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1 – 10 of 276Xuemei Xie, Huimiao Zhang and Cristina Blanco
Family businesses often lack sufficient knowledge about digital business model innovation digital business model innovation (BMI). This study's purpose was to analyze how and when…
Abstract
Purpose
Family businesses often lack sufficient knowledge about digital business model innovation digital business model innovation (BMI). This study's purpose was to analyze how and when organizational readiness for digital innovation exerts a positive impact on family businesses' digital BMI. To do so, the authors examined the mediating effect of the familiness learning mechanism and the moderating effect of family involvement on this relationship.
Design/methodology/approach
A quantitative survey method was used to collect the data for this study. Using a sample of 282 family businesses involved in manufacturing in China, the authors conducted hierarchical regression analyses to evaluate the authors' theoretical model.
Findings
The results of this work demonstrate a positive relationship between organizational readiness for digital innovation and family businesses' digital BMI, and the find that the familiness learning mechanism mediates this relationship. The findings also show that second-generation family involvement in management moderates the direct effect of organizational readiness for digital innovation on the familiness learning mechanism, as well as the indirect effect of organizational readiness for digital innovation on digital BMI via the familiness learning mechanism. Moreover, the results establish that family involvement in ownership moderates the direct effect of the familiness learning mechanism on digital BMI, as well as the indirect effect of organizational readiness for digital innovation on digital BMI via the familiness learning mechanism.
Practical implications
This study provides practical contributions to the literature on family businesses and to public policy, providing concrete suggestions for fostering digital innovation in family enterprises. This study also enriches our understanding of the unique conditions by which family businesses can successfully implement digital BMI.
Originality/value
This research confirms that organizational readiness for digital innovation is an antecedent of digital BMI. This finding offers a new perspective that helps explain what might lead family businesses to engage in digital BMI. This study also places the familiness learning mechanism into a theoretical framework, which expands the current understanding of how organizational readiness for digital innovation facilitates digital BMI. Moreover, this work provides new insights into the boundary conditions by which organizational readiness for digital innovation affects the digital BMI of family businesses in terms of second-generation family involvement in management and family involvement in ownership.
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Ismael Barros-Contreras, Rodrigo Basco, Natalia Martín-Cruz and Juan Hernangómez
The purpose of this article is to provide a comprehensive understanding of the roots of family firms' competitive advantages by defining and testing the familiness learning…
Abstract
Purpose
The purpose of this article is to provide a comprehensive understanding of the roots of family firms' competitive advantages by defining and testing the familiness learning mechanisms that emerge from the interaction between family and firm. Because family members are economically, emotionally and socially attached to the firm, family firms are expected to be able to develop unique and difficult to imitate learning mechanisms related to family firm value creation.
Design/methodology/approach
This study operationalizes and tests the concept of the familiness learning mechanism using a sample of nonlisted Spanish family firms. The sample is analyzed using the structural equation modeling method.
Findings
Results show that family firms' ability to accumulate internal and external knowledge, integrate social knowledge, as well as create and retain socioemotional knowledge forms the concept of the familiness learning mechanism, and the authors show what implications it might have for family firm value creation.
Originality/value
By using the dynamic capabilities approach, this article highlights the importance of the knowledge and learning derived from family involvement in the firm. The creation of learning mechanisms occurs because of the close relationships between family members and their simultaneous participation in the family and in the company systems, which creates a unique context wherein knowledge and learning emerge in an idiosyncratic manner.
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Cristina Iturrioz-Landart, Cristina Aragón-Amonarriz and M. Katiuska Cabrera-Suárez
The purpose of the study is to unveil the key role of family social capital (FSC) as a driver for transgenerational entrepreneurship (TE) in the specific contexts of challenged…
Abstract
Purpose
The purpose of the study is to unveil the key role of family social capital (FSC) as a driver for transgenerational entrepreneurship (TE) in the specific contexts of challenged successor-driven entrepreneurship.
Design/methodology/approach
The paper adopts a multi-case study methodology. Guided by three theoretical propositions, three TE case studies are analyzed. Drawing on ten in-depth interviews with at least three different informants from each intra-family succession case study, evidence about this particularly complex phenomenon was obtained.
Findings
The paper highlights the effect of FSC as the key familiness driver to leverage challenged successor-driven entrepreneurship. The paper underscores the systemic and dynamic network of multiple exchanges required to construct successor’s own pool of knowledge resources and to support familiness and thus the competitive advantage of the family firm (FF).
Practical implications
Different scenarios are illustrated, and specific lessons are provided for successors and families that face TE opposition in intra-family succession, regarding the restoration of damaged FSC and involving non-family stakeholders in the successor-driven entrepreneurship. In these cases, opposition to successor-driven entrepreneurship may help to develop successor’s leadership abilities.
Originality/value
Focusing on a specific intra-family succession context where successor-driven entrepreneurial initiatives face stakeholder opposition, the paper highlights the specific role played by FSC in the successor knowledge construction in specific contexts of challenged intra-family succession.
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Juan M. Gómez and Yeny E. Rodríguez
This study aims to unveil the impact of strategic renewal and its implications on employment during the COVID-19 pandemic. It explores the role of strategic renewal in mitigating…
Abstract
Purpose
This study aims to unveil the impact of strategic renewal and its implications on employment during the COVID-19 pandemic. It explores the role of strategic renewal in mitigating the adverse effects of crises, fostering organizational adaptation and restructuring capabilities. Additionally, it examines the moderating effect of familiness on understanding the strategic renewal process and its importance to family firms during times of crisis.
Design/methodology/approach
The study utilizes data from the STEP Project Global Consortium, which collected information from 3,026 family firms operating in 75 countries and various sectors during the pandemic. Structural Equation Modeling was employed to test the authors' research hypotheses.
Findings
The authors' results reveal that strategic renewal significantly impacted employment growth during the COVID-19 pandemic of family firms. Strategic renewal plays a crucial role in mitigating the negative effects of that crisis on employment by helping firms adapt and restructure their capabilities. The study also found that synergies among family members positively influenced innovation in organizational resilience and enhanced the positive effects of strategic renewal on employment growth.
Originality/value
This study contributes to the literature by emphasizing the importance of strategic renewal of family businesses during the COVID-19 pandemic. It offers insights into mitigating vulnerability risks amidst crises and adds to the understanding of the strategic renewal process and its implications for the organizations. The findings hold theoretical implications for the field of strategic management and provide valuable insights into the unique challenges and opportunities faced by family firms in uncertain environments.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-11-2022-0771
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Michele Stasa Ouzký and Ondřej Machek
The goal of this paper is to examine the mediating role of organizational social capital between family firms' organizational culture, characterized by their group vs individual…
Abstract
Purpose
The goal of this paper is to examine the mediating role of organizational social capital between family firms' organizational culture, characterized by their group vs individual orientation and external vs internal orientation, and their performance.
Design/methodology/approach
A structural equation model is developed and tested in a sample of 176 US family firms recruited through Prolific Academic.
Findings
The authors show that group vs individual cultural orientation fosters bonding social capital, while external vs internal cultural orientation fosters bridging social capital. In turn, family firm performance is only enhanced by bridging social capital, not bonding social capital, which appears to have neutral to negative direct performance effects. Nevertheless, it is noteworthy that bonding social capital facilitates the establishment of bridging ties, leading to overall positive performance outcomes.
Originality/value
The understanding of how organizational culture influences family business heterogeneity and performance, along with the clarification of how bonding social capital fosters or hinders performance, provides novel insights for researchers and practitioners seeking to understand the complexities within the unique context of family businesses.
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Subhadeep Datta and Sourjo Mukherjee
This paper studies the impact of different chief executive officer (CEO) succession strategies on consumer evaluation of family firms. CEO succession is critical for family firms…
Abstract
Purpose
This paper studies the impact of different chief executive officer (CEO) succession strategies on consumer evaluation of family firms. CEO succession is critical for family firms as improper succession planning has been shown to be the primary reason for high mortality rates of such firms. Furthermore, the choice of CEO (internal vs external) by family firms can send different signals to stakeholders and thereby impact their appraisal of such firms.
Design/methodology/approach
In this paper, the authors use an experiment-based approach to test how the type of CEO succession (internal vs external) influences the consumer's evaluation of family firms.
Findings
The authors find that appointing an internal CEO leads to higher perception of firm capability, trust towards the firm and more favorable consumer attitudes. All these factors, in turn, lead to higher purchase intentions. External CEOs in family firms do not seem to have any de facto advantage regarding perceptions of higher capability.
Originality/value
Thus, the authors contribute to the literature of family firms by showing how family firm's strategic decisions during succession can affect consumer behavior.
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Nick Beech, David Devins, Jeff Gold and Susan Beech
This paper aims to explore the concept of resilience set within a family business context and considers how familiness and the nature of noneconomic factors, such as relationship…
Abstract
Purpose
This paper aims to explore the concept of resilience set within a family business context and considers how familiness and the nature of noneconomic factors, such as relationship dynamics influence performance. This paper provides new insights into the nature and impact of familiness as a mediating device, uncovering the potential for reframing resilience theory and practice.
Design/methodology/approach
The paper draws on a review of the extant literature in the areas of resilience and familiness as a means of developing a deeper understanding of the social-ecological system of the family firm.
Findings
The study reveals family business as a complex interrelationship between complimentary social-ecological systems. It highlights the complexity of family business and the challenges of the relational nature of familiness and how this presents additional layers of complexity in the decision making process and implementation.
Research limitations/implications
The paper draws on literature that is dominated by western culture and may partially or not at all reflect the issues associated with organisational resilience in family firms with such backgrounds and their culturally bound social-ecological systems.
Originality/value
The paper seeks to fill a knowledge gap by exploring the key elements of organisational resilience in the context of familiness. The work calls for further research into the nature of familiness connections mediating the nature of family relational dynamics. It further provides a framework indicating how these elements can shape and subvert day-to-day management events, raising implications for theory and practice and calls for deeper empirical research to be undertaken.
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Omar Belkhodja and Abdelkader Daghfous
For family businesses, familiness constitutes a unique bundle of resources and capabilities resulting from family relationships and influences. The extant literature has shown…
Abstract
Purpose
For family businesses, familiness constitutes a unique bundle of resources and capabilities resulting from family relationships and influences. The extant literature has shown that familiness impacts organizational outcomes such as performance and innovation. This paper investigates the role of familiness in relation to absorptive capacity (ACAP). It also explores the specificities of nonfamily members’ social capital when different knowledge management (KM) approaches are adopted.
Design/methodology/approach
An exploratory comparative case study design is adopted. Data from three family firms based in the United Arab Emirates (UAE) provide the empirical setting for this study. The data were collected using semi-structured interviews, available documents, observations and company websites.
Findings
Our results reveal that the role of familiness in relation to ACAP varies according to the adopted KM approach. Familiness targets the potential ACAP when an explicit KM approach is adopted, the realized ACAP when a tacit KM approach is adopted, and both potential and realized ACAPs when a strategic KM approach is adopted. Our results also show that family firms invest in KM processes that support knowledge exploration and/or exploitation.
Originality/value
This paper provides further evidence for the role of familiness. It moves beyond the study of familiness from a resource-based view and adopts a knowledge-based perspective to develop a better understanding of the role of familiness in relation to ACAP. It also improves our understanding of nonfamily members’ social capital in family firms.
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Alistair Anderson, Anca Maria Clipa, Albrecht Fritzsche, Catalin Ioan Clipa and Daniela Tatiana Agheorghiesei
This research objective was to explore how Romanian IT family businesses' co-founders enable entrepreneuring through familiness practices. The authors explored what familiness…
Abstract
Purpose
This research objective was to explore how Romanian IT family businesses' co-founders enable entrepreneuring through familiness practices. The authors explored what familiness practices emerge and how these are facilitated and supported by the rhetoric framework.
Design/methodology/approach
Drawing on Romanian IT entrepreneurs' practice from five case studies of IT family businesses and purposive revelatory cases, the authors considered the family co-founders' narratives and representations of familiness presented in 31 interviews.
Findings
The respondents' communication in entrepreneuring is a joint collaborative effort of the family co-founders to function well. Family entrepreneurs generate positive perceptions in favour of enterprising families using persuasive communication via rhetoric appeals to familiness ethos, familiness logos and familiness pathos, leading to constructive conflict management. The rhetoric of persuasion supports family entrepreneuring.
Research limitations/implications
The authors conducted multiple case studies, profiling technological co-founders and family entrepreneurs in the challenging circumstances of an emerging economy.
Practical implications
The analysis of the use of rhetoric contributes to a better understanding of familiness practices in the family business. Through appeals to ethos, family business entrepreneurs enforce family values built on shared history, complementarity and moral exemplarity. The appeals to logos in entrepreneuring involve fulfilling complementary roles, alignment and continuous learning and coaching. The appeals to pathos are about emotions and how the family entrepreneurs' discourse enforces constructive handling of emotions.
Social implications
The perceived familiness communicated through appeals to ethos, logos and pathos contributes to legitimating the family firm structures.
Originality/value
Theorising from family entrepreneurs' familiness practices, the authors suggest that entrepreneuring requires good communication of the representation of familiness for co-founders, employees and other stakeholders to also serve constructive conflict handling. The perceived familiness communicated through appeals to ethos, logos and pathos helps family businesses leverage their unique strengths and resources in the entrepreneuring process.
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Absorptive capacity (AC) is a key competitive advantage and is defined as the capacity to absorb knowledge from the environment. Although some studies have examined how various…
Abstract
Purpose
Absorptive capacity (AC) is a key competitive advantage and is defined as the capacity to absorb knowledge from the environment. Although some studies have examined how various antecedents to AC differ between family firms and non-family firms, no studies have set out to specifically analyze AC in the context of family firms. The purpose of this paper is to discuss the ability of family firms to absorb external knowledge by analyzing the relationship between “familiness” and “AC”.
Design/methodology/approach
By reviewing and combining studies on AC and knowledge-management practices of family firms, new insights into the AC of family firms are developed.
Findings
It is argued that due to higher levels of social capital, familiness is positively related to the ability to transform and use external knowledge (i.e. realized AC). However, firms with high levels of familiness are likely to be inferior in acquiring and assimilating external knowledge (i.e. potential AC).
Originality/value
Although previous studies have analyzed various knowledge-management practices of family firms, no studies have set out to specifically explore how familiness affects various dimensions of AC.
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