The Relationship Between The Governance Structure Of Family Firms And The Direction And Strategy Of These Small And Medium Sized Enterprises

1523 WordsSep 13, 20157 Pages
Chapter 5. Conclusion: 5.1 Conclusion The aim of this thesis was to assess the relationship between the governance structure of family firms and the direction and strategy of these small and medium sized enterprises. There are so many factors in the same size and similar enterprises within one industry that have dramatically different achievements. Some of the most important factors are the orientation and goal of family-controlled firms and culture of customer behaviour. Habbershon and Williams (1999) suggest the Resource-Based View (RBV) of competitive advantage for estimating the competitive advantages of family firms. They consider that family companies have an advantage over nonfamily companies. However, this research has barely found evidence that family-controlled firms are better than other types of companies. In my report, it is clear that even though these family companies have same size, similar economic scale, equal strategic competition, and same style enterprises in the construction industry, they still have different results and consequences. It is clear that companies are at risk to internal and external pressures, including shareholders, board of directors, scale of integration and economic environment, when they take a decision. It is also clear that some enterprises have used different types of integration as a business strategy to achieve lower price strategy that provides them with a competitive advantage that has made them market leaders in their

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