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Transferring Strategy Research to the Family Firm Context: A Fit Perspective on Performance in Family Firms

In: Understanding Family Businesses

Author

Listed:
  • Corinna M. Lindow

    (HHL – Leipzig Graduate School of Management)

Abstract

Consider the following three illustrative real cases, to which this chapter will refer recurrently. First, family firm A is Europe’s largest and market-leading shoe retailer. The firm was founded in 1913 in Germany and is today present in 20 countries. It has one core business and is 100% family-owned, -managed, and -supervised. The firm has a centralized organizational structure. Second, family firm B is one of the largest players in the German food industry. Founded in 1891 by a pharmacist, the company developed a leading market position in food manufacturing with a wide product range. Aside from the core business, the firm also moved into other selected businesses, including wine, spirits, and beer. Moreover, the firm expanded its operations into banking, shipping, and the hotel business. Family firm B is 100% family-owned, but partially family-managed and -supervised. The firm practices a combination of centralized control and decentralized management. Third, family firm C has grown from grocery trading into an international group over the years and operates strictly in growth-oriented markets. Its areas of operation include wholesale, pharmacies, raw materials, personal hygiene, and more. Family firm C was founded in 1756 and today is owned by more than 500 members of the family. There is a clear separation of family and business. The firm is 100% family-owned, but 0% family-managed and partially family-supervised. The group is composed of five autonomously run divisions. It has a decentralized organizational structure.

Suggested Citation

  • Corinna M. Lindow, 2012. "Transferring Strategy Research to the Family Firm Context: A Fit Perspective on Performance in Family Firms," International Studies in Entrepreneurship, in: ALAN CARSRUD & Malin Brännback (ed.), Understanding Family Businesses, chapter 0, pages 203-225, Springer.
    • Handle: RePEc:spr:inschp:978-1-4614-0911-3_13
    DOI: 10.1007/978-1-4614-0911-3_13
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