The Effects of Family Communication Patterns on Family Satisfaction in Family Business

The Effects of Family Communication Patterns on Family Satisfaction in Family Business

Mehmet Akif Çini (Selcuk University, Turkey)
DOI: 10.4018/978-1-5225-9906-7.ch007
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Abstract

The main goal of the study is to investigate the effects family communication patterns (the orientation of communication and conformity) of family member employees that work in family businesses have on family satisfaction. The population of the study was determined as the employees of 260 family businesses with head offices in the Konya province of Turkey, which operate for at least 25 years, and which have annual returns of over 5,000,000 Turkish Liras (TL). The data were analyzed with structural equation model (SEM) by using AMOS 24. The research results show there is a relationship between family communication patterns (communication and conformity orientation) and family satisfaction.
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Introduction

Considering the contribution to the economies of the countries and the rate of assets in the economy, it is an undeniable fact that the family businesses play a critical role in the development, support and social prosperity of all country economies. Additionality, a strong country economy affects both internal and external relations and policies of a state. In this context, the sustainability of these enterprises is critical for all stakeholders. However, it is also known that these businesses have too much trouble in transferring to the next generations and burst like a bubble. A lot of research has been done in the literature to identify and solve the source of this problem. The purpose of these studies is to reveal why family businesses that are critical for the economies of the country are not sustainable and to offer solutions. Nevertheless, the number of family businesses that continue their commercial activities under the control of the fifth generation on the world is as few as to be mentioned in the articles. The main problems expressed in the literature are succession planning, lack of institutional structure, unfair distribution of resources, intergenerational conflicts and lack of appropriate communication structure. In fact, the problems arising from communication trigger other problems in family businesses. In this context, the communication structure created in the family business has a critical importance for the transfer of the enterprise to future generations. Because a communication structure adopted by all stakeholders is necessary for the transfer of the enterprise, its institutionalization, transparency in resource allocation and the resolution of conflicts. In other words, a study on communication problems in family businesses contributes to the solution of all other problems.

In this study, the effect of the communication structure in the family businesses was examined on the sustainability of the enterprise through the satisfaction of the family members. For the satisfaction of a family member, the objectives of family members and the objectives of the family business must be consistent. This compliance can be achieved when the communication structure is structured to satisfy each member. As a result of a good communication network, the satisfied family member will increase his motivation and strengthen his loyalty to his business. New generation family members who grow loyal to the family business will contribute to the sustainability of the family business. Thus, in a chained manner, a good communication network affects target orientation, target orientation, family satisfaction, family satisfaction, motivation and sustainability.

The main question the research tries to answer is how the aims of family members and business objectives should be orientation, the role of communication structure in this process, and consequently the effect of this situation on business sustainability. In this context, the main purpose of the study is to determine whether there is a relationship between the communication structure of family businesses and the satisfaction of family members. In addition, depending on this relationship, the effect of the family members who be satisfaction or not, on the sustainability of a family business will be expressed. It is also explained how the ideal communication structure should be and how family members and family businesses will be compatible.

Reviewing the extant literature, much research on the family business and family communication patterns can found; however, it is seen that there are few researches where the family business and family communication patterns find a middle ground. In this regard, the research show difference and contributed to the literature as it evaluates the impact of family communication patterns on family members and the issues that may cause on the family business.

Key Terms in this Chapter

Family Satisfaction: Degree of satisfaction that the family members receive from all activities and communication experiences with the family.

Sustainability: It is that ensure the continuity of the enterprise by transferring the ownership and management of the enterprise to the next generations.

Family Council: It is channels where all family members express themselves comfortably, discuss the reasons and consequences of decisions, assess all opinions and any family member can join.

Communication Orientation: An attempt to ensure orientation through an environment and network where family members can freely express their ideas by being involved in all decision-making processes.

Transfer of Business: Transfer of the property and administration of family businesses to one generation to another from the family.

Successor Planning: It is defined as the transfer of management rights to new generations in addition to the ownership of the family business.

Conformity Orientation: An attempt to ensure orientation through an environment and network where the family members provide unconditional and unqualified obedience to family values and decisions.

Family Business: Businesses where at least two family members are active in the property and administration of the business.

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