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Leadership mindset and the fall of once giant family‐run textile exporting businesses
Author(s) -
Qureshi Jawaid A.,
Shaikh Abdul Manan,
Seaman Claire
Publication year - 2021
Publication title -
global business and organizational excellence
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 16
eISSN - 1932-2062
pISSN - 1932-2054
DOI - 10.1002/joe.22129
Subject(s) - mindset , bankruptcy , business , indigenous , context (archaeology) , emerging markets , marketing , foreign direct investment , grounded theory , qualitative research , finance , economics , sociology , ecology , paleontology , philosophy , social science , macroeconomics , epistemology , biology
Pakistan's textile sector has played an important role in the country's economy and has attracted investment from local and foreign investors. The purpose of this paper is to examine the reasons behind the failure of three top, family‐owned, textile exporting businesses in Karachi. Little is known about family firms' decision‐making processes and strategy formulation in the context of emerging economies. Using qualitative techniques including phenomenology, grounded theory, and multiple case design methods, the study highlights the role of leadership and strategy in their decline. It identifies five internal factors that led these businesses to bankruptcy: “Seth” management styles and policies (an indigenous term for owners of big businesses in South Asia, particularly India, Pakistan, and Bangladesh); the firm's culture, politics, and internal conflicts; the working conditions and human resource policies; the management of financial portfolios; and operational issues related to technology, operations, and marketing. The article concludes with some observations concerning the challenges facing family‐run businesses in such settings.