EVOLUTION OF FAMILY BUSINESSES – A 3D THEORETICAL APPROACH

Abstract

: According to international literature there are many researches about family businesses. Examining and evaluating these kinds of businesses is a complex task because it is hard to take into account every influencing factor which have an impact on the operation of family businesses. The purpose of this study is to present a new theoretical method and model which is applicable to measure the development of family businesses from three dimensions: (1) family, (2) business and (3) ownership. The new theoretical model is suitable for carrying out such cross-sectoral and international comparative statistical analyses. The three attributes of family businesses may be measured, evaluated and analyzed separately and/or in combination. It is suitable for doing aggregated analysis of one or more companies. The (1) family dimension presents wich generation/generations operates the business. The dimension of (2) business shows the level of separation of tasks between family and non-family members and gives an answer how the management and the ownership functions are separated. The (3) ownership dimension shows the ownership state of examined businesses and can clarify the stage of the ownership structure. The simultaneous or separate examination of dimensions can assist to family businesses to measure their own status. The TONA model is applicable to measure the evolution of family businesses and can show the differences between sectors or countries in an illustrative way.

Keywords

• family businesses
• new theoretical method
• evaluating dimensions
• cross-sectoral analysis
• international comparative analysis
• tona model