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1 – 10 of over 12000Kristin Sabel, Andreas Kallmuenzer and Yvonne Von Friedrichs
This paper aims to examine how organisational values affect diversity in terms of different competencies in rural family Small and Medium-sized Enterprises (SMEs). Recruiting a…
Abstract
Purpose
This paper aims to examine how organisational values affect diversity in terms of different competencies in rural family Small and Medium-sized Enterprises (SMEs). Recruiting a diverse workforce in rural family SMEs can be particularly difficult due to the prevalence of internal family values and the lack of available local specialised competencies. A deficiency of diversity in employment and competence acquisition and development can create problems, as it often prevents rural family SMEs from recruiting employees with a wide variety of qualifications and skills.
Design/methodology/approach
The study takes on a multi-case method of Swedish rural family SMEs, applying a qualitative content analysis approach. In total, 20 in-depth structured interviews are conducted with rural family SME owners and 2 industries were investigated and compared – the tourism and the manufacturing industries.
Findings
Rural family SMEs lack long-term employment strategies, and competence diversity does not appear to be a priority for rural family SMEs, as they often have prematurely decided who they will hire rather than what competencies are needed for their long-term business development. It is more important to keep the team of employees tight and the family spirit present than to include competence diversity and mixed qualifications in the employment acquisition and development.
Originality/value
Contrary to prior research, our findings indicate that rural family SMEs apply short-term competence diversity strategies rather than long-term prospects regarding competence acquisition and management, due to their family values and rural setting, which strictly narrows the selection of employees and competencies. Also, a general reluctance towards competence diversity is identified, which originates from the very same family values and rural context.
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Pattanapong Tiwasing, Yoo Ri Kim and Sukanlaya Sawang
This paper aims to examine the relationship between being members of social media business networks and SME performance by comparing business performance between family-owned SMEs…
Abstract
Purpose
This paper aims to examine the relationship between being members of social media business networks and SME performance by comparing business performance between family-owned SMEs that are members and non-members of social media business networks.
Design/methodology/approach
The analysis empirically draws on cross-sectional data of 9,292 English and Welsh family-owned SMEs from the UK's Government Small Business Survey 2015. Propensity Score Matching (PSM) is applied to control for selection bias and differences in firm characteristics before comparing business performance, measured in terms of annual turnover, sales-growth intention and innovation between family-owned SMEs that are members and non-members of social media business networks.
Findings
The findings show that family-owned SMEs that are members of social media business networks are more likely to have higher prior turnover and to grow their sales than non-members. Also, they are more likely to report being innovative in products and processes than non-members. The empirical results acknowledge the importance of online business networks and digital social capital on enhanced family-owned business performance.
Originality/value
This paper is the first to explore the comparative analysis of business performance between family-owned SMEs that are members and non-members of social media business networks. This paper is important for the development of family business research by providing a comprehensive evidence-based analysis regarding the importance of online business networks to improve family-owned business performance, given the significant contribution of digital business activities to the UK economy.
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José Antonio Clemente-Almendros and Tomás González-Cruz
This paper investigates whether board composition, a family chief executive officer (CEO) and the firm's managerial capabilities affect proactive tax management in family small…
Abstract
Purpose
This paper investigates whether board composition, a family chief executive officer (CEO) and the firm's managerial capabilities affect proactive tax management in family small and medium-sized enterprises (SMEs). The main statement is that the professionalisation of corporate government and management practices explains the difference in tax avoidance behaviour in closely held family SMEs.
Design/methodology/approach
Using the 2012 Spanish thin-capitalisation rule as a quasi-experiment, the authors estimate panel regressions with firm fixed effects and robust standard errors. This model represents a triple difference-in-differences combined with propensity score matching (PSM-DID).
Findings
Analysis shows that having a high proportion of non-family board members and a high endowment of managerial capabilities lead to tax liability optimisation in family SMEs. Conversely, familial boards and family SMEs with low managerial capabilities lack enough expertise to weigh the costs of tax avoidance over the benefits, resulting in a reluctance to engage in tax optimisation behaviours. Alike, results show no significant relation between CEO's family affiliation and tax management behaviour.
Practical implications
When implementing fiscal policies, the specific needs of family SMEs should be considered, and how these needs interact with corporate governance and managerial mechanisms. Moreover, policymakers need a deeper understanding of family SMEs in order to develop policies appropriate to their characteristics. A more comprehensive knowledge of how family firm heterogeneity affects corporate decisions, such as indebtedness and fiscal decisions, may improve public policies.
Originality/value
This study addresses the issue of tax behaviour in family SMEs in a particular event that implies a specific logic to weigh the pros and cons of each alternative: reducing debt or paying more taxes. This study’s conclusions are based on a model that deals with potential endogeneity problems, which avoids bias in the findings.
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Nhat Minh Tran, Que Giang Ngo and Quyet Thang Tran
The purpose of this study is to investigate the impact of the gender diversity of top management teams (TMTs) on the financial performance (FP) of small and medium enterprises …
Abstract
Purpose
The purpose of this study is to investigate the impact of the gender diversity of top management teams (TMTs) on the financial performance (FP) of small and medium enterprises (SMEs) in Vietnam. This paper also examines the moderating effect of family control on this relationship.
Design/methodology/approach
Using a sample of SMEs in Vietnam, this paper uses descriptive statistics and balance panel regression with random effect to analyse 5,160 firm-year observations of family- and non-family-owned SMEs between 2011 and 2015.
Findings
The findings demonstrate that gender diversity in TMTs shows a negative relationship with the FP of family-controlled SMEs and no significant impact on FP of non-family SMEs. This study also illustrates a positive curvilinear relationship between the female manager rate in TMTs and firms’ FP in family SMEs.
Research limitations/implications
This research study is limited to data from Vietnamese SMEs. Future studies could investigate these relationships with larger firms and in a broader geographical context.
Originality/value
This study provides a better understanding of the impact of TMT gender diversity on FP in Vietnamese SMEs while considering the moderating effect of family control. The findings support some theories relating to managerial gender diversity and the effect of family control on this diversity in family SMEs.
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Stephanie Querbach, Nadine Kammerlander, Jagdip Singh and Matthias Waldkirch
Learning in organizations is well-recognized as a key determinant of innovation and success in competitive markets, and a rich literature examines learning mechanisms in…
Abstract
Purpose
Learning in organizations is well-recognized as a key determinant of innovation and success in competitive markets, and a rich literature examines learning mechanisms in large-sized and professionally-run organizations. Relatively little is known about the learning processes in family-run firms, most of whom are small- and medium-sized enterprises (SMEs) led by a single family SME owner-manager connected in a family network. Therefore, the purpose of this study is to investigate how family SME owner-managers engage in learning and how those learning processes are affected by family SME-specific characteristics.
Design/methodology/approach
Using pragmatic learning theory as an interpretive lens, this study conducts a qualitative multi-case study involving 61 interviews in family SMEs with family SME owner-managers, family members, employees and customers.
Findings
The within- and cross-case analysis helps identify the mechanisms, barriers and enablers of learning and innovation in family SMEs. The study develops and pinpoints the family owner managers’ “functional overload” as a major barrier to learning and employee empowerment, family-members’ support and customer feedback as critical resources in overcoming such functional overload. Yet, these resources turn out to be major amplifiers of functional overload in later phases of the learning process, thus impeding learning and innovation.
Originality/value
The study provides novel insights into learning processes and innovation within family SMEs, outlines the double-edged involvement of family members, employees and customers for learning processes, and provides nuance to pragmatic learning theory.
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Rodrigo Basco and Andrea Calabrò
The purpose of this paper is to investigate what types of open innovation search strategies are associated with internal innovation activities in family and non-family SMEs within…
Abstract
Purpose
The purpose of this paper is to investigate what types of open innovation search strategies are associated with internal innovation activities in family and non-family SMEs within natural resource-based clusters.
Design/methodology/approach
This study is based on an empirical analysis of a sample of 245 Chilean firms.
Findings
Results suggest that while family and non-family SMEs do not significantly differ in terms of internal innovation activities, important differences exist in terms of open innovation search strategies. In particular, family SMEs search for new ideas and knowledge within their closest network of relationships (e.g. customers, suppliers and competitors), whereas non-family SMEs mainly focus on broader network relationships (e.g. universities, public institutions and fair trade organizations).
Practical implications
This study shows that within a natural resource cluster, the types of firm do matter. In fact, family and non-family SMEs use different open innovation search strategies to innovate; hence, this research may help and assist policy makers in tailoring innovation policies aimed at expanding the potential benefits of clusters for regional growth and development.
Originality/value
This research addresses the call to further investigate the link between family SMEs and innovation in developing countries, given that SMEs may also act as a lively player for regional development.
Propósito
El objetivo de este artículo es investigar las estrategias de búsqueda de innovación abierta de las pequeñas y medianas empresas familiares y no familiares en un clúster basado en los recursos naturales.
Diseño/metodología/enfoque
Este estudio está basado en un análisis empírico con una muestra de 245 empresas Chilenas.
Recomendaciones
Los resultados muestran que no hay diferencias significativas en las actividades internas de innovación entre las pequeñas y medianas empresas familiares y no-familiares de la muestra. Sin embargo, se han encontrado diferencias en las estrategias de búsqueda de innovación abierta que utilizan de las empresas. Las empresas familiares buscan nuevas ideas y conocimiento para innovar entre sus contactos más cercanos (por ejemplo: clientes, proveedores y competidores). Las empresas no-familiares se enfocan en contactos más amplios (por ejemplo: tales como universidades, instituciones públicas y ferias internacionales).
Implicaciones prácticas
Este estudio muestra que distinguir entre empresas familiares y no familiares dentro de los clúster basados en los recursos naturales es importante. Las pequeñas y medianas empresas familiares y no familiares usan diferentes estrategias de búsqueda de innovación abierta. Por lo tanto, nuestros resultados pueden ayudar al diseño de políticas públicas de innovación diferenciando empresas familiares y no familiares con el objetivo de potenciar los beneficios de los clúster para el crecimiento y desarrollo regional.
Originalidad/valor
Este artículo intenta avanzar en la investigación relacionando innovación y pequeñas y medianas empresas familiares en países en desarrollo.
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Giuseppe Valenza, Andrea Caputo and Andrea Calabrò
The field of scientific research on small and medium-sized family businesses has been growing exponentially and the aim of this paper is to systematize the body of knowledge to…
Abstract
Purpose
The field of scientific research on small and medium-sized family businesses has been growing exponentially and the aim of this paper is to systematize the body of knowledge to develop an agenda for the future.
Design/methodology/approach
Adopting comparative bibliometric analyses on 155 articles (from 1989 until 2018) the authors provide a systematic assessment of the scientific research about small family firms, unveiling the structure and evolution of the field. Bibliographic coupling, co-citation analysis and co-occurrence analysis are adopted to identify the most influential studies and themes.
Findings
Four clusters of research are reviewed: succession in family SMEs, performances of family SMEs, internationalization of family SMEs and organizational culture of family SMEs.
Originality/value
This paper contributes to the field of family SMEs by providing a systematic analysis of the scientific knowledge. Reviewing those clusters allows to providing avenues and reflections for future research and further practice.
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Vincent Dutot, Francois Bergeron and Andrea Calabrò
With the increasing digitalization processes taking place in different industries, the success of family small and medium-sized enterprises (SMEs) appears to be more under threat…
Abstract
Purpose
With the increasing digitalization processes taking place in different industries, the success of family small and medium-sized enterprises (SMEs) appears to be more under threat than for any other types of organizations, especially when information technologies (ITs) are not adequately used and managed. To grow and increase the chances of survival, family SMEs need more than ever IT. Stemming from agency theory, the aim of this article is to understand whether family harmony impacts the performance of family SMEs and to what extent IT mediates this relationship.
Design/methodology/approach
The research follows a quantitative approach, based on a sample of 182 family SMEs. Structured equation modeling, through SmartPLS, was employed to validate the research model.
Findings
This study’s main findings suggest that family harmony positively impacts firm performance and that IT governance and strategy mediate positively this relationship.
Research limitations/implications
First, the relatively limited number of respondents limits the degree of representativeness of all family SMEs. Replicating the research with a larger number of respondents could strengthen the findings. Second, this study is limited to French firms and future research could extend the findings by looking at cross-country comparisons.
Practical implications
Family SMEs are encouraged to link their IT governance with their IT strategy in order to increase their organizational performance. A favorable family harmony will make it easier to choose and implement a richer IT strategy and put in place an adequate IT governance function.
Originality/value
This research offers an enriched knowledge of the roles of family harmony and technological innovation in family SMEs and IT contexts as significant predictors of organizational performance. It contributes to family firm theory through the identification of three determinants of family SMEs' performance.
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Mikel Alayo, Txomin Iturralde and Amaia Maseda
The aim of this paper is to provide new evidence on the ability of family small- and medium-sized enterprises (SMEs) to develop ambidextrous innovations and their influence on the…
Abstract
Purpose
The aim of this paper is to provide new evidence on the ability of family small- and medium-sized enterprises (SMEs) to develop ambidextrous innovations and their influence on the internationalization processes, showing how this relationship varies due to family involvement.
Design/methodology/approach
The analysis is based on a sample of 186 Spanish family SMEs. Data were analyzed using structural equation modeling.
Findings
The results indicate that family SMEs' innovation activities are a stimulus for their internationalization process, and show the importance of family involvement in this relationship. Specifically, the findings suggest that family-specific characteristics such as the generation in charge of the business and the level of family involvement in the top management team (TMT) shape the relationship between innovation and internationalization.
Practical implications
Family SMEs need to focus on exploratory and exploitative innovations to obtain a competitive advantage in foreign markets, and thus, increase their internationalization level. Furthermore, the study contributes to a better understanding of the consequences of family involvement, increasing our knowledge of family firms' idiosyncratic behaviors in strategic activities. The study suggests that in order to improve the effect of innovation on internationalization, family owners should consider involving new generations and non-family managers within the decision-making structures.
Originality/value
To date, research on innovation-internationalization link in family SMEs has been fragmented and has not obtained conclusive results. This study provides new evidence on the relationship between these two important strategies. Furthermore, it contributes to the understanding of the influence of the family in shaping strategic decisions.
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The assessment of the role of entrepreneurial passion in international entrepreneurship needs further attention. This study aims to fill this research gap by assessing the role of…
Abstract
Purpose
The assessment of the role of entrepreneurial passion in international entrepreneurship needs further attention. This study aims to fill this research gap by assessing the role of developing entrepreneurial passion, when moderated by the adversity of fragile countries, in the success of small and medium family enterprises’ (family SMEs) internationalization success.
Design/methodology/approach
Using time-lagged survey date from decision-makers on internationalized family SMEs from fragile countries (Lebanon, Iraq, Yemen, Egypt and Syria) between 2020 and 2022, this study assesses the relationship between the entrepreneurial passion and family SMEs’ internationalization success as well as the moderating effect of the institutional context of these fragile countries.
Findings
The results demonstrated that the developing entrepreneurial passion is positively related to the family SMEs’ internationalization success. Moreover, the adversity of fragile home countries significantly moderates this relationship.
Originality/value
This study is a catalyst for future passion theoretical research on fragile countries. Moreover, it will encourage more studies on the understanding of the entrepreneurial passion for organizational performance of family SMEs, especially in an international context.
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