Sustainable Family Business Case Study Help
In both developing and industrialized countries;the family business serves as the backbone in the significant growth of an economy. Family businesses contribute to approximately 80 percent in all businesses,to assist in the development of the national economy and sustainability across the world. (Mohammed Oudah, 2018)Considering an increased susceptibility to attrition than any leading business in the market; small and family businesses are more likely to be riskyas compared to other investments. According to Fleming (2000), the family business is an instance that includes at least two members from the same family who work together. The family business is known to be primarily owned by one of them. Similarly, the risk associated with the use of business resources for household,tends to be magnifiedin the family businesses where the opportunity and temptation for the utilization of business resources and assets are more in the family business as compared to that of non-family business.(Tansel Yilmazer, 2010)
This study is based on the determination of factors that influence the sustainable growth of the family business. Because the survival rates of a family business to the third-generation are relatively lower. (Abel Duarte Alonso, 2018)Due to the reason that the involvement in a family business is mainly characterized in three divisions i.e. inter-generational involvement, management involvement and ownership involvement, which represents the need to include non-family employees. (Rawa Alwadani, 2019)The importance of identifying the growth influencing factors of family businesses is to provide an insight into the struggling family businesses, regardingthe ways and key drivers that have a positive impact on their growth. Similarly, the findings of the study would allow the family businesses to develop strategic approaches, which allow them to remain competitive in the industry and bring a significant improvement in the survival rate.
The purpose of the study is based onthe determination of factors that promote or restrict the sustainable growth ofthe family business. The research design of the study includes the collection of data to address the research question of the study. Considering the nature of the study;the analysis of the study will be based on a qualitative approach â€“ a theory-based review.
The approach of data collection included the use of article sources i.e.Google scholar. The keywords used for the search were sustainable family businesses and factors, influencing the family businessesâ€™ sustainability. Initial search results represented 20,700articles. The selection criteria of articles involved the publication data since 2010 i.e. articles of about the past ten years. The search results were reduced to about 1,600articles, by filtering the results based on the publication year. Articles that represented only abstracts were excluded.Thus, the text availability of the articles included both patents and citations, with an inclusion of full-text articles for analysis which reduced the articles to about 160. Based on the reading of articles abstracts; the final list of articles taken under consideration mainly included 54 articles.
The analysis of the data was based on the information collected by the filtered articles. Each article was reviewed to identify the answer to the research question based on the availability of theory. This is because the study is a theory-based review that deals with the analysis of the theories of past literature. The analysis of theory would assist in determining the gap in past literature and an overview of the future possible outcomes,regarding the sustainable growth of family businesses across different industries around the world.
Review and Discussion:
According to a number of researchers; family businesses are considered to be the long-lived companies, worldwide. Despite the fact, there are various factors that have complicated the take to ensure the long-term survival of family-businesses. For instance, with the growth and expansion of family and businessrepresenting positive relation in terms of development;the maintenance of ebb making norms, informal control and obligations become difficult. Considering the dispersion of the ownership;it becomes harder to efficiently exercise the control over the business. This is primarily due to the volatility and fragility of the emerging economies, endangering the survival of entrepreneurial ventures and all other businesses which mainly include family businesses.(Astrachan, 2010)…………………………………
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