The main factors determining effective operation in case of a family business
International Journal of Entrepreneurial Behavior & Research
ISSN: 1355-2554
Article publication date: 11 June 2018
Issue publication date: 19 September 2018
Abstract
Purpose
The purpose of this paper is to present the experience, successful management and the succession of generations in a Hungarian corporation in the food industry through the “Best Practice” model.
Design/methodology/approach
The chosen methodology for this paper is “The best practice model” prepared by The Solutionist Group. The model presents the characteristics of family businesses and illustrates how the process of sustainable enterprise differs in different fields concerning family and non-family businesses. In applying this model, the experience, successful management and the succession of generations will be presented in the case of a large Hungarian enterprise which has a determining role in the Hungarian food industry. The results are based on the question framework of the expert interviews.
Findings
The history of family-owned firms shows that in order to maintain appropriate business succession activity the family management has to plan in advance. Passing the baton to the next generation successfully is a complex and long-term family management role and it has strategic importance. To ensure business continuity, the successor has to take over the business and operate it well. That is why the sharing of knowledge, the innovation performance and the best practice are important parts of family company’s culture, and they consequently play an important part in the pass the baton project within family-owned firms.
Originality/value
This paper expands the knowledge about the succession of family businesses.
Keywords
Citation
Tobak, J., Nagy, A., Pető, K., Fenyves, V. and Nábrádi, A. (2018), "The main factors determining effective operation in case of a family business", International Journal of Entrepreneurial Behavior & Research, Vol. 24 No. 6, pp. 1065-1074. https://doi.org/10.1108/IJEBR-04-2018-0203
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited