Family Businesses in Transition Economies (eBook)

Léo-Paul Dana received BA and MBA degrees at McGill University and a PhD from HEC-Montreal. He is Professor of Entrepreneurship at Montpellier Business School and holds the honorary title of Adjunct Professor at the University of Regina, in Canada. He was earned tenure at the University of Canterbury and formerly served as Visiting Professor of Entrepreneurship at INSEAD and Deputy Director of the International Business MBA Programme at Nanyang Business School. He has published extensively in a variety of leading journals including the Cornell Quarterly, Entrepreneurship and Regional Development, Entrepreneurship: Theory and Practice, Journal of Small Business Management, Journal of World Business, and Small Business Economics. His research interests focus on cultural issues, including the internationalization of entrepreneurship. He is Editor Emeritus of the Journal of International Entrepreneurship. Among his books are When Economies Change Hands: A Survey of Entrepreneurship in the Emerging Markets of Europe from the Balkans to the Baltic States, published by Routledge in 2010 and the World Encyclopedia of Entrepreneurship, released in 2011.Veland Ramadani is an Assistant Professor at South-East European University, Republic of Macedonia, where he teaches both undergraduate and postgraduate courses in entrepreneurship and small business management. During the period 2012- 2014, he served as Coordinator of Integrated Study Programme Department: Contemporary Enterprise Management, within South-East European University. He formerly served as Visiting Professor of Entrepreneurship at Universum College and AAB University, Republic of Kosovo. His research interests include entrepreneurship, small business management and venture capital investments. He authored or co-authored around forty-five research articles and ten books. Among his recent books are Entrepreneurship in the Balkans, published by Springer, Entrepreneurship, published by South-East European University and Female entrepreneurship in transitional economies: Trends and challenges, published by Palgrave Macmillan. Veland also serves as a member of editorial and reviewer board of several international journals. He was engaged by the President of Republic of Macedonia as a member of experts’ committee to analyse the economical, technological and juridical conditions for establishing techno-parks in the Republic of Macedonia. He has also delivered different trainings to the heads of departments in the Ministry of Economy of Macedonia.

Foreword 8
Reference 9
Foreword 10
References 12
Acknowledgment 14
Abbreviations 16
Contents 18
List of Contributors 20
Reviewers 24
Introduction to ``Family Business in Transition Economies´´ 26
Part I: Introductory Issues 32
Context and Uniqueness of Family Businesses 33
1 Introduction 33
2 Defining Family Businesses 35
3 Family Business Categories 39
4 Participants in the Family Business 41
5 Family and Business Overlapping 43
6 Conflicts in the Family Business 46
7 Family Business Culture 48
8 Succession Issues 50
9 Advantages and Disadvantages of Family Business 55
10 Conclusion 57
References 58
Context and Uniqueness of Transition Economies 62
1 Introduction 62
2 The Fall of the Berlin Wall: The Transition Started 63
3 Strategies of Transition 65
4 Models of Transition 71
4.1 The Yugopluralist Model 71
4.2 The Perestroika Model 73
4.3 The Përsëritje Model 74
4.4 Models of Gradual Transition 75
5 Economic Activities in Formal and Parallel Transitional Economies 76
6 Twenty-Five Years Later: Reflections 79
7 Conclusion 85
References 86
Different Features of Transition Economies: Institutions Matter 93
1 Introduction 93
2 Transition Process: Some Key Aspects 95
2.1 Defining Transition and Transition Process 95
2.2 Shock Therapy vs. Gradualism 95
2.3 When Transition Ends? 96
3 Institutions and Institutional Quality as a Cornerstone of Transition Process 97
3.1 Defining Institutions 97
3.2 Institutions in Transition Economies: Some Theoretical Issues 98
3.3 Measuring Institutions and Data Sources 98
4 Quality of Institutions in Western Balkan Countries Compared to Central European Countries 99
4.1 Unit and Methods of Analysis 99
4.2 Results and Discussion 100
5 Conclusions and Implications 106
References 116
Data sources 118
Part II: Management, Succession and Financial Issues 119
To Be or Not to Be in a Family Business: The Case of Eight Countries in South-Eastern European Region 120
1 Introduction 120
2 Literature Review 122
3 Methodology and Sampling 123
4 Findings 125
4.1 Locus of Control 125
4.2 Self-Efficacy 126
4.3 Independence Motive 126
4.4 Innovation Motive 126
4.5 Hypothesis Confirmation 127
4.6 Control Variables 127
4.7 Dependant Variable 128
5 Discussion and Implications 128
References 131
Management Practices in Bulgarian Family and Non-family SMEs: Exploring ``Real´´ Differences 133
1 Introduction 133
2 The Context of the Research 135
3 Theoretical Background 137
3.1 The Nature of Family Business 137
3.2 Understanding Differences Between Family and Non-family Firms 138
4 Literature Review and Hypotheses 140
5 Research Methodology 143
6 Empirical Findings 146
7 Discussion and Conclusions 150
References 152
Obstacles and Opportunities for Development of Family Businesses: Experiences from Moldova 159
1 Introduction 159
2 Short Review of Economic Development of the Republic of Moldova in the Transition Period 160
3 The Characteristics of Entrepreneurship in Present 162
4 Family Business in Moldova: Preferential Development Within the Framework of Micro and Small Enterprises 163
Box 1. Forced business in owners´ declining years 164
Box 2. Family business grows: Moldovan embroidery kits are in demand in 27 countries 166
5 Profile of the SME Sector in the Republic of Moldova 167
6 Limited Access of SMEs to the Resources and Family Businesses Opportunities 168
7 External Environmental Conditions and Their Impact on Family Businesses 171
Box 3. Marital relations crisis as a threat to family business 173
8 Some Conclusions 174
References 174
Successors´ Innovativeness as a Crucial Succession Challenge of Family Businesses in Transition Economies: The Case of Slovenia 177
1 Introduction 177
2 Theoretical Background 179
2.1 Transition in Slovenia 179
2.2 Family Business Succession and Its Specifics in Slovenia 180
2.3 Successors´ Innovativeness 181
2.3.1 Entrepreneurialism 181
2.3.2 Knowledge Transfer and Creation 182
2.3.3 Social Capital 182
3 Method 183
3.1 Case Study Approach 183
3.2 Data Collection 183
3.3 Data Analysis 184
3.4 Findings with Development of Propositions 184
3.4.1 Innovativeness of SFF and Their Successors 184
3.4.2 Entrepreneurialism 185
3.4.3 Knowledge Transfer and Creation 187
3.4.4 Social Capital 189
4 Conclusion with Limitations and Future Research Directions 191
References 191
Family Business Succession Risks: The Croatian Context 195
1 Introduction 196
2 Literature Review 197
2.1 Theoretical Hypotheses of the Family Entrepreneurship 197
2.2 Ownership Transfer in a Family Business 198
3 Family Businesses in Croatia 201
4 Business Risk, Succession Risk and Risk Management in Family Businesses 201
5 Methodoloy and Data 204
5.1 Questionnaire Method 204
5.2 Research Results 207
6 Discussion 213
7 Conclusion 214
References 215
The Succession Issues in Family Firms: Insights from Macedonia 218
1 Introduction 218
2 Literature Review 219
3 Succession Models 223
4 Business Climate for Family Businesses in Macedonia 226
5 Succession in Macedonian Family Businesses 229
6 Case Study 236
7 Suggestions for Further Research 238
8 Conclusion 238
References 239
Attributes of Financial Management of Family Companies in the Czech Republic and Slovakia 241
1 Introduction 242
2 Theoretical Aspects of Family Companies Business in SME Segment 243
3 Objective and Methodology of the Research 246
4 Results 247
5 Conclusion 253
References 254
Ownership Structure, Cash Constraints and Investment Behaviour in Russian Family Firms 257
1 Introduction 258
2 Literature Review 261
2.1 Family Firms 261
2.2 Historic Background, Transparency and the Insiders´ Advantage 263
3 A Model of Investment 265
4 Empirical Analysis 268
4.1 The Data 268
4.2 Empirical Specification 270
4.3 Results 274
5 Conclusion 278
References 279
Part III: Internationalisation and Other Issues 283
Family Businesses Motives for Internationalisation: Evidence from Serbia 284
1 Introduction 285
2 Literature Overview 286
2.1 The SME Sector in the Balkan Countries as, EU Pre-accession Economies 289
3 Family Business in Serbia 292
3.1 The Impact of Motives on the Internationalization of the Selected Family Firms from Serbia 293
4 The Business Environment for the Family Firms Internationalization in Serbia 296
4.1 The Family Business Support Infrastructure 297
4.1.1 Financial Support 300
4.1.2 Advisory Services 301
4.1.3 Human Resources and Technology Aspects 302
5 Access to Skilled Labour, Finance and New Technology as Motives for Family Firms Internationalization 303
5.1 Methodology and Data 303
5.2 Findings 304
6 Discussion and Conclusions 307
References 308
Entering New Markets: Strategies for Internationalization of Family Businesses 310
1 Introduction 310
2 Reasons for Internationalization 312
3 Types of Strategies for Performing in International Markets 314
4 Research Result: Strategies for Performance in International Market of Albanian Family Businesses 318
5 Conclusion 319
References 320
Family Business in Sport Organizations: Western Experiences as Lessons for Transitional Economies 321
1 Introduction 321
2 Literature Review 323
2.1 Role of Family Business 323
2.2 Family Business and Sport Clubs 324
2.3 Management of Family Businesses 326
2.4 Conflict and Family Business Structures 327
3 Generational and Succession Issues for Sport-Related Family Businesses 328
4 Family Business and Sport Culture 330
5 Conclusion 331
References 331
Family Businesses in the Trade Sector: An Examination of a Case Study from Kosovo 334
1 Introduction 334
2 The History of ALBI Group 336
3 ALBI Group Business Entities 337
4 Development over the Years 339
5 Governance in Family Business 340
6 Succession Planning 341
7 Conclusion 343
References 343
About the Editors 345
About the Authors 347
Index 356