1. Management Ideal types of family business management: Horizontal fit between family and business decisions and the relationship with family business performance Managerial behavior of small and medium-sized family businesses

2. Typological model of family business

3. A specific framework 1. Holistic principle Two orientation of management and governance decisions: business- oriented decisions and family-oriented decisions Four areas: the board of directors, succession, human resources and strategic process 1. Horizontal fit A series of family- and business-oriented decisions that coalesce into a pattern and logic in four areas. 1. Family business performance Family business performance takes into account both economic and noneconomic objectives 1. Equifinality Multiple unique configurations can result in maximum performance, and this performance is related to economic goals

4. 1. Ideal types Family-first ideal type Human resources: kinship relationships, length of service, enhancement of individual competency. succession: internal activities designed to groom the future successor board of directors: control family interest, draw up family protocol, advise on family topics Strategic process: based on family assets the greater a family firm’s similarity to the family-first ideal type, the better the family results

5. Business-first ideal type Human resources: the decisions, skill and ability of both family and nonfamily are important, the freedom that managers have in decision making. Succession: candidates are considered due to their abilities Board of directors: exercises the traditional business roles (control, service and resource) and, with less intensity, the family roles Strategic process: relate to the business aspect The greater a family firm’s similarity to the business-first ideal type, the better the business results

6. Family-enterprise first ideal type Human sources: person-based visions and trust are combined with capabilities Succession: a mixture of direct and indirect practices of grooming future successor Board of directors: shape its balanced orientation and seeks to formalize the integration of the family and business system Strategic process: integrate both family and business objectives, needs and resources The greater a family firm’s similarity to the family-enterprise ideal type, the better the family and business results

7. Practical implications: The model give an significant role to evaluate family business behavior and fills the gap. The model can also provide a useful tool for thinking strategically and for building a bridge between the present and the future of the family business. The model can also be used to detect indications for tackling the challenges facing the family and the firm.

8. Management variables Strategy Strategic planning Manager’s training Professionalism Financial techniques implementation

9. Managerial factors in family and non-family business

10. Managerial factors in family business strategyStrategic planning Management training & professionalism Managerial Financial tools “Defender group” introvert Uncommon: confidentiality and privacy Trust relativesA lack of deep knowledge of accounting principles Risk adverse Less growth oriented More conservative (consumer markets) Conflict between the CEO and the rest of the family Altruism: a threat, a lack of professionalism in management Fewer financial controls Less emphasis on obtaining quality assurance Laborious & time- consuming (emotional issues) Lower educational levels of managers, fewer training programmes, managers are less qualified Less transparent (financial information, voluntary accounting) Cost leadership & differentiation strategies Succession: outside managers, attracting outside money…… A smaller proportion of personnel with university degrees More formal methods (financial management, decision-making)

11. conclusion Private ownership, owner-management and altruism combine to make the governance of family theoretically different from other ownership forms Family firms should take into account their advantages in management such as the family dedication and commitment towards the firm Some weaknesses that family firms should correct. For instance, family enterprise devote fewer resources to training, they attach less importance to education as a competitiveness factor, and they have a smaller proportion of managers with a university degree, they give less importance to the improvement of detailed and rigorous management planning, and are prone to underemploy management accounting techniques, in particular management accounting systems and cash budgets