UCD_BC_Research_36-38.qxd 25/8/08 16:50 Page 3
RESEARCH
Tom Roche Jnr, pictured left with CEO Jim Barry, is currently chairman of NTR, the
company founded by his father in 1978
Within the methodological framework of the research, I am portfolio business. If the firm decides to undertake a portfolio
conducting in-depth case analyses to investigate the transgenera- strategy, how does the family leverage its unique resources and
tional entrepreneurial potential of family firms in Ireland and capabilities to develop a successful portfolio business?
across Europe. In addressing the transgenerational potential of a Given the portfolio of businesses with the NTR group, the Irish
family business there are numerous questions that I am hoping to case shall also be investigated using this research question.
investigate. Subsequent cases under investigation include the Swedish
Firstly, the ability to think entrepreneurially is one of the key company BIM Kemi, a speciality chemical company with a focus
demands of any budding entrepreneur, and research has shown that on the pulp and paper industry. BIM Kemi operates a niche
many family firm founders take a high-risk propensity to doing strategy and has successfully grown the family business by
business. Family firms in their early stages often have high levels of opening in new markets as opposed to diversifying.
entrepreneurial orientation present in their levels of autonomy, A starkly contrasting approach to BIM Kemi’s is that of a
innovation, competitiveness and aggressiveness. While evidence third case under review, Turkish family business Farplas, an
suggests this entrepreneurial drive is abundant in the first genera- Istanbul-based auto-parts manufacturer. Farplas boasts eight
tion, is it sustainable across time and, ultimately, generations? manufacturing plants with a workforce in excess of 1,400. While
In Ireland, the research team has investigated the Roche family the firm’s initial years revolved around a niche strategy, Farplas has
and its involvement in NTR, an Irish-based portfolio infrastructure experienced aggressive growth through developing a portfolio build-
company servicing the renewable energy, bio-energy, waste ing strategy investing in new industries, products and markets.
management, toll roads and telecommunications industries. NTR The research will also ask whether the continuity of the family
has operations in five countries across Europe and the US and legacy equates to transgenerational entrepreneurship, and
employs in excess of 3,300 people. whether it is possible for a firm to have relatively low levels of
The Roche family is entering its third generation of ownership entrepreneurial orientation or conservative attitudes to entrepre-
and management in NTR. The firm was founded in 1978 by Tom neurial endeavours and still survive across generations? For the
Roche Senior, whose previous ventures included the establish- purposes of the latter, I will review SEFAR, a 175-year-old techni-
ment of Roadstone and acting as CEO of CRH. Described by Jim cal fabrics manufacturer based in Switzerland. Although SEFAR
Barry, CEO of NTR, as one of the “foremost entrepreneurs of his is relatively low in its levels of EO, the family boasts impressive
generation”, he was a serial entrepreneur whose passion lay in financial performance across the generations.
establishing new business. The research is based on pioneering thinking and, as it
One of his lasting legacies was the development of public develops, we believe it has the potential to change how the capabil-
private partnerships (PPPs) to construct both the East and West ities of business families and their impact on the long-term
Link Toll bridges. Interestingly, some unfulfilled ideas included a socio-economic strength of communities and countries are evaluated.
gas project in Dublin Bay, a car park under St Stephen’s Green and
a variation on the idea of a port tunnel for Dublin. Eric Clinton, doctoral researcher, and Professor Frank Roche,
In analysing this family firm, the research team sought to director of the UCD Michael Smurfit Graduate
understand how the family generates and sustains entrepreneur- Business School, are both members of a global research initia-
ial performance across generations. A further case to be analysed tive established to address transgenerational entrepreneurship
under this research question is the German company Rethmann in family firms. The Success Transgenerational Entrep-
AG & Co KG, a diversified holding company. Established in 1934, reneurship Project (STEP) was set up in 2005 by the Institute
the Rethmann family business is entering its fourth generation of for Family Enterprising at Babson College, Massachusetts.
firm ownership. Members of the family’s current generation have The project is concerned with exploring the entrepreneurial
successfully become the ‘entrepreneurs’ while the senior genera- process and looking at different requirements for long-term
tion continues to be a valuable entrepreneurial resource for con- growth and productivity by partnering successful multi-gener-
tinuing its legacy of portfolio entrepreneurship. ational family businesses from all over the world with
Another question to be addressed in the research is whether a leading business experts and academic institutions. Eric
niche strategy operated by a family business is sustainable across Clinton’s PhD research is focused on transgenerational
generations or whether the firm should aspire to develop a entrepreneurial practices in family firms.
38 UCD BUSINESS CONNECTIONS
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