Given the importance of family businesses with regard to the economic growth of South Africa, and the fact that their high failure rates have a negative influence on the country’s economy, this study focused on ineffective leadership among family businesses and the influence thereof on business performance. People’s perceptions of leadership are changing, and an ethical, people-centred, character-orientated approach to leadership may be what businesses require. In addition, innovation and employee well-being are being given high priority, and leadership that is ethical and caring is of great importance. The primary objective of this study was twofold, firstly to establish the levels of Ethical, Authentic, Participative and Servant leadership displayed by family business owners and employees in the Eastern Cape, and secondly to establish the influence on the Perceived business performance of the family business of displaying these styles. Poor leadership was identified as a major challenge that family businesses are faced with, and a challenge that contributes to their high failure rate. The literature dealt with the nature and importance of leadership, and both traditional and contemporary leadership styles were elaborated on. The traditional leadership styles identified were autocratic, laissez-faire, transactional, transformational and participative leadership, while the contemporary styles identified and discussed were ethical, authentic and servant leadership. From the literature it was evident that a more ethical, people-centred, character-orientated approach to leadership may be what businesses require to be successful today. The literature highlighted Ethical, Authentic, Participative, and Servant leadership as the more character-orientated leadership styles that positively influence the performance of any business, including family businesses. These leadership styles formed the main focus of this study. In this study a quantitative research design was adopted and a descriptive study of a cross-sectional nature was undertaken. A convenience sampling technique was used owing to the inaccessibility of a family business database. The sample size in this study consisted of 250 small family businesses. A survey was undertaken and a structured, self-administered questionnaire was used to gather the necessary data. The measuring instrument was developed by sourcing items from several existing studies. Family business owners and employees working in the family business were approached by fieldworkers and asked to participate in the study. In total, 266 questionnaires were usable, 133 from family business owners and 133 from family business employees. An effective response rate of 53.20 percent was achieved. The validity and reliability of the measuring instrument were confirmed by means of an exploratory factor analysis (EFA) and by the calculation of Cronbach’s alpha coefficients. Descriptive statistics were calculated in order to summarise the sample data, while t-tests were used to determine whether the differences in mean scores returned by the family business owner and employee sample groups for the leadership styles under investigation, were significantly different from each other. Pearson’s product moment correlations were used to assess the associations between the variables under investigation. A multiple regression analysis (MRA) was used to assess the relationships between the independent variables and the dependent variable Perceived business performance. Lastly, the relationships between selected demographic variables and leadership styles displayed by family business owners were tested by means of an Analysis of Variance (ANOVA). Five factors were extracted from the EFA, four of which were considered for further analysis. The four usable factors extracted could be identified as the theoretical dimensions of Ethical leadership, Participative leadership, Perceived business performance and Servant leadership. The items measuring Ethical and Authentic leadership did not load as expected, as several items measuring the two factors loaded onto one factor. The Cronbach’s alpha coefficients returned for the four usable factors extracted from the EFA were greater than 0.7, and thus the scales measuring the independent and dependent variables provided satisfactory evidence of validity and reliability. The findings of this study show that for both the family business owner and employee sample group, Ethical leadership returned the highest mean score, followed by Servant and Participative leadership. The great majority of the family business owners therefore agreed that they adopted these leadership styles. In addition the majority of family business employees agreed that the family business owner, for whom they worked, adopted these leadership styles. T-tests were conducted to assess whether the differences in mean scores returned by the two sample groups were statistically significant. Significant differences were found between the means scores returned by both sample groups with regard to the level of Ethical and Servant leadership displayed by the family business owner. No significant difference was found between the mean scores returned by both sample groups for Participative leadership. This finding was not surprising, given that socially desirable bias occurs when individuals describe or rate themselves in a manner that is untruthful or in a way that they feel may be viewed favourably by others. From the MRA, no relationships were reported between the independent variables (Ethical, Participative and Servant leadership) and the dependent variable Perceived business performance. The results of ANOVA revealed that there was no relationship between the Gender, Age, Ethnicity, Tenure, Generation, Number of employees and the Nature of the family business and the Ethical, Participative, and Servant leadership styles. However, the results show that family business owners with a tertiary qualification are more likely to adopt a Participative leadership style. Despite no significant relationship found in this study, it is well supported in the literature that the leadership styles investigated have a positive influence on business performance. Family business owners should take cognisance of this, and measures should be taken to ensure that the leadership style implemented in their businesses is ethical, participative and servant-orientated. This study has attempted to enlarge the body of knowledge available on leadership, especially concerning the servant, ethical, people-centred and character-orientated leadership styles. The results of the study differ somewhat from existing literature, and therefore add to the body of knowledge on leadership. Furthermore, this study has addressed a gap in the current literature regarding the influence of leadership on business performance among family businesses in a developing economy such as South Africa.

Family business literature reveals that the majority of family businesses do not make it to the second generation, and quite a few are fortunate to be passed onto the third generation. Succession planning is the critical issue that enhances continuity of the family business. Relational influences indicate that the balancing of family systems and business systems is more likely to encourage high quality succession. The development of effective practical governance systems can help the family business achieve its strategy. External influences indicate that owner role adjustment, defined as the predecessor’s “letting go” in the firm, as well as the development and mentoring of the successor, shape the effectiveness of succession in the family business.

Family owned businesses play a vital role in the economy of a country, therefore their sustainability and succession is a topic that requires adequate research and analysis. This is required to determine the impact and contribution at a socioeconomic level and future development of the family owned business. Within the Nelson Mandela Metropolitan area previous research has been conducted analysing the above with regard to Greek family businesses. There is a little evidence to suggest similar studies have been conducted on Indian owned family businesses, specifically businesses operating at a third generation level. This research will therefore analyse Indian owned family businesses that are at a minimum level of third generation within the Nelson Mandela Metropolitan area. The purpose is to investigate whether there is any specific cultural attributes of the Indian culture which have contributed to their success.

This treatise investigates how information technology (I.T.) enables growth in a family business (the firm) in Port Elizabeth. The firm operates in the mobile telecommunications sector. The objective of the study is to gain a deeper understanding on why family businesses adopt information technology in their firm by means of a case study. The firm found its technology (or lack thereof) completely out-dated compared to the competition and customer demands. The future of the firm was in jeopardy. The study starts with a literature review of the following three topics which form part of the scope of the research: 1. Family businesses; 2. Influence of I.T. as a driver of growth in business; and 3. An introduction into the mobile telecommunications industry. Data are collected through structured interviews with family members involved in the business. The data are consequently linked to the theory and provides insight as to what the drivers are for I.T. adoption and the required core competencies or critical success factors of the firm. Although it might seem trivial for a small family business to adopt information technology, the research concludes that I.T. is critical for continuous growth and survival of this family business. Conversely due to a lack of internal skills the firm is heavily reliant upon outside consultants for advice, implementation and support. Recommendations which are of particular interest to family businesses in a similar environment are: • Embrace technology early, utilise I.T. solutions to grow and enhance current competitive advantage, do not see I.T. as a competitive advantage alone (Pavlou & Sawy, 2006); • If information expertise is not present within the company it is advisable to invest in that expertise through recruitment, training, partnership, or outsourcing; • Ensure software meets specification / is effective enough – this can be achieved by frequent releases cycles with small changes instead of infrequent release cycles with many big changes; • Engage the consultants in a partnership by i.e. providing a profit share – this will ensure that the consultants are committed to the cause and will also ensure that their involvement is also in their own best interest; • Choose local consultants who are easily accessible – build relationships and focus on trust; • Create lock-in (Amit & Zott, 2001), provide tools free-ofcharge for customers, this will make switching to competitor more difficult; • Automate as much as possible, enable standard work practices, routinize; • Be ready to adjust the organisational structure or relinquish control (Bruquea & Moyanob, 2007)

Family businesses are considered to be among the most important contributors to wealth and employment in virtually the world. This qualitative study looked at farming family businesses. Farming family businesses present certain unique features that discern them from other family businesses and are worthy of investigation. Two domains are identified in the literature and research about conflict in family business: The business and the family. The researcher postulated that the domain of the family is too broadly drawn and that farming family systems in the Sibling Partnership Stage, with their unique way of life and functioning, consist of several sub-systems which impact on the business. Conflict develops in and between the sub-systems. This study looked at conflict within farming family businesses from a systemic viewpoint, particularly focusing on the process aspects, the interactional dynamics in and between the sub-systems. Four active types of subsystems were identified in the case studies: Couples subsystems, parent child subsystems, sibling subsystems, in-law subsystems or subsystems of which at least one member is an in-law. The research aim was to explore the circular patterns in the two cases as systems and to uncover the function of the conflict in these systems. In both cases, circular conflict patterns came to the fore with the subsystems part of the feedback loops. The conflict escalation happened between the subsystems as elements and the conflict paths were circular, not linear. Sub-themes around family scripts, communication and perceptions about fairness were also uncovered in the research. Both cases were family businesses in the two-generational development stage. The function of the conflict in both systems could only be hypothesised due to the exploratory nature of the research. The researcher hypothesized that the function of the conflict in the systems centred around conflict as an attempt in the system to shake loose from entrenched restricting family scripts. The important themes that presented themselves in the research not envisaged in the planning stage. These themes are part of the systemic patterning in both the cases: Perceptions of fairness or rather unfairness feed into the conflict loop. Rewards and compensation are sensitive matters in all families. The more there are perceptions of unfairness in a subsystem, the more entrenched that belief becomes, the more the conflict in the system escalates and the bigger the emotional distance gets from the assumed beneficiaries of benefits.

Family businesses are operating throughout the world and suggested to be the predominant way of doing business. This is also true in South Africa with its unique challenges and informal sector providing work to many South Africans not able to find work in the formal sector. Women operating in the corporate environment have traditionally encountered challenges in breaking through the glass ceiling in order to be counted as a successful person in her own right. The same scenario seems to be evident in the family Business environment. Women in family business might choose the family business career path as it allows them more flexibility and time to attend to the home and children, but they also face a glass ceiling of another nature and are there other challenges to overcome in order to make their mark in the family business world. This study’s primary objective was to investigate the literature pertaining to women in business and women in family business. Of great importance was to determine what contributions women make in the family business environment allowing them to be successful. In order to answer this question the secondary objectives supported the primary objective of this study and pertained to the difference between men and women in terms of leadership style and execution of their personalities in business. The inherent strengths and weaknesses displayed by both male and females in the family business environment are investigated in order to link this to their management execution. v A questionnaire was developed to do an empirical study on respondents as identified in the Nelson Mandela Metropole and greater Eastern Cape. The respondents were from varied industries and was selected and interviewed with the support of the questionnaire structure as guidance. The results were analysed and certain recommendations were made addressing the primary objective. Further recommendations were made relating to future potential research in this area. An important finding of the research is that women as identified in the Eastern Cape environment still have difficulty in reaching the top. This is true for the corporate world as well as the family business environment. The difficulty might be based in the traditional roles women assume, but in many cases it was found that women are responsible for their downfall or stagnation in the family business environment as women are satisfied to remain in the shadows and do not command their own space and right of existence. Recommendations were made based on the advice of some of the female respondents which can assist in women stepping up to the role they should take up. Some of the advice given can be used as a best practice in future research of this nature.

Every business organisation has a unique set of challenges and problems. The family business is mainly affected by personal factors and family political influences. Most family business political influences are based on succession. Many of these problems exist in corporate business environments, but can be exaggerated in a family business. Family businesses go through various stages of growth and development over time. Many of these challenges will be found once the second and subsequent generations enter the business. One of the key problems is succession planning. Most family organisations do not have a plan for handing the power to the next generation, leading to great political conflicts and divisions. Despite the foregoing problems, family business is the world’s dominant form of business organisation. Based on figures compiled by the Family Firm Institute (FFI), in the Barclays Wealth Insights 2009, family firms comprise 80% to 90% of all businesses in North America. In the United Kingdom 75% of all businesses are family businesses. Some of the world’s biggest and best-known companies are family-owned. In the United States, some 37% of Fortune 500 companies are family-owned. In the global beer industry there are two family owned businesses in the top five, namely the Anheuser Busch Inbev Brewing Company and Heineken Breweries. Charlene de Carvalho-Heineken, a Heineken family member is delegate member of the Board of directors of Heineken Holding N.V. (Heineken Annual Report, 2011).This research report investigated succession at Heineken (as a family business). The researcher employed a mixed methodology approach where both quantitative and qualitative data collection instruments were used to gather data from two different groups of respondents (Heineken Operational Company Executives and Heineken Expatriates). Numerous attempts were made to contact Mrs Charlene de Carvalho-Heineken as well as other members of the Heineken family, without success. None of the questionnaires were returned. The research concluded that despite the fact that Heineken management has been highly professionalised with the majority of senior management structures filled with non-family members; the company is still a family business because 50.005% of the shareholding is held by Mrs. de Carvalho Heineken who is a family member. The research also observed that Mrs. de Carvalho Heineken sits on the Heineken Board of Directors. There is also an interesting side to the family ownership of the Heineken business. According to the Heineken Group’s 2009 Annual Report, the Hoyer family and Heineken family own L’Arche Green, a company that holds 58.78% interest in Heineken Holdings. This scenario confirms earlier research findings that according to the Agency Theory, managers who are not owners will not watch over the affairs of a firm as diligently as owners managing the firm themselves. The placement of Mrs.de Carvalho Heineken and Mr. D.P. Hoyer on Board of Directors is therefore very strategic in terms of maintaining the “familiness” of the Heineken business. Although respondents were not as direct as to whether there was a succession plan at Heineken, available documents reveal that indeed there is a succession plan at the company. It is interesting to note that Mrs. de Carvalho Heineken has been a member of the Executive Board of Directors since the age of thirty-four (she was nominated in 1988). This type of exposure to the Heineken business would went a long way in preparing Mrs. de Carvalho-Heineken for future positions. Her experience as a member of the Executive Board of Directors therefore confirms results of studies that found that positive firm performance by family successors is associated with successor’s development and intergenerational relationships, succession planning, successor’s potential capability, commitment to the firm and successor’s business skills.

The South African wine industry is polarised into the quantity-producing majority and the quality-conscious minority [Hughes, 2003]. The qualityproducing sector of the South African wine industry is dominated by family businesses. Research shows that there are approximately ninety familyowned wineries in South Africa. By international standards, South Africa is viewed as a quantity, not quality producing wine country, which will make it difficult to survive in an industry where quality is paramount for recognition. The ‘trailblazers’ of the international wine industry are family owned wineries [Robinson, 2000]. Twenty five percent of the 2003 five star South African wines were made by individuals or family wineries [Hughes, 2003], emphasising the growing importance of family wineries in the production of quality wines. It is important now, more than ever, with the industry opening up internationally, that survival of the family-owned wineries and their production of icon wines are promoted so that they can become flagship producers of the industry. The achievement of international status as a quality producing country, as well as building an industry based on the longevity of wine producing families, as well as a nation of wine lovers in South Africa should result.

The intention of this thesis is to analyse case studies and identify factors of successful succession in Czech family owned businesses (FOB). The work is divided into five chapters. The first chapter is devoted to the subject and objective of my thesis. Second one deals with theoretical background of entrepreneurship, history of entrepreneurship in Czech Republic and last but not least with theoretical background of FOB. The third chapter is an analysis of researches about succession in FOB made in Czech Republic and also in other parts of world. The fourth chapter focuses on research about succession practices in Czech FOB itself. The fifth chapter identifies key factors of successful succession. Key words:

A significant number of businesses operating in South Africa can be categorised as familyowned businesses and contribute substantially to employment creation, poverty eradication and wealth creation. Nonetheless, their longevity through generations remains a major cause for concern for all stakeholders. South African economy is characterised by a history of apartheid, where prior to 1994, the black majority only owned less than 5 percent of the businesses active in the economy. Since then, black majority participation in the economy has increased driven by the Black Economic Empowerment (BEE) legislation. Therefore, the aim of this study is to understand the influence of the incumbent, the successor, the family and the business, on management succession within black family-owned businesses in South Africa. The study followed an exploratory qualitative approach, using semi-structured interviews. Thirteen black family-owned business incumbents were interviewed with a view to answer the research questions. From the literature, 17 of the most widespread factors that influence management succession in family businesses were derived and formed the basis of the constructs or themes adopted during data analysis. All the interviews were recorded and then transcribed into text. A directed content analysis using ATLAS-ti was used to analyse the data, while constant comparative analysis using a meta-matrix was used to establish common themes to specific groups of respondents. The key findings showed that incumbent of black family-owned business regard the successor and incumbent-related factors as the predominant drivers of management succession. Commitment and interest of the successor towards the business and the quality of the relationship between the incumbent and the successor have a strong influence on decisions and criteria design across all the stages of the management succession process. From the family perspective, natural succession based on birth order and gender was considered to be the key determinant of the succession pool composition. Support of the successor by the family members through acceptance of the choice and not passing judgement when mistakes are made emerged as the critical family dimension that will influence the overall management succession process. In terms of the business itself, the size and nature of the business and change in market conditions were established to have a major influence on the succession process. / Dissertation (MBA)--University of Pretoria, 2014. / lmgibs2015 / Gordon Institute of Business Science (GIBS) / MBA / unrestricted