LEADERSHIP PERSPECTIVES ON CORPORATE GOVERNANCE ISSUES: AN ACTION RESEARCH STUDY OF A DIVERSIFIED PRIVATELY-OWNED FAMILY BUSINESS IN MEXICO

Bastida Diaz, Jaime (2021) LEADERSHIP PERSPECTIVES ON CORPORATE GOVERNANCE ISSUES: AN ACTION RESEARCH STUDY OF A DIVERSIFIED PRIVATELY-OWNED FAMILY BUSINESS IN MEXICO. Doctor of Business Administration thesis, University of Liverpool.

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Abstract

The study aims to explore leadership issues in a privately-owned family business in Mexico and recommend actions to resolve these issues. Action research is the basis of the inquiry because it analyses a real-life problem in the studied organisation. This research strategy uses collaboration with diverse stakeholders to achieve change through knowledge creation from the collected data followed by actions to address the issues identified through research. Semi-structured interviews are used as the primary method for data collection. Participants were selected based on their knowledge and leadership responsibilities. Therefore, only top management was chosen to participate in this study. The findings reveal eight key leadership issues: a) inadequate segregation of duties and concentration of power, b) ineffective management philosophies and operating styles, c) conflicts of interest, d) weak HR policies, e) poor communication strategy, f) no clear organisational structure with well-defined roles and responsibilities, g) lack of trust between managers and CEOs, and h) conflicts in the family system. As part of the action research approach, three actions were recommended as strategical initiatives to achieve change. These actions include establishing a family business governance system, formalising the corporate strategy and family values, and strengthening the HR function. The study is different from other studies because it is based on action research which has not been considered in the literature on corporate governance. Additionally, most previous studies employed secondary data from public companies rather than interviews. Besides, the focus of the extant literature was mainly on developed countries with very little evidence from the Mexican context. Hence, the study represents an original approach to analyse a unique Mexican privately-owned family corporation using action research and primary data. Therefore, this study adds to the existing body of knowledge in the family business and covers an understudied developing context with an action research approach. The study has practical implications for detecting leadership issues and creating governance systems to control family businesses which are later discussed. In brief, the study provides valuable knowledge about personal issues in a family business in Mexico, which could help company leaders understand the importance of establishing family governance systems to create family boundaries, improve operations, reporting, and leadership performance. Keywords: Leadership issues; Family Business; Privately owned Family Business; Corporate Governance; Action Research.

Item Type:	Thesis (Doctor of Business Administration)
Divisions:	Faculty of Humanities and Social Sciences > School of Management
Depositing User:	Symplectic Admin
Date Deposited:	05 Sep 2022 13:22
Last Modified:	18 Jan 2023 20:57
DOI:	10.17638/03157154
Supervisors:	Kassem, RASHA
URI:	https://livrepository.liverpool.ac.uk/id/eprint/3157154