Abstract
This paper is intended to contribute to the debate on the role of
professionalization in FBs.
It is a positioning paper, whose main aim is to highlight the state of the
art of literature and studies about family owned businesses, with regard to
the role of professional managers, particularly the CFO. A detailed review
of most significant theoretical streams is presented, in order to outline the
features, the drivers and the effect of the presence and role of CFO and
professionalization, as well the impact on family business performance. In
particular, through literature review, this study aims to identify the variables
that explain the presence of the CFO in family firms; the impact of the CFO’s
personal features, professional experiences, and role on the
professionalization of family firms; the relationship between the role of
CFO, the professionalization of the firm and its economic performance. The
research arises from the evidence of a quite limited diffusion of
professionalization processes in the Italian FBs, especially the SMEs.
Entrepreneurship, which is considered a point of strength of SMEs, when
joins up with a very poor professionalization can become a point of
weakness. The significant importance of family-owned SMEs for Italian
economy, along with the actual financial and competitive crisis, that has
involved these enterprises, asks for more diffused professionalization
processes, in terms of both governance and managerial mechanisms
(especially strategic planning and management control systems - MCS) and
professional managers. Professionalization is a typical problem of SMEs, but
it plays a significant role in the company growth processes and in family
firms, as a consequence of their peculiarities.
We consider the professionalization of family-owned businesses related
to the diffusion of the following elements: 1) formal governance
mechanisms, such as board of directors, 2) formal strategic planning and
management control systems - MCS (budgeting, reporting, and management
accounting), and 3) the involvement of non family members in boards and
management, often called professional managers (Songini, 2006).
Previous studies, based mostly on large and quoted enterprises,
demonstrated that in these contexts CFOs are generally in charge of
developing and operating the organization’s MCS, and that they are
differently opened to stimulate improvements in organizational decision
making and performance evaluation. Thus, it could be of interest to analyse
the role of CFO in the professionalization of family firms too, and its impact
on company performance. Besides, it is noteworthy to point out that the CFO
can play a significant role in family firms, due to the fact that he/she
represents the alter ego and the confidential manager of the entrepreneur.
Actually, the CFO copes with specific aspects relevant for the company and
family growth and development, such as drawing up the balance sheets and
the annual reports, managing the tax and legal aspects, introducing and
coping with the planning and control systems. Notwithstanding the CFO’s
relevant role, the main studies on professionalization of family owned
businesses coped mainly with governance topics and, when the professional
managers were studied, the focus was on the role of CEO and the board of
directors’ members.
Lingua originale | Inglese |
---|---|
Titolo della pubblicazione ospite | Il governo aziendale tra tradizione e innovazione, Sezione VIII "Imprenditorialità e Family Business" |
Editore | FrancoAngeli |
Pagine | 149-168 |
Numero di pagine | 20 |
ISBN (stampa) | 9788891736604 |
Stato di pubblicazione | Pubblicato - 1 gen 2016 |
Keywords
- CFO
- family business
- professionalization