Breaking through the periphery: Growing role of women as leaders in Indian family businesses

Prashant Gupta, Sheenu Jain

Abstract


Purpose: The purpose of the research was to explore whether the role of women was growing as leaders in Indian Family businesses. It attempted to find reasons for such change and to examine whether the change was benefitting family businesses. It also tried to find out whether there were any preferred sectors for women and whether gender-specific roles were changing.

Methodology: Family-owned business companies were selected from the top 200 listed companies on BSE based on market capitalization to ensure availability of correct and reliable data. The analysis was carried out for women leaders in 62 family-owned business houses, where women were in the top management teams. Besides, cases of five women leaders were chosen for study based on parameters such as a minimum of 2 years in top management positions, sectors of the firms, educational qualifications of the businesswomen, levels of generation, contributions of the women leaders, career progression, and the grooming process adopted. The study was a qualitative analysis of exploratory nature.

Findings: The study indicated rising trend of women holding senior positions. The analysis was performed to find out reasons for such a rising trend, the contribution of women, and whether it led to growth and better performance of such family businesses. Some of the factors identified in the study, which helped in increasing the role of women, were women getting higher education, being dissatisfied with their outside jobs, the shrinking size of families, and circumstances forcing women to join family businesses to help families in times of crises. The study also showed that women were contributing to all types of sectors in diverse functional roles. Therefore, there was nothing like the preferred sectors for women.

Implications: The finding that women in top management positions were contributing a lot in family businesses validates that the change in the statutory regulations to have gender-based quotas for women on corporate boards was a step in the right direction. The study may also prompt family businesses to have a greater proportion of women in top management teams.

Originality: The information was compiled from websites of the companies, Bloomberg Business profiles, Bombay Stock Exchange, and other published literature. Companies’ annual reports were also used for reference purpose and cross verification. The study is both novel and original.


Keywords


Family business, gender diversity, gender quota, succession planning, women business leaders.

Full Text:

PDF

References


Adler, N.J. (1997), Global leadership women leaders. Management International Review, 37(1), 171-196.

Agarwal, R., Kumar, A., D’Souza, K. (2015), Successors in Indian business families: A demographic simple study. Journal of Applied Management and Investments, 4(4), 23-32.

Bhattacharya R., Philip L. and Vijayraghavan K. (2018) Family Business in India see rise of Women as Promoters and leaders. Retrieved from The Economic Times. Accessed on March 26, 2019 http://articles. economictimes.indiatimes.com/2014-04-22/ news/49318916_1_kavil-ramachandran-thomas-schmidheiny-chair-family-business

Brush, C.G. (1992), Research on women business owners, past trends, a new perspective and future dimensions. Entrepreneurship Theory and Practice, 16(1), 5-26.

Carloc, R.S., Ward, J.L. (2001), The importance of planning for business families. In: Strategic Planning for the Family Business: Parallel Planning to Unify the Family and Business. New York: Palgrave. p3-23.

Chadwick, I.C., Dawson, A. (2018), Women leaders and firm performance in family businesses: An examination of financial and non-financial outcomes. Journal of Family Business Strategy, 9(4), 238-249.

Dumas, C. (1992), Integrating the daughter into family business management. Entrepreneurship: Theory and Practice, 16(4), 41-44.

Eagly, A.H., Linda, L.C. (2007), Through the Labyrinth: The Truth about How Women Become Leaders. Cambridge, MA: Harvard Business School Press.

Entrepreneur, E. W. (2016). Women in Leadership Summit. EYGM Limited.

EY corporate boardroom report (2004), “How to get more women in boardroom”, accessed on April 23, 2019 https://www.ey.com/en_in/assurance/ how-to-get-more-women-in-the-boardroom

EY Family Business Year-Book (2015) EY, accessed on 23 April, 2019 https://familybusiness.ey-vx.com/ fb-yearbook-flipbook-2015/mobile/index.html

Folker, C., Sorenson, R. & Hoelscher, M. (2002) Undervalued Assets in Family Firms: Unique Contributions of Women: To Family Business in the Development of Social Capital , accessed on March 20,2019 http://usasbe.org/knowledge/proceedings/ proceedingsDocs/USASBE2002proceedings-09.pdf

Gilad, B., Levine, P. (1986), A behavioural model of entrepreneurial supply. Journal of Small Business Management, 24(1), 45-51.

Global Family Business Index Survey Report (2017) by University of St Gallen (HSG) in collaboration with the Global Family Business Centre of Excellence at EY.

Huang, J., Krivkovich, A., Starikova I., Yee, L., Zanoschi, D. (2019), Women in the workplace. In: Women in the Workplace Report. New York: McKinsey and Company.

Iannarelli, C.L. (1992), The Socialization of Leaders in Family Business: An Exploratory Study of Gender. Unpublished Doctoral Dissertation. Pennsylvania: University of Pittsburg.

Entrepreneur, E. W. (2016). Women in Leadership Summit. EYGM Limited.

Jinoy, J. (2016, Feb 10). Women leaders mean more profits. Retrieved from https://www.thehindubusinessline. com/: https://www.thehindubusinessline.com/opinion/ women-leaders-mean-more-profits/article8219453. ece

Kaur, D.B. (2011), Why Women want to enter into Family Business. Zenith International Journal of Business Economics and management Research, 1(1), 17-24.

Market Insider (2019) S&P Stocks, accessed on October, 2018 https://markets.businessinsider.com/index/ components/s&p_500

Mittal, S., Lavina, L. (2018), Females’ representation in the boardroom and their impact on financial distress: An evidence from family businesses in India. Indian Journal of Corporate Governance, 11(1), 35-44.

Rosenberg, J.B. (1990). Ways Women Lead. Harvard Business Review, 68, 119-125.

Salganicoff, M. (1990), Women in family businesses: Challenges and opportunities. Family Business Review, 3(2), 125-137.

SEBI Circulars (2014) circular on Corporate Governance in listed entities - Amendments to Clauses 35B and 49 of the Equity Listing Agreement retrieved from SEBI accessed on November, 2018 https://www.sebi.gov. in/legal/circulars/apr-2014/corporate-governance-in-listed-entities-amendments-to-clauses-35b-and-49-of-the-equity-listing-agreement_26674.html

Sharma, P. & Rao, S.A. (2000). Successor attributes in Indian and Canadian family firms: A comparative study. Family Business Review, 13(4), 313–330.

Sarkar, J., Selarka, E. (2015), Women on Board and Performance of Family Firms: Evidence from India, WP-2015-026. Mumbai: Indira Gandhi Institute of Development Research.

Sowmya, S.R. (2014), Whistle blowing perceptions a comparative study of male and female employees. Indian Journal of Commerce and Management Studies, 5(1), 67-73.

The Global Gender Gap Report (2015) retrieved from World Economic Forum reports accessed on April 3, 2019, https://reports.weforum.org/ global-gender-gap-report-2015/


Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Editorial Office:

Educational Research Multimedia & Publications,
S.N. 21, Plot No 24, Mirza Ghalib Road Malegaon Nasik,
Maharashtra India - 423203.
+919764558895 (whatsapp),
editor@scholarshub.net, www.scholarshub.net

Copyrights © 2010-2020 - ERM Publications, India     

This work is licensed under https://creativecommons.org/licenses/by-sa/4.0/