PEOPLE.IDEAS.PERFORMANCE

37 Miller et al. (2008) attempted to systematize the scientific knowledge about stewardship related to family businesses, which they defined as a stewardship approach. They delineate three major factors. The first is continuity, which ensures the long-term survival of the business for the benefit of the family members. The second is organizational culture, which aims to develop a community of motivated and loyal employees. The third is establishing strong connections with outside stakeholders, especially with customers because these connections can help to pull through a financial crisis. According to Miller et al. (2008), three types of behavior are associated with the pursuit of long-term goals and ensuring continuity. The first is long-term thinking, which takes account of the interest of the next generation. It can result in that family businesses are less growth-orientated, and follow more conservative investment strategy, meanwhile they spend more on R&D and innovation processes because they know these help the long-term survival of the firm and they are less shackled by short-term financial indicators. The second behavioral element is reputation in the market, which also facilitates long-term stability by increasing customer loyalty and helps to retain market share in critical periods. In order to maintain reputation, the businesses managed by steward leaders give more factual, valid information about their products or services. Finally, building market share is also significant, which stands out of the other growth factors because it promotes long-term survival as well. The second factor is organizational culture. Most firms try to have motivated and loyal employees, which can be facilitated by a stewardship management approach, but Miller et al. (2008) emphasize the specificities related to family businesses. Studies they cite claim that these firms organize more and wider-range trainings to make sure that the management and the employees are prepared to cope with unforeseen challenges. Employees have a wider responsibility and role than in the case of non-family businesses. They are more flexible in helping to find the right employee for the right position, or to create informal communication networks in the firm. They are also more tolerant about work schedule and working from home. Moreover, they accept women in management more easily than non-family firms. All this leads to that employees become more motivated and loyal, irrespective of their role in the family. In terms of this factor it should be noted that based on social transaction theory, stewardship also increases the inclination to prosocial behavior (Pearson & Maler, 2010). This reciprocity may lead to the development of an organizational culture of stewardship. Finally, the third aspect focuses on outside stakeholders, particularly on customers. Family businesses aim to extend the relationship with customers, thus it is not limited to the time of transactions and the exchange of information is not only related to transactions. Because of long-term goals, they intend to establish deeper relationships. Miller et al. (2008) mention several things about this behavior characterizing family businesses. The managers of the firm meet the customers more frequently, which increases trust, thereby decreasing transactional costs. Of course, it works only if the manager has some marketing skills. Personal needs can be satisfied more easily and the offers can be tailored to the customers the firm has closer relationship with. Convenience store is a good example for this, where the lack of space makes it impossible to keep a supply of daily consumer goods similar to a hypermarket, but based on accurate information about local customer needs the shop can sell products of preferred quality and price level, which retains customer loyalty. The outcome of stewardship is focusing on collective utility, instead of fulfilling personal needs (Welsh et al. 2013). While in agency theory it was less typical of family businesses, stewardship in a family business is not only a possibility for the management, but it is almost inevitable owing to strong social bonds and common values within the family. The perceived stewardship can be different in the case of non-family employees. According to the research of Davis et al. (2010), family and non-family employees have similarly high loyalty where stewardship exists, but the difference in the favor of family