Post on 07-Jan-2016
description
Networks:Multi-Rational Routes for
Knowledge Acquisition and Dissemination?
Claire Seaman
Family Businesses• What do we know?
– 60-80% of businesses across the developed World– Mixture of small, medium and larger firms– The family dimension often impacts on the business dimension
• What does this mean?– Many – if not most – businesses have some family dimension– The family dimension and the business dimension inter-twine
– This may create multiple rationalities which impact on decision making
Focus for Today:• Communication
• Local Culture
• Generational Knowledge Transfer
• Power Balance
• Organisational Culture
• Leadership Styles
• Family Relationships
Inspiration
Q. ‘What helped during the succession process?
A. ‘Just hearing his friends talking about the same sort of thing, really ……. realising lots of people were thinking about it …..’
Networks• Key to business development at start-up
and beyond• Contain knowledge – and facilitate its
dissemination• Reflect the culture and dynamics of the
business and the family• Theories of mono- and multiple
rationalities
Current Research• One case study• Developed as part of a much broader
swathe of research• Theories of mono- and multiple rationalities• Network focus• Focus on knowledge acquisition,
dissemination and transfer
Husband and Wife in Business Paid Employment in the UK
East Lothian
Reasons and Rationales• Attractive job• Wish to return ‘home’• Growing family
• BUT the company called in the receivers: – Critical Incident 1
Reactions to Critical Incident 1
• First reaction was to gamble!• Formally employed individual took over the
contract from his erstwhile employer• Overnight transfer to self-employment –
building on the entrepreneurial heritage of the USA
• UK provided a very different environment
The Result of the Gamble …
• Initial success• Business growth• Solid base in East Lothian• BUT …….
– Need for substantial further investment– Search for capital– Investment by a firm of venture
capitalists• Critical Incident 2
Venture Capital, Culture and Capitalists
• Search for funds was successful – if approached from a mono-rationalist business perspective
• Substantial inward investment• But ……….
– Different cultures– Different approaches
Quotes ‘Q. So there was this tension between the commercial reality as they saw it
and what you and your husband saw ….. and the culture and familieness of the business: was there conflict between those two dimensions?
A. Yes, and another strange conflict ….. if there isn’t any money, you don’t take any and if there is you look at everything twice …… but when the million pound investment came in, there were all these salesmen on fat salaries …. they just sign an expense receipt …. I resented that….’
WifeAnd later …..
‘They [the venture capitalists] seem to think that if you have a paper qualification they can manage, the fact that you have sort of grown into it, I had no management training, you sort of grow into it, that’s how it is in a family business …..’
Wife
Did This Create a Sustainable Business?
• From a mono-rational perspective:– Yes – sort of …..
• Inward investment• Fast Business
Growth• Business sale• Loss of business from
the local area
• From a multi-rational perspective– No – not really ….
• Inward investment accompanied by a clash of cultures
• Loss of business to the local area
Culture, Direction and Strategic Development in the Family Businesses
• Purchase of one existing business locally• Created 3 ‘shell’ companies• No clear purpose to the companies at first• No ‘real’ borrowing• No bankers!• Sole aim:
– A sustainable business portfolio – A sustainable business family
Modelling Multiple Rationalities in Family Business Networking
Accepting Different Priorities
Accepting the Cultural Dimension
Business Network
Rational 1
Wife/Mother Husband/Father
Business 1
Business 2
Business 3
Contact in Major Accountancy firm
Entrepreneurial Exchange
Local Economic Development UnitScottish
Enterprise
Previous Business Partner 1 Previous
Business Partner 2
Local Traders Association
Venture Capitalists
Federation of Small Businesses
Friendship NetworkRational 2
Wife/Mother Husband/Father
Charity 2
Charity 1
Charity 3
Charity 4
Friendship with Local Business Family
USA Contact 1 USA Contact
2 USA Contact 3 USA Contact
4
Local Business Community
Friend 1Friend 2
Friend 3
Friend 4
Friendship NetworkRational 2
Wife/Mother Husband/Father
Charity 2
Charity 1
Charity 3
Charity 4
Friendship with Local Business Family
USA Contact 1 USA Contact
2 USA Contact 3 USA Contact
4
Local Business Community
Friend 1Friend 2
Friend 3
Friend 4
Interviewees
Business Network Rational 1
Friendship NetworkRational 2
Family Network Rational 3
Adult Child 1
Private Client Banking
Adult Child 2
ArchaeologistAdult Child 3Tourism
USA Contact 1 USA Contact
2 USA Contact 3 USA Contact
4
Friend 1Friend 2
Friend 3Friend 4
Local Business Community
Local Business Family Friends
Scottish Enterprise
Former Business Partner 1
Local Traders Association
Local Economic Development Unit
Entrepreneurial Exchange
Contact in Major Accountancy Firm
Business 1Business
2Business 3
Charity 1Charity 2
Charity 3Charity 4
Federation of Small Businesses
Venture Capitalists
Former Business Partner 2
The ‘Case’ For Multiple Rationalities• The family network – 2 parents, 3 children• The business network – 4 businesses• The friendship network – the local community, 3
charities [at least!], a group of ‘entrepreneurs’, 3 formal business networks etc etc
• BUT– The networks are not distinct– They are almost completely embedded
The Developing Networks• The role of chance• The role of culture – family, community and
business• The evolving and revolving nature of networks• The impact on knowledge acquisition,
dissemination and transfer• The route forward
Applying a Knowledge Perspective to Network Research
– Knowledge Acquisition– Knowledge Dissemination– Knowledge Sharing– Knowledge is not always ‘correct’– Knowledge is fluid, situational and
culturally based– Knowledge lives in networks
Implications for Policy
• Where does knowledge reside?
• How is knowledge exchanges/shared?
• How can the ‘quality’ of information be improved?
• Working with networks – a stakeholder approach
Knowledge
For Better, For Worse ...
For Richer, For Poorer...
In Sickness and in Health?
Thank You!Any Questions?
Interested to Learn More?
http://www.qmu.ac.uk/be/research/sffbr
Email cseaman@qmu.ac.uk