Influence of Filipino Values and Kinship on the Management of Family-Owned Businesses as Perceived by Manager-Owners

Abstract

At present, family-owned businesses contribute a significant volume of industries in the country. These organizations range from small enterprises to large corporations. Chua (1997) defined these firms as businesses "wherein at least 50 percent of the ownership and management falls within one family—whether related by blood or marriage." Like any other companies, family-owned businesses experience problems relating to profits, assets, and public relations. However, certain issues are inherent only in family firms. This, for example, includes balancing familial and professional relationships among kin employees. This research aims to focus on understandingthe influence of kinship and Filipino values on this type of organizations. The study seeks to identify evident values embraced in the culture of family-owned businesses in the Philippines. Also, it intends to determine the impact of familial relations on the professional work among members of the family in the company. Moreover, it aims to study how kinship affects wok relationships of members of the owner family with non-members in the organization. Lastly, the study aims to identify the strengths, weaknesses, opportunities, and threats of the said topics as perceived by manager-owners. The research was conducted in five Filipino family-owned businesses in the country. They belong to different industries which include marketing and general construction services. Manager-owners from these companies were interviewed by the researcher with questions based on the topic of the study.Based on these interviews, findings show that the respondents of the study value strongly the concept of "family" in their organizations. In addition, other values embraced by the studied organizations include "hiya," "pakikisama," and "honesty." Differences in value orientation, according to the respondents, often result to conflict among organizational members. This may be brought about their differences in backgrounds and interests. In addition, generation gaps also contribute to the differentiation of values among members. To prevent these conflicts, the respondents believe that applying professionalism at work should always be embraced by all members. There should be a line between familial and work relations. Others suggested that arguments can also be solved and/or prevented by withdrawing oneself from the problem and the personalities involved. Respondents also believe that having family members in the organization affect the management of the business in a lot of ways. In conclusion, the values stated by the respondents of this study highlight the importance of having harmonious relationships among organizational members. As a matter of fact, owner-managers perceive the said values as essential components to a developing organization. As a value, the concept of "family" is important to these types of businesses because its members—the owner family and relatives—are the pillars of organization. Strength comes from the loyalty given by these members to both the company and the family. However, instances occur wherein some of these members often abuse the trust given to them by ownermanagers. Because of this, though family members may be considered as the strength of family firms, it is also its own weakness.