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Showing posts from April 1, 2014

Think twice about leaving your business to your kids

The question is: should family businesses always keep it in the family?  From the Murdochs to the Hiltons, families have long sought to keep their businesses in the bloodline. But new research shows that's not necessarily the best method of management. The recent study, published in the journal Entrepreneurship Theory and Practice, shows that if the family business is part of a traditional industry built on quality and reputation, a family member would make a good CEO. But  if it operates in an industry that values innovation, and the firm has to stay on the cutting edge, it's best to look elsewhere for leadership. The study's lead author, CIBC Distinguished Professor of Family Business Peter Jaskiewicz, says that in industries that prioritize pushing boundaries over preserving tradition, an aggressive attitude in the marketplace is necessary to lead. "Because family CEOs tend to focus more on family values, while non-family CEOs seek to innovate, that mean...