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Journal articles on the topic 'Family businesses governance'
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Wieszt, Attila. "Governance in Hungarian family businesses." Central European Review of Economics and Management 3, no. 1 (March 27, 2019): 7. http://dx.doi.org/10.29015/cerem.786.
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Aim: A large-scale, exploratory survey had been conducted on the whole population of family businesses in Hungary in 2017/18 concentrating on the heterogeneity of the family business population. This paper presents the findings of this survey focusing only on the governance practices of the Hungarian family businesses.Design / Research methods: Two questionnaires were asked from a sample of Hungarian family businesses in the form of a computer-assisted phone interview. This sample is based on probability sampling of a larger database representative to the Hungarian population of business organization in terms of annual revenue, geographical location and industry. Questions were formulated considering models of family involvement, socio-emotional wealth, succession, governance, and professionalization.Conclusions/findings: Hungarian family businesses succeed in involving a growing number of family members into the company which also positively relates to the business performance of the firms. The developmental patterns of their governance practices reflect their increasing level of professionalization.However, they can hardly involve external, non-family professionals into the Top Management Team, which may be crucial especially for the further growth of medium-sized firms. Their family governance concentrates rather on operatively bridging family and company, and not on planning the maintenance of long-term family control.Originality/value of the article: The paper delivers both informations on the heterogeneity of the Hungarian family businesses from a governance-related point of view, and show direct, practical implications regarding the family business governance system. Its results can be of interest both for family business owners, researchers, and consultants.
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Birgach, Hiba, Taib Berrada El Azizi, and Badr Habba. "Family Governance Mechanisms in Moroccan Family Businesses: An Exploratory Study." International Journal of Business and Management 15, no. 8 (July 10, 2020): 101. http://dx.doi.org/10.5539/ijbm.v15n8p101.
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Purpose - Despite the importance attached to the governance of family businesses, few studies have focused on the importance of family business governance in the Moroccan context. This article provides some specificities of family firms and an overview of main governance mechanisms identified in the literature while presenting the main contributions of agency and stewardship theories. We introduce a governance approach centered on the issue of strengthening family ties and increasing the commitment of family members to the firm. The purpose of this paper is to identify the governance mechanisms adopted by CEOs of Moroccan family businesses of the second generation.
Method - the authors used a qualitative method, using face to face semi-structured interviews among ten CEOs of family businesses in Morocco. Through the analysis of verbatim responses of Moroccan CEOs, we were able to identify some of the governance mechanisms they adopt to ensure a certain continuity of their business.
Findings-The results suggest that most of the Moroccan managers opt for an informal and unwritten system of governance. According to them, the important thing is to share values and vision while maintaining communication. Even family meetings remain informal, the crucial thing is to preserve family solidarity, as far as the system of governance is known by all the members. We have identified three informal governance mechanisms, family meetings, task management, and sharing a family vision. The results have also shown some of the sources of conflicts among family members.
Practical implications – This paper helps to raise awareness among Moroccan leaders on the importance of governance. Whether formal or informal, it is essential to have common rules shared by family members, which will enable the firm to last over time.
Originality - This paper contributes to research on family businesses by exploring a different context especially in terms of culture and country values. Our paper has the originality to focus on a specific area of investigation, namely the Moroccan context, where the management model of family businesses is different from anterior contributions.
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Braut Filipović, Mihaela. "Corporate Governance of Family Businesses in Croatia." Central European Journal of Comparative Law 2, no. 1 (May 14, 2021): 9–27. http://dx.doi.org/10.47078/2021.1.9-27.
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The importance of family businesses in the Croatian economy is well known. In this respect, Croatia is part of the larger picture in which family businesses are considered of fundamental importance to the European Union’s economy. The most specific feature that sets Croatian family businesses apart is that they are all relatively young, as they were mostly established in the 1990s. This is due to the socio-economic development of Croatia as a country that was part of the former Yugoslavia. In this regard, although the traditions of certain crafts and products are significantly older, the modern legal vehicles through which such business is conducted, that is, Croatian companies, are only around thirty years old. This fact contributes to the hypothesis that governance issues related to family businesses are an underdeveloped legal area. However, the need to address the specific needs of Croatian businesses is on the rise, as a significant number of the founders are now retiring, and the issue of successful transfer of these businesses has never been more important. The goal of this article is to question whether available legal instruments for enhancing the governance of family businesses from comparative law and practice such as family constitutions and family councils can be applied in Croatian practice as well. To this end, this study analyses the most significant legal forms in which a family business can be established in Croatia: crafts, family farms, and all types of commercial companies (with an emphasis on limited liability and joint-stock companies). Analysis of the Croatian legal framework from the perspective of family businesses will contribute to the comparative discussion regarding the specific legal needs and challenges of such businesses.
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Steier, Lloyd P., James J. Chrisman, and Jess H. Chua. "Governance Challenges in Family Businesses and Business Families." Entrepreneurship Theory and Practice 39, no. 6 (July 30, 2015): 1265–80. http://dx.doi.org/10.1111/etap.12180.
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Adendorff, C., and C. Boshoff. "The impact of culture-related factors on good governance in Greek family businesses in South Africa." South African Journal of Business Management 42, no. 2 (June 30, 2011): 1–14. http://dx.doi.org/10.4102/sajbm.v42i2.490.
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The size of the family business component of the South African economy suggests that it is the predominant way of doing business in South Africa. A large proportion of these family businesses are Greek-owned. More importantly it is estimated that approximately 95% of all Greek businesses in South Africa can be classified as family businesses. The sustainability of Greek family businesses requires that they maintain good governance practices that are both economically and environmentally acceptable to all stakeholders. It also requires that the next generation of Greek entrepreneurs effectively balance good governance of their businesses with their family commitments.The primary objective of this study was to identify and explore the internal, culturally-related factors that influence good governance to ensure the survival, growth and sustainability of Greek family businesses in South Africa. A theoretical model of good governance factors was proposed and tested using Structural Equation Modelling.The study found that perceived good governance in a South African Greek family business context needs to be managed in terms of three factors, namely risk control, the internal regulatory environment and the protection of the stakeholders' interest. The study found that needs alignment, cultural needs alignment, vision and ethnic entrepreneurial growth all impact directly or indirectly on perceived good governance in South African Greek family businesses.
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Klein, Sabine B. "Family Businesses in Germany: Significance and Structure." Family Business Review 13, no. 3 (September 2000): 157–81. http://dx.doi.org/10.1111/j.1741-6248.2000.00157.x.
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This paper shows the relevance of family businesses to the German economy and their structure with respect to ownership, governance, and management. The data show that ownership, rather than governance or management, is the key to differentiating family from nonfamily businesses. As governance and management are more complementary to each other, families in German family businesses seek influence either through family members on the supervisory board or on the management board. The empirical data from this study is based on a clear definition of family business and a random sample, and it provides the basis for further investigation into German family businesses.
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Aronoff, Craig. "Self-Perpetuation Family Organization Built on Values: Necessary Condition for Long-Term Family Business Survival." Family Business Review 17, no. 1 (March 2004): 55–59. http://dx.doi.org/10.1111/j.1741-6248.2004.00003.x.
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Family businesses have long been conceptualized in terms of overlapping and interacting management, ownership, governance, and family systems. As family businesses evolve and develop across generations, observing progress in each of the requisite systems presents a variety of challenges. This article demonstrates the importance of family organization to the systems of management, ownership, governance, and family as a family business evolves over time.
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Odehnalová, Pavla, and Petr Pirožek. "Family Businesses in the Corporate Governance of MNCs." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 63, no. 3 (2015): 979–84. http://dx.doi.org/10.11118/actaun201563030979.
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The issue of family businesses is currently a very topical theme in the academic world. The importance of family businesses increases with internationalization and is associated with business success in global market conditions. A fundamental part of business activities abroad is the correct application of the corporate governance of subsidiaries of multinational family businesses. The available findings do not cover this area sufficiently, especially in the context of transformed economies in CEE. In view of the nature of foreign business activities, the degree of centralization of competences transferred between subsidiaries and headquarters and the presence of expatriates from the headquarters of multinational companies represented by the family firm in statutory bodies can be regarded as important variables. The main aim of the present paper is, based on research carried out, to describe and analyze the degree of centralization and presence of expatriates in the corporate governance of subsidiaries of multinational family businesses operating in the Czech Republic. The paper presents the results of an empirical investigation with a description of the presence of expatriates in the statutory bodies of subsidiaries of multinational companies in the Czech Republic. The results obtained present the number of subsidiaries corresponding to the definition of a family business with an emphasis on SMEs of up to 250 employees and the degree of centralization and presence of expatriates in administrative or executive authority, or in other positions. The sample which was used to research the family business comprised 214 subsidiaries of multinational companies from the most important sectors of the Czech economy.
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Brundin, Ethel, Emilia Florin Samuelsson, and Leif Melin. "Family ownership logic: Framing the core characteristics of family businesses." Journal of Management & Organization 20, no. 1 (January 2014): 6–37. http://dx.doi.org/10.1017/jmo.2014.15.
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AbstractIn this article we show how specific family business logic shapes managerial practices. Based on empirical material from 20 case studies of family ownership governance, our study identifies seven core characteristics of family ownership logic. These include active, visible and persistent ownership with few owners, relatively stable strategic development encompassing multiple ownership goals, autonomy towards capital markets, and a strong identification and emotional bonding with the business. By considering the family business context, we find managerial practices that are prevalent in the majority of businesses around the world and that have implications for ownership research. It is concluded that by taking the logic of ownership into consideration when studying family businesses, researchers in this field can contribute to the growing literature on sociocultural and behavioural factors in corporate governance relations.
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Astrachan, Joseph H., Andrew D. Keyt, Kristi S. Mcmillan, and Suzanne Lane. "Family business governance: perspectives, research and recommendations." Corporate Ownership and Control 5, no. 1 (2007): 305–15. http://dx.doi.org/10.22495/cocv5i1c2p6.
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Recent research raises serious questions as to the applicability of current corporate governance recommendations for family businesses. While perhaps valuable for listed companies, they may be harmful to family businesses because they arise from a market model rather than a control model of corporate governance. This chapter provides guidelines that will lead to greater board accountability and, in turn, positive identifiable results in board and company performance. These guidelines also incorporate propositions for further consideration by family business researchers.
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Lambrecht, Johan, and Jozef Lievens. "Pruning the Family Tree: An Unexplored Path to Family Business Continuity and Family Harmony." Family Business Review 21, no. 4 (December 2008): 295–313. http://dx.doi.org/10.1177/08944865080210040103.
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It is assumed that over the generations family businesses inevitably face greater family complexity. The increasing family complexity can have repercussions for the family and the business. To counteract these negative effects of an increase in family complexity, it has been recommended that business families utilize conventional family and corporate governance methods. Pruning the family tree is an alternative method of handling family complexity. However, this alternative way has been largely ignored in research. This article explores the research question: Why and how do business families prune the family tree, thus simplifying the ownership, governance, and/or management structures of the family business? The research findings indicate that introducing simplicity by pruning can be a worthwhile path to family harmony and business performance and that there is no contradiction between pruning the family tree and governance of the family and the business.
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Miller, Danny, and Isabelle Le Breton-Miller. "Family Governance and Firm Performance: Agency, Stewardship, and Capabilities." Family Business Review 19, no. 1 (March 2006): 73–87. http://dx.doi.org/10.1111/j.1741-6248.2006.00063.x.
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After decades of being viewed as obsolete and problem ridden, recent research has begun to show that major, publicly traded family-controlled businesses (FCBs) actually out-perform other types of businesses. This article examines the nature of such family businesses in an attempt to explain why some seem to do so well and others so poorly. It begins with four fundamental governance choices that distinguish among different kinds of family businesses: level and mode of family ownership, family leadership, the broader involvement of multiple family members, and the planned or actual participation of later generations. Using precepts from agency and stewardship theory, it relates these dimensions to the nature of the resource-allocation decisions made by the business and capability development, which in turn have implications for financial performance. Propositions are drawn about the drivers that make some family businesses great competitors—while leaving others at a disadvantage.
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Dupuis, Daniel, Martin Spraggon, and Virginia Bodolica. "Family business identity and corporate governance attributes: Evidence on family-owned enterprises in the UAE." Corporate Ownership and Control 14, no. 4 (2017): 122–31. http://dx.doi.org/10.22495/cocv14i4art11.
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Over the past decades, the empirical evidence on the intersection of family businesses and corporate governance has flourished significantly in the context of developed economies. Yet, little is known to date about the effectiveness of various governance mechanisms in family-owned enterprises operating in emerging markets. Due to the evolving nature of corporate governance frameworks in these markets, family business practitioners need to enhance their knowledge about governance arrangements that may lead to superior performance outcomes. Our aim is to contribute to the literature and assist practitioners by exploring the relationship between family business identity and corporate governance attributes in family-run companies located in the UAE. Data related to organisational background, familial identification and governance devices were gathered from secondary sources for a sample of 195 UAE-based family firms. Based on quantitative data analyses, we uncover the prevailing characteristics of family businesses in the UAE and identify how the familial identification of its members is associated with structural attributes of board of directors and top management team (e.g., size, family relatedness, gender and cultural diversity). The concluding section discusses the contributions of our study and delineates priorities for future research in the field.
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Khalil, Samer, and Assem Safieddine. "Corporate governance in middle east family businesses." Corporate Ownership and Control 13, no. 1 (2015): 32–43. http://dx.doi.org/10.22495/cocv13i1p4.
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This study examines governance-related issues within Middle East family businesses. The absence of proper external monitoring mechanisms – governmental or other – to protect shareholder rights, and the absence of any pre-existing literature on the Middle East market provides the motivation to evaluate the corporate governance practices of Middle East family businesses. Using a sample of 124 family businesses, we construct a governance index and use a probit model to examine whether family-related variables can explain the level of corporate governance. It is found that the majority of boards had a prevalence of family members and a low proportion of independent directors. Family businesses, still being run by the first generation, have a limited number of independent members on their boards and tend to adopt poorer governance practices than other firms where the third or fourth generations are involved. Instituting a family council has a positive governance impact, however, much work is needed, especially that it seems to lack clear vision as it is rendering the involvement of new generations ineffective.
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Guillén Gorbe, Tomás, and Alejandro Escribá-Esteve. "Heterogeneity in Family Firms." Harvard Deusto Business Research 10, no. 1 (May 29, 2021): 26–52. http://dx.doi.org/10.48132/hdbr.334.
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This research explores in greater depth the importance of considering the heterogeneity between family businesses so as to better understand the differences in their strategic behavior, performance and business results. With this, we attempt to contribute to the theories on the relationship between corporate governance and strategic management in the field of family business research.
Our study identifies the different configurations that may be adopted in the ownership structures and the management and governance bodies of family firms, analyzing how these configurations are related to the firm’s strategic outcomes. Using a sample of 111 family firms, we perform a cluster analysis that allows us to determine distinct types of family businesses based on a set of dimensions regarding the characteristics of their governance bodies, both in business and in the family, as well as their ownership structure and degree of family involvement in management tasks. We then link the different types found with the profiles of managers, the repertoire of strategies used by these companies, and the differences in obtaining results in recent years.
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Tadu, Ruramayi, and Douglas Chiguvi. "The Impact of Family Governance on the Sustainability and Continuity of Family Businesses in Botswana." International Journal of Marketing Studies 11, no. 4 (November 23, 2019): 113. http://dx.doi.org/10.5539/ijms.v11n4p113.
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Academic discussion on corporate governance and its related issues are clearly visible in any country with active capital markets. This suggests that good governance is a crucial factor for ensuring economic development. Of concern is the lack of continuity after the first generation of ownership and control. However, few studies can be found relating to smaller family businesses. With the aim of contributing to this knowledge gap, this study aimed at identifying the impact of family governance on the sustainability and continuity of family businesses in Botswana. A sample of 144 family-owned businesses based in Gaborone and Francistown participated in the study. Pearson r correlation was used to measure the relationship between the variables of the study. The results showed that there is a weak positive relationship between family governance and the sustainability and continuity of family businesses in Botswana. It was recommended that mechanisms must be put in place in order to enlighten the benefits of having Board of Directors and to implement effective governance structures and systems to sustain the businesses in the market beyond generations.
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Van den Berghe, L. A. A., and Steven Carchon. "Corporate Governance Practices in Flemish Family Businesses." Corporate Governance 10, no. 3 (July 2002): 225–45. http://dx.doi.org/10.1111/1467-8683.00286.
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Davis, Peter S., and Timothy L. Pett. "Governance and Goal Formation among Family Businesses." International Journal of Entrepreneurship and Innovation 1, no. 3 (October 2000): 137–49. http://dx.doi.org/10.5367/000000000101298649.
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This paper reports the results of a survey of over 600 family businesses, examining the influence of organizational governance processes consisting of external participation and operating policies on the importance ascribed to various organizational and family goals. Working from a base of resource dependency, the relationships between organizational and family goals are presented as partially mediated by firms' dependency on extraorganizational sources of capital. The results suggest that the inclusion of outsiders on firms' boards may increase the access to external capital, and that increasing dependency on external capital resources may exert significant influence on organizational goals and objectives. Finally, family control of internal governance mechanisms seems to impact on family goals.
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Bertrand, Marianne, and Antoinette Schoar. "The Role of Family in Family Firms." Journal of Economic Perspectives 20, no. 2 (May 1, 2006): 73–96. http://dx.doi.org/10.1257/jep.20.2.73.
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History is replete with examples of spectacular ascents of family businesses. Yet there are also numerous accounts of family businesses brought down by bitter feuds among family members, disappointed expectations between generations, and tragic sagas of later generations unable to manage their wealth. A large fraction of businesses throughout the world are organized around families. Why are family firms so prevalent? What are the implications of family control for the governance, financing and overall performance of these businesses?
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Messias Rodrigues, Sidnei, Alessandro Marco Rosini, Angelo Palmisano, Orlando Roque da Silva, and Izabel Petraglia. "Governança Corporativa e as Questões Culturais na Organização. Um Estudo de Caso em Empresa Nacional." Journal on Innovation and Sustainability. RISUS ISSN 2179-3565 8, no. 4 (December 24, 2017): 75. http://dx.doi.org/10.24212/2179-3565.2017v8i4p75-97.
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The objective of this study is to discuss the importance of Corporate Governance in Brazilian organizations and in other countries. The majority of family businesses are restricted to the members and the interests of the family. The family business, however, can be committed to the business and generate value, but must respond positively to the interests of investors. From the 90s onwards, a more competitive market environment emerged and trade liberalization started to push companies more and more to participate in international competitiveness. Family-run businesses have the main challenge of promoting the implementation of a Corporate Governance model to break down barriers caused by an outdated organizational culture that the controlling and / or owner family seeks to preserve in the business. The scientific method used is a descriptive analysis and also the accomplishment of a case study in a national company. The principles of governance - fairness, transparency, corporate responsibility and accountability - are increasingly important in business activities, but their application in family businesses is still very limited. As a contribution of this study, we seek to bring to the reader a greater understanding on the subject of corporate governance.
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Randerson, Kathleen, and Miruna Radu-Lefebvre. "Managing Ambivalent Emotions in Family Businesses: Governance Mechanisms for the Family, Business, and Ownership Systems." Entrepreneurship Research Journal 11, no. 3 (June 14, 2021): 159–76. http://dx.doi.org/10.1515/erj-2020-0274.
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Abstract Members of business families experience ambivalent emotions that stem from paradoxical tensions inherent to family business, namely the overlapping of three systems: the family, the firm, and ownership. In this essay, we shed light on how governance mechanisms can frame the different roles a family member can play in the family, business, and ownership systems, making role conflict and the subsequent emotional ambivalence a source of creativity rather than of emotional dissonance. These governance mechanisms may also contribute to reducing risks for interpersonal conflict as well as provide rules for conflict resolution. Building on the typology distinguishing among Enmeshed Family Business (EFB), Balanced Family Business (BFB), and Disengaged Family Business (DFB), we suggest governance mechanisms to support emotion management within each archetype at the individual, family and firm levels.
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Aung, Nay Zar, and Youji Kohda. "Emergence of Familiness and Family Owned Business Performance." International Journal of Asian Business and Information Management 10, no. 3 (July 2019): 61–73. http://dx.doi.org/10.4018/ijabim.2019070104.
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This article explores the concept of familiness in family-owned businesses (FOBs), identifying how families generate their own resources for business performance. Applying the resource-based view, the authors examined seven Myanmar businesses. Findings revealed that two factors influence familiness in Myanmar FOB: family unity and internal governance systems, which can be subdivided into traditional and collective systems. Moreover, evaluation revealed that FOB's business performance was affected by different family attitudes. A combination of family unity and a traditional internal governance system was conducive to controlling the internal business capabilities, whereas creating external opportunities were considered more effective for a combination of family unity and a collective internal governance system. Findings suggest that familiness emerges through embedded family resources that incorporates a sense of awareness with abilities for business advantages. These empirical results can provide insights and inputs that can help small and medium-sized FOBs safeguard their future.
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Jakob, Dominique. "The role of foundations in family governance." Trusts & Trustees 26, no. 1 (December 17, 2019): 4–10. http://dx.doi.org/10.1093/tandt/ttz120.
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Abstract Family businesses nowadays face numerous challenges caused by multinational family structures, the interplay of generations and inheritance law. This article deals with the role that foundations can play in safeguarding family governance within family businesses. It explains the various models of how foundations can be used as holding structures for businesses. However, as the force of law is limited, the article then focuses on how to integrate family values into the legal tools and attempts to identify the right questions that have to be addressed in order to successfully combine solid legal structures with sustainable family happiness.
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Ljungkvist, Torbjörn, and Börje Boers. "Another hybrid? Family businesses as venture capitalists." Journal of Family Business Management 7, no. 3 (October 9, 2017): 329–50. http://dx.doi.org/10.1108/jfbm-02-2017-0006.
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Purpose This paper addresses the phenomenon of venture capital firms which are also family businesses (VCFBs). The purpose of this paper is to explore and understand the phenomenon of VCFB by answering the following questions: What are the features of professionalization in VCFBs? And, how do professionalization and types of family businesses explain the strategies and governance of VCFBs? Design/methodology/approach As an explorative case study, it maps the Swedish venture capital (VC) industry and compares two VCFBs and their business investments with regard to strategy and governance. Findings By suggesting two major configurations, the study explains how family business development and levels of professionalization relate to differences in VCFBs’ strategies, which in turn, affect their governance. The personal VCFB features active owners who personally take responsibility roles and strongly focus on customers and relationships. The administrative VCFB strongly focuses on predetermined financial metrics, high ethical awareness among board members, and ongoing interplay between the active family board members and minority shareholders. Research limitations/implications The study was conducted in Sweden and concerns Swedish VCFBs. The paper contributes to the literature by combining the two currently separate research streams, i.e. family business and VC, highlighting the importance and consequences of family ownership in VC businesses. Practical implications The present study provides stock market investors and stock analysts with a deeper understanding of VCFBs’ strategy incentives. By identifying the kind of VCFB and its relation to strategy, more reasonable assessments and analyses of the VCFBs’ actions will be possible. Family firms willing to accept VC-finance should consider the type of VC and the potential consequences of family ownership. Originality/value This study is the first to classify VC firms as family businesses. Moreover, it shows the features of professionalization in VCFBs by suggesting a set of configurations.
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Alderson, Keanon. "Conflict management and resolution in family-owned businesses." Journal of Family Business Management 5, no. 2 (October 12, 2015): 140–56. http://dx.doi.org/10.1108/jfbm-08-2015-0030.
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Purpose – The purpose of this paper is to review the literature concerning the negative effects of conflict among family businesses and to make practitioner focussed recommendations for the prevention, management, and resolution of conflict. This paper discusses the prevalence of conflict in family firms, differentiates the types of conflict present, and recommends proven approaches to prevent and manage the conflict, with a focus on corporate governance tools. Examples of well known companies are presented. Design/methodology/approach – A review was conducted of the literature concerning family business conflict and corporate governance. Findings – Conflict is a common problem in family firms that has significant consequences for the business and the family. Research has shown effective governance may reduce and manage conflict. Research limitations/implications – This was a literature review. As such it did not perform original research. Practical implications – This paper has practical implications for family business practitioners. The paper offers the negative aspects of conflict and recommends effective mechanisms such as governance tools to enable the prevention, management, and resolution of conflict. Social implications – Implications exist for practitioners and policy makers in order to reduce conflict and increase the viability of family firms. Originality/value – The scholarly literature has been reviewed and synthesized into distillation for family business owners.
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Lane, Suzanne, Joseph Astrachan, Andrew Keyt, and Kristi McMillan. "Guidelines for Family Business Boards of Directors." Family Business Review 19, no. 2 (June 2006): 147–67. http://dx.doi.org/10.1111/j.1741-6248.2006.00052.x.
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Governance reform of publicly held corporations is an important topic these days, but a critical subtext has been missing from this often searing debate. Namely, what is the significance of these governance reforms, de jure and de facto, for the publicly held corporation's distant, smaller, but economically robust brethren—namely, the closely held, family-owned business? Should these family-owned entities be held to the same governance guidelines and standards that apply to those firms making up the ranks of the Fortune 500, for example? To put it another way, does one size fit all? We caution that many of the most popularized corporate governance practices may be detrimental to family businesses. Many of these recommendations may harm family unity or might be too complex for private firms, and many are applicable only to very large, public companies with dispersed ownership. Popular corporate governance practices are focused toward a market model of corporate governance, found prevalently in the United States and United Kingdom, which involves companies with a widely dispersed shareholder base and a majority of independent, outside board members. In contrast, the typical family-owned business exhibits characteristics of the control model of corporate governance, found prevalently in continental Europe, Latin America, and Asia, which involves companies with a concentrated shareholder base and family member “insiders” active in management and the board. As a result of these differences, many of the new laws and recommendations may actually be harmful to family-owned businesses.
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Hategan, Camelia-Daniela, Ruxandra-Ioana Curea-Pitorac, and Vasile-Petru Hategan. "The Romanian Family Businesses Philosophy for Performance and Sustainability." Sustainability 11, no. 6 (March 21, 2019): 1715. http://dx.doi.org/10.3390/su11061715.
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Family businesses represent a large segment of private companies and contribute greatly to economic growth. In this context, the objectives of this paper are to identify the characteristics of Romanian family businesses, starting from their involvement and governance mechanisms, and also to investigate if these specific items allow them to act towards creating sustainable businesses. In order to achieve these objectives, we have used qualitative and quantitative research, consisting of two phases: (a) we have analyzed the reports regarding the Romanian family businesses, in order to identify their characteristics; and (b) we have empirically tested if the characteristics are correlated with company financial performance and social responsibility. The results show that Romanian family businesses are aware of the changes that may appear and that they have started to implement internal processes oriented towards sustainability. Also, the main family involvements in business were ownership, governance, management and succession, which have a correlation with the performance of their company.
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Abdelaziz, Samir A. "The Importance of the Governance Role in Achieving Stability and Sustainability in Family Business Companies Through Generations." Business and Management Studies 7, no. 3 (August 19, 2021): 16. http://dx.doi.org/10.11114/bms.v7i3.5300.
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Family businesses have continued to draw researchers' attention due to their strategies while making sustainable decisions. Notably, these business models deserve more recognition in this discourse, considering that they contribute up to 70% of the global Domestic Product. This article focuses on some drivers to sustainable decisions revolving around three pillars: environmental, social, and economic. The author's aim in this context is to provide a statistical model that could be used to forecast revenue trends to establish if family businesses are poised for sustainability or not. The models essentially allow for an analysis of the relationship between family businesses' internal drivers with corresponding financial objectives.However, these business models may fail to achieve their objectives if they do not embrace good governance, allowing them to react to challenges. Corporate governance is an essential framework that companies use to reconcile individual, community, business owners, and shareholders' interests in a dynamic global economy. Companies that align with the principles of good governance are more likely to remain sustainable, stable, and profitable. In retrospect, business enterprises that ignore the provisions of corporate governance risk facing uncertainties, most notably, dissolution and bankruptcy. The second, third, and subsequent generations fail to internalize and advance the founder's long-term organizational goals.This study adds to the existing literature on economic sustainability of family businesses characterized by market value and higher revenue generation.
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Kuruppuge, Ravindra Hewa, and Athula Ekanayake. "An Analytical Model to Explain the Governance of Family Owned Businesses." Journal of Intercultural Management 8, no. 1 (January 1, 2016): 51–69. http://dx.doi.org/10.1515/joim-2016-0003.
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AbstractThe governance of businesses tends to vary depending on the ownership, i.e., the private sector vs. the public sector, or the industry, for example, banking vs. non-banking, and many more. This paper aims to develop an analytical model in explaining the governance of family owned businesses more specifically. It argues that because of the family ownership and the family management, family businesses require a particular attention. Also, because family businesses appear to set non-financial goals in addition to financial goals the governance of family businesses cannot be equally treated as those of other firms in the private sector. Given the less developed nature of the capital markets in the developing countries such as Sri Lanka, family businesses play a significant role in the economic development of such countries. Nevertheless, family businesses face significant survival challenges, as they are likely to promote those who have family ties into management positions than the professional managers. By reviewing the existing literature critically, this paper identifies the variables, namely family power (i.e., ownership and management), experience and cultural factors, which influence the accomplishment of financial and non-financial goals of family owned businesses, and develops an analytical model to explain their governance.
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Socha, Błażej, and Aleksandra Majda-Kariozen. "Financial Performance in the Light of Corporate Governance in Polish Family Businesses." Folia Oeconomica Stetinensia 17, no. 2 (December 1, 2017): 56–70. http://dx.doi.org/10.1515/foli-2017-0018.
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AbstractThe article presents a view (on the basis of theoretical and empirical analysis) of corporate governance models used in Polish family businesses through financial performance. The empirical analysis covered a sample of 24,000 Polish family businesses in the period of 2008–2013. The use of linear regression has allowed the authors to verify the hypothesis concerning the occurrence of differences in profitability ratios in groups of family businesses using variant management models and allowed verifying the relationship between the degree of control and involvement of the owners in management and financial performance. The received results, though inconclusive, indicate that the involvement of the owner in the governance process can affect the financial aspect of a business. The prepared empirical analysis and conclusions of the article contribute to a better understanding of the measures taken on management and control decisions; what is more, they can provide guidance to the owners of family businesses in shaping the corporate governance model.
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Lin, Ying-Fen. "Corporate governance, excess compensation, and CEO turnover in family and non-family businesses." Corporate Ownership and Control 4, no. 2 (2007): 46–52. http://dx.doi.org/10.22495/cocv4i2p4.
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The replacement of a CEO is one of the control mechanisms that companies employ to reduce the agency problems. This paper divides companies into non-family businesses and family businesses and investigates the influence of outside directors, outside blockholders, and excess compensation in CEOs termination process. The samples used in the paper come from manufacturing companies in Taiwan listed between 1996-1997; the analytical method is logistic regression model. The conclusion is as follows: 1. the characteristics of family businesses, corporate governance, and excess compensation have no correlation on CEO turnover. 2. External board members play an important role in CEO termination in non-family businesses
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Mai, Wenzhen, and Nik Intan Norhan Binti Abdul Hamid. "The Moderating Effect of Family Business Ownership on the Relationship between Short-Selling Mechanism and Firm Value for Listed Companies in China." Journal of Risk and Financial Management 14, no. 6 (May 25, 2021): 236. http://dx.doi.org/10.3390/jrfm14060236.
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This study demonstrates an investigation of the external corporate governance effect of short selling mechanisms on firm value in the Chinese context. The effect of family businesses is also examined as a moderator of the relationship between short-selling and firm value. Using panel data analysis of Chinese listed companies, this paper tests a total sample of 22,468 firm-year observations from the Shanghai and Shenzhen Stock Exchange from 2009 to 2019 by applying the PSM-DID method in order to mitigate self-selection and endogenous problems caused by the uniqueness of Chinese short selling mechanisms. The findings suggest that both deregulation and the propensity of short selling can improve the firm value. Our findings also established that family ownership weakens firm value with the availability of short-selling, which indicates that family businesses have long orientations and conduct better corporate governance practices than non-family business, as short-selling shows a weaker external governance effect on firm value creation by family businesses in China. A robust test of alternative measurements is conducted and validated. This study provides significant insights for policymakers to consider in order to further relax short-selling constraints, which can act as effective external governance for better firm value creation, especially for non-family businesses in developing countries.
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Poza, Ernesto J., Susan Hanlon, and Reiko Kishida. "Does the Family Business Interaction Factor Represent a Resource or a Cost?" Family Business Review 17, no. 2 (June 2004): 99–118. http://dx.doi.org/10.1111/j.1741-6248.2004.00007.x.
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The authors investigate the interaction between families and their businesses and the impact of this interaction on management and governance practices used. Family businesses participating in the family business programs at three U.S. universities completed questionnaires pertaining to family and business culture and practices. The research draws on the agency cost theory, governance, systems theory, and the resource-based view of organizations literature in the consideration of family firm attributes and the relationship between family members, nonfamily managers, and the firm. Chief executive officers generally perceive management practices, succession processes, and family environment more favorably than do either other family members or nonfamily managers. There are no significant differences in perceptions between active and inactive family members on the family scales. The difference in perceptions of the family firm between nonfamily managers and family managers is discussed as a challenge to the full utilization of professional management capabilities by family firms. Finally, owning family unity, the perception of business opportunity, and how positive the relation between firm and family is influences managerial and governance practices and therefore represents a resource for competitive advantage and sustained business performance.
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Ponnu, Cyril H., C. K. Lee, Geron Tan, T. H. Khor, and Adelyn Leong. "Corporate governance in family run business – a Malaysian case study." Corporate Ownership and Control 6, no. 4 (2009): 135–47. http://dx.doi.org/10.22495/cocv6i4p13.
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This paper addresses the debate on family run business and corporate governance before and after the Asian Financial Crisis in 1997. As there are only few studies on the corporate governance of family businesses in Malaysia, this paper aims to provide a broad view of the corporate governance practises of family run companies in Malaysia. The majority of family-run companies in Malaysia are operated by ethnic Chinese families in Malaysia. To understand the practices of corporate governance in these companies, this study selected 3 of the top 10 family run companies by market capitalization in Malaysia. This paper discusses the issues and problems related to family run businesses in the light of the separation of ownership and control, lack of board independence and protection of minority shareholders, lack of independence of external auditors, lack of transparency and disclosure as well as managerial entrenchment.
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Ganguly, Aniruddha. "HR Dynamics in Family-managed Businesses in India." NHRD Network Journal 13, no. 1 (January 2020): 48–61. http://dx.doi.org/10.1177/2631454119894742.
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Out of the 100 largest companies listed in India in terms of market cap, more than 50 per cent are family managed. Indian family-managed companies have a distinct organisational culture. Organisational culture shapes and re-shapes people management, influenced by several factors—stage of evolution of the organisation, environmental/economic challenges and owner family culture. The way the owner family conducts itself embodies family governance. Family governance influences corporate governance. Human resource management (HRM) is an essential element of corporate governance. Nature of HRM in family-managed companies is significantly influenced by the way the owner family drives it. Some of the large Indian family-owned companies are consistently high on market cap because they are able to attract and retain the best talent. They can do this consistently because the best talent gets attracted to the best HR practices in an organisation. There is increased awareness of this among Indian owner families and they are now adopting world-class people practices to attract the best talent from the market. Soon we shall have many more Indian family-owned companies indistinguishable from western family-owned companies in terms of people practices.
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Suess-Reyes, Julia. "Understanding the transgenerational orientation of family businesses: the role of family governance and business family identity." Journal of Business Economics 87, no. 6 (September 13, 2016): 749–77. http://dx.doi.org/10.1007/s11573-016-0835-3.
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Labaki, Rania, and Giorgia M. D’Allura. "A Governance Approach of Emotion in Family Business: Towards a Multi-level Integrated Framework and Research Agenda." Entrepreneurship Research Journal 11, no. 3 (June 14, 2021): 119–58. http://dx.doi.org/10.1515/erj-2021-2089.
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Abstract While emotion in family business is beginning to garner closer attention among researchers, the nexus of emotion management and governance has received little attention to date. In this essay, we reflect on and extend the Special Issue contributions by integrating the emotion management literature with the family business and governance literatures. We suggest a governance approach of emotion through a multilevel integrated framework. We introduce “emotion governance” as an overarching set of informal and formal mechanisms that are rooted and developed in the embedded family business contexts. We argue that emotion governance influences the explicit emotion management strategies of family business members at different stages: ex-ante (incentive alignment), during the process (education and support), and ex-post (monitoring). It thereby contributes to ensure their accountability in line with family business continuity. Considering the heterogeneity of family businesses, we capture nuances in our framework across family business archetypes through a series of propositions. We chart an agenda for future research to advance the development of a theory of family business governance inclusive of emotion.
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Lambrecht, Johan. "Multigenerational Transition in Family Businesses: A New Explanatory Model." Family Business Review 18, no. 4 (December 2005): 267–82. http://dx.doi.org/10.1111/j.1741-6248.2005.00048.x.
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This article presents an explanatory model for transfer of family businesses to following generations. Our research using 10 case studies shows that transfer of family businesses is a lifelong, continuous process, in which the family must address and foster the soft elements of the transfer process: enterpreneurship, freedom, values, outside experience, upbringing, and education. Furthermore, a business family can develop into a family dynasty only when it embraces sound governance as a fundamental principle; that is, the individual family member belongs to the family, which belongs to the business.
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Kalé, Sudhir H., David Harland, and Ken Moores. "Impact of National Culture on Governance and Management of Family Businesses: Australia Versus India." NHRD Network Journal 13, no. 1 (January 2020): 73–83. http://dx.doi.org/10.1177/2631454119894745.
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A family is the primary social unit in which individuals are born and get acclimatised to societal culture. Most researches on family businesses are derived from frameworks developed in the United States or other Western societies. The premise of this article is that the way family businesses across the world are managed will vary drastically based on the culture of the society where these businesses operate. Using Australia and India as country examples, we apply Hofstede’s six dimensions of culture to formulate illustrative propositions highlighting the impact of culture on family business governance and management. These propositions are of particular significance to human resource management across areas of both governance and management, and concern, in particular, intergenerational matters associated with succession, management style, employment and developing next-generation leaders.
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Blumentritt, Timothy. "The Relationship Between Boards and Planning in Family Businesses." Family Business Review 19, no. 1 (March 2006): 65–72. http://dx.doi.org/10.1111/j.1741-6248.2006.00062.x.
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This study examines relationships between the existence of boards of directors and advisory boards and the use of planning in family businesses. It is argued that both of the primary roles of boards, the governance of a firm's management team for the firm's stake-holders and the provision of valuable business resources to the firm's management team, are significantly related to the use of planning activities in family businesses. The empirical evidence, drawn from a survey of more than 130 family businesses, largely supports the hypotheses. Conclusions and suggestions for future research close the article.
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Hastenteufel, Jessica, and Mareike Staub. "Current and future challenges of family businesses." Managerial Economics 20, no. 2 (May 10, 2020): 119. http://dx.doi.org/10.7494/manage.2019.20.2.119.
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Family businesses are an important part of every economy. They are characterized by long traditions that combine aspects such as trust and reliability, as well as by features such as innovativeness, foresight, long-term focus and flexibility. Both family businesses and the entrepreneurial families themselves do have some weaknesses and face current challenges like digitization, internationalization and demographic change. These issues must be kept in mind in order to constantly develop appropriate solutions that will help them survive and thrive in the market. Moreover, the high relevance of the family in a family business is associated with opportunities – for example, when a family strategy with clear values, roles and goals is defined, and a so called family business governance is developed.
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Collins, Lorna, Ken McCracken, Barbara Murray, and Martin Stepek. "Strong governance: a result of evolutionary and revolutionary processes." Journal of Family Business Management 4, no. 2 (October 7, 2014): 99–109. http://dx.doi.org/10.1108/jfbm-08-2014-0020.
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Purpose – This paper is the first in a regular series of articles in JFBM that will share “a conversation with” thought leaders who are active in the family business space. The world of family business is, like many other arenas, constantly evolving and as the authors learn more about how and why families “do business” the approaches and tools for working with them also evolve. The purpose of this paper is to stimulate further new research in areas that practically affect family businesses and to “open the door” to practical insights that will excite researchers and provide impetus for new and exciting study. The specific purpose of this paper is to explore “what is strong governance.” There has been much interest in governance lately yet there is a tendency to treat governance in a formulaic way such that, at the moment, the notion that every family business must have a family council or a formal structure in order to be considered “effective” and “successful” predominates. The authors’ panel challenges and discusses this notion drawing on the experience and knowledge as family business advisors, consultants and owners. Design/methodology/approach – The impetus for this particular conversation is a result of a brainstorming conversation that Lorna Collins and Barbara Murray held in February 2014 where they focussed on “how JFBM can encourage and stimulate researchers to engage in aspects of research that makes a difference to the family business in a practical way.” This paper reports a conversation between Barbara Murray (Barbara), Ken McCracken (Ken) and Martin Stepek (Martin), three leading lights in the UK family business advising space, all of whom have been involved in running or advising family businesses for more than three decades, held in August 2015. The conversation was held via telephone and lasted just over 60 minutes. Lorna Collins acted as moderator. Findings – Strong governance is not just about instituting a “family council” or embedding formal governance mechanisms in a family business. Evolutionary adaption by family members usually prevails such that any mechanism is changed and adapted over time to suit and fit the needs of the family business. Many successful family businesses do not have recognized “formal” governance mechanisms but, it is contended, they are still highly successful and effective. Future areas of research in governance are also suggested. Originality/value – This paper contributes to the family business discourse because the debate it reports challenges the basic assumptions upon which much consulting and advisory practice is conducted. It also challenges the notion of “best practice” and what is “new best practice” and how is it that any “best practice” is determined to be “best.” Furthermore, the panel provides insights in to the “impact of family dynamics on governance” and “the impact of family dynamics on advisors.” The paper content is original in that it provides an authentic and timely narrative between active family business practitioners who are also scholars and owners.
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Botero, Isabel, Fernando Sandoval Arzaga, and Brøndsted Bullock. "Understanding Governance Mechanisms in Small and Medium Family Firms in Latin America." Multidisciplinary Business Review 14, no. 2 (September 17, 2021): 107–20. http://dx.doi.org/10.35692/07183992.14.2.10.
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Governance mechanisms help manage, direct, and control people, resources, and the interests of those involved in a firm. In family firms, understanding the use of governance mechanisms is particularly important given their rela-tionship with the sustainability of the family and the business. Even though we know a great deal about family business governance in North America and Europe, we still know very little regarding the use of governance mechanisms in small and medium (SME) family firms in Latin America, nor do we know whether the use of governance mech-anisms impacts financial performance. To address these gaps, this paper presents the results of a survey completed by 2287 representatives of family business SMEs from 24 Latin American countries. Participants indicated the like-lihood of their using different governance mechanisms and responded to questions concerning their businesses. Our results indicate that the small and medium Latin American family firms in our study were not very likely to use formal business and family governance mechanisms, however, the use of formal business governance mechanisms was related to financial performance. The implications of these results for research and practice are discussed.
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Czemiel-Grzybowska, Wioletta. "Entrepreneurial orientation in family firms – management and intercultural development." Journal of Intercultural Management 6, no. 4-1 (December 1, 2014): 181–90. http://dx.doi.org/10.2478/joim-2014-0044.
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AbstractThis paper has taken an insight to the systemic models of family business from the open systems perspective. I focus on family business system models and on the subsystems content of family system and ownership system in family business context. The paper claim that the open system perspective on intercultural family businesses has both theoretical and empirical implications on family business research. Family businesses have many reasons, including family conflicts over money, nepotism leading to wrong management, and infighting over the succession of power from one generation to the other. Regulating the family’s roles as shareholders, board members, and managers is very important because it can help avoid these pitfalls. This paper will discuss the importance of the openness of the company through five the attributes of enduring family businesses: ownership, family, business and portfolio governance, wealth management, foundation. Dimension of attributes success have taken family business like five jewelers.
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Gonzales-Bustos, Juan Pablo, Ana Beatriz Hernández-Lara, and Xiaoni Li. "Board composition in family and non-family innovative businesses." Corporate Ownership and Control 15 (2017): 459–66. http://dx.doi.org/10.22495/cocv15i1c2p14.
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This paper aims to contribute to the literature on corporate governance and innovation, providing empirical evidence with respect to the evolution of board composition and innovation over time, comparing between family and non-family businesses. Data were collected from 86 Spanish companies belonging to innovative sectors during the period 2003 to 2014. The results show a significant difference between family and non-family firms in terms of their board composition, indicating bigger boards and a higher proportion of independent directors in the case of non-family businesses. With regards to external directors, the results also show that their proportion has been increasing in the last years especially in family companies, reaching similar levels to non-family ones. Finally, in terms of gender, its diversity has been also increasing in both types of companies, but more in family businesses, equalling or even overcoming gender diversity in non-family businesses. Non-significant differences were detected in the composition of the boards over time, with the only exception of gender diversity, which shows a significant growth. This descriptive study contributes to the inconclusive research on how is the composition and structure of the board in innovative companies, highlighting the differences between family and non-family business.
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Sarbah, Alfred, and Wen Xiao. "Good Corporate Governance Structures: A Must for Family Businesses." Open Journal of Business and Management 03, no. 01 (2015): 40–57. http://dx.doi.org/10.4236/ojbm.2015.31005.
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Harith, Samir, and Ruth Helen Samujh. "Small Family Businesses: Innovation, Risk and Value." Journal of Risk and Financial Management 13, no. 10 (October 14, 2020): 240. http://dx.doi.org/10.3390/jrfm13100240.
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This article reviews the literature and applies principal-to-principal (PP) conflict theory to small family based businesses. The lack of accurate measurement and communication of risk leading to issues with innovation, is the primary cause of PP agency costs. Careful analysis of the risk levels reflected in the cost of debt and opportunity cost of equity provides a theoretically robust and empirically estimable process for ascertaining the true PP agency cost. Awareness of the constraining governance structures and the suggested method, based on the cost of capital, to assess small business risk can assist SME owners and financiers to SMEs to promote business efficiency and innovation.
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ADENDORFF, CHRIS, and DAPHNE HALKIAS. "LEVERAGING ETHNIC ENTREPRENEURSHIP, CULTURE AND FAMILY DYNAMICS TO ENHANCE GOOD GOVERNANCE AND SUSTAINABILITY IN THE IMMIGRANT FAMILY BUSINESS." Journal of Developmental Entrepreneurship 19, no. 02 (June 2014): 1450008. http://dx.doi.org/10.1142/s1084946714500083.
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Immigrant family businesses are one of the most unique, complex and dynamic systems in our modern-day society. The blending of two inherently different realms — the performance-based world of business and the emotion-based domain of the immigrant family — creates a system potentially fraught with confusion and conflict. Applying traditional, limited and exclusively Western views of entrepreneurship to immigrant family business creation, growth and sustainability is to ignore or discount the core cultural/ethical values and ethnic contexts in which these firms operate. The objective of this conceptual paper is to identify and explore the three variables of enterprise, ethnicity and family dynamics that influence corporate governance to ensure the survival, growth and sustainability of immigrant family businesses. Conclusions and recommendations for future research are discussed.
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Ahmad, Zeeshan, and Muhammad Rizwan Yaseen. "Moderating role of education on succession process in small family businesses in Pakistan." Journal of Family Business Management 8, no. 3 (October 8, 2018): 293–305. http://dx.doi.org/10.1108/jfbm-12-2017-0041.
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Purpose The purpose of this paper is to enhance the longevity and improve the succession process in small family businesses sustaining in Pakistan. Family businesses perform an active role in economic development of any country. Statistics shows, 30/13/3 business transfers into subsequent generation in the interfamily business (Ward, 2016). Design/methodology/approach Data are collected from 365 respondents who were either incumbents or successor in 135 small family businesses in Pakistan. Simple linear regression and process control analysis by Andrew Hayes are used for moderating variable analysis in SPSS20. Findings The results show that customer focus management, business strategies and governance board have a significant positive impact on the succession process of small family business in Pakistan. There is negative significant moderating impact of education on business strategies and customer focus management while there is no moderating impact of education over governance board and satisfaction with succession. Research limitations/implications This study will help the family business incumbents to focus deliberately on the factors that influence the succession process so that business could be transferred to the subsequent generation successfully. Originality/value The previous research does not show the effect of education at different levels and importance of customer focus management toward the succession process.
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Worek, Maija. "Mergers and acquisitions in family businesses: current literature and future insights." Journal of Family Business Management 7, no. 2 (July 10, 2017): 177–206. http://dx.doi.org/10.1108/jfbm-04-2016-0009.
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Purpose The purpose of this paper is to examine the current state of literature concerning mergers and acquisitions (M&A) in family businesses and to highlight areas for future research. Design/methodology/approach This literature review systematically analyses the findings of 41 journal articles on M&A in family businesses, identifying key thematic categories according to the main topics of the studies. Findings This study finds that it is important to distinguish and examine the type of governance, such as family and non-family, when studying M&A issues, because their distinctive features influence their strategic choices, business goals, and, thus, M&A behavior. Three topic areas are identified in existing research: M&A propensity, process, and performance. Furthermore, methodological and definitional issues regarding the findings are discussed. Research limitations/implications The findings imply that owing to their idiosyncratic nature, the use of alternative theoretical frameworks in addition to agency theory is encouraged in future studies in order to better capture the nature of family businesses. In general, further research on M&A issues in family business settings is needed, especially in the pre-merger phase, which is crucial to M&A performance. Social implications Overlooking particular issues that may arise in the context of transactions involving family businesses may lead to problems in M&A processes. Recognizing the importance of these issues in such transactions has important value for practitioners supporting family businesses in M&A processes. Originality/value This study takes the first step in analyzing the literature on M&A in family businesses, establishing linkages between family business, corporate governance, and financial management literature, and structuring the existing research to highlight opportunities with relevance for both theory and practice.