CHAPTER 1
PROBLEM AND REVIEW OF LITERATURE
Introduction
A family business is a representation of a legacy of the first or past generation of owners (Frankenberg, 2008). It is a business owned, controlled, and managed by one or more of the family members who are actively involved in running the company activities.
It gives the family a sense of pride and serves as glue that holds the family members together and connected. It is a product of years of hard work; embodies success; and is a symbol of the family’s achievement (Pappas, 2009). Family businesses are vital for the economic growth in many countries. They perform an essential role as providers of innovation, opportunities, and act as key players for local and national development. The importance of the family firm in the economy of a country is an indisputable feat, even more if the consequences of their business activities in the integral development of a society are analyzed (Donckels & Frohlich, 1991; Basco, 2010). Studies in different countries have shown that family businesses play a vital role in terms of employment generation (Pistrui et al., 2001; Anderson & Reeb, 2003). It is estimated that these kinds of companies account for 85 percent of all companies worldwide, 65% of US GDP and 60% of its
employment (Martinez et al., 2013).
The life expectancy of a family business is 24 years compared with 45 years of a public company. Most family businesses do not survive the first five years and only 30 percent are successfully transferred to the next generation. Only one in ten makes it to the third
generation (Lee-Chua, 1997, as cited in Te & Perryer, 2011). The study of Lee-Chua defines a successful family business as one that has existed for at least ten years, is still operating, and has made a name for itself in its field. For Bernice et al. (2007), the growth of family firms is less probable than the non-family firms mainly because their management practices are less formal. For other researchers, problems begin when the mechanism of succession arises and when the business faces some conflicts between the family members after the first and the second succession levels.
For family businesses that thrive and operate for a long time, Beckhard and Dyer (as cited in the study of Chitoor & Das, 2007) found that family business succession happens when the founder-owner passes on the leadership to either a family member or a non-family member. It includes all the events, actions, and organizational mechanisms by which the leadership and the ownership of the firm are transferred (Le-Breton–Miller et al., as cited in Chitoor & Das, 2007). Outstanding and long-lasting family businesses should put their learning into practice to serve as inspiration to others. The approach suggests that the selection, adoption, and replication of practices of successful family businesses contribute to the longevity of family enterprises. The primary objective of this best practices’ approach in family business, as cited in the research of Dana and Smyrnios (2010) is to help families achieve not only success but more importantly, growth, continuity, and effective succession.
Despite the extensive research effort, most studies on family business here and abroad focused on business and corporate organizations. There is not much study done on family-owned colleges and universities with a long-term perspective of development. At present, there are 2,299 higher educational institutions (HEIs) in the country. Six hundred fifty-six or 28.53% of the total HEIs nationwide are public HEIs. Private HEIs are established under the Corporation Code and are governed by the special laws and general provisions of this code. Private HEIs account for 71.47% of the higher education system with a total number of 1,643 institutions (Commission on Higher Education, 2014). In the context of family- owned HEIs in the Philippines, they constitute approximately 65% of all private education (Laurel, 2014).
This study had taken a more analytical and definitive look at the attributes and practices of private non-sectarian, family-owned higher educational institutions within the country which contributed to their success and sustainability. The study led to the
development of a model that integrates the attributes and practices – identified by the researcher through the responses of research participants – into a logical whole considering the significance of these higher institutions of learning to the lives of most Filipinos, their communities and to the country. They help shape virtually every aspect of
our national experience. The main objective of this study is to establish a framework that can be used later in empirical research.
Problem Statement
This research identified and analyzed three successful family-owned higher educational institutions and determined the attributes and practices that may likely have contributed to their success. Specifically, this study aimed to answer the following questions:
1)
What are the attributes and practices that led to the success of each family-owned Higher Education Institution?2)
What is the cross-case analysis of the attributes and practices of all the case studies?3)
What model could be developed based on the cross-case analysis?Significance of the Study
The role of family–owned colleges and universities cannot be overlooked. It plays a large and active part in contributing to economic growth and national development. This study would like to contribute to the database on family–owned higher institutions of learning which continue to play a significant role in poverty alleviation and in the development of globally competitive workforce.
The scarcity of researches on family–owned higher educational institutions makes this study relevant. It will provide insights on the attributes and practices of successful private, non-sectarian, family–owned higher educational institutions so that current and future school owners and administrators will be guided in the management of their institutions for its sustainability. Understanding the unique experiences and insights of family–owned schools can provide a better appreciation of the complexities of the issue. This study will also encourage evaluation of how the ideas that would be presented may foster success of schools owned by families in building a sense of community, a reciprocal relationship among their colleagues, their student-clientele, and other stakeholders with whom they do collaborative work resulting in the accomplishment of their vision and mission.
This research work is also beneficial to businessmen and students of business administration as well as financial analysts whose expertise might provide insights that would be helpful in guiding prospective school owners. The Commission on Higher Education will also benefit from this study so as it can provide better guidance to family owned HEIs which are under their office. Banks and other financial institutions will be able to find value in some insights that may be drawn in extending financial assistance to family- owned schools. Future researchers in the field of educational management who are in search of future related topics may stand to benefit as well from this paper.
The business community and the society at large may benefit from the study specifically on the aspect of more family-owned colleges and universities who would be able to produce globally competitive and socially responsible graduates because of the insights that would be provided by this study on attributes and practices of successful family- owned HEIs.
Lastly, the area and trend of family research development may benefit from this study considering that a significant segment of global business is driven by family- owned and managed organizations.
Scope and Delimitation of the Study
This study was limited to three private, non-sectarian, family-owned higher
educational institutions that have been in existence for more than fifty years, had a single founder and had at least two transitions. This study was also limited to family-owned universities with increasing enrollment, level III accreditation status, good performance in the Board exams and high employability of graduates. Only three among those invited family- owned universities responded positively to the request to be part of this case study.
The study also utilized multiple case study method. This paper was subject to the limitations of this methodology such as the sample size which is basically based on the number of HEIs that responded. The small sample size is bound to the criteria set for each case to be part of this study and the limitation of those who agreed to participate in this study.
Review of Related Literature
The two-system concept of family business is represented by two overlapping circles that represent the two sub-systems of family business: “family” and “business.” The challenge is in finding strategies and mechanisms that will satisfy both the business and the family. Every family business must operate in accordance with sound business principles and practices while at the same time meet the needs of the family. The two-system model was used by Ivan Lansberg (1983) in explaining and illustrating the separation of family norms and business norms. This model helps dichotomize family perspectives of the firm as it differentiates the owners’ perspectives from the managers’ perspectives and be guided by their respective norms (Siebels & Dodo, 2011). Figure 1 shows the classic two- system model of family business. It gives a better understanding of a family firm.
Figure 1
The Classic Two-System Model of Family Business
Family Business
Tagiuri and Davis (as cited in Magretta, 1998) elaborated on the two – system model of family business in the early 1980s and came up with the three – circle model that discusses how an individual can be linked to the business as a family member, an owner, and an employee. Their model elaborates the family business system as three
independent but overlapping subsystems: business, ownership and family. According to Gersick et al. (1997), the three – circle model is a very useful tool in understanding the source of interpersonal conflicts, role dilemmas, priorities, and boundaries in family firms.
Specifically, different roles and subsystems help to break down the complex
interactions within a family business and it makes it easier to see what is happening and why.
Although the model provides a valuable step in understanding the firm, many of the
dilemmas that family businesses encounter are caused by the passage of time. Not only do they involve change in the organization but also in the family and in the distribution of ownership. A person’s movement from ‘family member’ to ‘family member/employee’ or from
‘employee’ to ‘employee/owner’ can stimulate a general reaction in the entire system (Bate, 2004). Figure 2 is about the three-system model of family business. It shows the three overlapping circles in a family firm.
Figure 2
Three – System Model of Family Business
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The three–dimensional model of family business portrays a more accurate picture of the dynamics of complex, cousin–controlled family businesses. Any individual in a family business may assume roles in any or a combination of the seven sectors formed by the three overlapping circles that represent the subsystems making up the family business system. In Figure 2, Sector 1 represents the family member, 2 the owner of the company, 3 the business, 4 the family member who owns the business but not employed in the
business, 5 the owner who works in the business but not a family member, 6 the family member who works for the company but does not own it, and 7 the family owner who owns and works for the business. According to Gersick et. al. (1997), the systems’ adjustments to the boundary – crossing journeys of its members in the three – circle model and the meaning of these journeys in the lives of the individuals are at the core of the entire family business phenomenon. They came up with a three – dimensional depiction of family business where each of the three subsystems: Family, Ownership and Business were broken each into individual life cycles. The ‘family’ axis is made up of four stages: 1 – Young business family (older generation at work), 2 – Entering the business (the next generation is employed in the firm), 3 – Working together (of two generations), and 4 –Passing the baton (succession). This model has been strongly influenced by the work of Levinson (1978) and other individual and family life cycle theorists who studied the dynamics of family business across time. It captures the structural and interpersonal development of the family through such issues as marriage, parenthood, adult sibling relationships, in – laws, communication patterns and family roles. Dividing business families into developmental subgroups help sort out the enormous variety of business – owning families.
Figure 3 shows the three-dimensional developmental model. It is focused on the family-owned firm.
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Figure 3The Three – Dimensional Developmental Model
Maturity
Business Axis Expansion/
Formalization
Start - up
Young Family Busines s
Entering the Busines s
Working Togethe r
Passin g The Baton
Controlling
Owner Family Axis
Sibling
Partnership Ownership Axis Cousin
Consortium
The ‘Ownership’ axis takes its roots from Ward (1988; 1991, as cited in Neubauer
& Lank, 1998) and the three stages are relabeled: 1 – Founder or Controlling owner, 2 – Sibling partnership and 3 – Cousin consortium. Ownership issues will vary and be more dominant as the family evolves. In the first stage, dominant shareholder issues range from leadership transition, succession, spouse insurance and estate planning. In the second stage of sibling partnership, the issues are maintenance of teamwork and harmony, sustainability of ownership and
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succession. In the last stage, the dominant issues are allocation of corporate capital, shareholder liquidity, family culture, family conflict resolution, family participation, family vision and family linkage with the business.
The third axis is the ‘Business’ axis which is the final dimension that describes the development of the business over time (Gersick et. al., 1997). It is made up of three stages, namely: 1 – Start – up, 2 – Expansion/formalization, and 3 – Maturity. Each of the stages have its own characteristics. In addition, there will be dominant management issues.
Stage 1 or entrepreneurship stage would concern with issues of survival and growth. Stage 2 or the expansion stage would concern with issues on professional management systems and revitalizing strategy. Stage 3 or the maturity stage would concern with issues on corporate culture, allocation of resources, investment portfolio, succession, and shareholder relations.
The Asian Institute of Management (AIM) Famcor group adopted the classic two –
system model to arrive at its basic premise of a shared vision as a key performance driver of family firms (Payne et. al., 2011). What makes family businesses unique is the
interaction of family and business systems (Mejia et al., 2011). Founders of the family business as the prime movers must ensure a balance between the subsystems and have to ensure the transition and survival of the family and the firm through the various transition phases which can take the form of strategic transition, generational transition and ownership transition (AIM, 2008; Overbeke et. al., 2015).
According to Gavino et al. (2008), a healthy family has a sense of purpose, a high degree of commitment to the family welfare and the community. Members sacrifice their individual objectives when the family’s collective interest is at stake. They further stated that in healthy family businesses, goals are both clear and flexible and all family members contribute to their achievement.
Every family has a set of values or a sense of how the family believes things should be
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done. To a greater or lesser degree, these values shape the culture of a family business.
They also have a powerful impact on the success of the business. Positive values like entrepreneurship and integrity are the backbone of many successful family businesses.
Ineffective values like secrecy and unwillingness to trust have a negative impact. Families need to be aware of their own values and the impact that they have on their business performance (Carlock & Ward, 2010).
The criteria for successful businesses are primarily focused on profitability and performance (Miller & Miller, 2013; Reyes, 2013) and good governance (Robles, 2004;
Steier et al., 2015). It also includes professionalization of the organization (Reyes, 2014;
Urbano, 2015) and longevity (Williams & Jones, 2010). Whether the company be family-owned or otherwise, these measures seem to hold true otherwise, these measures seem to hold true for any type of business, be it in education or other endeavors. Innovation, according to
Kammerlander, et al. (2015), is also a critical factor to the success of family firms and it is positively influenced by family focus.
To measure the success of family-owned businesses, one clear indicator of success is a smooth succession from one generation to the next (Fan et al., 2014; Wu et al., 2015). To truly say that a family-owned business is successful, there is extraordinary longevity (Miller &
Le Breton-Miller, 2005) it is in the second generation of succession or beyond (Georgiou &
Vrontis, 2013; Fan et al., 2014) and the original founder has given up the reigns of the company to the new family firm Chief Executive Officer (De Massi & Kotlar, 2015; Alcahaz et. al., 2015; Overbeke, et. al., 2015). Furthermore, it has maintained its good performance over the years (Naldi et al., 2015). Further, Ungerer and Mienie (2018) developed a conceptual framework for the long-term sustainable performance of family businesses over multiple generations – Family Business Success Map. It is the synergy of vital elements, to wit: succession planning practice, leadership practice, strategic plan practice, family harmony practice as well as financial planning and monitoring practice.
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Egger and Histrova (2018) also emphasized that familiness and the trans- generational succession process are specific factors for the superior performance of family- owned businesses that give them a competitive edge over businesses that are not family- owned. Webb et al. (2010) also disclose that excellent performance in business of family firms result from strategic entrepreneurship.
Through interviews with both family and non – family executives, Fernandez-Araoz et al., (2015) uncovered several factors in their study on leadership lessons from great family businesses. The most successful family firms establish good governance as a baseline, preserve ‘family gravity’ or what makes them special and bring discipline to top – level succession.
According to Caspar et al. (2010), the keys to long – term success in family
businesses are professional management and keeping the family committed to and capable of carrying on as the owner. Almost all companies start out as family businesses but only those that master the challenges intrinsic to this form of ownership endure and prosper over the generations. The work involved is complex, extensive and never – ending but the evidence in the study suggested that it is worth the effort for the family, the business and society at large.
In the study of Wyers (2008), traits common to successful family –owned businesses include a spirit of entrepreneurship and creativity, mutual respect and cooperation. It also includes willingness to change, fair play and a commitment to good citizenship through community involvement. Entrepreneurial Orientation (Pimental, 2016) is also indicative of family business processes. Clear communication turned out also to be an important trait in the study (Alcahaz et al., 2009; Hansen & Schattegger, 2014).
The study of El – Chaarani (2013) investigated the success factors that can influence the performance and the continuity of the French and Lebanese family firms. The results indicate that French family firms are linked to four success keys (planning for succession, using of emotional intelligence, professional human resource management and long – term
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overview). The Lebanese family firms are linked to five success keys (financial structure, planning for succession, using of emotional intelligence, professional human resource management and governmental networking). Moreover, a positive correlation has been found between family firm performance and the presence of outsiders in the Board of Directors.
The sustainability of Greek family businesses require that they maintain good governance practices that are both economically and environmentally acceptable to all stakeholders as based on the study of Adendorff and Bosholf (2011). It also requires that the next generation of Greek entrepreneurs effectively balance good governance of their
businesses with their family commitments. In Japan, as investigated by Goto (2013), family firms’ commitment to perpetuation and, more importantly, their devotion to the public welfare was revealed to be the most relevant factors for their longevity. In addition, in United Arab Emirates, large family firms engage in long-term planning to ensure the longevity of the business. However, as discussed by Oudah et al. (2018) there is a need to increase the family capital and to give more importance to family values. In addition, Moyo and Ozgur (2015) revealed that successful succession systems in family businesses in North Cyprus was due to collectivistic cultural beliefs of the owners of the business.
The four driving priorities or passions of the great family – controlled businesses and their leaders are the four C’s. One is continuity: pursuing the dream. Another is community: uniting the team. The third factor is connection: having mutually beneficial relationships. The fourth C is command: acting and adapting with freedom (Miller and Le – Breton – Miller, as cited in the study of Cruz, 2008).
The study of Lagunda (2009) explored succession for intergenerational continuity in the context of private higher educational institutions. It looked into the succession practices and its relationship with family dynamics in private, non- sectarian family-owned higher educational institutions. Also, Aithal and Kumar (2015) disclosed the best practices of long-
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lasting educational institutions in the areas of curriculum, teaching-learning and evaluation, research, consultancy and extension, infrastructure and learning resources, student support as well as in the area of governance, leadership and management to have a competitive edge.
To promote educational development nationally, the “Congress continues to recognize the use of private, voluntary accreditation as a means of helping to ensure the quality of schools and programs (Cooney, 2001). Accreditation is a quality-management mechanism that occurs in adjunction to the minimum requirements of quality that are stipulated for institutions and programs and verified by the Commission on Higher Education (CHED), a national organization of the government in-charge of higher education. Private voluntary accreditation provides an educational institution the opportunity to attain standards above the minimum requirements prescribed by the government. It honors universities and colleges as it authenticates their accomplishments in providing quality education (Mekic & Goksu, 2014;
Gadingan, et al., 2015).
The existing voluntary accrediting associations in the Philippines are private, self- supporting organizations comprised of representatives from schools, colleges, and universities who have banded themselves together to improve their educational quality and to protect their academic integrity against low quality, unethical or illegally established institutions.
They have been in existence since the early 50’s and have supplemented government efforts towards regulating colleges and universities. The accrediting bodies are coordinated under the separately incorporated Federation of Accrediting Agencies of the Philippines (FAAP). FAAP liaises between the members and the respective government agencies that oversee the educational system while supporting, coordinating and certifying the activities of the individual accrediting agencies (Racadio, 2004).
Key indicators of a successful higher educational institution are performance and profitability leading to sustainability (Hansen & Schaltegger, 2014), accreditation (Gulla &
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Jorgenson, 2014; Cuizon & Garcera, 2014; AACSB, 2013), and growth in enrollment (Rodriguez-Ponce et al., 2015). It also includes performance in government Board Examinations (CHED, 2014) and employability of the graduates (Paliulis & Labanauskis, 2015).
Based on the literature review, there are various family business models, and several factors were identified that can influence the performance and the continuity of family firms. Researches were also included on the criteria for successful businesses. In this regard, there is a notable lack of research on effectively managed private, non- sectarian, family-owned colleges and universities considering the significant role that these institutions play in the development of society. This is the gap that the study would like to bridge. Specifically, the purpose of this paper is to identify and analyze the attributes and practices that led to the success of family – owned institutions of higher learning.
Conceptual Framework
Based on the research issues gathered, it would seem that a successful private non-sectarian, family-owned higher educational institution would be a school that is more than fifty (50) years in existence (Miller and Le Breton-Miller, 2005) and had at least two generational transitions (Georgiou & Vrontis, 2013; Fan et al., 2014). In addition, it has
increasing enrollment (Rodriguez- Ponce et al., 2015), Level III accreditation status (Gulla &
Jorgenson, 2014; Cuizon & Garcera, 2014; AACSB 2013), good performance in the Board examinations (CHED, 2014) and high employability of graduates (Paliulis & Labanauskis, 2015).
In the study of Te and Perryer (2011), the life expectancy of a family business is 24 years. In this regard, the researcher arrived at this proposition: There are certain attributes and practices within the family-owned higher education institutions that result to its success and sustainability. For this study attributes refer to the qualities or features regarded as
17
characteristics of successful family owned HEIs while practices are habitually or regularly performed or carried out processes and activities.
Figure 4 is the conceptual framework of this study. It focuses on certain attributes and practices that have resulted to the success of family owned HEIs.
More than 50 years in existence
Practices and Attributes
Successful Family- Owned Higher
Educational Institutions
Had 2 generational transitions or more Increasing enrollment
Level III accreditation status
Good performance in the Board exams High employability of graduates
Figure 4
Conceptual Framework
Another framework that guided the conduct of the study is the General Systems
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Theory of Management (Bertalanffy, 1951). A system is composed of related and
dependent elements which when in interaction forms a united whole. A system is simply an assemblage or combination of things or parts forming a complex whole. School system leaders need to be systems thinkers (multi-dimensional approach). Systems Theory or systems approach to management is based on the idea that everything is ‘interrelated and interdependent’ (Chand, 2002). Due to the interconnectedness of variables under study, the researcher identified the middle and top management leaders of the three cases to be the respondents. At the same time, the selection of varied respondents mirrors the basic concept of systems thinking which is the hierarchical relationships between systems. The statements provided by the respondents also served as the raw data
complemented by observation notes and documentary sources from the educational institutions.
Primarily, the development of a model after a thorough analysis of the gathered data supports one of the key concepts of General Systems Theory emphasizing
transformation model. As shared by Kast and Rosenzweig (1964), the various inputs – in this case the practices and attributes – that are part of a dynamic system – the family-owned higher education institutions under study – produces a transformation model that could be utilized not only by the internal system but also by other stakeholders outside of the system, as well. For this study, another key concept of general systems theory adopted is holism. The researcher carefully considered factors that contributed to the success of the three different cases though a systematic process of thematic analysis. Significant statements were taken into account before identifying the constructs and the themes. This reflects a systems perspective of the researcher. Further, this study anchored its framework generation in a priori theory focusing on criteria and existing facts and not merely on experiences. The attributes and practices were predominantly investigated through the statements of the middle and top management, the observation of the researcher and the existing printed and digital documents available in each university.
CHAPTER 2
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METHODOLOGYResearch Design
This study utilized a qualitative, exploratory research design on the attributes and practices of a successful family – owned HEIs with the goal of developing a theoretical model for understanding the dynamics behind its sustainability. Qualitative research is one in which the inquirer often makes knowledge claims based primarily on constructivist
perspectives, i.e., the multiple meanings of individual experiences, meanings socially and historically constructed with an intent of developing a theory or pattern or advocacy perspective. It also uses strategies of inquiry such as case studies (Creswell, 2003).
The current study also adopted the theoretical orientation in which theory becomes the endpoint of a study. It is an inductive process of building from the data to broad themes to a generalized theory (Creswell, 2003). Hence, the proposed conceptual framework serves as a tentative a priori model from which the researcher will base the study.
In this regard, the purpose of the study was to give an in – depth and systematic understanding of attributes and practices that led to the success of each family – owned HEI and comparing these attributes and practices among the HEIs. Then a model was developed to understand how these attributes and practices contributed to their success. This may also give light as to why these family-owned HEIs are successful. Given the intent of the investigative process, the researcher adopted case studies as the primary inquiry method to illuminate a decision or set of decisions as to why they were taken, how they were implemented, and with what result. The use of case studies is justifiable in trying to answer the research questions of how and why. The purpose of the researcher was to generalize theories rather than enumerate frequencies. Moreover, the study adopted a multi – site case study research since it involved the analysis of several sites using within- case and cross – case comparisons to analyze data. The added value of additional case studies is that it allowed for the application of the replication logic (Yin, 1994). By applying the same research procedures, there was literal replication when the cases produced similar
results and theoretical replication when the cases produced contrasting results but for
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predictable reasons. In either case, this made the overall study more robust.
Further, NVivo (Bazeley & Jackson, 2013; Leech & Onwuegbuzie, 2011; Richards, 1999; Welsh, 2002) was also used for data cleansing that aided the researcher in
organizing the raw statements from the respondents. Also, statements given in Filipino language were translated by the researcher before going through data analysis. Both the literal (word for word) and free (sense for sense) translation approaches (Barbe, 1996) were used in the treatment of the textual data. Lastly, this study adhered to the coding process in case study method (Yin, 1994), in particular, and coding in the qualitative research design (Creswell, 2013), in general. The researcher, after cleansing and translating the raw statements from the informants, identified key concepts before determining constructs and arriving at the common themes for each case. The constructs and themes were further analyzed to compare the attributes and practices of the three cases under study which became the basis for the development of the framework that presents the model of a successful family-owned higher education institution.
Participants
The study adopted purposive sampling in choosing the respondents. Universities that are private, non–sectarian, family – owned and in existence for more than 50 years under a single founder and under continued family ownership with at least two
generational transitions were identified. Each case has increasing enrollment, level III accreditation status, good performance in Board exams and high employability of graduates. In the interest of time and resources, the researcher focused on three cases to cope with the expected complexity and volume of data. A diverse selection in terms of situations and types were able to replicate or extend the emergent theory. In each case, the respondents were senior management executives in the top management and in the middle management levels in each of the higher educational institutions, whether they are family members or non-family members. They are in decision-making positions.
Research Instruments
Data for the case studies were collected from multiple sources, thus, triangulation
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was achieved, and the study had stronger substantiation of constructs especially along the attributes and practices that led to the success and uniqueness of family-owned higher institutions of learning. The use of multiple sources of evidence allowed the researcher to address a broader range of historical and behavioral issues. Moreover, triangulation of data sources ensured that the case study had rendered the participants’ perspective accurately.
Multiple sources included interviews, observation notes and documents (Creswell, 2003).
A semi-structured in-depth interview guide was prepared. It incorporated questions that are expected to elicit responses that are focused on attributes and practices that
influenced the success of family-owned HEIs. One of the most important sources of case study evidence was the interview. It allowed the respondents to share their views and
experiences in their own terms. Throughout the qualitative process, the objective of the researcher was to capture the distinctive perspectives of the participants in the case studies. These extended inquiries mean that the case study data collection required much fieldwork time, including the conduct of prolonged interviews occurring over multiple sittings.
They resembled guided conversations rather than structured queries. Although the researcher pursued a consistent line of inquiry, the actual stream of questions was fluid rather than rigid.
The second leg of the triangulation of data sources was observation. As part of the primary data, the respondents were observed. It focused on attributes and practices that were present in successful family-owned institutions of higher learning.
After the data from the interview and the observation notes were analyzed, the researcher went into the perusal of the documents that give evidence to what the
respondents had shared as far as the primary data is concerned. The documents were able to establish the attributes and practices that led to the success and longevity of the cases that were studied.
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The last part of the triangulation of data sources involves secondary data that were culled from documents in the three case studies. It included letters, memoranda, agendas, announcements, and minutes of meetings as well as other written reports of events. Other secondary sources of data were administrative documents such as proposals, progress reports and other internal records. It comprised evaluations from the Federation of Accrediting Agencies of the Philippines (FAAP) that were made on the successful family- owned higher institutions of learning.
Research Procedure
The researcher utilized multi-case study method (Yin, 1994) as a guide in the
research design, data collection and data analysis. Essentially, the model- building approach used the replication logic to give credence to the conclusions derived.
The following data gathering procedure was conducted for each case: 1) elicited participation of the respondents who fit the criteria of a successful family- owned HEI; 2) conducted each case study by undertaking in-depth interviews of senior management executives; 3) observed existing practices as identified in the interview; 4) coded qualitative data from the interview; 5) clustered or grouped together similar responses identifying the theme or category of each cluster; 6) found supporting documents of the data gathered from the interview and observation to analyze and substantiate the emergent themes or constructs in the case study.
Data Analysis
The primary source of data for analysis are the raw statements provided by the key informants from each case. All statements underwent cleansing via Nvivo before the actual coding. The cleansing was conducted by validating the terms and identifying the dominant words and phrases shared by the informants and observed by the researcher. Statements and phrases in Filipino were also translated into English during the cleansing stage. After all the
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statements have been validated, each case has been thoroughly examined by looking into each statement and identifying the key concepts and constructs which will be presented in Chapter III. After all the three case studies (Creswell, 2013;
Yin, 2009) have been conducted, a cross-case analysis of the emergent themes and categories among the cases was done. This was for the purpose of looking into the interrelationships of emergent themes and categories towards developing a model of attributes and practices that led to the success of these institutions of higher learning.
Creswell (2003) summarized the inductive logic in analyzing qualitative research data with the end goal of theory– building. In this study, this research process was followed.
Database was created for each case study to gather data. The researcher collected case study notes, documents, tabulations, and narratives. After collecting the data, each statement was given a description code. Similar codes were grouped to form subcategories. Similar subcategories were grouped into categories. Then, similar categories were grouped to form the Emergent Themes. Lastly, the themes were organized to a logical framework/theory depicting attributes and practices that influenced the success and longevity of successful private, non- sectarian family-owned higher educational institutions. As stated further by Creswell (2003),
“the development of themes and categories into patterns, theories or generalizations suggest a varied endpoint for qualitative studies”.
Ethical Consideration
The researcher ensured the voluntary participation of the respondents in the gathering of data. Further, confidentiality and anonymity were also observed all throughout this study and the researcher adhered to all ethical standards required during the data gathering and analysis as well as during the writing of this paper.
CHAPTER 3
RESULTS AND DISCUSSION
This chapter focuses on the results of the cases explored in this research aligned with the objectives and questions explained in Chapter I. To fully gauge the data in this study, data cleansing and coding was conducted using NVivo Version 12. All data gathered in the interview were considered valid and included in the data cleansing and data analysis stage of this study.
Factors that particularly impact the success of a family- o w n e d higher education institution based on the gathered responses are discussed comprehensively in this section.
The overall aim of this present study is to advance the understanding of the factors that influence the success and sustainability of family-owned higher education institutions in the Philippines. Particularly, the primary research objective which guided the course of this study centered on exploring the attributes and practices of three successful institutions. Each theme will be comprehensively disclosed in each section of this chapter.
University A
University A is a 69-year-old institution of higher learning located in National Capital Region with a total enrolment of 13,458 in 2018 with 380 teaching and 285 non-teaching staff. It is being managed by the third generation of the family and it prides itself on its long tradition of academic excellence as well as on the distinction of being the Philippines’ first private non-sectarian QS Stars TM rated university and recipient of the Philippine Quality Award for Commitment to Quality Management. Certified ISO 9001:2008 and 14001 Environment Management System by Societe General de Surveillance. It is also one of the 50 universities in the country to be granted Autonomous Status by the Commission on Higher Education.
University A continues its drive towards academic excellence and quality education with International Accreditations as the First University in the Philippines to be granted Full International Accreditation for Hotel & Restaurant Management and Tourism (Undergraduate and Graduate Programs) by International Centre of Excellence in Tourism and Hospitality Education (THE-ICE) and Philippines’ First Educational Institution certified by Investors-in-
People International with the Silver Award. It was also the Philippines’ First Center of Excellence for Customs Administration and granted Centers of Excellence for Hotel &
Restaurant Management, Business Administration, Customs Administration and Tourism. Also, Case A is an IQuAME Category A Teaching University and was deputized for Expanded Tertiary Education Equivalency and Accreditation Program (ETEEAP) by CHED. In addition, all of its programs are accredited by PACUCOA and certified by Federation of Accrediting Agencies of the Philippines (FAAP).
For the collected data in the first case, 156 (100%) responses were used for the analysis primarily composed of statements given by the primary respondents who hold top and middle management leadership positions in the institution. General concepts were identified before determining the constructs and the underlying themes of the statement following the process mentioned in Chapter II.
After running a word frequency query of the 1000 most frequent words in the statements of the respondents with a minimum length of 3 letters and finding for exact match for grouping using NVivo 12, a word cloud that identified some dominant word clusters of this qualitative analysis was extracted. These word clusters are statements that use the same word or similar related words to form a cluster. The 10 most commonly mentioned word clusters by the respondents in their statements as quantified in Table 1 were family, management, university, top, members, employees, school, people, business, leadership, and president.
The significant statements underwent another analysis by identifying the general concepts or ideas reflected in each of the statement. The researcher followed a rigid
process of data cleansing and multi-level thematic analysis to fully recognize the message behind the statements gathered during the face-to-face interview, observations, and collection of documentary evidence. Table 1 shows the word-theme frequency count for University-
Respondent A. It indicates the top three words that dominate the statements of the respondents from University A.
Table 1
University-Respondent A Word-Theme Frequency Count
Word Length Count Weighted Percentage (%)
Family 6 74 3.04
management 10 52 2.14
university 10 43 1.77
Top 3 32 1.32
members 7 31 1.27
employees 9 26 1.07
School 6 25 1.03
People 6 22 0.90
business 8 19 0.78
leadership 10 18 0.74
president 9 18 0.74
Work 4 18 0.74
founder 7 16 0.66
One 3 16 0.66
Board 5 15 0.62
Style 5 15 0.62
Vision 6 15 0.62
After determining the general terms that reflects the basic concepts derived from each respondent’s statements based on the initial NVivo aided coding, it went through another NVivo Analysis. After the second level cleansing and analysis, 30 constructs were identified.
The terms family and management are still the top two words that dominate the statements, but the term university was replaced by employees in the second level coding.
Table 2 shows the post analysis word-theme frequency count for university respondent A. It indicates the length, the count as well as the weighted percentage for the most frequently used words in the statements of respondents from University A.
Table 2
University-Respondent A Post-Analysis Word-Theme Frequency Count
Words Length Count Weighted Percentage (%)
Family 6 52 4.08
management 10 47 3.69
employees 9 30 2.36
top 3 26 2.04
members 7 25 1.96
university 10 17 1.34
leadership 10 15 1.18
vision 6 15 1.18
institution 11 14 1.10
passion 7 12 0.94
people 6 12 0.94
shared 6 12 0.94
The following tables present the identified constructs derived from the identified concepts taken from the significant statement of each respondent. The constructs were used to further identify the theme that makes a family-owned higher education institution successful as experienced by the top and middle management leaders of the university.
Table 3 focuses on the concepts that were derived from the statements of the respondents for University A. These concepts led to the construct on concrete policies.
Table 3
Construct 1 - Concrete Policies
Respondents Significant Statements Concepts
R6 The family constitution was crafted by the 3rd
generation. For the university to be sustainable, those interested should be a part of another corporation before joining the family business and should be a master's degree holder.
Family Constitution
R7 There is a family constitution that states that one has to be a master's degree holder and has to have 3 to 5 years work experience outside the university before he can work in the family business. Once taken in, one should not work directly under his parent. The mentor within the organisation is either an aunt or an uncle. Another provision is that sensitive positions such as president and VP for Finance are for family members.
Mentoring
R1 There are no in-laws who are employed in the university.
Limiting family members
R7 There are no in-laws in the university. Limiting family members R4 In the family constitution, there is objective
placement of family members who would like to join the family business. They are required to work outside for 3 years to have the orientation towards a corporate set-up and the exposure will result to a higher level of maturity.
Outside experience for family members
R8 To have a higher level of maturity, owners who would like to work in the family business should have first the exposure in the outside world. One has to experience first work in another company to appreciate the essence of being an employee therefore one would know how to treat future employees.
Outside experience for family members
R2 In the family constitution, they have to work outside for 3 to 5 years before working in the university and they have to be professionally qualified.
Outside experience of family members
R3 Family members who are hired are academically qualified and prepared. They had work experience externally before joining the university to develop self- esteem and confidence, to have wider business experience and to develop credibility with non-family employees once employed already in the university
Qualification standard for family members
R9 Family members who would like to join the family business should have taken a master's degree abroad and should have worked in another corporation.
Qualification standards for family members
R6 A strategic move in all the generations is the appointment of family members in sensitive posts such as the president and VP for Finance.
Sensitive
positions for family members
R4 The Pres and VP for Finance taught before in the university as part of the learning of the ropes of the family business. It was part of their training from their parents to perpetuate the legacy of the family.
Training for family members
R9 Members of the Board were trained and prepared by the father, the former president who belonged to the second generation.
Training for family members
R4 The VP for Finance is well-trained in fiscal management.
Training in fiscal management
The first dominant construct identified across the concepts from the statements is the concrete policies. As can be deduced, based on the data in Table 3, there are concrete policies that are respected by family members. These are clearly stated in the Family
Constitution which serves as a guide to all members of the family. To quote R6, “The family constitution was crafted by the 3rd generation. For the university to be sustainable, those interested should be part of another corporation before joining the family business. They also have to be a master’s degree holder.” It was affirmed by the response of R8, “To have a higher level of maturity one should have exposure in the outside world. One would appreciate the essence of being an employee therefore one would know how to treat employees.” Indeed, it is a humbling experience to work outside the family business.
Seemingly, it lessens the sense of entitlement and develops the sense of empathy for others. Further affirmation to the statement of R6 on the positive effects of working in other companies prior to employment in the university was made by R3, to wit: “It is to develop self- esteem and confidence as well as to have wider business experience and to develop credibility with non-family members once employed already in the university.” Another policy that surfaced was on mentoring and this was supported by the statement of R7 that mentoring is part of the training once a family member has been hired t o e n s u r e g o o d p e r f o r m a n c e
c o n s i d e r i n g t h a t s e e m i n g l y , t h e r e a r e h i g h e r expectations for family members. On a bigger picture, the purpose of mentoring and training is to perpetuate the legacy of the family which is the family business by capacitating the family members with a strong sense of
stewardship. However, one’s mentor will have to be somebody other than his parent for objectivity. As said by R7, “The mentor is either an aunt or an uncle.” In this regard, there are other provisions that put flesh on the family constitution. R1 and R6 indicated that “sensitive posts such as president and vice president for finance are exclusively for family members.”
Furthermore, R1 and R7 stated that “in-laws are not hired.” Apparently, it is to avoid conflict that may possibly arise which might lead to discord within the family. It is primarily to keep peace in the family. These policies seemingly are for the purpose of balancing the interests of the family and the family enterprise. Therefore, these concepts reflected in the first construct provide the leaders of the institution specifically the members of the family with clear direction and expectation if they want to be involved in this specific family affair.
The researcher was able to observe the meeting between the President and the Executive Assistant to the President as well as the meeting between the President and the Vice President for Finance. They are all family members. Verification was also made with certain policies in the Human Resource Development Office. All these support the statements of the respondents that there are concrete policies that are upheld by the family.
Table 4 shows the concepts that were culled from the statements or responses from University A. These led to the construct on organizational excellence framework.
Table 4
Construct 2 – Organizational Excellence Framework
Respondents Significant Statements Concepts
R12 The institution is using the Malcolm Baldridge Framework. There is continuous assessment of opportunities and there is risk management.
Continuous assessment
R2 They are proactive. They have ingrained in us to find solutions. Continuous improvement is the name of the game.
Continuous improvement
R12 The university is ISO certified. There is continuous improvement and innovation to attain excellence.
Continuous improvement
R8 There is continuous improvement that is why the Hospitality Management Program is internationally accredited, and the school is a recipient of many awards. We don’t stop looking for better ways of doing things.
Continuous improvement
R4 They continuously improve. Creativity is one of the attributes of top management. They think out of the box, and this is now observably part of the institutional culture.
Creativity
R5 All the growth that has happened and all the international and national awards including the autonomous university status is because top management focuses on excellence in terms of programs and systems to provide quality education.
Excellence is now a way of life in the university.
Excellence
R9 Top management has established effective organizational systems. The institution is ISO certified.
ISO
certification
R10 Adoption of the Malcolm Baldridge Framework resulted in performance excellence therefore the university is a Philippine Quality awardee, the first among family-owned universities in the country. It is also a recipient of the QS 3 Star award and became an autonomous university. Excellence is a way of life in this institution.
Malcolm Baldridge Framework
R9 The owners have adopted the Malcolm Baldridge Framework for setting performance excellence in the school.
Malcolm Baldrige Framework R12 Use of the Malcolm Baldridge Framework for quality
assurance.
Quality assurance
R13 There is a quality assurance mindset in the
university resulting in accreditation and the Philippine Quality Framework which contributed to the success of the university. We are an autonomous university. We are a COD, a COE, and an Investor in People awardee from PMAP. We have received numerous awards from PACUCOA and the national government for the PQF.
Quality assurance mindset
R8 They make sure the right people are in place and they trust them. There is results orientation and tasks are delegated properly. They let us decide in the CODD (Council of Deans and Department Heads) what we believe would be effective. We apply the same management style.
Results orientation
Organizational Excellence Framework is another construct that emanated from the data as shown in Table 4. Malcolm Baldridge Framework as a Quality Framework, ISO Certification, quality assurance mindset, excellence, creativity, and results orientation have been
mentioned by the respondents which point to a growth mindset and organizational excellence framework within the institution. It is an orientation towards looking for better ways of doing things and continuously seeking for reliable and sustainable practices that will uphold the excellent services provided by the institution. There is an organization-wide focus on improving systems and procedures to be able to give quality education and quality services both to the students and other stakeholders benefitting from the university’s processes. The result of their quest for excellence by following a proven and tested framework is evident in the results of the quality assurance certifications that the institution was able to receive as mentioned by R13
“We became an autonomous university in 2009. We are a COD, a COE, and an Investor in People awardee from PMAP. We have received numerous awards from PACUCOA and the national government for the PQF”. This would not have been possible without the quality system established by the leaders and absorbed by the employees resulting from the organizational excellence framework. As a matter of fact, as shared by R2, R4, R8 and R12 “continuous improvement is the name of the game” in the university. This is part of the organizational
excellence framework.
Observation was made by the researcher during the Council of Deans and Department Heads meeting and documents on the Strategic Development Plan as well as the
accomplishment reports were perused. There is consistency with the statements of the respondents.
The following table focuses on the statements from the respondents of University A that generated certain concepts. These concepts led to the construct on familiness.
Table 5
Construct 3 - Familiness
Respondents Significant Statements Concepts
R7 Employed family members are visible in the school and treat employees like family. We are given importance. It is a personal relationship.
Employee treatment as family members R5 The boss is approachable. The atmosphere and
culture is familial. There is the feeling of belongingness and unity. There is a sense of family. There is an open-door policy for suggestions.
Familial culture
R8 There is a family culture. We are not treated as employees and that is what makes us stay. There is a family leadership style.
Family culture in the
university R12 This is a business with a family-like approach, and
it is what makes it unique. There is an open-door policy. We can directly talk to the top management
Family-like approach
R4 It is a professional university with family
orientation. Everybody is treated like family. There is an open-door policy. You may suggest and if it is not possible, you will be informed.
Family orientation
R1 They know the employees by first name, and they are regularly seen in the campus especially during special occasions. It is a personalized relationship
Personalized relationship
with everyone who are considered part of the community or family of the university.
R10 There is a personalized relationship within the university among the teaching and the non-teaching staff.
Personalized relationship
R7 Employed family members are involved and active in the family corporation. They like to put their personal touch in as far as their work is concerned. It is
appreciated by the employees.
Personal touch of employed family members
R1 They treat employees with respect. Respect for
employees R4 The family members respect the authorities in the
university whether family members or non-family members. There is an open-door policy for suggestions, but they have to go through the hierarchy. This is part of the training to have professional leaders among family members as second liners.
Respect of family members for authorities
R10 We are treated like family members. We feel we are part of the family.
Treatment of employees like family
members
As can be deduced from the data in Table 5, Familiness is another dominant and important construct for the respondents of University A. To quote R7, “Employed family
members are visible in the school and treat employees like family. We are given importance. It is a personal relationship.” This was supported by the statement of R10 when he said that
“We feel we are part of the family.” There is a familial culture which was affirmed by the statements of R5, “The atmosphere and culture are familial. There is a sense of family; the feeling of belongingness and family.” This was further supported by R8. To quote, “There is a
family culture. We are not treated like employees, that is what makes us stay.” Treating employees like family members has resulted in a low employee turn-over rate because there is the sense of being given importance, the sense of belongingness and the sense of being cared for. There is family orientation in University A which leads to familiness.
The statements of the respondents were validated by the researcher when observation was made during several departmental meetings. Documents that supported it were the reports on the feedback of the employees. The next table is about the statements obtained from the respondents of University A. These led to concepts that allowed the researcher to identify harmony as a distinct construct.
Table 6
Construct 4 - Harmony
Respondents Significant Statements Concepts
R4 There is a collaborative way of working with each other in top management. This is a manifestation of the deep concern and shared passion among the family members to make the university the best in the country.
Collaboration in top
management
R7 There is a heightened sense of duty, commitment, and passion in carrying on the legacy of the founder. There is the desire to sustain collectively the vision of the founder. It is a guide for planning, decision-making, and action.
Commitment and passion of the Board
R10 As a collegial body, they are dedicated to
continuing the heritage and tradition of the family's leadership of an educational institution.
Dedication of the Board
R11 There is fast decision-making which is the advantage of a family business.
Fast decision- making of the Board
R12 There is leadership by example. They are simple, united and there is shared governance. There is the celebration of the achievements of the team working together in the Board
Shared governance in the Board
R10 In the Board of Trustees, there is a shared passion to make the university the best in the country and in the Southeast Asian region.
Shared passion in the Board
R10 There is a shared passion of making the
governance system work. Each member of the Board feels that the university is a heritage to the family and to the larger community.
Shared passion of the Board
members R9 The Board supports the president and the management
team. As a result, the management team is able to deliver and is able to share with the top management the passion for the university to succeed despite the various challenges.
Support of the Board to the President
R10 There is teamwork in the Board of Trustees. The president has the support of the Board. They can make faster and better operational decisions
Teamwork in the Board
The significant statements in Table 6 demonstrate the construct on Harmony. There is teamwork and collaboration in the Board of Directors. To quote R10, “There is teamwork, and the president has the support of the Board of Directors”. R10 added, “There is shared governance.” R10 further explained, “In the Board, there is a shared passion to make the university the best in the country and in the Southeast Asian region.” There is unity of purpose and unity of passion which result in ‘fast decision making of the Board’ as observed by R10 and R11. There is commitment from the top management which leads to harmony.
Going over the history of the university and the accomplishment reports over the years, the researcher was able to validate the statements of the respondents. More so, it was evident during the meeting of the President of the university with the Vice President for Finance. They are family members, and they are members of the Board of Directors of the institution.
Table 7 is on the statements from the participants in University A. It allowed the researcher to identify certain concepts. These led to the construct on solidarity.
Table 7
Construct 5 - Solidarity
Respondents Significant Statements Concepts
R3 Everyone is treated like family that is why we
stayed. Employed family members treat employees with respect. We are happy here. There is harmony. There is high morale.
Harmony
R4 The shared passion between top management and the senior leaders to make the university world-class has been effectively cascaded to the lower levels of the organization among the teachers and non- teaching staff to continuously improve the university.
Shared passion
R5 There is a participative approach and attainment of objectives is always a result of team effort.
Teamwork
R4 There is teamwork, rapport, and synergy between top management and senior leaders which is cascaded to the employees. It helps that the CODD is empowered so they can effectively lead the people in their
respective departments.
Teamwork
R6 There is teamwork in all levels of the organization. Teamwork R2 There is teamwork. We are able to transcend
personal conflicts and work as a team.
Teamwork
R1 There is a strong leadership that cascades to the lower levels of the organization. The leadership style of the top management complements the leadership style of the deans and department heads in involving everyone as a team thereby resulting in unity and cooperation in the university.
Unity and cooperation
