Entrepreneurial Opportunity Exploitation and the Family: Relationship-Based Factors That Affect the Adult Child's Decision to Jointly Participate with Parents in a New Venture. by Entrepreneurial Executive

Entrepreneurial Opportunity Exploitation and the Family: Relationship-Based Factors That Affect the Adult Child's Decision to Jointly Participate with Parents in a New Venture.

By Entrepreneurial Executive

  • Publication Date: 2008-01-01
  • Genre: Business & Personal Finance

Book Synopsis

INTRODUCTION Family businesses are vital societal institutions. Their importance stems from their position as a common entity for conducting commercial transactions and their role as a cohesive force for the intergenerational family that offers possibilities for family members to invest in the business and participate in variety of business roles (Carland, Hoy, Boulton & Carland, 1984). The objective of this study is to evaluate the extent that the nature of a specific relationship with a parent or the prospective hierarchical positions of the child and parent(s) influence the decision of the adult child to enter a new family business. The focus on the decision to enter a new family business, should an opportunity to form such a business presents itself to the family, is distinct from either a decision to join an existing family business, or the decision to remain as a member of an existing family business because the roles in the new venture have not been previously defined. It is this distinction, emphasizing the interaction of opportunity exploitation and definition of the roles individuals play in that exploitation (Shane & Venkataraman, 2000), that places this study in the research domain of entrepreneurship.

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