Family Business Research Paper Example | Topics and Well Written Essays - 11000 words

Family Business - Research Paper ExampleThis condition, in turn, has alter contemporary organisations. Organisations pursue competencies that make firms globally competitive. Companies pursuit of competencies is no longer just expressage to pecuniary and physical capital, but it also includes human capital. This move is necessary to create added value to their services or products, attract new customers, and retain loyal clients (Nordhaug, 1993 Westhead & Matlay, 2006). However, despite the fast phase changes in the modern period, the noteworthy and integral component of the family in the economic activities of the society remains undeterred (Aldrich & Cliff, 2003). Of the sev date of referencel facets manifesting the integral role of the family in the society, the influence of family on caper, in terms of firm creation and management, is no longer limited to small businesses, but it also consists of large corporations with families holding majority shares (Steier, Chrisman & Ch ua, 2004). This scenario is observed not hardly in the United States and in Europe, but it is also an event that has become perceptible in China, Japan and new(prenominal) Asian countries (Steier et al., 2004). As such, it can be claimed that there is a pervasive participation of families in the insane asylum and management of economic institutions that redefines the role of families in economic organisations and activities as well as in organisational manners (Aldrich & Cliff, 2003 Morck & Nakamura, 2003 Steier et al., 2004). In this context, family owned business (FOB), just like non-family owned business, requires effective brass instrument for the firm to hit move growth and success. Implementation of policies, strategies and management by family founders/owners are geared towards attaining efficient and effective governance that will sustain and maintain the family corporation (Angus, 2005). Effective FOB governance is essential not only in use organisational issues and in wealth management of the FOB, but it is also necessary in handling conflicts arising from family relations involve in the business (Moore& Juenemann, 2008). In this condition, understanding governance in family owned business becomes one of the essential factors in determining FOBs sustainability, growth and success in the era of globalisation. Background of the Study Family owned businesses play a crucial role in economic activities across the globe (Steier et al, 2004). Families creating and managing their own businesses have become pervasive and it is clearly manifest in many ontogenesis countries (Ramachandra & Merisetty, 2009). However, as economic institutions, FOBs require effective governance that will ensure not only their continued existence in the market, but can also guarantee the firm