Paper Abstracts

Breaking through the Periphery:Growing Role of Women asLeaders in Indian FB
Prashant Gupta
Jaipuria Institute of
Management, Jaipur
Sheenu Jain
Assistant Professor
Jaipuria Institute of
Management, Jaipur
Family business houses today are key anchors of Indian economy. Family is the key resource for such businesses both in terms of human and financial resources at least to start with. Therefore, taking care of interests of the family and wealth preservation is of prime importance for such organizations. Continuing to keep control over the business over generations requires proper succession planning.  While women remain consistently underrepresented in the upper management echelons of major companies, there is a recent trend of women assuming increasing role in managing many of the family businesses. Some factors which have helped this trend are women getting higher education, being dissatisfied with their outside jobs, shrinking size of families, and circumstances forcing them to join the business to help families in times of crises. The paper explores reasons for increasing role of women and their transition to the top in Indian family businesses. It also discusses how gender specific roles are changing today and that too for good. It attempts to develop a framework for assessing the impact of women in sustenance and success of family businesses, and how women in leadership positions are acting as differentiators for family business. 

Keywords: Family Business, Sustenance, Transition, Women Business Leaders

Understanding Professionalization Challenges in Indian Family Businesses

Mita Dixit
Head-Research & Consultancy - Center for family managed business
SP Jain Instritute of Managment & Research (SPJIMR)
Debasis Mallik
SP Jain Instritute of Managment & Research (SPJIMR)
India is the world’s fastest growing major economy[1] dominated by family owned and controlled businesses. Since economic reforms in 1990s, Indian family businesses are confronted with a major transformational challenge of professionalizing their business in an attempt to gain competitive advantage and sustainability.
Professionalization as a concept has been studied from a variety of perspectives such as firm performance; amount of nonfamily involvement within the management; delegation and decentralization of managerial authority; family control and corporate governance. The literature of “professionalization” of family businesses is scanty. Especially for India, an emerging economy, the definition and conceptual clarity on professionalization of family business is lacking.
We propose to study the concept of professionalization as perceived by the owner-promoters of family businesses and evaluate their viewpoints on the antecedents and consequences of professionalizing their businesses. Through an exploratory, qualitative case based research, we will collate conceptual underpinnings of professionalization from a selected sample of family business owners. From within-case and across-case analyses, we will identify and classify various approaches taken by the owners in professionalizing their work culture.
This research will highlight the need and challenges of professionalizing family firms in India. Findings from our study will help develop a deeper understanding of the concept of professionalization in context of family businesses in a developing economy. The outcome of research will explain correlation among variables such as firm’s growth, performance, agency cost, family’s socio-emotional wealth, firm’s growth and performance, and family governance. 


Indian Listed Companies and High Promoter Holding-Boon or Bane?

Madhavi Lokhande
Welignkar Institute of Management

Hema Doreswamy
Associate Professor - Finance
Welignkar Institute of Management
Indian companies follow Anglo-American model of corporate governance in which shareholders are the owners of the company. Shareholders elect board of directors to monitor the business who in turn appoint managers to manage the activities of the business. Companies when listed on a stock market are called public limited companies. The word public indicates the shareholding pattern is not concentrated in one group of shareholders; it is spread across various groups of shareholders like promoters, institutional investors, foreign investors, retail investors etc. Generally, promoters are not the only dominant shareholding group. This scenario can create a cost to the company called agency cost. Since managers pay package is linked to performance, their focus would be on short term maximization of profits where as shareholders look for value maximization. This conflict of interest creates agency cost. But from an Indian perspective, there is a scenario where in big family conglomerates have become public limited companies. Though they are listed on the stock market, promoters continue to hold high percentage of holding. For e.g. Reliance Industries promoter holding is 46.53%, Wipro 73.34%, HCL technologies 60.38%, Jindal steel 61.89%, Adani ports 49.82%. There are pros and cons of this pattern. High promoter holding may result in faster and quicker decision making, easy to arrive at consensus when decisions to be taken and it almost removes the agency cost problem as promoters will be managers and they will certainly look for value maximization rather than quick profits. But there are certain issues as well with high promoter holding. The important question is who will discipline the dominant shareholder? How transparency can be ensured when the entire decision making process and managing the affairs of the company is concentrated in few hands? How to protect minority shareholders interest? This paper will examine high promoter holding in Sensex 30 companies and will discuss on the impact of ownership structure on the decision making process.

Bhavika Reddy Karumuri
Research Associate 
IFIM Bangalore
Srividya Raghavan
Associate Professor
IFIM Bangalore
Sangita Dutta Gupta
Assistant Professor
IFIM Bangalore
In India 73% of the BSE listed firms are family-owned and add great economic value. The number is substantial across the globe. Plentiful academic research is available on family businesses ranging from governance to succession planning.
The exiting research shows that next generation entrepreneurial intentions were significantly associated with gender, education, having an entrepreneurial parent, and possessing a proactive personality. Also the level of participation of the off-spring determines his or her motive to take up the business.

Despite the generic rationale, there is a great need to understand the reasons encouraging or discouraging next generation to take up family business. Academic research specific to this field is found limited. Surveys conducted over the last 5 years, through indepth interviews with next-gen entrepreneurs, by world renowned consultancies revealed a few reasons. Reasons like business expansion, digitalization of business, creating own legacy, ideas for business growth, family values, innovations were found to be a few driving forces to take up the family business. On flip side a few next-gen entrepreneurs remained reluctant to take up the business. Strong higher education, better business ideas and capabilities are driving them to venture into new businesses on their own and a few expressed fear about their parents “sticky-baton syndrome” which dictate the day-to-day affairs.
The study is intended to investigate offspring perception towards family owned business and also driving forces for next generation to take up the family business. Also it would broadly deal with the most conventional thought that a large number of family businesses would die by the third generation. The exploratory research would give us enough scope to understand the reasons behind the failure and its consequences. 

Golden Strategies to Goldmen :: The Trends and Strategies of Gold merchants
Harshavardhan R Dornadula Venkata 
Sri Padmavathi Mahila Viswavidyalaya (SPMVV / Women's Uiversity)
Soujanya Sanapaneni
Vemu Institute of Technology
In semi-urban areas of Andhra Pradesh a particular community people are handling business with products made-up of gold. In this study three generations of a family belongs to a particular community have been interviewed with a support of structured questionnaire. The questions are with objective and open end types to enable research to study in categorical method and in-depth as well. Statistical tools like SPSS package has been used to identify the relationship between factors studied. The statistical tool that has been studied is chi-square test, regression analysis and correlation to name a few. The factors studied are learning age, brought-up environment, opinions of children from a particular community on education and business, family orientation towards business to name a few. After a thorough analysis a roadmap has been developed to assess the validity of the age-old strategies and to develop new strategies. 

Key words: community business, family tradition, strategies

Investment Efficiency or Tunneling? Evidence from Indian Business Groups

V Ravi Anshuman 
IIM Bangalore
Nivedita Sinha
Assistant Professor

We examine direct evidence of investment efficiency in a sample of diversi ed business groups in India. We find that, at the firm level, highq firms receive abnormal investment  flows in contrast to low-q fi rms, consistent with efficient internal capital markets. However, we also find that investment flows are positively related to cash  flow rights, suggesting investment distortions in the form of tunneling. The investment efficiency and tunneling e ffects are concentrated in low cash flow right firms and low-q firms, respectively. At the group-level, the investment efficiency effect swamps the tunneling e ffect, suggesting a diversi fication premium for business groups.
Does Tata Motors employ a unique strategy for commercial vehicles in India?

Partha Sarathi Mitra
Indian Institute of Technology, Kharagpur
Aradhna Malik
Indian Institute of Technology, Kharagpur
Within the Indian automotive original equipment manufacturing (OEM) industry, in contrast with other segments, only the commercial vehicles segment is decisively dominated by Indian family-owned enterprises. This is when assessed in terms of domestic market share in unit volume terms. Three family owned companies of domestic origin namely Tata Motors, Mahindra & Mahindra and Ashok Leyland, together control over eighty percent of the market. Despite the entry of quite a few developed-country multinationals (MNCs), the position has not changed much over the last ten years barring intensification of competition between the incumbent market leader firms. This case examines the strategies and business models employed by Tata Motors, the dominant market leader, with specific reference to its market share trend over the last decade. Tata Motors is a flagship company of the Tata group in India. Its strategic choices and performance is compared and contrasted with that of foreign MNCs and other Indian origin competitors to offer a perspective of the reasons underlying its dominance and leadership sustenance. Overall, the attempt is to understand the unique strategy employed by the market leader as also why this segment has been able to so far withstand the gradually increasing dominance of foreign MNCs across most segments of the Indian automotive OEM market.
Should Hyundai Motors pursue market leadership in India

Partha Sarathi Mitra
Indian Institute of Technology, Kharagpur
Kunal K Ghosh
Visiting Professor

Indian Institute of Technology, Kharagpur
Over the past few years Hyundai Motors India Limited (HMIL), a 100 percent subsidiary of Hyundai Motors of South Korea, has been operating at a plant capacity utilization level of above 90 percent. Currently it has two plants in India near Chennai with a total annual capacity of 680000 passenger vehicles (PV) per year. HMIL is the second-largest PV manufacturer in India with a domestic market share of about 20 percent unit volume-wise. Only Maruti-Suzuki is ahead of it in terms of unit volume sales in India. It is also the largest exporter of PVs from India. For some time now, the top management at Hyundai is considering investing in a third manufacturing plant to increase capacity. Meanwhile, its affiliate Kia Motors is also contemplating manufacturing investments in India but is yet to enter the Indian PV market. To become number one in the Indian market, which is its aim, Hyundai needs to garner additional capacity. Despite being prodded by the Indian government to invest in a third plant in India so far no decision has been taken by the Hyundai management, be it for the Kia or the Hyundai brands. This case examines the decision criteria of Hyundai Motors with regard to global capacity creation and location in alignment with its affiliate Kia keeping in mind its aim of leadership in the Indian PV market, one of the fastest growing in the world.
Core Values and Networks of Family Businesses:A CaseStudy of a Japanese FF
Yasuhiro Ueno
Professor, Faculty of Sociology

Kansai University

 Family firms have unique resources and advantages from their “familiness”. The core values and networks in family businesses are the most important factors of familiness. This paper investigates the role of core values and networks as characteristics of familiness for the competitive advantage of family firms. We explore two research questions in this paper. What kinds of core values and networks do family firms have? What roles do core values and networks play in the competitive advantage of family firms? We conducted a case study of a Japanese family firm, OKAYA & Co, Ltd. We did an interview-based investigation by visiting OKAYA. The CEO of OKAYA is a member of two types of network. One is a family network and the other is an external network. With a family network, a CEO of a family firm can share his or her philosophy and core values for survival with family members, and the family members can support the CEO in maintaining those core values. As noted by Krackhardt (1992), this creates a strong tie between the CEO and his or her family. With an external network, a CEO can receive useful information for the success and survival from external contacts. As discussed by Granovetter (1973), these external relationships are weak ties. Such weak ties are important for receiving useful and diverse information. By using the two types of network appropriately, family firms can build familiness and survive for a long time.
Succession Planning and Related Stress among the Incumbent and Successor

Thilagam Nagaraj
PSG Institute of Management
R Krishnaveni 
PSG Institute of Management
Kavita D
PSG Institute of Management
Succession Planning is a hugely researched topic currently. Yet not much is discussed about the stress in both the incumbent and the successor during the succession process. Finding next generation leader is a crucial decision taken by the family business leader or Chief Executive Officer of family owned business. Therefore he/she may be affected by stress when need arises to find a successor for himself/herself to take over the established business’s leadership.

As the CEOs of family business organizations have heavily invested both financially and psychologically in the family business, their expectations towards finding the next generation leader is very strong (Kets de Vries, 1993). Because this feeling is strong, it leads to more stress. Understanding this kind of a stress will help in learning to manage such stress and will lead to taking up possible precautions to avoid negative stress which may lead to illness among the family business leaders in the long run.

When family and business are mixed together, family owned businesses face more stress. The problems with succession planning is how the successor will gain respect from employees, siblings and cousins, the rivalry between these people, all lead to more stress for all participants and sore so for family business leader, as he is responsible for his choice of next generation leader (Michaund, 2000).
The country as well as the Indian Business Society needs this kind of study all the time and more so in turbulent times as of today when the successor finds it more so compelling to prove himself to hold the values of the organization and at the same time show results of profitability and sustained growth. When the pressures are so high for performance a proper planning process would help attain the objective swiftly and without any stress to all parties involved in the whole process.

This study aims to find among the small and medium family owned businesses who they plan their succession and handle stress during the succession process.

An Empirical Study to Identify Factors that are Key Drivers for Success of
K.J.Somaiya Institute of Management Studies & Research
Shaila Srivastava
K.J.Somaiya Institute of Management Studies & Research
Family-owned businesses in India had been in practice since long, obviously, with its changing nature and structure over a period of time. India, a cocktail of culture embodies a rich and superb history of family-owned businesses. The seeds of early family managed businesses were sown in the early 16th century and grew in leaps and bounds in the 18th and 19th centuries. Some of the great success stories are the
Chettinad Group, The Tata Group, Godrej Industries, Mahindra and Mahindra, Haldirams, etc. However, in the new millennium the family business are undergoing major transformations and either breaking away because of egos or due to complacency and are unable to adapt to the changing business environment. Today, middle class Indians and engineers from top notch institutes like IIT’s are challenging the family run businesses This research study explores the key challenges that the family managed businesses are facing and how can they overcome their problems and shoot back into prominence and carve a niche for themselves in the Indian Business scenario. This research study will focus on one such business family who have been around for almost 30 years and took on the mighty giants like ITC, Navneet etc to maintain their leadership position – Sundaram Multi Pap Ltd.
Keywords : Family Managed Businesses, Family Entrepreneurship, Sundaram Multi Pap Ltd, History of Family Managed Businesses, Challenges of FMB’s, Technology Advancements influences of FMB.
Shivashankaragouda Patil
Professor and Head
KLE Technological University
Deepti S.PatilKripa S.Patil
The Father of our Nation, Mahatma Gandhi said the future of India lies in villages and stressed to focus on Khadhi and Village Industries. Small and medium enterprises are the backbone of the Indian economy and employment (63 % to GDP and 92% employment). Unorganized or small business does not mean large business in small scale.  On the contrary, history tells that the Small Business (SB) start well and end as well. The functions of SBs with regards to manage, grow and sustain differ from conventional ways. This paper attempts to orient the researchers and students towards unorganized sectors. Individually SBs might not be comparable with the known corporate but collectively, the size they form is as big as corporate. The clusters like Surat, Ludhiana and Tirpur are the good examples that form sizable contributions. SBs and clusters are rich source of management lessons but little research and contribution to literature by both academia and industries. Authors has evidenced that the SBs are the knowledge centers for learning particularly in the field of management through the small business under consideration. It is a case of SB in a town of the Karnataka. The first generation entrepreneur Veeranagouda Patil (VP) and his small business (V Patil and M Bhogapur, Handloom Saree Manufacturers) are the perfect model for SB community to emulate.
The logic used in research is inductive. The data is primarily from the observation, experience of author1 and the biography of VP. The scope of the paper is limited to (i) the scenario is during 1950-1980 (ii) a small town in Karnataka (iii) pertains traditional business.

Revisiting Governance of Family Business
Simachal Mohanty
Founder Director
Foundations for Community Development and Research
Nibedita Pattanaik 
Founder Member
Foundations for Community Development and Research


In the recent past, we have witnessed the dynamic changes in family business governance resulting from the family’s policies and guiding vision. This paper focuses on the trend of current research on the subject making an in depth analysis of role clarity, rights and responsibilities for family members and their part in governance.

Family business governance is more complicated than other types of business because of the role of the family owning, leading and controlling of the family run business. In this regard, ownership, leadership and control all needs governance for competitive advantage. Effective governance can be done either formally or informally. This has no relevance till the end result of the family run organization achieves the desired outcome.

The paper will try to find out the definition of governance in relevance to family owned business, how a sense of direction is practiced in the case of hiring, policies relating to hygienic factors, funds management and safety measures, etc.
A degree of formality in family business governance is essential to focus on ongoing issues, strategy for the target and resolving of internal differences. A questionnaire has been prepared and being served to the respondents, owners of family run business. The research data are being collected on formal governing boards and casual (generational) controlled business in the fields of revenue generation, size of the firm, year of establishment; first generation/second generation, etc. run business, structure and sensitivity to gender, succession plans, alignment to vision and mission statements.

The survey data thus collected will be analyzed to find the mean number of years that the families run business in existence, correlation between formal family constituents to revenue generation, status of business policy (stable/frequent changes).The data relating to annual revenue, age of the firm and generational control of the firm as explanatory variables.
The objective of the article as it is evident is to find out predominantly the contributions of good governance in family business and its essential ingredients to function better. The basic elements are role clarity along with rights nod responsibilities of family members and confirm regulating family and owner inclusion in firm’s issues and discussions.

Key words: Role clarity, family governance, family constitution, dynamic, vision, competitive advantage, questionnaire, rerspondents, gender, sensitivity

Personalization in Corporate Governance Reports
VL Narasimham
Associate Professor

University of Petroleum & Energy Studies

Fan and Poole (2006) detailed out personalization as a process that changes the functionality, interface, information access, content, and distinctiveness of a system in order to increase its personal relevance to an individual or a category of individuals.  Relevance of personalized online communication by politicians has driven to increasing political involvement by the citizens who follow political communication over internet (Kruikemeier et al., 2013). According to Moorman et al. (1992), customer loyalty is an intention to keep a valued relationship and more likely, an enduring relationship with the company. Hence, there is enough evidence to personalized communications and appeals and also, citizens respond with increasing riposte, a more perceivable reaction.  On the other side, companies do recognize customer loyalty and usually, efforts will take place to build sustainable loyalty through personalization. However, personalization of family business firms is not very well known in the corporate world, and more specifically, how personalization has been improving corporate identity of Indian family business firms. Since good number Indian family business firms, viz., Bannari Amman Group, Dalmia Group or Dahanukar Group (Tilaknagar Industries) have been actively known for sugar manufacturing and allied molasses production for alcohol manufacturing, the article is an attempt to qualitatively map the extent of personalization in the corporate governance reports of the selected Indian family business firms, actively pursuing alcohol manufacturing. It is presumed that the produce, alcohol, likely to be the motive for the negative sentiment if develops among the shareholders.  It is well known that good number of family businesses actively pursue alcohol manufacturing, and such business interests have geographically been spread across Indian demography. The article would examine temporal variations in the corporate governance reports say, over a period of 3 to 4 years to identify specifically or deliberate personalization in the form of text and images if taken place by the family business houses.