Strategy work in Finnish Family owned SME’s - Knowledge transfer perspective
Vainio-Puhju, Venla (2017)
Kuvaus
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Tiivistelmä
Family business strategy scholars have mostly focused on the differentiation of family businesses and non-family businesses, and strategic management research is largely focused on nonfamily businesses. Here the current state of strategy work in a family owned small and medium sized enterprizes (SME’s) in Finland is examined, and how that process could be improved by using knowledge transfer theories. It is evident that in family businesses, which tend to be altruistic and succession oriented, have an advantage for using knowledge transfer theories in their strategy work without the problematics of the contradicting interests between a company and an individual.
Literature is seen to have a positive outlook on family businesses due to the succession goal, and management and values, which support competitiveness, and long-term orientation. Familiness is “the unique bundle of resources a particular firm has because of the systems interaction between the family, its individual members, and the business” (Habbershon & Williams, 1999, p. 11). Knowledge creation has two dimensions, epistemological and ontological, and it is divided to tacit and explicit knowledge. In this thesis, qualitative research was used because of its reflexivity. It is multiple-case study, with deliberate sampling, more specifically the critical and sensitive case sampling. All the data for this thesis is primary data, and the interviews were direct personal interviews, conducted with a semi-structured method.
Based on this study, family and business goals are not in conflict within those companies and families. Family values were mentioned as the drivers for strategy work by all the interviewees. All the interviewees had a long-term strategy, and in this study risk taking was not seen that negative but it was clear that risk taking should be calculated. In the interviews knowledge sharing were mostly approached via the strategy work process, and how it affects the process. Knowledge transfer seems not to be an issue, nor a tool within the strategy work in family businesses, however, the knowledge transfer aspect was unfortunately underrepresented in the findings. Never the less, based on previous research, it is evident that knowledge transfer theories have a potential of being a strategy formation tool also for the family owned SME’s in Finland.
Literature is seen to have a positive outlook on family businesses due to the succession goal, and management and values, which support competitiveness, and long-term orientation. Familiness is “the unique bundle of resources a particular firm has because of the systems interaction between the family, its individual members, and the business” (Habbershon & Williams, 1999, p. 11). Knowledge creation has two dimensions, epistemological and ontological, and it is divided to tacit and explicit knowledge. In this thesis, qualitative research was used because of its reflexivity. It is multiple-case study, with deliberate sampling, more specifically the critical and sensitive case sampling. All the data for this thesis is primary data, and the interviews were direct personal interviews, conducted with a semi-structured method.
Based on this study, family and business goals are not in conflict within those companies and families. Family values were mentioned as the drivers for strategy work by all the interviewees. All the interviewees had a long-term strategy, and in this study risk taking was not seen that negative but it was clear that risk taking should be calculated. In the interviews knowledge sharing were mostly approached via the strategy work process, and how it affects the process. Knowledge transfer seems not to be an issue, nor a tool within the strategy work in family businesses, however, the knowledge transfer aspect was unfortunately underrepresented in the findings. Never the less, based on previous research, it is evident that knowledge transfer theories have a potential of being a strategy formation tool also for the family owned SME’s in Finland.