Continuity Model Generation. Justin B. Craig. Читать онлайн. Newlib. NEWLIB.NET

Автор: Justin B. Craig
Издательство: John Wiley & Sons Limited
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Жанр произведения: О бизнесе популярно
Год издания: 0
isbn: 9781119759355
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bundle of idiosyncratic resources and capabilities that family firms hold (Habbershon and Williams, 1999). As such, familiness is one of the intangible factors in the RBV (Illustration 4).

      Identifying the resource categories that are idiosyncratic is only part of the process. As, if not more important, is understanding what the firm does with resource-related processes or actions. Effectively managing the resources is crucial to creating a competitive advantage and this requires an understanding of how resources are accumulated, bundled, and leveraged. More specifically, Sirmon and colleagues consider resource management to include structuring (i.e. acquiring, accumulating, and divesting) the portfolio of resources, bundling (i.e. stabilizing, enriching, and pioneering) resources to build capabilities, and leveraging (i.e. mobilizing, coordinating, and deploying) capabilities in the marketplace. The synchronization of these processes is important to create value and, in the context of this conversation, contribute optimally to continuity.

Schematic illustration of the Resource-based view.

      Principal Cost Theory

      Like many of the dimensions included in the 21 frameworks, the dimensions of conflict and competence are easy to interpret, remember, and explain. These two dimensions and how they apply in family enterprise are fundamental for those committed to continuity. Indeed, the primary objective as a continuity model generation member is to do whatever it takes to put the family enterprise in position for seamless continuation. That is not to say this is a simple task and there won't be plenty of opportunity to engage in conflict. For example, not everyone will be convinced that the conversation should move from traditional succession planning to a new mindset evolving toward Continuity Model Generation; there will be pushback. Expecting this pushback and framing it in terms of the principal cost is a simple solution.

Schematic illustration of the Principal cost.

      But to understand the logics concepts even further, consider two exemplars of them: S.C. Johnson and Corning.

      The social and economic interplay manifests in the US city of Racine, Wisconsin, home of the S.C. Johnson organization. A recent visit confirmed the prominence of the Johnson family in the town; beyond core business activities, other commercial operations include the Johnson Financial Group, the Johnson Bank, and Johnson Outdoors. There is also Sam Johnson Parkway, which leads to a Johnson-funded public square. The Johnson family has also endowed the Racine Museum of Art.

      Another example is in the city of Corning, New York, home of the fifth-generation Houghton family's Corning Glass Works, where family connections and values account for much of the business's character and culture, with a focus on the social and economic wellbeing of the firm and its environment. When floodwaters destroyed the glassworks in 1972 and threatened the continuity of the business, then-Chairman Amory Houghton went on local radio to rally the company and community, “We are not only going to rebuild what we have lost, but we are going to add significantly to our manufacturing facilities in one of our plants…I want those of you who are employees of our company to know that as long as we respond well to our customer's needs your jobs are secure. Not a flood, nor a hurricane, not any other act of nature is going to jeopardize this. You are the Corning Glass Works, particularly in this city which is our home and our headquarters” (Dyer and Gross, 2001, p. 313).