THE NOVA GROUP CASE STUDY: FAMILY DYNAMICS IN A MULTIGENERATIONAL FRENCH FAMILY BUSINESS

Publisher: GSE Research

E-ISSN: 2051-3631|13|1|27-42

ISSN: 1741-6264

Source: International Journal of Management Cases, Vol.13, Iss.1, 2011-01, pp. : 27-42

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Abstract

This case illustrates the evolution of family relationships in a multigenerational family business and its impact on performance. Building on a systems perspective, it uses the organizational finance, family therapy, and family business literatures to explain how and why family relationships in a large French food distribution group weakened over the life cycle and lead to increasing conflicts of interests between active and non-active family shareholders, thus to the loss of the family control over the business. The case highlights the role of values transmission across generations and governance mechanisms. Finally, it suggests key learning lessons for family businesses to strengthen their family relationships and ensure the family continuity in the business.