Britta Boyd1

A Resource-based Analysis of Northern German Builder’s Providers

Dissertation 2007 by Britta Boyd,International Institute of Management,

University of Flensburg, Germany

Sustainable Management in Longlived Family Businesses -

Britta Boyd2

Leading Questions:

1. What special features can be shown in longlived family businesses?

2. Are longlived family businesses managed according to sustainability?

3. What lessons can other companies learn from longlived family businesses?

Britta Boyd3

Main Literature

Carlock/Ward (2001) Strategic Planning for the Family Business, NY. Habbershon/ Williams (1999) A Resource-Based Framework for

Assessing the Strategic Advantages of Family Firms, FBR Vol. 12/1. Grant (1991) The Resource-Based Theory of Competitive Advantage:

Implications for Strategy Formulation, CMR Vol. 33. Hahn/Taylor (1999) Strategische Unternehmensplanung, Berlin. Klein (2004) Familienunternehmen - Theoretische und empirische

Grundlagen, Wiesbaden. Löbel/Schröger/Closhen (2001) Nachhaltige Managementsysteme, Berlin. Neubauer/Lank (1998) The Family Business: Its Governance for

Sustainability, NY. Nolte (1999) Organisation: Ressourcenorientierte Unternehmens-

gestaltung, München. Steinmann/Schreyögg (1997) Management: Grundlagen der

Unternehmensführung, Wiesbaden.

Britta Boyd4

Terminology

Sustainable management:“A way to satisfy today’s economic, ecologic and social needs that also enables future generation to satisfy their needs” (Löbel, 2001)

Longlived family businesses:

Family owned builder’s providers which are at least in the fourth generation

Britta Boyd5

Methodology

Resource-based view (Grant, 1991):Resource-based strategy analysis in a five-stages:

1. Identify firm’s resources

2. Identify firm’s capabilities

3. Appraise them to competitive advantages

4. Strategy selection

5. Identify resource gaps

Case Study Analysis:Qualitative research method to explain the motives and details of complex social phenomenons with multiple sources of evidence.

Britta Boyd6

Identifying FB Strategies

Carlock/Ward (2001)

Internal capabilities

Family commitment

External environment

Choice of family business strategy area

Britta Boyd7

Indicators of Sustainable Management

Economic indicators: patents, cooperations, turnover, equity ratio, use of profits, investments, number of employees

Ecologic indicators: waste disposal, rental mashines, renewable energy use, ecologic performance of products and company, product origin.

Social indicators: regional ties, employee structure, working conditions, qualification, customer and employee relationships, family meetings.

Long-term indicators: companies’ vision and philosophy, strategic goals, succession.

Britta Boyd8

Research Model and Hypotheses

Longlived FB act sustainable

H 1 Economic, ecologic, social and long-term orientation of management

H 1 a-d Case 1 2 3 4

Su

mm

ary

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Summary of Case Study Results

Dimensions: Case 1 Case 2 Case 3 Case 4 Total

long-term 1 (1/1.5) 2 (3/2) 2 (3/3) 1 (1/1) 1,5

economic 2 (3/3) 3 (3.5/3) 2 (3/3) 2 (2.5/2) 2,25

ecologic 3 (5/2.5) 2 (3/2.5) 2 (2.5/2.5) 2 (1.5/3) 2,25

social 2 (3/2.5) 2 (3/2) 3 (2,5/2,5) 2 (n.a./2) 2,25

Sustainability II III III I

Britta Boyd10

Resources of Sustainable Family Business Management

Sustainability

dimensions

1. Resources

2. Capabilities

Economic

situation

high equity capital,

family property

willingness to cooperate,

trustworthiness

Ecological

orientation

environmental responsibility,

high product quality

skilled advice,

example setting

Social

orientation

good employee and

customer relationships,

good working climate

conflictability,

qualification,

regional closeness

Long-term

orientation

cooperations,

firm history

flexibility,

communication

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Sustainable Management Concept for Family Businesses

Businesss culture

Area strategies

Family culture

Ecological strategies

Economic strategies

Long-term business goals

Social strategies

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Contributions and Limitations

Case study results show, that the longlived family businesses act in a sustainable manner

The businesses should not be afraid of sustainability reports, which are becoming more and more important

To find an appropriate indicator, further research is needed in this field also for other branches

This and further research indicates that sustainable development as a worldwide socio-political goal is supported by family businesses