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The promise of the strategy as practice perspective for family business strategy research

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  • Nordqvist, Mattias
  • Melin, Leif

Abstract

Family firms represent the most common form of business organization in most countries. This is, however, not yet reflected in the amount of strategy research devoted to family firms. In this article we suggest that the strategy as practice perspective - applied by an increasing number of scholars within the strategic management field - can help scholars to achieve rich understandings and develop useful knowledge about strategy making in family businesses. The strategy as practice perspective emphasizes that strategic work is not the same for all organizations. The ways of doing strategy tend to fall into specific routines and work patterns that vary from firm to firm and between different types of firms at the same time as they may be influenced by more institutionalized practices. We focus on the use and meanings of strategic planning as a specific and important strategic practice in the context of family businesses. Our research is based on a literature review that combines recent insights from the strategy as practice perspective and from strategic planning research. Empirically we draw on longitudinal in-depth case research of strategic planning processes in three family firms. Three dimensions of the practice of strategic planning in the family firm context emerge from our study. We label these dimensions planning modes, planning motives, and planning arenas. Based on the dimensions we discuss how the process as well as the roles of strategic planning is linked to local and situational understandings and the rules of the game for strategic work in each family business, and to broader institutional forces regarding the meaning and value of the strategic planning practice. We provide contributions for research and practice in this important context of business organizations. We also offer directions for future research.

Suggested Citation

  • Nordqvist, Mattias & Melin, Leif, 2010. "The promise of the strategy as practice perspective for family business strategy research," Journal of Family Business Strategy, Elsevier, vol. 1(1), pages 15-25, March.
    • Handle: RePEc:eee:fambus:v:1:y:2010:i:1:p:15-25
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    1. Xavier, CASTANER & Mikko, KETOKIVI, 2003. "Planning as an integrative device," HEC Research Papers Series 775, HEC Paris.
    2. Nordqvist, Mattias & Hall, Annika & Melin, Leif, 2009. "Qualitative research on family businesses: The relevance and usefulness of the interpretive approach," Journal of Management & Organization, Cambridge University Press, vol. 15(3), pages 294-308, July.
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    6. William S. Schulze & Michael H. Lubatkin & Richard N. Dino & Ann K. Buchholtz, 2001. "Agency Relationships in Family Firms: Theory and Evidence," Organization Science, INFORMS, vol. 12(2), pages 99-116, April.
    7. Paula Jarzabkowski & Julia Balogun, 2009. "The Practice and Process of Delivering Integration through Strategic Planning," Journal of Management Studies, Wiley Blackwell, vol. 46(8), pages 1255-1288, December.
    8. James J. Chrisman & Jess H. Chua & Pramodita Sharma, 2005. "Trends and Directions in the Development of a Strategic Management Theory of the Family Firm," Entrepreneurship Theory and Practice, , vol. 29(5), pages 555-575, September.
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    2. Martin Quinn & Martin R. W. Hiebl & Ken Moores & Justin B. Craig, 2018. "Future research on management accounting and control in family firms: suggestions linked to architecture, governance, entrepreneurship and stewardship," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(4), pages 529-546, February.
    3. Basco, Rodrigo, 2013. "The family's effect on family firm performance: A model testing the demographic and essence approaches," Journal of Family Business Strategy, Elsevier, vol. 4(1), pages 42-66.
    4. Goel, Sanjay & Mazzola, Pietro & Phan, Phillip H. & Pieper, Torsten M. & Zachary, Ramona K., 2012. "Strategy, ownership, governance, and socio-psychological perspectives on family businesses from around the world," Journal of Family Business Strategy, Elsevier, vol. 3(2), pages 54-65.
    5. Craig, Justin & Moores, Ken, 2010. "Strategically aligning family and business systems using the Balanced Scorecard," Journal of Family Business Strategy, Elsevier, vol. 1(2), pages 78-87, June.
    6. Hamilton, Eleanor & Discua Cruz, Allan & Jack, Sarah, 2017. "Re-framing the status of narrative in family business research: Towards an understanding of families in business," Journal of Family Business Strategy, Elsevier, vol. 8(1), pages 3-12.
    7. Fletcher, Denise & Massis, Alfredo De & Nordqvist, Mattias, 2016. "Qualitative research practices and family business scholarship: A review and future research agenda," Journal of Family Business Strategy, Elsevier, vol. 7(1), pages 8-25.
    8. Bövers, Jana & Hoon, Christina, 2021. "Surviving disruptive change: The role of history in aligning strategy and identity in family businesses," Journal of Family Business Strategy, Elsevier, vol. 12(4).
    9. Edwin Ricardo Flores-Hernández & María Luisa Rodero-Cosano & Ana Evelyn Perla-Cartagena, 2022. "Complexity of Family Businesses in El Salvador: A Structural Equation Model," Sustainability, MDPI, vol. 14(11), pages 1-18, June.
    10. De Massis, Alfredo & Kotlar, Josip, 2014. "The case study method in family business research: Guidelines for qualitative scholarship," Journal of Family Business Strategy, Elsevier, vol. 5(1), pages 15-29.
    11. Unai Arzubiaga & Amaia Maseda & Txomin Iturralde, 2019. "Entrepreneurial orientation in family firms: New drivers and the moderating role of the strategic involvement of the board," Australian Journal of Management, Australian School of Business, vol. 44(1), pages 128-152, February.
    12. Sven Wolff & Christina Guenther & Petra Moog & David B. Audretsch, 2023. "The geography of the continuum of entrepreneurship activities—a first glance based on German data," The Journal of Technology Transfer, Springer, vol. 48(4), pages 1243-1273, August.
    13. Lindow, Corinna M. & Stubner, Stephan & Wulf, Torsten, 2010. "Strategic fit within family firms: The role of family influence and the effect on performance," Journal of Family Business Strategy, Elsevier, vol. 1(3), pages 167-178, September.
    14. Francesca Ricciardi & Elisa Giacosa & Francesca Culasso, 2021. "Stepchildren or prodigal employees? Motives and consequences of employee entrepreneurship in family business," International Entrepreneurship and Management Journal, Springer, vol. 17(1), pages 229-247, March.
    15. Waldkirch, Matthias, 2020. "Non-family CEOs in family firms: Spotting gaps and challenging assumptions for a future research agenda," Journal of Family Business Strategy, Elsevier, vol. 11(1).
    16. Barros, Ismael & Hernangómez, Juan & Martin-Cruz, Natalia, 2016. "A theoretical model of strategic management of family firms. A dynamic capabilities approach," Journal of Family Business Strategy, Elsevier, vol. 7(3), pages 149-159.
    17. Edwin R. Flores‐Hernández & Carlos R. García‐Alonso & César Hervás‐Martínez, 2022. "Strategic management practices in Central American micro family enterprises: The case of the commercial sector in El Salvador," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3454-3465, December.
    18. Martin R. W. Hiebl & Barbara Mayrleitner, 2019. "Professionalization of management accounting in family firms: the impact of family members," Review of Managerial Science, Springer, vol. 13(5), pages 1037-1068, November.
    19. Irava, Wayne J. & Moores, Ken, 2010. "Clarifying the strategic advantage of familiness: Unbundling its dimensions and highlighting its paradoxes," Journal of Family Business Strategy, Elsevier, vol. 1(3), pages 131-144, September.

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