Welcome to part two of our series on family business. Today we congratulate two award winners who recently appeared on the Family Business Review podcast, which spotlights the latest research, developments and thought leaders in the field. Tune in or listen on iTunes as FBR Assistant Editor Karen Vinton of Montana State University talks with the authors about their findings–and gain some additional perspective from the Family Firm Institute (FFI) Practitioner blog below:
Dr. Cristina Bettinelli of the University of Bergamo in Italy discussed her article “Boards of Directors in Family Firms: An Exploratory Study of Structure and Group Process,” which was selected as the Best Article in FBR for 2011. It will be presented at the 2012 FFI Global Conference, which kicks off this Wednesday in Brussels. Click here for the podcast. From The Practitioner:
This research topic and Professor Bettinelli’s findings explore issues crucial to both family businesses and family business advisors. This article clearly demonstrates the important benefits that can be derived from having outside directors on a family business board, in particular the impact on board level processes that can enhance board effectiveness.This article represents a fine-grained extension of prior research into the composition and functioning of family business boards of directors with a particular focus on outside directors and group process. It tests hypotheses relating to board composition, expectations of effort required for deliberations, and the use of knowledge and skills of board members. It uses a multi-theoretical approach to shed new light on how best to configure BODs given the types of group process that are unique to a family business setting.
Dr. Jörn Block of the University of Trier in Germany discussed his article “How to Pay Nonfamily Managers in Large Family Firms: A Principal—Agent Model,” which was selected for honorable mention recognition as the journal’s best article of 2011. Click here for the podcast. From The Practitioner:
This article also explores a topic that is crucial to both family businesses and family business advisors:developing effective pay packages for non-family executives. Because the goals of family and non-family managers can differ, it is important to design pay packages that take into account those differences. The article draws on a well-rounded set of salient literature and is framed in terms of issues that are clearly relevant to the family business context. It represents a valuable extension of prior theorizing about agency and stewardship approaches to incentives, and short-term versus long-term decision criteria.
What are some additional family business-related topics that you’d like to see covered on Management INK? Let us know in the comments or send us an email.
Remember—even if you’re not in Brussels this week, you can still watch the 2012 FFI Global Conference live at FFI.org!
Tags: board of directors, Conference, executive pay, family busines review, Family Business, family firm institute, ffi, incentives, nonfamily managers, outside directors, performance pay, principal-agent model, processes, the practitioner