Working PapersRamachandran, Kavil., Bhatnagar, Navneet.,Ray, Sougata. "Togetherness in Indian Family Businesses"
Working PapersBhatnagar, Navneet., Ramachandran, Kavil., Ray, Sougata. "Bridging the Leadership Gap: How Indian Family Firms are Developing the Next Generation Members"Read Abstract >Close >Effective leadership transition across generations is important for continuity of family legacy and control over the family business. Weak next generation leadership is a major reason attributed for the failure of family firms (Miller, 2015). The next generation members are key constituents of the family human capital (Sirmon & Hitt, 2003) and critical links in transfer of tacit knowledge (Royer et al., 2008) who require careful nurturing (Sharma, 2008). The ability to develop committed and competent leaders in younger generations is critical to family business performance and survival (Ward, 2011; Sharma & Irving, 2005; Brockhaus, 2004; Foster, 1995; Handler, 1994). Next generation leadership development is a long and significant process but it has not been studied in –depth, particularly in an emerging economy like India. Following case methodology, in this paper, we examine case studies of next generation leadership development process of 15 Indian family firms and identify the pathways adopted by the senior and next generation leaders. The key questions we asked to understand the phenomenon were: (1) How Indian family businesses developed their next generation leaders?, (2) what processes did the firms follow that were successful in developing next generation leaders?, and (3) what specific roles did the senior and next generation leaders play at various stages of the leadership development process. Based on the common patterns that emerged from the cases, we developed a conceptual framework for next generation leadership development process, mapping all the capability development stages observed. We observe two broad phases of leadership development that involve acquisition of multiple capabilities. Phase I involves intrapersonal and Phase II interpersonal capabilities in the family business context. Leaders who adhere to the building up of core capabilities tend to be more successful. For family businesses that failed to achieve such leadership transition, we observed absence of certain keys stages. We conclude the paper with practical implications.

Working PapersBang, Nupur Pavan.,Vishwanathan, Anierudh.,Ray, Sougata., Ramachandran, Kavil. "Does Family Ownership Impact Firm Performance?- Evidence from India "Read Abstract >Close > Concentrated ownership of a firm in the hands of a family presents unique opportunities and challenges that may have an impact on the performance of the firm. A unique proprietary database of scientifically classified listed family and non-family firms covering 4,186 firms in India from 1990 to 2016 has been used to study the impact of family ownership on firm performance, thus advancing the debate that has so far been skewed towards studies from the developed markets and larger firms. Family ownership classification used in this considers ownership concentration in the hands of the family, the management control with the family and ownership continuity within the family. Accounting and market measures of firm performance have been used to conduct a time-series cross-sectional comparison of family and non-family firms. Results show that family ownership and control per se are a significant impediment to firm performance for the listed firms in India.

Working PapersBang, Nupur Pavan.,Vishwanathan, Anierudh.,Ray, Sougata., Ramachandran, Kavil. "Performance of Listed Family Firms in India vis a vis the Non-Family Firms"Read Abstract >Close > Concentrated ownership of a firm in the hands of a family presents unique opportunities and challenges that may have an impact on the performance of the firm. A unique proprietary database of scientifically classified listed family and non-family firms covering 4,186 firms in India from 1990 to 2016 has been used to study the impact of family ownership on firm performance, thus advancing the debate that has so far been skewed towards studies from the developed markets and larger firms. Family ownership classification used in this considers ownership concentration in the hands of the family, the management control with the family and ownership continuity within the family. Accounting and market measures of firm performance have been used to conduct a time-series cross-sectional comparison of family and non-family firms. Results show that family ownership and control per se are a significant impediment to firm performance for the listed firms in India.

Working PapersBhatnagar, Navneet.,Ray, Sougata., Ramachandran, Kavil. "‘Togetherness’ in Family Business: Measuring Familial Bonds in Action!"Read Abstract >Close >Family cohesion is crucial for family business sustenance (Le-Breton Miller & Miller, 2016) but is inadequately examined. We term the owner family’s capability to function as a cohesive unit as ‘Family Togetherness’ and argue that its constituents are determined by the operational and governance practices followed in both the family and business sub-systems. It is the socioeconomic behavioral manifestation of family bonding. Using confirmatory factor analysis based on 279 survey responses from Indian family business leaders, the study identifies six dimensions of family togetherness. The paper also cites implications of the study and concludes with suggestions for future research.

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