Familienunternehmen und KMU Jörg Schäfer Pay Variation in Family Firms Familienunternehmen und KMU Edited by A Hack, Berne A Calabrò, Witten/Herdecke H Frank, Vienna F W Kellermanns, Charlotte, Vallendar T Zellweger, St Gallen Both Family Firms and Small and Medium Sized Enterprises (SME) feature a number of distinct behaviors and characteristics which could provide them with a competitive advantage in the market but could also lead to certain risks The scientific series at hand presents research which provides an empirical and theoretical contribution to the investigation on these specific characteristics and their impact on business practice The overall aim of this series is to advance the development of theory in the areas of family firm and SME management Edited by Professor Dr Andreas Hack University of Berne Professor Dr Hermann Frank Vienna University of Economics and Business Professor Dr Thomas Zellweger University of St Gallen Professor Dr Andrea Calabrò University of Witten/Herdecke Professor Franz W Kellermanns, Ph.D University of North Carolina Charlotte WHU – Otto Beisheim School of ­Management Vallendar, Germany Jörg Schäfer Pay Variation in Family Firms Foreword by Prof Dr Andreas Hack Jörg Schäfer Witten/Herdecke, Germany Dissertation Witten/Herdecke University, 2015 Familienunternehmen und KMU ISBN 978-3-658-14546-0 ISBN 978-3-658-14547-7 (eBook) DOI 10.1007/978-3-658-14547-7 Library of Congress Control Number: 2016942530 Springer Gabler © Springer Fachmedien Wiesbaden 2016 This work is subject to copyright All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made Printed on acid-free paper This Springer Gabler imprint is published by Springer Nature The registered company is Springer Fachmedien Wiesbaden GmbH To my parents Ingrid and Peter, to my wife Ulrike and to my family Thank you for your love and for being always there for me Foreword For years the issue of pay equity and pay dispersion has been discussed intensely and critically on an economic but especially also on a socio-political level However, this is not a new issue People have always been extremely sensitive to perceived equality of pay Moreover, important social developments such as the establishment of unions had, among others, their origin in disputes about pay equality Yet, increasing discontent is perceivable in society with recent pay developments Is this due to the perceived “predomination” of anonymous public corporations in our economic systems which are characterized by their orientation towards criteria of performance? What does the reality look like when it comes to the companies that account for the largest share in our economy, i.e family owned businesses? Does the influence of entrepreneurial families actually impact pay dispersion and thus the perceived equality of pay? In his thesis, Jörg Schäfer addresses this "historic" but still red-hot issue of personnel management which unfolds its power deep into the socio-political debate Besides this focus on personnel management aspects, the paper opens up another equally interesting area of research For some decades, scientists have been investigating the impacts of the influence of entrepreneurial families on economic decisions This influence is empirically approximated by means of relatively simple key figures, such as family property, participation of family members in the company management or number of family generations involved The underlying value structures of the entrepreneurial family are mostly disregarded The thesis is based on this aspect and analyses the concrete influence of socioemotional wealth (SEW) - considerations on pay-strategic decisions in detail Responding to the research questions raised is without doubt a highly ambitious project, which Mr Schäfer has mastered exceptionally well Firstly, the author deals with the current literature on both issues in a well-structured and highly informative manner Secondly, and this demonstrates the relevance of this thesis, Mr Schäfer presents a comprehensive set of original data on German family businesses which is unique in terms of quality and the amount of information The theoretically derived hypotheses can thus be tested empirically for the first time VIII Foreword With his dissertation, Mr Schäfer connects and answers two major research questions in an innovative approach and provides a particular enhancement to the current discourse pertaining to payment structures and also to the heterogeneity of family businesses and especially to measuring the influence of families Addressing two independent research areas at the same time clearly increases the complexity of the argumentation and represents an extraordinary challenge for a dissertation thesis Jörg Schäfer meets this challenge with a precise, well-structured and sophisticated research design which is based on a sound theoretical basis The scientific value of this thesis can hardly be overestimated Furthermore, it is a very courageous thesis since it puts previous research on family companies into question Hence, the thesis demands a lot of the international research community, namely the fundamental reconsideration of its traditional research design I am certain that the present dissertation thesis will have a sustainable influence on research about family businesses Therefore, I hope that it will be broadly received in science But first and foremost, I hope that this thesis will find a diverse general readership because its results demonstrate yet again that entrepreneurial families bear a particular responsibility for a fairer world of employment Prof Dr Andreas Hack Acknowledgements This doctoral thesis project is ultimately a product of many people Even though it was a major challenge for me to compose it, it was probably also one of the best times in my life – and this is true for many reasons Apart from being able to live again, after five years of strategy consulting, a different lifestyle dependent 99% on my own discipline and time management (and to be in Brazil to see all of Germany’s games leading to the winning of the world soccer cup), it was also largely due to the many people I was blessed to get to know and who supported me that made this project a success in the end Therefore, I would like to thank those people explicitly as they definitely deserve First of all, I have to express my gratitude to Prof Dr Andreas Hack who had to endure my being a non-standard, slightly more senior consultant, with all the problems and challenges that go along with it regarding time planning and change in working mode to adapt to this “new research world” I am very grateful for his patience, support, guidance, availability whenever I really needed him, and encouragement without which I would not have completed this doctoral program Having arrived at the goal line and knowing many colleagues telling different stories, I cannot imagine anyone better Of course, I would also like to explicitly thank Prof Dr Marcel Hülsbeck for being my second reviewer and investing his time into this project In line with my two reviewers it is at least as important to mention Dr Nils Kraiczy of the IOP in Bern who was something like my mentor I would like to thank Nils for always supporting me, for encouraging me when it was necessary, for just having fun (and trash talk) to shift perspective and for providing me on many occasions with important knowledge and information that was necessary to the successful completion of this thesis project Furthermore, I have to thank my friend Dr Hannes Hauswald for recommending Andreas Hack and his team to me, for telling me that doing this doctorate leave will be great fun and interesting at the same time The fun part is also true for my friend Dr Thorsten Schäffler It is also important to thank all those family businesses and family business members that invested their time into answering my questionnaire and, thus, providing me with the data I needed for this dissertation X Acknowledgements I would also like to thank Dr Thomas Pijanowski, Annika Geyer, Tatjana Schutte, Thomas Wittig and all the other researchers, staff and doctoral students at the WIFU and its research colloquium for camaraderie, eating lunch with me in Düsseldorf, having so much fun, providing such a constructive research atmosphere, and helping me whenever I was in need Further, I would like to thank my employer OC&C Strategy Consultants GmbH and its partners for giving me this doctoral leave and all employees who had to endure me walking through the office while they had to “serious” work Along those lines, I would also like to thank my OC&C and research colleagues Hendrik Walter, Sebastian Schmidt and Matthias Guffler who worked on their thesis projects while I worked on mine and who always 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