Competitiveness of Family Businesses

33 Pages Posted: 18 Feb 2003

See all articles by Mark A.A.M. Leenders

Mark A.A.M. Leenders

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM); Erasmus Research Institute of Management (ERIM)

Eric Waarts

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM); Erasmus Research Institute of Management (ERIM)

Date Written: 20 2001 9,

Abstract

The purpose of this study is to systematically examine the advantages and disadvantages of different types of family businesses. We distinguish four different types of family businesses based on their family and business orientation: (1) House of Business, (2) Family Money Machine, (3) Family Life Tradition, and (4) Hobby Salon. In our empirical research among family businesses (n=220), we find that all four different types co-exist. In addition, we find that differences in family and business orientation result in different advantages and disadvantages with respect to performance indicators such as motivation, conflict resolution and continuity. Finally, our results indicate that, if a family firm would move along the dimensions of the orientation landscape, due to internal motivations or external circumstances, it will experience improvements on one or several criteria, but it may also encounter new concerns. These changing profiles in strengths and weaknesses can be viewed as mobility barriers or mobility opportunities when moving from one group to another.

Keywords: family business, stratetic orientations, competitiveness

JEL Classification: M, M31, C44, L22

Suggested Citation

Leenders, Mark A.A.M. and Waarts, Eric, Competitiveness of Family Businesses (20 2001 9,). ERIM Report Series Reference No. ERS-2001-50-MKT. Available at SSRN: https://ssrn.com/abstract=370908

Mark A.A.M. Leenders (Contact Author)

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Eric Waarts

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

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