Past and tradition shape family businesses – sometimes in ways that lead to serious crises. The newly published case study “Case Studies in Family Business”, edited by Roland Kidwell, vividly illustrates how past mistakes or oversights can burden generations of family businesses. The focus of the study is on the question: What challenges arise from these historical burdens, and how can they be managed?
In this collection published by Edward Elgar, Kidwell and his team bring together renowned scientists and researchers to demonstrate how family tensions, sibling rivalry, and intergenerational conflicts can pose significant challenges for family businesses. These practical case studies highlight that not only familial relationships but also economic and ethical differences between generations can have considerable impacts on a company's survival.
Confronting the “Dark Side” of Family Businesses
In his introduction, Kidwell emphasizes the importance of shedding light on the “dark side” of family businesses. The transition between generations is often marked by tensions – whether they are conflicting views on the right way to run the business or personal disputes that strain the company. The first case studies, for instance, show how severe sibling rivalries and insufficient communication can be. One example is the German company Stahlmann GmbH, which ultimately collapsed due to unresolved conflicts between generations.
Kidwell and his colleagues stress in their studies that managing such challenges strategically is crucial for the long-term success of a family business. Successful succession planning and targeted governance mechanisms are key to this process.
Tensions and Solutions – An International Perspective
One of the main strengths of this study is its international scope: the cases analyzed come from various countries, providing insights into the diversity of family businesses and their dynamics. For example, the Kenyan supermarket chain Tuskys is examined, showcasing the broad range of family conflicts and different business structures. Additionally, the succession process at RAJ General Supplies Limited – a company taken over by three daughters – offers valuable insights into how female leadership can be successfully integrated into a male-dominated family structure.
Moreover, the study raises important questions about the role of corporate governance in family businesses. The case “The Johnsons unveiled”, for example, illustrates how conflicting values within the family can endanger both successful business management and philanthropic efforts. Another case, the Royal Jumbo Food Group, demonstrates how corporate sponsorship in a family business can become a point of tension.
Practical Solutions for Family Businesses
The authors of these case studies not only sound the alarm but also provide valuable strategies for problem-solving. At the end of each case, readers will find learning notes that summarize key insights and encourage structured discussions. These notes are particularly valuable for business consultants and leaders working in family businesses, as well as for academics focused on corporate governance and family business dynamics.
Kidwell’s book “Case Studies in Family Business” serves not only as a textbook for students and researchers but also offers practical scenarios that affect family businesses worldwide. The case studies show that a company's success depends not only on its financial performance but also on its ability to resolve family tensions and manage intergenerational conflicts.