JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD

Course Objective

To understand the importance of family-owned businesses for achieving

Competitive advantage in the market place.

Learning Outcome

Students will be able to understand a) Perspectives in Family Business b)

Ownership Challenge and Family Governance c) Successor Development strategies d) Strategic Planning and Transgenerational Entrepreneurship e) New Leaders of the Evolution and Change.

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UNIT - I: Introduction to Family Business

Family Business as a unique synthesis- Succession and

Continuity: The three-generation rule- Building Family business that last- The systems theory model of Family Business - Agency Theory of Family business - The stewardship perspective of family business - Competitive Challenges and Competitive advantages of family businesses- The role of Genograms and family messages to understand the family system. Family emotional intelligence - The ECI-U Model.

UNIT - II: Ownership Challenges and Family Governance

Shareholder Priorities – Managers vs

Owners - Responsibilities of shareholders to the company - Effective Governance of the shareholder - firm relationship – Family Governance: Structure, Challenges to family governance, Managing the challenges of succession. Enterprise Sustainability: Twelve elements of strategic –fit and its implications on family firms.

UNIT - III: Successor Development

Characteristics of next-generation leaders- Next-generation

attributes, interests and abilities for responsible leadership- Next-generation personalities-managing interdependence- CEO as an architect of succession and continuity - Types of CEO Spouse and the transfer of power.

UNIT - IV: Strategic Planning and Transgenerational Entrepreneurship

Life cycle stages

influencing family business strategy - Turning core competencies into competitive advantage - The unique vision of family-controlled businesses - Strategic regeneration- The Business Rejuvenation matrix - Intrapreneurship.

UNIT - V: The Future of Family Business

New Leaders of the Evolution - Three states of evolution

Continuity and culture - changing the culture - The change formula - Organization Development approaches to change - Commitment planning - Organic competencies and business’s future - Thriving through competition - Institutionalizing the change.

Suggested Readings:

• Ernesto J. Poza, Mary S. Daughterty, Family Business, 4e, Cengage Learning, 2015.
• Frank Hoy, Pramodita Sharma, Entrepreneurial Family Firms, Prentice Hall, 2010
• Sudipt Dutta, Family Business in India, Sage Publications, 1997.
• Laura Hougaz, Entrepreneurs in Family Business Dynasties: Stories of Italian-Australian Family Businesses over 100 years, Springer, 2015.
• John L. Ward, Keeping the Family Business Healthy: How to Plan for Continuing Growth, Profitability and Family Leadership, Palgrave Macmillan, 2011.
• M. Nordqvist, T. Zellweger, Transgenerational Entrepreneurship: Exploring Growth and Performance in Family Firms Across Generations, Edward and Elgar Publishing Limited, 2010.