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Article
Publication date: 7 March 2016

Rima Bizri

The succession process represents one of the most critical events in the family business lifecycle. The purpose of this paper is to explore this process while focussing…

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2562

Abstract

Purpose

The succession process represents one of the most critical events in the family business lifecycle. The purpose of this paper is to explore this process while focussing first on the drivers behind the choice of successor and, second, on the impact of this choice on the entrepreneurial behavior of the siblings.

Design/methodology/approach

The qualitative approach was used in which multiple case analyses were performed. A total of 12 cases were purposively selected from the Lebanese private sector, and semi-structured interviews were conducted with the successors and the founders when available. The interview data were transcribed and a coding scheme was created to generate relevant categories. Those categories were named and later re-assessed by an external researcher to ensure inter-rater reliability.

Findings

The three dimensions of social capital were found to have a profound influence on the succession decision with much focus on familial stewardship as an emerging cognitive driving force. When “familial stewardship” is shared by incumbent and sibling, it strengthens the latter’s chances of being chosen as successor. Further, a succession pathways model was introduced that depicts the siblings’ behavior following the succession decision which seems to often trigger further entrepreneurship.

Originality/value

This study is distinct as it introduces a new cognitive construct that helps rationalize the successor-selection decision in a Middle Eastern context. It also goes beyond the succession event to depict potential entrepreneurial behavior triggered by succession.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 22 no. 1
Type: Research Article
ISSN: 1355-2554

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Article
Publication date: 10 November 2017

Rima Bizri, Rayan Jardali and Marwa F. Bizri

The purpose of this paper is to investigate the role of non-economic factors on the financing decisions of family firms in the Middle East. To contextualize the study, the…

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1128

Abstract

Purpose

The purpose of this paper is to investigate the role of non-economic factors on the financing decisions of family firms in the Middle East. To contextualize the study, the authors steer away from the traditional capital structure debate toward the choice of financing paradigm: conventional vs Islamic.

Design/methodology/approach

This study uses Ajzen’s theory of planned behavior due to its ability to delineate the influence of non-economic motivational factors on the financing decisions of family firms. This study also examines the influence of “familial stewardship (FS),” another non-economic factor which is highly relevant in a collectivistic context. The authors initially use SEM with Amos to analyze 115 surveys of family firm owner-managers. For deeper probing, the authors undertook an additional post hoc qualitative analysis of six case studies using semi-structured interviews.

Findings

The findings of this study suggest that owner-managers’ attitude toward Islamic finance plays a primary motivational role in influencing their intentions to use it. More importantly, the findings depict a significant influence of “FS” and subjective norm on the attitudes of owner-managers. This implies that financing decisions which involve religious beliefs are directly influenced by the decision maker’s personal attitude, which, in turn, is significantly influenced by familial and social pressures.

Originality/value

This study fills a gap in the family-firm financing literature by suggesting that when choosing religion-related financial products, attitude plays a far more significant role than other motivational factors. This study also contributes to the “familiness” area of research by empirically demonstrating that FS has a significant influence on owner-managers’ attitude toward financing choices.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 24 no. 4
Type: Research Article
ISSN: 1355-2554

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Article
Publication date: 19 June 2017

Tarek El Masri, Matthäus Tekathen, Michel Magnan and Emilio Boulianne

Family firms possess dual identities, being the family and the business, which can be segmented and integrated to various degrees. This study examines whether and how…

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1123

Abstract

Purpose

Family firms possess dual identities, being the family and the business, which can be segmented and integrated to various degrees. This study examines whether and how management control technologies are calibrated to fit into the dual identities of family firms.

Design/methodology/approach

A qualitative study of 20 family firms was conducted using semi-structured, in-depth interviews with owner-managers, drawings of mental maps and publicly available information. The notion of calibration was developed and used, with its three components of graduation, purpose and reference, as an organizing device for the interpretive understanding of the management control usage and its relation to family firms’ dual identities.

Findings

The study finds that the use of calculative, family-centric and procedural management controls – in sum the pervasive use of management control technologies – are associated with a professionalization of the family firm, a foregrounding of the business identity and a reduction of the disadvantageous side of familiness. In comparison, the pragmatic and minimal use of management control technologies are found to be associated with an emphasis on family identity. It transpires as liberating, engendering trust and unfolding a familial environment.

Research limitations/implications

Because results are derived from a qualitative approach, they are not generalizable at an empirical level. By showing how the use of management control technologies is calibrated with reference to family firms’ dual identities, the paper reveals the perceived potency of control technologies to affect the identity of firms.

Practical implications

The study reveals how family firms perceive management control technologies as strengthening their business identity while weakening their family identity. Thereby, this study provides an account of how management control technologies are expected to change the identity of firms.

Originality/value

This paper contributes to the management control and family business literatures because it uncovers how management control technologies are calibrated in reference to family firms’ dual identities. It shows that calculative, family-centric and procedural management controls are used to professionalize the firm and strengthen its business identity as well as to reduce the negative effects of the family identity. The paper also illustrates how the liberating force of using pragmatic and minimal control technologies can serve to give prominence to the family identity.

Details

Qualitative Research in Accounting & Management, vol. 14 no. 2
Type: Research Article
ISSN: 1176-6093

Keywords

Content available
Article
Publication date: 7 March 2016

Paul Jones

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973

Abstract

Details

International Journal of Entrepreneurial Behavior & Research, vol. 22 no. 1
Type: Research Article
ISSN: 1355-2554

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Article
Publication date: 4 January 2022

Rima M. Bizri

What makes family influence so influential in the family firm? Time and again, research studies point to family influence as a factor that significantly impacts…

Abstract

Purpose

What makes family influence so influential in the family firm? Time and again, research studies point to family influence as a factor that significantly impacts decision-making in the family business, thus highlighting the need to investigate the variables which cause family influence to be so powerful. The purpose of this study is to explore the construct of family influence in the family firm, under an integrative lens that combines insights from Institutional Theory and the Resource-Based View.

Design/methodology/approach

The quantitative approach was used using a 35-item survey measuring 6 constructs, where data collection yielded a total of 206 completed surveys included in the data analysis. Data were analyzed using SmartPLS (3.0) and results were appropriately reported.

Findings

The findings of this study propose that the two theoretical perspectives can be useful in explaining how various factors are able to intensify family influence on strategic family firm decisions like internationalization. Specifically, the lack of resources, government support, managerial knowledge and capability in foreign markets represent serious barriers that render the family firm more reliant on and subjected to family influence. Similarly, informal institutions like the fear of failure in foreign markets and uncertainty avoidance often make the family firm more dependent on, and accepting of, family influence.

Originality/value

The path analysis undertaken in this study has empirically depicted how resource-related and institution-based forces can together augment the effects of “family influence,” making it a more powerful and prohibitive factor in the internationalization decision, thus offering an insightful interpretation of these results and valuable practical and theoretical implications.

Details

Journal of Family Business Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2043-6238

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Article
Publication date: 4 August 2020

Michele N. Medina-Craven, Danielle Cooper, Christopher Penney and Miguel P. Caldas

This paper aims to understand the factors that influence employee organizational identification in family firms, and through identification, the willingness to engage in…

Abstract

Purpose

This paper aims to understand the factors that influence employee organizational identification in family firms, and through identification, the willingness to engage in citizenship behaviors.

Design/methodology/approach

Drawing from the stewardship theory, the authors develop a model to test the relationships between family relatedness and relational identification to the family firm owner, employee-focused stewardship practices, organizational identification and organizational citizenship behaviors. The authors test the hypotheses using regression and the Preacher and Hayes PROCESS macro on a sample of 292 family firm employees.

Findings

The findings suggest that both relational identification with the family firm owner and employee-focused stewardship practices positively influence organizational identification, and that familial ties to the family firm owner can influence relationships with citizenship behaviors for non-family employees.

Originality/value

The authors build on existing literature to investigate how employees identify themselves within a family firm and how stewardship practices from the employee's perspective (rather than managers' or founders' perspectives) can influence organizational identification and citizenship behaviors.

Details

Journal of Family Business Management, vol. 11 no. 4
Type: Research Article
ISSN: 2043-6238

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Article
Publication date: 25 June 2020

Ann Sophie K. Löhde, Giovanna Campopiano and Andrea Calabrò

Challenging the static view of family business governance, we propose a model of owner–manager relationships derived from the configurational analysis of managerial…

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1976

Abstract

Purpose

Challenging the static view of family business governance, we propose a model of owner–manager relationships derived from the configurational analysis of managerial behavior and change in governance structure.

Design/methodology/approach

Stemming from social exchange theory and building on the 4C model proposed by Miller and Le Breton-Miller (2005), we consider the evolving owner–manager relationship in four main configurations. On the one hand, we account for family businesses shifting from a generalized to a restricted exchange system, and vice versa, according to whether a family manager misbehaves in a stewardship-oriented governance structure or a nonfamily manager succeeds in building a trusting relationship in an agency-oriented governance structure. On the other hand, we consider that family firms will strengthen a generalized exchange system, rather than a restricted one, according to whether a family manager contributes to the stewardship-oriented culture in the business or a nonfamily manager proves to be driven by extrinsic rewards. Four scenarios are analyzed in terms of the managerial behavior and governance structure that characterize the phases of the relationship between owners and managers.

Findings

Various factors trigger managerial behavior, making the firm deviate from or further build on what is assumed by stewardship and agency theories (i.e. proorganizational versus opportunistic behavior, respectively), which determine the governance structure over time. Workplace deviance, asymmetric altruism and patriarchy on the one hand, and proorganizational behavior, relationship building and long-term commitment on the other, are found to determine how the manager behaves and thus characterize the owner's reactions in terms of governance mechanisms. This enables us to present a dynamic view of governance structures, which adapt to the actual attitudes and behaviors of employed managers.

Research limitations/implications

As time is a relevant dimension affecting individual behavior and triggering change in an organization, one must consider family business governance as being dynamic in nature. Moreover, it is not family membership that determines the most appropriate governance structure but the owner–manager relationship that evolves over time, thus contributing to the 4C model.

Originality/value

The proposed model integrates social exchange theory and the 4C model to predict changes in governance structure, as summarized in the final framework we propose.

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Book part
Publication date: 11 November 2014

Helen Wei Hu and Ilan Alon

Stewardship theory is an emergent approach for explaining leadership behavior, challenging the assumptions of agency theory and its dominance in corporate governance…

Abstract

Purpose

Stewardship theory is an emergent approach for explaining leadership behavior, challenging the assumptions of agency theory and its dominance in corporate governance literature. This study revisits the agency and stewardship theories by seeking to answer whether chief executive officers (CEOs) in China are committed stewards or opportunistic agents.

Design/methodology/approach

Based on 5,165 observations of 1,036 listed companies in China over the period 2005–2010, the results suggest that the corporate governance mechanisms developed from the agency theory in the West are not necessarily applicable in the Chinese context.

Findings

This study supports the stewardship theory in its findings that empowering CEOs through the practice of CEO duality and longer CEO tenure have a positive effect on firm value in China. Additionally, the positive relationships between CEO duality, CEO tenure and firm value are strengthened by the number of executive directors on the board, and weakened by the number of independent directors on the board.

Practical implications

One size does not fit all. Leadership behaviors in China do not follow the agency assumptions inherent in Western practices, rather they favor the conditions of positive leadership expressed by the stewardship theory. Assuming that the motivations of managers in emerging markets such as China are similar to those in the West may lead to a poor fit between governance policies and the institutional context.

Originality/value

As one of the few studies to connect the theoretical debate between the agency and stewardship theories, this study presents new evidence to support the stewardship theory, thereby strengthening its theoretical importance and relevance in corporate governance literature.

Details

Emerging Market Firms in the Global Economy
Type: Book
ISBN: 978-1-78441-066-7

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Article
Publication date: 9 February 2015

Mario Burghausen and John M.T. Balmer

The purpose of this empirical study was to introduce the theory of corporate heritage stewardship by focussing on the nascent corporate heritage identity domain. In…

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3321

Abstract

Purpose

The purpose of this empirical study was to introduce the theory of corporate heritage stewardship by focussing on the nascent corporate heritage identity domain. In particular, the research explores managers’ collective understanding of their organisation’s corporate heritage and how the latter is marshalled, and strategically represented, by them. The case study was undertaken in Great Britain’s oldest extant brewery. Established in 1698, Shepherd Neame is one of UK’s oldest companies.

Design/methodology/approach

Empirical research informed by a theory-building, case study using qualitative data. This study draws on multiple sources of data generated through semi-structured interviews, the analysis of documents and non-participant observations. The analysis of data was facilitated by a multi-stage coding process and a prolonged hermeneutic interaction between data, emerging concepts and extant literature.

Findings

Corporate heritage identity stewardship theory argues that the strategic enactment of a corporate heritage identity is predicated on a particular management mindset, which is meaningfully informed by three awareness dimensions expressed by managers (i.e. awareness of positionality, heritage, and custodianship). These awareness dimensions are underpinned by six managerial stewardship dispositions characterised by a sense of: continuance, belongingness, self, heritage, responsibility and potency. The findings are synthesised into a theoretical framework of managerial corporate heritage identity stewardship.

Research limitations/implications

The insights from this empirical case study meaningfully advance our theoretical understanding of the corporate heritage identity domain. Whilst the empirical contribution of this study is qualitatively different from statistical/substantive generalisations, which seek to establish universal laws, the research insights are valuable in terms of theory-building in their own terms and are analytically generalisable. The insights from this study have the potential to inform further studies on corporate heritage identities, including research underpinned by a positivistic, and quantitative, methodology.

Practical implications

The findings have utility for corporate marketing management, in that they illustrate how a collective corporate heritage mindset can both inform, as well as guide, managers in terms of their stewardship of their firm’s corporate heritage identity. The theoretical framework is of utility in practical terms, in that it reveals the multiple dimensions that are significant for management stewardship of a corporate heritage identity.

Originality/value

The research confirms and expands the notion of management stewardship in corporate identity in corporate marketing contexts by identifying how a multi-dimensional managerial mindset has constitutive and instrumental relevance. Moreover, this study identifies the distinct characteristics of this corporate identity type – corporate heritage identity – which are revealed to have a saliency for managers. Both insights underpin the corporate heritage identity stewardship theory explicated in this article.

Details

European Journal of Marketing, vol. 49 no. 1/2
Type: Research Article
ISSN: 0309-0566

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Book part
Publication date: 1 January 2013

Samantha Fairclough and Evelyn R. Micelotta

In this paper, we draw attention to the influence of the institutional logic of family upon a broad range of organizations, and argue that their significance has not been…

Abstract

In this paper, we draw attention to the influence of the institutional logic of family upon a broad range of organizations, and argue that their significance has not been fully realized within the realm of institutional theory and research. Drawing on extant literature, publicly available documents, and interview data, we highlight the prominence of the family logic in the Italian legal sector, where there is a dearth of family firms and the existence of a competing professional logic that interacts with the familial logic. Our research suggests that, even in a setting where logics of capitalism and profession dominate, the organizational form and practices of Italian law firms are significantly influenced by the family logic: firms remain small, resistant to mergers and forms of internationalization, and have successfully resisted the encroachment of invading foreign legal practices. We discuss the significance of the family logic and its manifestations in organizations, and map out future research directions about how multiple logics interact and reinforce each other in national settings.

Details

Institutional Logics in Action, Part B
Type: Book
ISBN:

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