Total views : 357

Succession of Business in Russia: Motives for Owners’ Business Transfer under the Conditions of Economic Instability

Affiliations

  • Institute of Management and Business, Tyumen State Oil and Gas University, Tyumen, Russian Federation

Abstract


Objectives: Showing the owner's plans and revealing the grounds for the business transfer to the next generation will demonstrate the internal resources of SMEs and assess the desirability of support measures. Methods: The study was built under an ex-post-facto pilot scheme. Experimental and control groups were distinguished. Data collection was carried out by polling 90 persons - 45 representatives of family and 45 - of non-family businesses. All subjects are owners, proprietors performing the duties of director. Methods of mathematical statistics and content analysis were used to process the data. Results: There is a significant striving to pass down generated business by inheritance; it gives confidence in the recovery business dynasties in Russia. We have proposed a classification of entrepreneurs according to their relation to the business transfer to successors. Representativeness of business transfer motives is identical for family and non-family businesses. The reasons for refusing the business transfer are: following the interests of the child, big risks, sale and business liquidation. The obtained results lead us to conclude that in the field of the family business support state policies are needed: information, psychological, economic, legal aid will be in great demand. The obtained data show that these are economic motives (the success of the company) that are key reasons when deciding on the transfer of businesses. We note that the most productive motivation of successors will be calculative and affective ones. This means that already at an early age parents-entrepreneurs could include children in the company's work: put executable business tasks in front of them, attach to corporate goals. Application: Following the example of European colleagues it is necessary to organize consultative bodies whose purpose is the development of competences of family business entrepreneurs. This will improve the social status of family businesses and help them in building an effective business strategy.

Keywords

Economic Instability, Family Business, Motives of Business Transfer to Successors, Motives of the Business Transfer Refusal, Succession.

Full Text:

 |  (PDF views: 297)

References


  • Facilitating transfer of business. European Commission: Directorate-General for Enterprise and Industry. 2012. Available from: http://ec.europa.eu
  • Global Data Points. The Family Firm Institute. Available from: http://www.ffi.org
  • Business Dynamics: Start-ups, Business Transfers and Bankruptcy. The economic impact of legal and administrative procedures for licensing, business transfers and bankruptcy on entrepreneurship in Europe, 2011. Available from: http://ec.europa.eu
  • Pillars of Success for Your Family Business. KPMG International Cooperative (KPMG International). A Swiss Entity. 2013.
  • Murzina JS, Tonysheva LL. The revival of the family business in Russia: Why the process is failing during the economic crisis? Proceedings of the 5th International conference on Eurasian scientific development. «East West» Association for Advanced Studies and Higher Education GmbH; Vienna. 2015. 180-2.
  • The Global Entrepreneurship Monitor. National Report. 2013. Available from: http:gsom.spbu.ru
  • Barinov V. Vouchers and teachers: how to help innovative companies, 2015. Available from: http:tpp-inform.ru 8. Indicators of economic activity, 2016. Available from: http://www.gks.ru
  • Zarubina NN. Economic Sociology. Moscow: Publishing Yurayt; 2015.
  • Russia in Figures. 2015. Available from: http://www.gks.ru/ wps/wcm/connect/rosstat_main/rosstat/en
  • The European Family Business Barometer: Determined to Succeed. 4th ed. 2015.
  • Global Data Points. Available from: http://www.ffi.org/ page/globaldatapoints
  • Molly V, Laveren E, Deloof M. Family business succession and its impact on financial structure and performance. Family Business Review. 2010; 23(2):131-47.
  • Volkov DA. Family business in Russia: Results of the empirical research. World Applied Sciences Journal. 2014; 30(4):468-74.
  • Breton-Miller IL, Miller D, Steier LP. Toward an integrative model of effective FOB succession. Entrepreneurship Theory and Practice. 2004; 28(4):305-28.
  • Potts TL, Schoen JE, Engel Loeb M, Hulme FS. Effective retirement for family business owner-managers: Perspectives f financial planners Part 2. Journal of Financial Planning. 2001; 14(7):86–96.
  • Malone SC. Selected correlates of business continuity planning in the family business. Family Business Review. 1989; 2(4):341–53.
  • Sharma P, Chrisman JJ, Chua JH. Predictors of satisfaction with the succession process in family firms. Journal of Business Venturing. 2003; 18(5):667-87.
  • Michael-Tsabari N, Weiss D. Communication traps: Applying game theory to succession in family firms. Family Business Review. 2015; 28(1):26-40.
  • Mussolino D, Calabro A. Paternalistic leadership in family firms: Types and implications for intergenerational succession. Journal of Family Business Strategy. 2014; 5(2):197-210.
  • Lumpkin GT, Steier L, Wright M. Strategic entrepreneurship in family business. Strategic Entrepreneurship Journal. 2011; 5(4):285-306.
  • Mehrotra V, Morck R, Shim J, Wiwattanakantang Y. Adoptive expectations: Rising sons in Japanese family firms. Journal of Financial Economics. 2013; 108(3):84054.
  • Ling Y, Baldridge D, Craig JB. The impact of family structure on issue selling by successor generation members in family firms. Journal of Family Business Strategy. 2012; 3(4):220-7.
  • Eklund J, Palmberg J, Wiberg D. Inherited corporate control and returns on investment. Small Business Economics. 2013; 41(2):419-31.
  • Greidanus NS. Corporate venturing in family firms: A strategic management approach. International Journal of Entrepreneurial Venturing. 2011; 3(2):125-48.
  • Zheng V, Ho T-M. Contrasting the evolution of corporate governance models: A study of banking in Hong Kong. Asia Pacific Business Review. 2012; 18(3):407-23.
  • Marti J, Menendez-Requejo S, Rottke OM. The impact of venture capital on family businesses: Evidence from Spain. Journal of World Business. 2013; 48(3):420-30.
  • Aguilera RV, Crespi-Cladera R. Firm family firms: Current debates of corporate governance in family firms. Journal of Family Business Strategy. 2012; 3(2):66-9.
  • Grundstrom C, Oberg C, Ohrwall Ronnback A. Familyowned manufacturing SMEs and innovativeness: A comparison between within-family successions and external takeovers. Journal of Family Business Strategy. 2012; 3(3):162-73.
  • de Oliveira JL, Albuquerque AL, Pereira RD. Governance, succession and formalization of management in family businesses: (Re)organizing the role played by multi-generation families. Revista Brasileira de Gestao de Negocios. 2012; 14(43):176-92.
  • Hiebl MRW. Management accounting in the family business: Tipping the balance for survival. Journal of Business Strategy. 2013; 34(6):19-25.
  • Laakkonen A, Kansikas J. Evolutionary selection and variation in family businesses. Management Research Review. 2011; 34(9):980-95.
  • Stamm I, Lubinski C. Crossroads of family business research and firm demography - A critical assessment of family business survival rates. Journal of Family Business Strategy. 2011; 2(3):117-27.
  • Venter WP, Kruger S, Urban B. Exploring family business succession in an integrative familiness transmission of capital model: A South African study. International Journal of Entrepreneurship and Small Business. 2010; 11(3):263-84.
  • Sund L-G, Melin L, Haag K. Intergenerational ownership succession. Shifting the focus from outcome measurements to preparatory requirements. Journal of Family Business Strategy. 2015; 6(3):166-77.
  • Dou J, Li S. The succession process in Chinese family firms: A guanxi perspective. Asia Pacific Journal of Management. 2013; 30(3):893-917.
  • Tata J, Prasad S. Social capital and next-generation succession in the family firm. International Journal of Entrepreneurship and Small Business. 2010; 11(3):322-37.
  • Kamei K, Dana L-P. Examining the impact of new policy facilitating SME succession in Japan: From a viewpoint of risk management in family business. International Journal of Entrepreneurship and Small Business. 2012; 16(1):60-70.
  • Ghee WY, Ibrahim MD, Abdul-Halim H. Family business succession planning: Unleashing the key factors of business performance. Asian Academy of Management Journal. 2015; 20(2):103-26.
  • Buang NA, Ganefri SS. Family business succession of SMEs and post-transition business performance. Asian Social Science. 2013; 9(12 Spl Issue):79-92.
  • Matser I, Lievens J. The succession scorecard, a tool to assist family business’s trans-generational continuity. International Journal of Entrepreneurial Venturing. 2011; 3(2):101-24.
  • Zacher H, Schmitt A, Gielnik MM. Stepping into my shoes: Generativity as a mediator of the relationship between business owners’ age and family succession. Ageing and Society. 2012; 32(4):673-6.
  • Rautamaki H, Romer-Paakkanen T. The next generation’s commitment and willingness to continue the family business: Reflecting on potential successors’ experiences and pondering. International Journal of Entrepreneurship and Small Business. 2016; 27(1):52-70.
  • Schlepphorst S, Moog P. Left in the dark: Family successors’ requirement profiles in the family business succession process. Journal of Family Business Strategy. 2014; 5(4):358-71.
  • Schroder E, Schmitt-Rodermund E, Arnaud N. Career choice intentions of adolescents with a family business background. Family Business Review. 2011; 24(4):305-21.
  • Overbeke KK, Bilimoria D, Perelli S. The dearth of daughter successors in family businesses: Gendered norms, blindness to possibility and invisibility. Journal of Family Business Strategy. 2013; 4(3):201-12.
  • Mathew V. Women and family business succession in Asia – Characteristics, challenges and chauvinism. International Journal of Entrepreneurship and Small Business. 2016l; 27(2-3):410-24.
  • Glover JL. Gender, power and succession in family farm business. International Journal of Gender and Entrepreneurship. 2014; 6(3):276-95.
  • Wang C. Family small businesses: Definition, ‘essence’ and ‘true’ prevalence. International Journal of Entrepreneurial Venturing. 2010; 2(3-4):276-90.
  • Armstrong CE. Overqualified and disadvantaged: Exploring the barriers to growth of family businesses to second-generation leaders. International Journal of Entrepreneurship and Small Business. 2012; 17(2):160-75.
  • Sardeshmukh SR, Corbett AC. The duality of internal and external development of successors: Opportunity recognition in family firms. Family Business Review. 2011; 24(2):111-25.
  • Dawson A, Hjorth D. Advancing family business research through narrative analysis. Family Business Review. 2012; 25(3):339-55.
  • Solomon A, Breunlin D, Panattoni K, Gustafson M, Ransburg D, Ryan C, Hammerman T, Terrien J. Don’t lock me out: Life-story interviews of family business owners facing succession. Family Process. 2011; 50(2):149-66.
  • Kraus S, Harms R, Fink M. Family firm research: Sketching a research field. International Journal of Entrepreneurship and Innovation Management. 2011; 13(1):32-47.
  • Bennedsen M, Fan JPH, Jian M, Yeh Y-H. The family business map: Framework, selective survey, and evidence from Chinese family firm succession. Journal of Corporate Finance. 2015; 33:212-26.
  • Wang C. Daughter exclusion in family business succession: A review of the literature. Journal of Family and Economic Issues. 2010; 31(4):475-84.
  • Seaman C, Bent R, Unis A. Family entrepreneurship culture, entrepreneurial intent, futures and foresight in Scottish Pakistani communities. Futures. 2016; 75:83-91.
  • Cao J, Cumming D, Wang X. One-child policy and family firms in China. Journal of Corporate Finance. 2015; 33:31729.
  • Shi HX, Dana L-P. Market orientation and entrepreneurship in Chinese family business: A socialization view. International Journal of Entrepreneurship and Small Business. 2013; 20(1):1-16.
  • Seaman C, Welsh R, Bent R. Succession planning in minority ethnic family enterprises. International Journal of Entrepreneurship and Small Business. 2013; 20(4):402-19.
  • Holt R, Popp A. Emotion, succession, and the family firm: Josiah Wedgwood and Sons. Business History. 2013; 55(6):892-909.
  • Smith А. The theory of moral sentiments, or an essay towards an analysis of the principles by which men naturally judge concerning the conduct and character, first of their neighbours, and afterwards of themselves. To which is added a Dissertation on the Origin of Languages. Available from: http://oll.libertyfund.org/titles/2620
  • Mill JS, Utilitarianism. Oxford: Oxford University Press: 1998.
  • Marx K. Capital. files.libertyfund.org/files/967/ Marx_0445.03.pdf
  • Veblen Т. The Theory of the Leisure Class. NY: Macmillan; 1899. Available from: http://wps.prenhall.com/wps/media/ objects/107/110141/ch19_a4_d1.pdf
  • Schumpeter J. The theory of economic development. London: Oxford University Press; 1934.
  • Keynes JM. The General Theory of Employment, Interest and Money. Available from: http://cas.umkc.edu/economics/ people/facultypages/kregel/courses/econ645/ winter2011/generaltheory.pdf
  • Coase R. The problem of social cost. Journal of Law and Economics. 1960; 3:1-44. Available from: http://www2.econ.iastate.edu/classes/tsc220/hallam/Coase.pdf 69. Landsberg I. The succession conspiracy. Family Business Review. 1988; 1(2):119-43.
  • Neubauer F, Lank AG. The Family Business: Its Governance for Sustainability. New York: Routledge; 1998.
  • Poza EJ. Family Business. Mason, Ohio: South-Western Cengage Learning; 2010.
  • Guidebook Series How to support SME Policy from Structural Funds. Facilitating Transfer of Business. 2012. Available from: http://ec.europa.eu/
  • Sharma P, Irving G. Four bases of family business successor commitment: Antecedents and consequences. Entrepreneurship Theory and Practice. 2005; 29:13–33.
  • Dawson A, Sharma P, Irving PG, Marcus J, Chirico F. Predictors of later generation family members’ commitment to family enterprises. Entrepreneurship Theory and Practice. 2015; 39(3):545-69.
  • Yadov VA. The Strategy of Sociological Research: Description, Explanation, Understanding the Social Reality. Moscow: Omega-L; 2007.
  • Campbell D. Model Experiments in Social Psychology and Applied Research. Sankt-Petersburg: Social Psychology Center; 1996.

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.