 816–831.CrossRefGoogle Scholar

Copyright information

© Springer International Publishing Switzerland 2015

Authors and Affiliations

  • Laura Hougaz
    • 1
  1. 1.Study ConnectionsMelbourneAustralia

Personalised recommendations

Cite chapter

Buy options