Sustainable Management in
Longlived Family Businesses A Resource-based Analysis of
Northern German Builder’s Providers
Dissertation 2007 by Britta Boyd,
International Institute of Management,
University of Flensburg, Germany
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Leading Questions:
1. What special features can be shown in
longlived family businesses?
2. Are longlived family businesses managed
according to sustainability?
3. What lessons can other companies learn
from longlived family businesses?
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Britta Boyd
Main Literature
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Carlock/Ward (2001) Strategic Planning for the Family Business, NY.
Habbershon/ Williams (1999) A Resource-Based Framework for
Assessing the Strategic Advantages of Family Firms, FBR Vol. 12/1.
Grant (1991) The Resource-Based Theory of Competitive Advantage:
Implications for Strategy Formulation, CMR Vol. 33.
Hahn/Taylor (1999) Strategische Unternehmensplanung, Berlin.
Klein (2004) Familienunternehmen - Theoretische und empirische
Grundlagen, Wiesbaden.
Löbel/Schröger/Closhen (2001) Nachhaltige Managementsysteme, Berlin.
Neubauer/Lank (1998) The Family Business: Its Governance for
Sustainability, NY.
Nolte (1999) Organisation: Ressourcenorientierte Unternehmensgestaltung, München.
Steinmann/Schreyögg (1997) Management: Grundlagen der
Unternehmensführung, Wiesbaden.
Britta Boyd
Terminology
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Sustainable management:
“A way to satisfy today’s economic, ecologic and
social needs that also enables future generation to
satisfy their needs” (Löbel, 2001)
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Longlived family businesses:
Family owned builder’s providers which are at least
in the fourth generation
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Britta Boyd
Methodology
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Resource-based view (Grant, 1991):
Resource-based strategy analysis in a five-stages:
1. Identify firm’s resources
2. Identify firm’s capabilities
3. Appraise them to competitive advantages
4. Strategy selection
5. Identify resource gaps
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Case Study Analysis:
Qualitative research method to explain the motives and details of
complex social phenomenons with multiple sources of evidence.
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Britta Boyd
Identifying FB Strategies
Internal
capabilities
External
environment
Family
commitment
Choice of
family business
strategy area
Carlock/Ward (2001)
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Britta Boyd
Indicators of Sustainable Management
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Economic indicators: patents, cooperations, turnover,
equity ratio, use of profits, investments, number of
employees
Ecologic indicators: waste disposal, rental mashines,
renewable energy use, ecologic performance of
products and company, product origin.
Social indicators: regional ties, employee structure,
working conditions, qualification, customer and
employee relationships, family meetings.
Long-term indicators: companies’ vision and
philosophy, strategic goals, succession.
Britta Boyd
Research Model and Hypotheses
H 1 a-d
Longlived
FB act
sustainable
Economic,
ecologic,
social and
Summary
H1
Case 1 2 3 4
long-term
orientation of
management
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Britta Boyd
Summary of Case Study Results
Dimensions:
Case 2
Case 3
Case 4
Total
long-term
1 (1/1.5)
2 (3/2)
2 (3/3)
1 (1/1)
economic
2 (3/3)
3 (3.5/3)
2 (3/3)
2 (2.5/2)
2,25
ecologic
3 (5/2.5)
2 (3/2.5)
2 (2.5/2.5) 2 (1.5/3)
2,25
social
2 (3/2.5)
2 (3/2)
3 (2,5/2,5) 2 (n.a./2)
2,25
Sustainability
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Case 1
II
III
III
1,5
I
Britta Boyd
Resources of Sustainable
Family Business Management
Sustainability
dimensions
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1. Resources
2. Capabilities
Economic
high equity capital,
willingness to cooperate,
situation
family property
trustworthiness
Ecological
environmental responsibility, skilled advice,
orientation
high product quality
example setting
Social
good employee and
conflictability,
orientation
customer relationships,
qualification,
good working climate
regional closeness
Long-term
cooperations,
flexibility,
orientation
firm history
communication
Britta Boyd
Sustainable Management Concept
for Family Businesses
Businesss culture
Long-term
business goals
Area strategies
Ecological
strategies
Social
strategies
Economic
strategies
Family culture
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Britta Boyd
Contributions and Limitations
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Case study results show, that the longlived family
businesses act in a sustainable manner
The businesses should not be afraid of sustainability
reports, which are becoming more and more important
To find an appropriate indicator, further research is
needed in this field also for other branches
This and further research indicates that sustainable
development as a worldwide socio-political goal is
supported by family businesses
Britta Boyd