Model categorisation of family hotel ventures and life cycle: a study in the cities of Itapema and Porto Belo/SC/Brazil

Abstract

The model created by Westhead & Howorth (2007) categorizes six conceptualized ‘types’ of family firms (FFs): a) average FF; b) professional EF; c) cousin consortium FF; d ) professional cousin consortium FF; e) transitional FF; f) open FF. In order to encourage discussion by new dimensions of organizational analysis, agency theory brings new possibilities. The objective of this work is to analyze the relationship between the categorization of familiar hotel companies, according to their ownership structure and management control, and its organizational life cycle. Specific objectives are: a) categorize family hotel companies in the sample ; b) list the types of family hotel companies with their life cycle stage and management functions in accordance to Vadon and Padula (1996) model; c) relate the life cycle stages with management functions. This cross-sectional survey is a quantitative research with confirmatory characteristic. A sample was composed by 94.2% family firms (47 hotel companies) on Itapema and Porto Belo cities, located in Santa Catarina State (SC)/Brazil. As search results, five types of family hotel companies were identified, considering the model of Westhead & Howorth (2007), and identified positive relationships between the categories of family firms with the life cycle stages and management functions. The "open family businesses" had the highest average level of life cycle and effective practices of management functions.