Family businesses are the most common type of business both in Germany and worldwide. Thus, they have enormous economic importance, and it is of particular interest for researchers to investigate the unique characteristics of these businesses and the connections and influences of the families behind them.
The question arises why some family businesses are very successful in the long term, while many others fail early on, even if the succession is unproblematic. Examining the influence of the family on the company can help to shed more light on this. This so-called “familiness” represents the influences of the family, respectively of unique resources, which are present by the family background irrespective of the outside resources available to the business. Familiness can, however, also differ between family businesses and thus be a cause of heterogeneity among family businesses. The analysis of familiness can, therefore, contribute to a better understanding of differences between businesses, the performance of businesses, and decision-making processes in family businesses.
When considering the peculiarities of family businesses, business succession is a critical point to take into account because many firms face particular difficulties when succession becomes necessary. Indeed, many firms fail due to inadequate management of the process. Consequently, it can be seen that the process of business succession requires early planning and structuring. It also implies the need for a large exchange of information between the parties involved (i.e., predecessors and (potential) successors). How and whether information is transferred in such a context is a decisive factor for the continued existence of firms because decisions for and against succession as well as strategic management decisions during and after succession are made based on the available information.
Within the context of family influence on a firm, the question also arises as to how exactly the family and its members affect decisions in the firm. A central factor, often mentioned as a unique characteristic of family businesses, are the values of the firm and the family members. Surprisingly few studies have attempted to measure the values of family businesses directly and to link decision-making with these values and family dynamics. By studying these values and their influence on family businesses, new insights about decision-making in family businesses can be achieved.
In summary, it is shown that the family behind the business is of particular relevance and has a strong influence on the processes in the overlapping systems of family and business. This strong influence of the familiness can be observed in the influence of the family on the performance of the firms, in the succession process between the involved family members as well as through the influence of the personal values of the involved family members on the strategic decision-making behavior of the firms. The family itself turns out to be a relevant and important driver, but also a potential source of conflict, and is thus a decisive factor for business performance and ultimately the survival of the business. It is shown that the different influences of the familiness on the firms to be considered decisively, since these influences mostly, but not generally, have a positive effect on the businesses and the inherent processes and are therefore of significant relevance for the firms. Furthermore, familiness proves to be as heterogeneous as the family businesses themselves and can help to explain the differences between family businesses. In addition, it is confirmed, qualitatively and quantitatively, that problems and conflicts can arise through information asymmetries in the succession process between the family members involved and that consequently long-term and structured transfer processes are necessary in order to be able to counteract these. Finally, it is shown how the values of involved members of the owner family affect the firm and the strategic decision-making.