The Dynamic Model of Intellectual Capital Creation in Family Business:The Dynamic Capabilities Perspective

The purpose of this paper is to examine the role of knowledge and learning as a dynamic capability that leads to competitive advantage in family firms.It further conceptually develops a model showing the relationship between intellectual capital,firm performance,and dynamic capabilities in family firms.This study highlights knowledge accumulation,knowledge integration,knowledge codification,and the preservation of socioemotional wealth(SEW)as a set of dynamic capabilities.Such capabilities allow a family firm to sense and seize business opportunities and gain competitive advantages.Findings from the case applications reveal that family businesses benefit from the accumulation of knowledge through expertise,skills,and employment of non-family members and having family involvement as important strategic assets that lead to increased value in family firms’performance.

From Family Business Management to Professional Management in a Time-Honored Brand： The Case of Fu Yuan Guan

This case describes the development process of Fu Yuan Guan, a Chinese time-honored brand. Through privatization, Fu Yuan Guan survived and rapidly captured its market. However, the family business management style proved to be a bottleneck during further expansion. There is a need to recruit qualified professional managers to improve the overall management of the firm but it seems there are challenges in doing so. This case describes the daily operationalization of this family firm together with the approach of top managers, with the purpose of exhibiting how its internal management is implemented.

Family Business Succession in Hong Kong： The Case of Yung Kee

This case study examines the succession of Chinese family business in Hong Kong, drawing upon theories of the firm. More specifically, it utilizes capabilities theories, property rights economics and Neo-Confucianism to understand management disputes and infighting among the members in a Chinese family business in Hong Kong. This paper will argue that the founder of a Chinese business firm in Hong Kong is able to lead his or her offspring to create a dynamic enterprise via charismatic leadership and family rules embedded in traditional Chinese values. However, these two strategic assets disappear following the passing away of the founder as well as the emergence of new social values. When the founder passes on the enterprise to his or her offspring using more or less the equal inheritance system, the traditional Chinese value is unable to enforce the leader＇s will to consolidate the strengths of the second generation family members to maintain the founder＇s business. Furthermore, when the business is owned by all family members, property rights of the firm become unclear. Without effective enforcement of traditional Chinese values and with collective ownership rights, some family members will have the incentive to capture the economic rent that is shared by all members. In other words, some family members behave opportunistically or even cheat in order to capture economic gains in the public domain. High monitoring and enforcement costs in the form of court battle and endless disputes will occur. Rent dissipation occurs in the form of deterioration of the quality of the family business. This casestudy is based on Yung Kee, an intemationally well-known roast goose restaurant in Hong Kong as an illustration.

Analysis of the Critical Aspects of the Generational Turnover in Family Small- and Medium-Sized Enterprises （SMEs）

Family businesses, which aim at surviving today, have to deal with a precise modality： To ensure their continuity, entrepreneurs have to ensure the transfer of leadership from one generation to another inside of them. We do believe that this matter is worth being analyzed, since the succession, from one generation to another, can be considered as a crucial variable in maintaining family small- and medium-sized enterprises （SMEs） over time. Therefore, after investigating the main features, problems, and factors leading to the succession processes, in the second part of this article, an empirical analysis will be carried out, by comparing several European countries on the basis of data from the European Commission. This article contributes to enriching, from a theoretical point of view, the conceptual framework used for investigating the dynamics in the continuity of SMEs. Moreover, empirically, it contributes to the increasing literature on family businesses by comparing several European countries in order to understand what originates the longevity of family SMEs.

Familial and Territorial Values for Sustainable Entrepreneurship in Italy： Some Reflections in Theory and Practice]

This study reflects the specificities of family small- and medium-sized enterprises （SMEs） which are related to values, culture, and relationships with the territory （local context）. In the following sustainable and corporate social responsibility （CSR）-oriented strategies, family businesses are ＂assisted＂ by the presence of entrepreneurial values which are tied to and derived from the social system in the territory in which they are located. The aim of this study is to demonstrate that the consolidation of stable and durable relations between the family business and the local context depends on the presence of shared values between the members of the family and the stakeholders, all components of civil society are within the same territory. Such values are the fruit of a given territory＇s civic traditions. They are the result of an anthropological culture which is typical of the socioeconomic environment in which the entrepreneur, the family, and the business are all rooted, thus, they are expressions of a culture ＂of the place＂.

Sense of CommuniW Responsibility as a Determinant of Corporate Responsibility

Research on the social value of the bus industry in Australia revealed an inconsistency in findings between qualitative and quantitative results in relation to the nature of a bus operator＇s interaction with the community where they provide a transport service. As part of a larger research project that surveyed bus operators about their corporate social responsibility, bivariate analysis found that the responses to the embedded Sense of Community Index （SOCI） did not provide a predictor of the extent of a bus operator＇s community interaction or determinant of Corporate Responsibility （CR）. However, qualitative comments in the survey suggested that bus operators did display strong positive feelings about their community. Published after the data collection stage was completed, the Sense of Community Responsibility Index （SOCRI） appeared to be a better fit than SOCI to explain the nature of bus operator＇s interaction with their community. Rather than drawing on community resources, the interaction was shown to be one of leaderships on the part of the operator. Further examination of this relationship using the SOCR would test this finding.

Harmony, Productivity, and Informed Decision Making： The Fundamental Competencies of the Chief Emotional Officer

Existing in most family firms, the chief emotional officer （CEmO） is the enigmatic heart of the organisation, linking family harmony with business performance and productivity. The literature is rich in acknowledging the existence and value of the CEmO in family firms, but little is said of the abilities mastered by CEmOs and how organisations can leverage the value of the CEmO through professional development. It is this nexus that this paper aims to fill. Commencing with an exploration of the literature on the purpose and value of the CEmO, key findings are advanced through interviews and a focus group. The specific site of research selected is one rich in family business in which to explore the CEmO phenomenon--the bus and coach industry in Victoria, Australia. Revealed is the fundamental competencies of the CEmO, being their adept ability to facilitate harmony, drive productive and focus values-based decision making in family firms. The outcomes that these competencies achieve and the obstacles and challenges of the CEmO role are also presented. Concluding remarks ask how the CEmO and these core competencies can be developed in a role that is often unstructured, intuitive, and unrecognised within the firm.

Does Size Matter？ How Firm Size Affects Social Externalities and Community and Regional Development

This study shows how family firm size affects the extent to which bus and coach operators in Australia interact with and contribute to their community by quantifying the value of eight social externalities and presenting the results, using the number of staff and the number of buses per operator as the denominators. The study highlights how a transaction between the government, as buyer, and the bus operator, as seller of services, can affect an external factor that being community and regional development. The results suggest that the small- and medium-sized family firm bus operators are the governance models most likely to contribute toward achieving community and regional development outcomes, which in turn, highlights the importance placed on the achievement of the non-financial goals of family firms and the socio-emotional wealth of the community in which it is embedded. This study suggests that it is possible that contracting bus-services for social value, rather than just lowest price, would create greater benefit for the community and this would offset any gains in economic efficiency achieved by large and non-family firms.