Family business in tourism: State of the Art
Introduction
Tourism offers many opportunities for family businesses, often embodying direct host-guest interactions in the family home or property. They are often vital to customer experiences and satisfaction, and to destination or community development. But until very recently the nature of family business has not been evaluated as a distinct field, and within tourism it has been treated only incidentally. Research on such businesses has been accelerating rapidly (Sharma et al, 1996, Smyrnios et al, 1997). This attention is long overdue, given its scale and importance in most countries (Lank, 1995, Wortman, 1995). For example, in Australia, about half of all enterprises qualify as family businesses, in which there is more than one proprietor from the same family (Commonwealth of Australia 1997). In the United States, it has been estimated that family firms generate 46–60% of the gross national product (Ward and Aronoff 1990), while Westhead and Cowling (1998) reported that a number of studies have found such firms account for over two-thirds of the total in Western, developed economies.
Unfortunately, there is no commonly accepted definition for family business. Sharma, Chrisman and Chua (1996) comprehensively reviewed the literature and found 34 definitions. At the most basic level it can be defined as an enterprise controlled by members of a single family (Barry 1975). This definition can encompass businesses that involve only one owner (sole proprietors) and those owned by a couple (often called copreneurs). Chua, Chrisman and Sharma believe the theoretical essence of a family business lies in the vision of its dominant family members, and that vision is to use the business for the betterment of the family, potentially across more than one generation.
The three-dimensional developmental model of family business by Gersick, Davis, Hampton and Lansberg (1997) is a useful starting point (Figure 1). This business can develop through start-up and expansion/formalization to maturity. Ownership potentially evolves from the controlling founder through a sibling partnership to a cousin consortium. Along this axis are four stages of development. As noted by Neubauer and Lank (1998), this 4 × 3 × 3 matrix results in numerous possible combinations, and a given family enterprise could be at more than one stage on any of the three axes. Comprehensive application of this generic model to the tourism field has not previously been attempted. The ensuing overview of literature establishes the state of the art and reveals that not all elements in the generic model are equally important. Only a small minority of family businesses in tourism involve children or are inherited, making the study of individual owners and of couples as business partners more important. The fact that so many such enterprises fail, or are sold rather than inherited, is revealed to be a major issue. With regard to the evolution of the business, the literature suggests that the vision and goals of the founders are more important in tourism, as only a few endure through a complete lifecycle.
Section snippets
Family business themes and topics
A simple search for the term “family business” does not begin to reveal the many pertinent references. The term itself has seldom been used in tourism, and so it is necessary to evaluate context. Similarly, while there are books and one research journal devoted to “family business studies”, much of the generic literature is also subsumed under other headings, particularly small business and entrepreneurship. Accordingly, it was necessary to make an a priori determination of keywords (including
Conclusion
Family businesses are important because owners often behave in ways that set them on a different course. When they are founded or purchased with the needs and preferences of the owner or owners’ family being paramount, normal expectations of growth and profit maximization are less likely to apply. Furthermore, tourism presents many opportunities, some rather unique, for business ventures that appeal to farm families or to investors desirous of locating in attractive surroundings and pursuing a
Acknowledgments
The authors are grateful for financial support from the Family Business Research Endowment of the University of Calgary.
Donald Getz is a Professor in the Haskayne School of Business, University of Calgary (Calgary T2N 1N4, Canada. Email <[email protected]>). His research interests include event management and event tourism, and application of management theory and practice to related sectors.
References (106)
- et al.
A Conceptual Framework for Investigating Farm-based Accommodation and Tourism in Britain
Journal of Rural Studies
(1989) - et al.
Characteristics and Goals of Family and Owner-Operated Businesses in the Rural Tourism and Hospitality Sectors
Tourism Management
(2000) - et al.
Responses of Family Businesses to Extreme Seasonality in Demand: The Case of Bornholm, Denmark
Tourism Management
(2004) Small Hotels in Britain: Investment and Survival
The Cornell Quarterly
(1989)Tourism and The Family in a Rural Cretan Community
Annals of Tourism Research
(1989)Tourism and Income Strategies in Nazare, Portugal
Annals of Tourism Research
(1983)Indigenous Tourism Development in the Arctic
Annals of Tourism Research
(1999)The Effects of Scale on Economic Development: Tourism in Bali
Annals of Tourism Research
(1980)- et al.
Firm Formation and Operating Characteristics in the Cornish Tourist Industry: The Case of Looe
Tourism Management
(1987) Hosts and Guests: The Bed and Breakfast Phenomenon
Annals of Tourism Research
(1981)
Small Tourism Business Networks and Destination Development
Hospitality Management
Small and Medium Tourism Enterprises
Annals of Tourism Research
Rural Scottish Women: Politics Without Power
Ethnos
“Staying Within the Fence”: Lifestyle Entrepreneurship in Tourism
Journal of Sustainable Tourism
The Development of Organisation Structure in the Family Firm
Journal of General Management
Tourism Marketing and the Small Island Environment: Cases from the Periphery
An Assessment of Small Business Failure
Gender in Irish Tourism Employment
Competition or Cooperation? Small and Medium Sized Tourism Enterprises at the Destination
The Concept of the Tourist Area Cycle of Evolution: Implications for Management of Resources
Canadian Geographer
Farm Tourism in Spain: A Gender Perspective
Geojournal
Environmental Attitudes and Practices of Family Businesses in the Rural Tourism and Hospitality Sectors
Journal of Sustainable Tourism
Defining the Family Business by Behavior
Entrepreneurship Theory and Practice
Parameters and Indicators of the Decline of the British Seaside Resort
The Involvement of Women in the Tourism Industry of Bali, Indonesia
The Journal of Development Studies
Tourism, Government Policy, and Petty Entrepreneurs
South East Asia Research
Farm Family Business
About Rural and Farm Tourism
Tourism Recreation Research
The “Involvement Stage” in the Evolution of a Tourist Destination
Tourism Recreation Research
Africa: Kenya
Integrating the Daughter into Family Business Management
Entrepreneurship Theory and Practice
Gender, Culture and Tourism Development in Western Samoa
Rural Tourism in Canada: The Saskatchewan Vacation Farm Operator as Entrepreneur
The Daughter also Rises: How Women Overcome Obstacles and Advance the Family-Owned Business
Aboriginal Peoples in Canada: Contemporary Conflicts
Farm Tourism, Gender and the Environment in Spain
Annals of Tourism Research
Generation to Generation
Stages and Transitions: Managing Change in the Family Business
Family Business Review
Tourism and Population Change: Long Term Impacts of Tourism in the Badenoch-Strathspey District of the Scottish Highlands
The Scottish Geographical Magazine
Rural Tourism in Canada: Issues, Opportunities and Entrepreneurship in Aboriginal Tourism in Alberta
Cited by (270)
Tourism destination events classifier based on artificial intelligence techniques
2023, Applied Soft ComputingThe antecedents of family firms’ resilience to crisis in hospitality and tourism
2023, International Journal of Hospitality ManagementThe impact of nepotism on employee organisational attitudes in accommodation enterprises
2024, Tourism and Management StudiesThe Dynamics of Knowledge Management in Family-Owned Microtourism Enterprises
2024, RISTI - Revista Iberica de Sistemas e Tecnologias de InformacaoKnowledge clusters and impact of digital transformation on tourism and hospitality marketing mix
2024, International Journal of Tourism PolicyRisk perception in small- and medium-sized hospitality family enterprises
2024, Tourism Review
Donald Getz is a Professor in the Haskayne School of Business, University of Calgary (Calgary T2N 1N4, Canada. Email <[email protected]>). His research interests include event management and event tourism, and application of management theory and practice to related sectors.
Jack Carlsen is the Malayan United Industries Chair in Tourism and Hospitality Studies. He facilitates the tourism research program at Curtin, which includes development, planning, and management.