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1 – 10 of 192
Open Access
Article
Publication date: 26 July 2022

Yuping Yin, Frank Crowley, Justin Doran, Jun Du and Mari O'Connor

This paper examines the innovation behavior of family-owned firms versus non-family-owned firms. The role of internal family governance and the influence of external stimuli…

2630

Abstract

Purpose

This paper examines the innovation behavior of family-owned firms versus non-family-owned firms. The role of internal family governance and the influence of external stimuli (competition) on innovation are also considered.

Design/methodology/approach

The data of 20,995 family and non-family firms across 38 countries are derived from the World Bank Enterprise Survey during the period 2019–2020. Probit models are used to examine the impact of family ownership, family governance, and competition on innovation outcomes.

Findings

Family firms are more likely to make R&D investments, acquire external knowledge, engage in product innovation (including innovations that are new to the market) and process innovation, relative to non-family firms. However, a high propensity of family member involvement in top management positions can reduce innovation. Competition has a negative impact on innovation outcomes for both family and non-family firms, but it has a positive moderating effect on the innovation activities of family firms where a higher level of family member involvement in management is present.

Originality/value

This paper provides novel insights into family firm innovation dynamics by identifying family firms as more innovative than non-family firms for all types of indicators, debunking the idea that family firms are conservative, reluctant to change, and averse to the risks in innovation activities. However, too much family involvement in decision making may stifle some innovation activities in family firms, except in cases where the operating environment is highly competitive; this provides new insights into the ownership-management dynamic of family firms.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 29 no. 1
Type: Research Article
ISSN: 1355-2554

Keywords

Open Access
Article
Publication date: 26 September 2023

Giovanna Gavana, Pietro Gottardo and Anna Maria Moisello

The aim of this paper is to examine the effect of structural and demographic board diversity as well as board tenure on family firms' environmental performance, by analyzing the…

1210

Abstract

Purpose

The aim of this paper is to examine the effect of structural and demographic board diversity as well as board tenure on family firms' environmental performance, by analyzing the differences between family and non-family businesses and within family firms.

Design/methodology/approach

Tobit regressions are applied to investigate the effect of independent directors, CEO non-duality, board gender diversity and board tenure on environmental performance. The study also controls for other board and firm characteristics, as well as for time, industry and country-fixed effects. In doing so, the authors rely on a sample of non-financial listed firms from France, Germany, Italy, Spain and Portugal over the period 2014–2021.

Findings

The authors find that women on the board positively influence environmental performance and this effect is significant only in family firms, although board tenure negatively moderates the relationship. Board independence significantly affects environmental performance only in non-family firms. A strong presence of family directors has a negative effect on family firms' environmental performance, especially when directors' turnover is low.

Originality/value

This paper examines the unexplored relationship between structural board diversity and environmental performance in family companies. This study provides empirical evidence on the association between gender diversity and family firms' environmental performance focusing for the first time on a European setting. Moreover, this study provides evidence of a different effect of board tenure in family and non-family businesses.

Details

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

Keywords

Open Access
Article
Publication date: 13 December 2022

Augusto Bargoni, Jacopo Ballerini, Demetris Vrontis and Alberto Ferraris

This paper aims to explore the impact of brand authenticity dimensions (i.e. aesthetic, symbolism, heritage, originality, quality commitment and virtue) on consumer engagement in…

2396

Abstract

Purpose

This paper aims to explore the impact of brand authenticity dimensions (i.e. aesthetic, symbolism, heritage, originality, quality commitment and virtue) on consumer engagement in the context of social media. This study answers to the need of scholars to understand consumer behaviour towards family and non-family firms’ brand authenticity constructs and for practitioners to find the correct levers to increase consumer engagement.

Design/methodology/approach

Top 10 European family firms with a retrievable Facebook (FB) page from the Global Family Business Index have been selected. Then, the study analysed family firms’ social media consumer engagement versus their non-family business direct competitors on a sample of 21.664 FB posts over a four-year period, leveraging multi-group analysis.

Findings

The results outline that three out of six brand authenticity dimensions posted on FB are statistically arousing more interactions respect to non-authenticity-related contents when posted by family firms. However, there are no statistically significant findings when brand authenticity content is posted by the non-family competitors.

Practical implications

This research is helpful for practitioners and entrepreneurs who might want to strengthen their social media brand strategies. With this regard, the study provides insights on which elements of brand authenticity are perceived by consumers as more engaging and which levers to use when communicating the familiness of the company.

Originality/value

To the best of authors’ knowledge, this is one of the earliest studies crosscutting the family business and brand authenticity literature streams to conduct an empirical analysis based on official FB data with a data set of over 20,000 observations. Moreover, this study assesses that not every dimension of the brand authenticity construct is relevant in the context of social media and that its effectiveness depends on the firms’ familiness.

Details

Journal of Product & Brand Management, vol. 32 no. 5
Type: Research Article
ISSN: 1061-0421

Keywords

Open Access
Article
Publication date: 26 August 2021

Emanuela Rondi and Paola Rovelli

This paper aims to examine the influence that family firms’ top management team (TMT) behavior and characteristics exert on their innovation opportunity realization.

1572

Abstract

Purpose

This paper aims to examine the influence that family firms’ top management team (TMT) behavior and characteristics exert on their innovation opportunity realization.

Design/methodology/approach

Data were collected through a survey addressed to a representative sample of Italian firms. The analyzed sample consists of 237 firms, 120 of which are family firms. A series of ordinary least squares models were used to test the four hypotheses.

Findings

Family firms realize fewer innovation opportunities than non-family firms. This result is fully mediated by the knowledge exchange in the TMT as follows: in family firms, the TMT exchanges less knowledge than in non-family firms, which drives their lower realization of innovation opportunities. In family firms TMT, the increase in the non-family members positively influences the TMT knowledge exchange, but only when the time the Chief Executive Officer (CEO) spends in searching for innovation opportunities outside the firm is low. The more the CEO search increases, the more this positive influence decreases, up to the point it becomes negative.

Research limitations/implications

The study contributes to the literature on innovation, knowledge management and organizational design in family firms. Nevertheless, data were collected at a single point in time and in a single country.

Practical implications

The study suggests family firms on how to foster the realization of innovation opportunities. A greater TMT knowledge exchange allows to realize more innovation opportunities and the TMT characteristics emerged as the drivers of this TMT knowledge exchange. As such, family firms should examine the interaction of their TMT composition in terms of non-family and family members with the effort that the CEO deploys to search for innovation opportunities outside the firm.

Originality/value

Empirical investigation of the link between family ownership, absorptive capacity and innovation performance by considering TMT behavior and characteristics.

Open Access
Article
Publication date: 7 January 2022

Torbjörn Ljungkvist, Börje Boers and Jim Andersén

This paper strives to understand the role of resource orchestration (RO) in the rapid growth of high-tech small and medium-sized enterprises (SMEs).

1134

Abstract

Purpose

This paper strives to understand the role of resource orchestration (RO) in the rapid growth of high-tech small and medium-sized enterprises (SMEs).

Design/methodology/approach

Based on a comparative case study, RO is compared between a high-tech family firm and a high-tech non-family firm. To capture the complexity of RO, this study applies a longitudinal approach using a large volume of archival and interview data gathered over ten years.

Findings

The configuration of family-firm paradoxical growth-oriented RO emphasizes RO based on collectivism and responsibility, although relying on large-scale conforming normative control. In contrast, the configuration of non-family-firm growth-oriented RO emphasizes administrative-based delegation and management-supported value creation.

Originality/value

By suggesting ownership-based RO configurations, this study provides insights into how ownership types, i.e. family firms and non-family firms, affect RO in firms operating in complex and dynamic environments. These configurations explain how and why RO is arranged in a growth context.

Details

Journal of Family Business Management, vol. 13 no. 3
Type: Research Article
ISSN: 2043-6238

Keywords

Open Access
Article
Publication date: 3 November 2023

Nikola Rosecká and Ondřej Machek

This paper aims to examine the effects of socio-emotional wealth importance (SEWi) in family firms and family firm-specific HR practices, namely professionalization and

Abstract

Purpose

This paper aims to examine the effects of socio-emotional wealth importance (SEWi) in family firms and family firm-specific HR practices, namely professionalization and bifurcation bias, on their entrepreneurial orientation (EO).

Design/methodology/approach

The paper surveyed 133 small and medium-sized family firms in the USA. The respondents were recruited through Prolific Academic.

Findings

When SEWi is low, a family firm becomes more similar to a non-family firm, thereby enjoying the benefits associated with EO. When SEWi is high, a family firm leverages the unique resources and capabilities specific to family firms. Moderate SEWi levels are associated with lower EO levels. Additionally, the results support the argument that professionalization (involving non-family managers, formalization and decentralization) fosters EO, while bifurcation bias hinders its development.

Originality/value

Unlike previous studies, this paper posits a non-linear, U-shaped relationship between SEWi and EO. It contributes to the field by empirically investigating the effects of professionalization and bifurcation bias on EO in family firms.

Details

Journal of Small Business and Enterprise Development, vol. 30 no. 7
Type: Research Article
ISSN: 1462-6004

Keywords

Open Access
Article
Publication date: 28 September 2022

Giovanna Gavana, Pietro Gottardo and Anna Maria Moisello

The purpose of this paper is to investigate the effect of family control on the association between related party transactions (RPTs) and different forms of accrual-based earnings…

1867

Abstract

Purpose

The purpose of this paper is to investigate the effect of family control on the association between related party transactions (RPTs) and different forms of accrual-based earnings management (AEM) and real earnings management (REM), analyzing the effect of board characteristics on the possible association.

Design/methodology/approach

This paper studies a sample of Italian non-financial listed firms over the 2014–2019 period, by GLS regression models, controlling for the fixed effects of the company's sector of operation and the year.

Findings

Results indicate a different association between RPTs and earnings management (EM) in family and non-family firms. They point out that family firms use RPTs in association with downward AEM and REM perpetrated by abnormal discretionary expenses as well as a substitute of REM via abnormal production costs. For non-family firms, findings indicate only a substitution effect between RPTs and AEM. Furthermore, CEO duality, board gender diversity and the presence of the family on the board positively moderate the association between RPTs and, respectively, REM implemented through sales manipulations, downward AEM and upward AEM.

Originality/value

This study suggests that the socioemotional wealth (SEW) differently affects the relationship between RPTs and EM, according to the form of the latter. It also points out family firms' heterogeneity in earnings manipulations, by providing evidence of the moderating role of board characteristics on the association between RPTs and the various forms of EM.

Details

Journal of Family Business Management, vol. 14 no. 1
Type: Research Article
ISSN: 2043-6238

Keywords

Open Access
Article
Publication date: 10 August 2023

Francesca Rossignoli, Andrea Lionzo, Thomas Henschel and Börje Boers

The aim of this paper is to analyse the role of communities of practice (CoP) as knowledge-sharing tools in family small and medium-sized enterprises (SMEs). In this context, CoPs…

Abstract

Purpose

The aim of this paper is to analyse the role of communities of practice (CoP) as knowledge-sharing tools in family small and medium-sized enterprises (SMEs). In this context, CoPs that jointly involve family and non-family members are expected to act as knowledge-sharing tools.

Design/methodology/approach

This paper employs a multiple case study methodology, analysing the cases of six small companies in different sectors and countries over a period of 8 years. Both primary and secondary data are used.

Findings

The results show the role CoPs play in involving family and non-family members in empowering knowledge-sharing initiatives. A CoP's role in knowledge sharing depends on the presence (or lack) of a family leader, the leadership approach, the degree of cohesion around shared approaches and values within the CoP, and the presence of multiple generations at work.

Originality/value

This paper contributes to the literature on knowledge sharing in family businesses, by exploring for the first time the role of the CoP as a knowledge-sharing tool, depending on families' involvement in the CoP.

Details

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

Keywords

Open Access
Article
Publication date: 9 October 2023

Jenny Ahlberg, Sven-Olof Yrjö Collin, Elin Smith and Timur Uman

The purpose of this paper is to explore board functions and their location in family firms.

Abstract

Purpose

The purpose of this paper is to explore board functions and their location in family firms.

Design/methodology/approach

Through structured induction in a four-case study of medium-sized Swedish family firms, the authors demonstrate that board functions can be located in other arenas than in the common board and suggest propositions that explain their distribution.

Findings

(1) The board is but one of several arenas where board functions are performed. (2) The functions performed by the board vary in type and emphasis. (3) The non-family directors in a family firm serve the owners, even sometimes governing them, in what the authors term “bidirectional governance”. (4) The kin strategy of the family influences their governance. (5) The utilization of a board for governance stems from the family (together with its constitution, kin strategy and governance strategy), the board composition and the business conditions of the firm.

Research limitations/implications

Being a case study the findings are restricted to concepts and theoretical propositions. Using structured induction, the study is not solely inductive but still contains the subjectivity of induction.

Practical implications

Governance agents should have an instrumental view on the board, considering it one possible governance arena among others, thereby economizing on governance.

Social implications

The institutional pressure toward active boards could paradoxically reduce the importance of the board in family firms.

Originality/value

The board of a family company differs in its emphasis of board functions and these functions are performed with varying emphases in different governance arenas. The authors propose the concept of kin strategy, which refers to the governance importance of the structure of the owner and observations on bi-directional governance, indicating that the board can govern the owners.

Details

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

Keywords

Open Access
Article
Publication date: 19 June 2019

Irina Röd

Family firms that simultaneously engage in multiple levels of innovation – incremental and radical – are likely to enjoy performance advantages across generations. The purpose of…

4333

Abstract

Purpose

Family firms that simultaneously engage in multiple levels of innovation – incremental and radical – are likely to enjoy performance advantages across generations. The purpose of this paper is to research under which management conditions (i.e. top management team (TMT) diversity in terms of generational or non-family involvement) family firms are more likely to achieve innovation ambidexterity. Also, the paper addresses the mediating role of open innovation (OI) breadth in this relationship.

Design/methodology/approach

A large cross-sectional sample of 335 small- and medium-sized family firms is used. The hypotheses were tested in a mediation model. The relationship between TMT diversity and ambidexterity is measured using a binominal regression analysis, the one between TMT diversity and OI breadth using a Tobit model.

Findings

Drawing on the family firm upper echelon perspective, the results indicate that TMT diversity induced through external managers and multiple generations is positively related to innovation ambidexterity. As the mediation analysis reveals, the relationship can be explained by the higher propensity of diverse TMTs to get involved in OI breadth. The findings add to the discussion on family firm heterogeneity and its influence on different kinds of innovation.

Originality/value

So far, few studies have been concerned with ambidextrous family firms. Contrary to their reputation, this study identifies family firms as radical as well as open innovators. As such, this research takes account not only of the heterogeneity of family firms, but also of the heterogeneity of family firm innovation.

Details

Journal of Family Business Management, vol. 9 no. 4
Type: Research Article
ISSN: 2043-6238

Keywords

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