Turnaround Strategies in Established Small Family Firms

This study employs a case-study approach to identify unique characteristics of established small family firms that affect their ability to initiate turnaround strategies when encountering an organizational crisis. In our case studies, we found evidence for family firms employing the standard strateg...

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Published in:	Family business review Vol. 21; no. 1; pp. 31 - 50
Main Authors:	Cater, John, Schwab, Andreas
Format:	Journal Article
Language:	English
Published:	Los Angeles, CA SAGE Publications 01.03.2008 Blackwell Publishing Ltd SAGE PUBLICATIONS, INC
Subjects:	Case studies Data collection Family owned businesses Organizational change Studies Turnaround management
ISSN:	0894-4865, 1741-6248
Online Access:	Get full text
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Abstract	This study employs a case-study approach to identify unique characteristics of established small family firms that affect their ability to initiate turnaround strategies when encountering an organizational crisis. In our case studies, we found evidence for family firms employing the standard strategies of top-management changes, infusion of external management expertise, and retrenchment that have been proposed in the general turnaround literature. The implementation of these strategies was, however, moderated by eight characteristics generally associated with family firms, including strong ties to the family firm, internal orientation, altruistic motives, and long-term goal orientation. The introduced framework contributes to a more fine-grained understanding of the turnaround challenges of established family firms and how they can be addressed. This is a topic of substantial practitioner interest considering the high failure rates of family firms.
AbstractList	This study employs a case‐study approach to identify unique characteristics of established small family firms that affect their ability to initiate turnaround strategies when encountering an organizational crisis. In our case studies, we found evidence for family firms employing the standard strategies of top‐management changes, infusion of external management expertise, and retrenchment that have been proposed in the general turnaround literature. The implementation of these strategies was, however, moderated by eight characteristics generally associated with family firms, including strong ties to the family firm, internal orientation, altruistic motives, and long‐term goal orientation. The introduced framework contributes to a more fine‐grained understanding of the turnaround challenges of established family firms and how they can be addressed. This is a topic of substantial practitioner interest considering the high failure rates of family firms. This study employs a case-study approach to identify unique characteristics of established small family firms that affect their ability to initiate turnaround strategies when encountering an organizational crisis. In our case studies, we found evidence for family firms employing the standard strategies of top-management changes, infusion of external management expertise, and retrenchment that have been proposed in the general turnaround literature. The implementation of these strategies was, however, moderated by eight characteristics generally associated with family firms, including strong ties to the family firm, internal orientation, altruistic motives, and long-term goal orientation. The introduced framework contributes to a more fine-grained understanding of the turnaround challenges of established family firms and how they can be addressed. This is a topic of substantial practitioner interest considering the high failure rates of family firms. [PUBLICATION ABSTRACT]
Author	Schwab, Andreas Cater, John
Author_xml	– sequence: 1 givenname: John surname: Cater fullname: Cater, John email: jim.cater@nicholls.edu organization: College of Business, Nicholls State University, Thibodaux, LA, 70310 – sequence: 2 givenname: Andreas surname: Schwab fullname: Schwab, Andreas organization: College of Business, Louisiana State University
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Snippet	This study employs a case-study approach to identify unique characteristics of established small family firms that affect their ability to initiate turnaround... This study employs a case‐study approach to identify unique characteristics of established small family firms that affect their ability to initiate turnaround...
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StartPage	31
SubjectTerms	Case studies Data collection Family owned businesses Organizational change Studies Turnaround management
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Title	Turnaround Strategies in Established Small Family Firms
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