Business Commons^™

Can Government Inaction Result In Rising Gift Tax Revenue?, Hugh H. Lambert

Business Faculty/Staff Publications

James Alm noted in 1988 that tax uncertainty is particularly problematic for taxpayers, and he identified two risk areas that can cause changes in taxpayer behavior: variations to the tax base (tax base risk) and modifications to the tax rates (tax rate risk).1 This report studies how estate and gift tax laws passed with sunset provisions created taxpayer uncertainty in 2010 and 2012, and how that uncertainty led to increased gifting activity by wealthy taxpayers, which in turn increased the amount of gift tax revenue collected by the federal government in 2011 and 2013. The sunsetting of a tax law …

What Do Navy Seals And Cpas Have In Common? Mental Toughness., Hugh H. Lambert

Business Faculty/Staff Publications

What do accountants and Navy SEALs have in common? Navy SEALs have the ability to stay awake for a week, endure constant harassment and perform their jobs despite mental and physical hardships. While that may sound similar to final exam week, there is no comparison between college and the physical stress of military training, but there are similarities in the mental aspects. Navy SEALs use certain tools to help them succeed during times of extreme hardship, and accounting students and CPA exam candidates can use these same strategies for success. The tools fall under the broad category of “mental toughness,” …

Our Regrets – Opportunities To Move Forward?, Carol Wittmeyer

Business Faculty/Staff Publications

Many NowGens and NextGens may say, “I have no regrets”. It’s even a favorite tattoo image! Yet, do we have an option to regret regrets? That is, is it acceptable to have and think about regrets as a way to improve our lives and family businesses? The answer is “yes”. Regret is one of the most misunderstood emotions according to Daniel Pink, a New York Times bestselling author. He says that everyone has regrets. And his several research projects on regret suggest that while we cannot unwind the past, studying our regrets helps us to get direction on a life …

Don't Send Your Kids To Work Outside The Family Business Just Yet!, Joseph Astrachan, Isabel C. Botero, Carol Wittmeyer, Claudia Binz Astrachan

Business Faculty/Staff Publications

Should family members work outside the family business before joining? Experts have long recommended that this is the best (and only!) way for the next generation to learn the skills and knowledge required for a job, develop vocational self-confidence, receive honest and objective feedback, and learn what “work” really means. And despite there being no empirical evidence to support this claim, many family businesses require their next generation members – in particular, prospective successors – to work outside anywhere from two to 10 years. But does it make a difference, in the real world, to have the next generation work …

Nsra’S Nextgen Program – A Resource For Family Business Continuity Planning, Carol Wittmeyer

Business Faculty/Staff Publications

In its 13th year, the NSRA NextGen Program offers training and tools to young family employees who aspire to lead their family firms. It can take many years to develop and implement a plan for a family business to transition successfully to the next generation. Starting early is key to help NextGens and NowGens begin to have important – and sometimes difficult – conversations about the future.

Learning How Family Business Leaders Make Decisions Through Interviews, John Rogers, Carol Wittmeyer, Clay Dibrell

Business Faculty/Staff Publications

This exercise allows students to apply core family business concepts to a real-world business context. In this exercise, students interview a family business owner and present their findings both as a written summary and oral presentation. This exercise is appropriate for undergraduate, graduate, and executive students taking a family business course, or a course with a unit on family business, online or in-person. Students complete this exercise individually as an end of term project; however, the exercise can be assigned as a group project.

Partnering Senior Professionals With Young Employees – An Enriching Strategy For All, Carol Wittmeyer

Business Faculty/Staff Publications

Many NSRA members are finding increasing challenges to recruiting and retaining employees as a result of the Covid-19 pandemic-fueled “Great Resignation”, a phrase used to describe the extraordinary number of employees quitting jobs during this time. A new Pew Research Center survey finds that low pay, a lack of opportunities for advancement and feeling disrespected at work are the top reasons why Americans quit their jobs in 2021. The survey also finds that those who quit and are now employed elsewhere say their current job has better pay, more opportunities for advancement and more work-life balance and flexibility.

Nsra Nextgen Program: Preparing Tomorrow’S Family Enterprise Leaders, Carol Wittmeyer

Business Faculty/Staff Publications

All businesses need to prepare for transitions and minimizing related risks. Transitions will occur in ownership and business contexts. They could be related to ‘what-ifs’ – such the sudden passing of an owner or COVID. They could be related to competitive forces – for example, some NSRA members have been more aggressive than others in online sales. However, when you overlap family issues along with business and ownership transition issues, things can get complicated. Also, it’s important to note that every family and every business is different. So, while there are suggested best practices from the family business field, what …

Reflections On The Nextgen Program From Its Newest Members, Carol Wittmeyer

Business Faculty/Staff Publications

This article will focus on sharing NextGen stories from two new members – who have many similarities and differences – to learn about their takeaways from the program and how it is helping them to prepare for their future:

Joseph Unger III, Store Manager of Unger’s Shoe Store Inc., in Ironton, Ohio. Joseph is third generation, age 30. The firm was started by his grandfather 84 years ago.

Gavin Martin, ELM Shoes, Inc., located in Greencastle, Pa. While Gavin is the youngest NextGen member at age 22, his firm is one of the oldest at 91 years, and he is …

Three Unique Succession Planning Stories With A Common Theme – Start Planning Now!, Carol Wittmeyer

Business Faculty/Staff Publications

Most businesses ultimately fail and many family businesses do not succeed at transitioning their businesses to the next generation. NSRA has developed its “NextGen Leadership Program” to support the transition planning process for family firm members. This article takes a look at how the process has gone for three NSRA family firms who have succeeded and were gracious enough to share their stories.

The Psychology Of Covid-19 Economic Impact Payment Use, Sarah D. Asebedo, Taufiq Hasan Quadria, Blake T. Gray, Yi Lui

Business Faculty/Staff Publications

This study investigates how American adults’ personality and financial self-efficacy (FSE) beliefs contributed to how they used their COVID-19 CARES Act Economic Impact Payment (EIP) for spending needs, spending wants, and financial transactions (save, invest, debt repayment). The results from a sample of 1172 Amazon MTurk users collected in July 2020 suggest that both personality traits and FSE beliefs were associated with EIP use. Specifically, this study finds that FSE and conscientiousness emerged as the most robust predictors of EIP use across all categories of financial behavior with a greater allocation of EIP funds to saving and less to spending …

Perry’S Ice Cream Family Business Case Study: Leadership For The Next 100 Years, Kristen S. Ryan, Carol Wittmeyer

Business Faculty/Staff Publications

Looking to the future and setting its sights on a fifth generation of family leadership, Perry’s Ice Cream is one of the two largest ice cream manufacturing plants in New York State. Operating a 120,000-square-foot plant and a multi-level 40,000-square-foot storage facility, the company sells primarily on the East Coast of the United States, as well as to over 35 countries around the world. The three family members currently engaged in the company approach the responsibility of successful succession with seriousness and gravity. History and business failure statistics have taught them that divisions between family members, differing visions of the …

Nextgen Family Business Succession: Mark Adrian Shoes – Adam Farber, Carol Wittmeyer

Business Faculty/Staff Publications

Adam Farber, owner of Mark Adrian Shoes in Gloucester, Massachusetts, has one of the shortest family business succession stories in the industry based on planning – not an emergency. His family has five generations of experience in the shoemaking and shoe retailing industry dating back to the late 1800s, although not all generations owned the same business. Several of them started their own. Adam’s father, Mark Adrian Farber, opened his store in 1975. Adam joined Mark Adrian Shoes in 2014 after having outside work experience, and the family wrapped up the business succession when his father stopped working in 2017. …

Nextgen Family Business Succession: Comfort One Shoes – Garrett Breton, Carol Wittmeyer

Business Faculty/Staff Publications

This is the first in a series of articles about family firms in the shoe retail industry that have participated in NSRA’s NextGen Leadership Program and have been working for years on succession transition planning – including ownership, leadership and management.

Creating A Personal Board Of Directors – Bring On The Advice And Coaching!, Carol Wittmeyer

Business Faculty/Staff Publications

This is the second in a series of articles on developing professional and personal advisory networks.

The last article, “It Doesn’t Have to be Lonely at the Top – Advisory Boards Can Help You Make Effective Decisions” (Shoe Retailing Today, March/April 2021), focused on the potential impact of governing boards to help businesses make the most effective decisions possible. This article focuses on how that same strategy can be used at the individual level, that is, how one can create a personal board of directors.

It Doesn’T Have To Be Lonely At The Top – Advisory Boards Can Help You Make Effective Decisions, Carol Wittmeyer

Business Faculty/Staff Publications

This is the first in a series of articles on developing professional and personal advisory networks.

One of the most effective business transition processes (from a “Now Gen”eration to the “Next Gen”eration) that I have observed in my career involved the owners’ creation and effective use of an advisory board to help the current husband-wife owners consider and make the most informed business transition decisions to assure a bright future for their enterprises and their family. They started both over forty years prior. While this was a family business succession transition, robust advisory boards have the potential to make significant …

Does Working Outside The Firm Make Next Generation Members More Successful Inside Their Family Firm?, Isabel C. Botero, Juliana Binhote, Joseph Astrachan, Carol Wittmeyer

Business Faculty/Staff Publications

Family business owners often receive the advice that for a next generation to succeed they need to work outside the firm. This suggestion is often based on personal beliefs from those offering the advice given that there is no empirical work that can help support this claim. To explore whether working outside the family firm makes for more successful future family business leaders, we conducted in-depth interviews with members of 11 successful family businesses. Our focus was on understanding what type of experiences (i.e., outside the firm and/or inside the firm) next generation members were exposed to and how this …

All-In: Conducting Effective Negotiations For Better Relationships And Results, David Kunsch, Carol Wittmeyer

Business Faculty/Staff Publications

This is the second article in a two-part series on developing effective negotiation skills.

Negotiations are at the heart of our daily interactions. The ability to negotiate effectively may have never been so important as during the COVID pandemic. Whether re­negotiating business deals with vendors, landlords, employees or shareholders (including family members), the COVID pandemic has presented challenges and opportunities for retail owners to thrive by being creative and strategic in negotiation planning and execution. The first of two articles (November­December 2020 issue) focused on preparing for successful negotiations. This second article focuses on strategies for effective negotiation meetings. While …

Everyday Gratitude In Times Of Uncertainty, Carol Wittmeyer

Business Faculty/Staff Publications

It’s worth reiterating: although Election Day has come and gone, political upheaval and uncertainty are far from over. And rather than drawing to a close, all evidence points to the Coronavirus pandemic gaining momentum before the arrival of a scarce vaccine requiring a demanding supply chain. Add ongoing (and perhaps escalating) racial tensions and economic disruption from which it will takes months and years to recover, and it’s no wonder so many of us are struggling to cultivate a positive outlook—and to help our employees, colleagues, students and families manage successfully through this time of complex, inter-related crises.

Planning Steps For Negotiations: An Important Strategy To Maximize Success, Carol Wittmeyer, David Kunsch

Business Faculty/Staff Publications

This is the first article in a two-part series on developing effective negotiation skills.

“Plans are nothing. Planning is everything.” — President Dwight D. Eisenhower

Negotiations are at the heart of our daily interactions. The ability to negotiate effectively may have never been so important as during the COVID pandemic. Whether re-negotiating business deals with vendors, landlords, employees or shareholders (including family members), the COVID pandemic has presented challenges and opportunities for retail owners to thrive by being creative and strategic in negotiation planning and execution. This first of two articles will focus on preparing for successful negotiations. The second …

Leadership Lessons Via Michael Jordan, Carol Wittmeyer

Business Faculty/Staff Publications

COVID-19 was a time that our stores closed to our customers, many for the first time in decades and even generations for the scores of NSRA members who are family firms. During the COVID-19 “work at home period,” when many owners and employees were hunkered down where they live, one of the interesting distractions was being able to watch “The Last Dance,” ESPN’s 10-part docuseries sanctioned by Michael Jordan about his and the Chicago Bulls’ dynasty of the 1990s. The series holds many leadership lessons to consider relevant to family firms and to organizations considering how to stay resilient in …

Transition Planning: Holding Ourselves Accountable, Carol Wittmeyer

Business Faculty/Staff Publications

NSRA members enjoy the benefits of owning their own enterprises and providing opportunities for themselves, family members, employees, customers and their residential communities. The NSRA Business Performance Report (BPR) provides owners a regular occasion to take stock, and to see how their performance compares to others, and to their past and future goals. The BPR also reminds owners that they are not alone in their successes and challenges in a changing and exciting industry.

Family Business Succession Planning Opportunities, Savas Saymaz, Hugh H. Lambert

Business Faculty/Staff Publications

Family businesses account for over 50% of U.S. GDP, and 35% of Fortune 500 companies are controlled by families. These companies are vital to the economy, offering stability, a long-term commitment, and responsibility to their communities and employees. Although family-owned businesses are responsible for 60% of jobs in America, a recent family business survey done by the National Bureau of Economic Research’s Family Business Alliance indicates that despite succession being a critical issue for many family companies, only 15% of them have anything resembling a succession plan in place. Furthermore, businesses have a difficult time surviving through multiple generations; just …

How To Create Individual Development Plans For Business Success, Carol Wittmeyer

Business Faculty/Staff Publications

Editor's Note: This is the third article in a series on professional development opportunities for potential family business successors. The first article considered the value of outside experience, discussing career paths inside and outside of the family business; the second discussed the importance of onboarding. This article addresses individual development planning based on a potential successor’s strengths, weaknesses, opportunities and threats.

Liam Stevens was third generation in the Stevens Corporation, started by his grandfather and expanded by his father, and located in a small upstate New York town. They invented the narrow isle forklifts used in most warehouses. At a …

Count On Your Subordinates: Young Managers And Innovation Efficiency, Lei Gao, Christine X. Jiang, Mohamed Mekhaimer

Business Faculty/Staff Publications

We investigate the relationship between executives’ horizons and firms’ innovation efficiency. Motivated by Acharya, Myers, and Rajan’s (2011, JF) theory, we devise a measure of internal governance based on the difference in expected horizons between a CEO and her subordinates. Consistent with our conjecture, we find robust evidence that subordinate managers with longer horizon compared to the CEO can improve firm’s innovation efficiency. Internal governance has a stronger effect on innovation efficiency for firms with elder, generalist CEOs and when the number of subordinates on the board is higher. However, while the presence of powerful CEOs attenuates the effect, overconfident …

Learning From Semantic Inconsistencies As The Origin Of Dynamic Capabilities In Mncs: Evidence From Pharmaceutical Mncs, Isar Kiani, Pouya Seifzadeh, Iam Alam

Business Faculty/Staff Publications

This paper focuses on origins of dynamic capabilities in multinational corporations (MNCs). Building on literature in the area of organizational memory and organizational learning, we investigate factors that contribute to subsidiaries of MNCs ability to detach themselves from obsolete knowledge and practices. To construct the theoretical framework, 11 extensive interviews with marketing and sales executives from three pharmaceutical MNCs operated in Iran were conducted. We test our hypotheses using statistical quantitative analysis of data related to 459 observations from subsidiaries of 51 pharmaceutical MNCs during years 2005-2009. We examine the quality of corrective actions taken by subsidiaries of pharmaceutical MNCs …

Onboarding Is A Two-Way Street, Carol Wittmeyer

Business Faculty/Staff Publications

Editor's Note: This is the second in a series about professional development opportunities for potential family business successors. The first article considered the value of outside experience. This article will discuss the importance of onboarding. The final article will address individual development planning based on the potential successor’s strengths, weaknesses, opportunities and threats.

One of the exciting possibilities in starting a new job is learning something new – about an organization, its culture and the specific job responsibilities that one may have. When a new hire is a member of the owning family, special opportunities and challenges arise. It is …

Pandora's Box Enters The Batter's Box: How The Tax Cuts And Jobs Act's Unintended Consequence Places Mlb, And All North American Leagues, In Tax Chaos, Kari Smoker, Alan Pogroszewski, Kyle Stitch, Kevin Arnold

Sport Management Faculty/Staff Publications

In lieu of an abstract, here is the article's first paragraph:

In the most recent collective bargaining agreement between Major League Baseball (“MLB”) and the Major League Baseball Players Association (“MLBPA”), the word “tax” appears 114 times. Some of these references pertain to MLB’s competitive balance tax.¹ First implemented in 2003 in lieu of a salary cap, the competitive balance tax is a three-tiered penalty assessed annually on teams with payroll exceeding a specified amount, or the “base tax threshold.” ² The assessment increases for each consecutive year the team exceeds the threshold, up to a maximum penalty of …

The Advantages Of Varied Work Experience For Your Company’S Future, Carol Wittmeyer

Business Faculty/Staff Publications

Editor’s Note: This is the first in a series about professional development opportunities for potential family business successors. Below, the author looks at the value of outside experience. The second will discuss the importance of onboarding. The final article will address individual development planning based on the potential successor’s strengths, weaknesses, opportunities and threats.

Many NSRA members who have family firms have the pleasure of their children working in the business. There are many benefits related to learning the business from the inside out, including having the opportunity to work closely with family and together building the American dream of …

Non-Monetary Strategies For Recruiting And Retaining Employees, Carol Wittmeyer

Business Faculty/Staff Publications

Given that unemployment rates are at their lowest in recent memory, business owners are challenged to think about this question: “Why should anyone choose to work for me?”

“Anyone” includes current and new employees – and the answers are important for anyone who wants to keep top-notch employees. In addition to asking your own staff what they most appreciate about working for your company, another way to find answers is to consider relevant research and other readily available current data on the Internet, based on employee discussions. Employees value monetary benefits, including great salary, commissions and, especially, health insurance. On …