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I. INTRODUCTION 1.1 Objectives of the Book (Editors) II. STRATEGY AND BUSINESS TRANSFORMATION IN FBGS 2.1 Exit and Renewal in Family Business Portfolio. (Qualitative Naveed Akhter and Xavier Lesage) 2.2 Understanding the internationalization strategy of Family Businesses Groups: The case of (TBC) in Spain. (Qualitative, Alex Dawson and Maria José Parada) 2.3 Mapping the Corporate Strategies of Spanish Family Business Groups. (Quantitative, Xavier Mendoza, Maria José Parada and Marita Rautiainen) 2.4 Ambidexterity in Family Business Groups
A Theoretical Perspective (Theoretical, Salvador Cerón, Cristina Cruz and Maria José Parada) 2.5 Business Group Capability and Institutional Development (Quantitative, Zhixiang Liang and Michael Carney) The main argument of the part II: Family business groups are ubiquitous, influential, and play a major role in national economies. Even though most of them are not really observed or studied, as the focus tends to be on single businesses, or single family businesses. Recent studies acknowledge the role of FBGs as a major business form (cf. Rautiainen et al., 2019), yet we still know relatively little about the strategic behavior of FBGs. It seems clear that FBGs grow using both organic and acquisition strategies, that many of the FBGs are actively diversifying their operations, and that they also start-up and exit businesses and redirect their business activities in other markets. Furthermore, the strategic renewal and the capability of FBGs to perform in economic changes is still largely unstudied. · Chapter 2.1 focuses on exit and renewal in family business portfolio by drawing on a case study research from France. This study will report three insights: First, family business portfolios due to family's close connection to the business engage in the resource management process that is to re-direct the resources back to the business portfolio while exiting subsequent businesses to restructure the business portfolio. Second, while exiting the subsequent businesses, family business portfolios provide the opportunity for the next generation of family owners start businesses to follow their passion. Finally, the resource management process triggers the business renewal of the family business portfolios providing opportunities to meet both internal (family) and external (market) demands. · Chapter 2.2 contributes to the FBG literature by shedding light from a qualitative perspective the decisions and process behind FBG development based on corporate strategies. Chapter also contributes to the internationalization literature in family firms by expanding current knowledge about family business internationalization decisions and processes and the role of governance mechanisms in decision making and implementation. By using a single case study, the chapter features a Spanish Family Firm that has internationalized its activities and has diversified its portfolio of businesses. · Chapter 2.3 presents an exploratory study which provides a profile of FBGs in Spain and map their corporate strategies in terms of: i) their starting business, product diversification strategy (related or unrelated) and industries in which they are more prevalent, ii) their degree of international diversification and their geographical footprint, and iii) the degree of control on their investee companies. The study follows a two-step procedure starting with the SABI database analysis to identify FBGs in Spain and obtain most of the information on their corporate strategies as well as use Amadeus and Orbis databases to complement the information on their international investee companies. Using statistical analysis, the study focuses on whether there are significant differences among FBGs according to their age, size, and ownership (public and privately-held). · Chapter 2.4 presents an ambidexterity perspective on Family Business Groups (FBGs), emphasizing the distinctive strategic behavior of families in business. The chapter conceptualizes ambidexterity as a strategy for business portfolio development and family continuity by effectively managing the tensions between exploitation and exploration. This chapter provides a thorough analysis of the ambidexterity literature applied to the context of family firms, as well as the intricate relationship between the decisions and routines that enable the exploitation and exploration of opportunities in FBGs, given the interdependencies between the family and the business dimensions. · Chapter 2.5 propose Business Groups (BGs) may represent an adaptive organizational form that co-evolve with national institutions in a manner that reinforces their capability building in both market and nonmarket aspects. The chapter seeks answers to three questions: (1) Beyond 'paragon or parasite', are there any more nuanced understanding between BG and the embedded institutions? (2) What contributes to BG's superior competitive advantages during the era of market transitions? (3) Consider why BGs persist and remain resilient even in the context of developed economies? By considering the moderation role of institutions, chapter augment the missing institutions perspective that the value of market and nonmarket capability would be enhanced or constrained by the growth of institutions, in both developing and developed economies. This approach complements current literature and provide a richer and balance understanding of the nature of the internalization of markets within BGs.III. INNOVATION STRATEGIES IN FBGS3.1 Parallel Innovation Strategies in Family Business Groups: Resource Intangibility and Internal Development (Conceptual, Naveed Akhter and Marita Rautiainen)3.2 Internal capital market and innovative performance: family versus non-family business groups. (Quantitative, Donato Iacobucci and Valentina Giannini)3.3 Open Innovation and Family Business Groups: Knowledge Flow Perspective. (Qualitative, Suvi Konsti-Laakso and Tuomo Uotila)3.4 Innovation Sourcing as a Strategy in Family Business Groups. (Qualitative, Marita Rautiainen, Naveed Akhter, Timo Pihkala) 3.5 Innovation in family business groups. (Qualitative, Sinha Sabyasachi) The main argument of the part III: Family business innovation has been found to form a paradox
that is, family businesses seem to invest less in innovation activities, but they seem to get more out of innovation than non-family firms. Earlier research has been studying the origins and consequences of the paradox yet missing the perspective of family business groups. In this section, we take a closer look at the FBGs innovation practices. Due to the diversified business structures, family business groups are likely to conduct different innovation strategies than most family businesses. For example, FBGs have been found to operate parallel innovation strategies in distinct sections of the business group (Rautiainen et al. forthcoming). Furthermore, due to the need to utilize innovation opportunities, FBGs may operate open innovation practices within the FBG as well as with external partners. Finally, even if FBGs are assumed to be in better resource position, little is known about FBGs use of internal funding for innovation. Altogether, the FBGs´ use of internal innovation processes, innovation sourcing, joint ventures, and the like, are largely unstudied. · Chapter 3.1 is drawing on resource intangibility (e.g., knowledgebase, goodwill etc.), this chapter builds theory and presents a model on the innovation process of family business groups. Chapter argues that the influence of family's resource intangibility (internal development) contributes to the parallel innovative processes in family business groups as compared to the external development. To understand innovation in family firms, the need of understanding the process of innovation is inevitable, especially in business groups where firms innovate better than their unaffiliated counterparts. · Chapter 3.2 investigates which internal factors influence the innovative performance in business groups. Specifically, it focuses on the role of internal capital market and the ownership structure. For the latter aspect the study compares the performance of family and non-family business groups. The study uses R&D and patents belonging to the headquarters and affiliated firms as proxies for the innovative performance. The empirical part of the paper refers to European business groups.
A Theoretical Perspective (Theoretical, Salvador Cerón, Cristina Cruz and Maria José Parada) 2.5 Business Group Capability and Institutional Development (Quantitative, Zhixiang Liang and Michael Carney) The main argument of the part II: Family business groups are ubiquitous, influential, and play a major role in national economies. Even though most of them are not really observed or studied, as the focus tends to be on single businesses, or single family businesses. Recent studies acknowledge the role of FBGs as a major business form (cf. Rautiainen et al., 2019), yet we still know relatively little about the strategic behavior of FBGs. It seems clear that FBGs grow using both organic and acquisition strategies, that many of the FBGs are actively diversifying their operations, and that they also start-up and exit businesses and redirect their business activities in other markets. Furthermore, the strategic renewal and the capability of FBGs to perform in economic changes is still largely unstudied. · Chapter 2.1 focuses on exit and renewal in family business portfolio by drawing on a case study research from France. This study will report three insights: First, family business portfolios due to family's close connection to the business engage in the resource management process that is to re-direct the resources back to the business portfolio while exiting subsequent businesses to restructure the business portfolio. Second, while exiting the subsequent businesses, family business portfolios provide the opportunity for the next generation of family owners start businesses to follow their passion. Finally, the resource management process triggers the business renewal of the family business portfolios providing opportunities to meet both internal (family) and external (market) demands. · Chapter 2.2 contributes to the FBG literature by shedding light from a qualitative perspective the decisions and process behind FBG development based on corporate strategies. Chapter also contributes to the internationalization literature in family firms by expanding current knowledge about family business internationalization decisions and processes and the role of governance mechanisms in decision making and implementation. By using a single case study, the chapter features a Spanish Family Firm that has internationalized its activities and has diversified its portfolio of businesses. · Chapter 2.3 presents an exploratory study which provides a profile of FBGs in Spain and map their corporate strategies in terms of: i) their starting business, product diversification strategy (related or unrelated) and industries in which they are more prevalent, ii) their degree of international diversification and their geographical footprint, and iii) the degree of control on their investee companies. The study follows a two-step procedure starting with the SABI database analysis to identify FBGs in Spain and obtain most of the information on their corporate strategies as well as use Amadeus and Orbis databases to complement the information on their international investee companies. Using statistical analysis, the study focuses on whether there are significant differences among FBGs according to their age, size, and ownership (public and privately-held). · Chapter 2.4 presents an ambidexterity perspective on Family Business Groups (FBGs), emphasizing the distinctive strategic behavior of families in business. The chapter conceptualizes ambidexterity as a strategy for business portfolio development and family continuity by effectively managing the tensions between exploitation and exploration. This chapter provides a thorough analysis of the ambidexterity literature applied to the context of family firms, as well as the intricate relationship between the decisions and routines that enable the exploitation and exploration of opportunities in FBGs, given the interdependencies between the family and the business dimensions. · Chapter 2.5 propose Business Groups (BGs) may represent an adaptive organizational form that co-evolve with national institutions in a manner that reinforces their capability building in both market and nonmarket aspects. The chapter seeks answers to three questions: (1) Beyond 'paragon or parasite', are there any more nuanced understanding between BG and the embedded institutions? (2) What contributes to BG's superior competitive advantages during the era of market transitions? (3) Consider why BGs persist and remain resilient even in the context of developed economies? By considering the moderation role of institutions, chapter augment the missing institutions perspective that the value of market and nonmarket capability would be enhanced or constrained by the growth of institutions, in both developing and developed economies. This approach complements current literature and provide a richer and balance understanding of the nature of the internalization of markets within BGs.III. INNOVATION STRATEGIES IN FBGS3.1 Parallel Innovation Strategies in Family Business Groups: Resource Intangibility and Internal Development (Conceptual, Naveed Akhter and Marita Rautiainen)3.2 Internal capital market and innovative performance: family versus non-family business groups. (Quantitative, Donato Iacobucci and Valentina Giannini)3.3 Open Innovation and Family Business Groups: Knowledge Flow Perspective. (Qualitative, Suvi Konsti-Laakso and Tuomo Uotila)3.4 Innovation Sourcing as a Strategy in Family Business Groups. (Qualitative, Marita Rautiainen, Naveed Akhter, Timo Pihkala) 3.5 Innovation in family business groups. (Qualitative, Sinha Sabyasachi) The main argument of the part III: Family business innovation has been found to form a paradox
that is, family businesses seem to invest less in innovation activities, but they seem to get more out of innovation than non-family firms. Earlier research has been studying the origins and consequences of the paradox yet missing the perspective of family business groups. In this section, we take a closer look at the FBGs innovation practices. Due to the diversified business structures, family business groups are likely to conduct different innovation strategies than most family businesses. For example, FBGs have been found to operate parallel innovation strategies in distinct sections of the business group (Rautiainen et al. forthcoming). Furthermore, due to the need to utilize innovation opportunities, FBGs may operate open innovation practices within the FBG as well as with external partners. Finally, even if FBGs are assumed to be in better resource position, little is known about FBGs use of internal funding for innovation. Altogether, the FBGs´ use of internal innovation processes, innovation sourcing, joint ventures, and the like, are largely unstudied. · Chapter 3.1 is drawing on resource intangibility (e.g., knowledgebase, goodwill etc.), this chapter builds theory and presents a model on the innovation process of family business groups. Chapter argues that the influence of family's resource intangibility (internal development) contributes to the parallel innovative processes in family business groups as compared to the external development. To understand innovation in family firms, the need of understanding the process of innovation is inevitable, especially in business groups where firms innovate better than their unaffiliated counterparts. · Chapter 3.2 investigates which internal factors influence the innovative performance in business groups. Specifically, it focuses on the role of internal capital market and the ownership structure. For the latter aspect the study compares the performance of family and non-family business groups. The study uses R&D and patents belonging to the headquarters and affiliated firms as proxies for the innovative performance. The empirical part of the paper refers to European business groups.