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Article
Publication date: 20 April 2012

Vipin Gupta and Nancy Levenburg

The purpose of this paper is to investigate the varying ideologies guiding the cultural dimensions of family business and to examine the cultural sensitivity of these…

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Abstract

Purpose

The purpose of this paper is to investigate the varying ideologies guiding the cultural dimensions of family business and to examine the cultural sensitivity of these varying ideologies.

Design/methodology/approach

The research relies upon the CASE framework of nine cultural dimensions of family business. First, the literature pertaining to varying ideologies associated with each of the family business cultural dimensions is reviewed to form a conceptual analysis. Second, hypotheses are generated regarding the anticipated relationships between the two major dimensions of societal culture (power distance and in‐group collectivism) and the nine family business cultural dimensions. Data from the GLOBE program and the CASE project are then used to conduct non‐parametric tests.

Findings

The nine family business dimensions are shown as ideologies intersecting three systems of family business (family, business and social) and three social interaction elements (structural, relational and cognitive). Empirical support is found for the cultural sensitivity of the family business dimensions, in terms of the two major societal culture characteristics (power distance and in‐group collectivism).

Originality/value

This work provides insights into a broader conceptualization of family business in an increasingly global context. By virtue of the cultures in which they are formed, nurtured, and grow, family firms are influenced by a number of ideologies. Ideological differences – both quantitative and qualitative – mean that the forms and formats of family businesses also differ, as a reflection of their ideological and cultural underpinnings. In particular, it is useful to consider how family businesses differ, depending on their proportional support for the family, business and social system ideologies.

Details

Journal of Family Business Management, vol. 2 no. 1
Type: Research Article
ISSN: 2043-6238

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Article
Publication date: 1 January 2009

Josiane Fahed‐Sreih

The purpose of this paper is to explore relationships between different governance configurations and firm survival. The objective is to describe the alternative…

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2212

Abstract

Purpose

The purpose of this paper is to explore relationships between different governance configurations and firm survival. The objective is to describe the alternative mechanisms through which the owning family takes a stake in the governance of the firm.

Design/methodology/approach

The governance systems of 116 family enterprises in Lebanon are examined. The study integrates family, ownership, leadership and the business itself constituting the four structural elements of a family firm's governance system. Then, the study tests four hypotheses whether the family, the ownership, the leadership and the business dimensions influence positively firm survival/longevity. The other hypotheses tested concern the advisory services and the legal form of the board, and how that might affect the survival/longevity of the family firm.

Findings

This integrative view allows observation of interactions among the different structures, and the establishment of a coordinating governing structure. Hypotheses testing results show that family, leadership and business dimensions have an impact on the performance/survival of the firm, whereas the ownership dimension has no effect.

Research limitations/implications

Limitations of this paper relate to the relatively small size of the sample, and the sampled firms are young and small according to international standards. The study also suffers from common method bias and external validity.

Practical implications

The proposed framework allows the establishment of a governance structure, for control and co‐ordination. Ownership should be integrally separated from the other dimensions in the governance of a family firm to be able to achieve fairly good performance and ensure the survival and longevity of the firm.

Originality/value

No other studies have been conducted on Lebanon. Moreover, the study integrates the four governance mechanisms developed by Klein which was not done previously.

Details

Management Research News, vol. 32 no. 1
Type: Research Article
ISSN: 0140-9174

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Article
Publication date: 12 June 2019

Mohammad Rezaur Razzak, Raida Abu Bakar and Norizah Mustamil

Socioemotional wealth (SEW) has emerged as a defining concept that distinguishes family-owned business organizations from businesses that are not exclusively controlled by…

Abstract

Purpose

Socioemotional wealth (SEW) has emerged as a defining concept that distinguishes family-owned business organizations from businesses that are not exclusively controlled by family coalitions. This empirical study expands the literature by presenting a more nuanced understanding of how individual dimensions of socioemotional wealth interacts with firm performance outcomes. Deploying the stakeholder theory, the purpose of this study is to propose a research model linking the five dimensions of SEW with firm performance to propose and test a set of hypotheses.

Design/methodology/approach

To test the hypotheses, data were collected through a survey of 357 medium-to-large private family firms in Bangladesh that were involved in export-oriented production of ready-made garments. Based on structural equation modeling, the data were analyzed using SmartPLS.

Findings

The results indicate that out of the five dimensions of SEW, three dimensionsfamily identification, emotional attachment and renewal of bonds through dynastic succession – have a positive and significant impact on firm performance. On the other hand, family control and influence have a significant but negative impact on firm performance. The only exception is in the case of binding social ties, which indicate a non-significant relationship.

Research limitations/implications

By attempting to provide a clearer and predictable link between family-centric non-economic goals and firm-centric business goals, the study contributes to theory building and attempts to address the conflict in the literature in the study of family involvement in management and performance of the business enterprise.

Practical implications

For industry practitioners and family business owners, it could provide guidance on which family-centric goals would maximize benefits to the firm and address the family-based utilities. Future strategic plans aimed at growth and sustainability of family firms can derive important clues from the findings of this study and design actionable goals that leverage those dimensions of socioemotional wealth that have a positive impact on firm performance.

Social implications

Social implications of ensuring survival of family businesses are significant because of their role as one of the largest sources of employment generation in most societies. Policymakers and regulatory authorities would be able to frame customized initiatives to foster growth and sustainability of family enterprises that have such large impact on the economy.

Originality/value

Theoretical contribution of the study comes from a more nuanced understanding of relationships between the individual dimension of SEW and firm performance, which will delineate a more consistent and predictable link between family-centric goals and firm-level outcomes. From the perspective of practical contribution, this may provide useful guidelines to industry practitioners and policymakers to frame initiatives that enable growth and sustainability of family firms that are typically the largest employment generators in most economies.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 11 no. 3
Type: Research Article
ISSN: 2053-4604

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Article
Publication date: 6 July 2021

Mehdi Tajpour, Aidin Salamzadeh, Yashar Salamzadeh and Vitor Braga

The purpose of this paper is to investigate social capital's effect on family business development in selected family media firms.

Abstract

Purpose

The purpose of this paper is to investigate social capital's effect on family business development in selected family media firms.

Design/methodology/approach

The statistical population includes 100 individuals who run a family business in this industry. Eighty individuals are selected as the research sample through the stratified random sampling method. The data are collected using a questionnaire. The authors used structural equation modelling method for data analysis.

Findings

The results indicate that social capital affects the development of family businesses in media firms. According to the results obtained from the structural equation test, the effect of the relational dimension of social capital on trust and the effect of the cognitive and structural dimensions of social capital on trust are supported, while the effect of the relational dimension of social capital on commitment as well as the effect of the cognitive dimension of social capital on trust are not supported.

Practical implications

This research could help family firms in media industries improve trust and commitment by paying attention to different aspects of social capital. Besides, it shows that even the impact of relational and cognitive social capital, respectively, on commitment and trust, are not supported; these two could affect trust and commitment, respectively.

Originality/value

The paper is among the first studies that investigate family firms in media industries. Besides, the relationships between relational, cognitive and structural aspects of social capital and trust and commitment are rarely studied in the literature as two determinants of family business development.

Details

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

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Book part
Publication date: 28 August 2020

Xileidys Parra, Xavier Tort-Martorell, Fernando Alvarez-Gomez and Carmen Ruiz-Viñals

Rational use of the information available to companies is one of the strategic concerns for both family businesses and non-family businesses. The aim is to make the best…

Abstract

Rational use of the information available to companies is one of the strategic concerns for both family businesses and non-family businesses. The aim is to make the best use of the information resulting from data analysis in order to gain strategic advantage and to be more competitive as a company in all its functional areas. Experience indicates that emotions play an important role, especially in family businesses. Many maturation models exist to analyze decision-making processes (DMPs), but none from the perspective of family business cognition. The authors start from their own “Circumplex Hierarchical Representation of Organisation Maturity Assessment” (CHROMA) model (Parra, Tort-Martorell, Ruiz-Viñals, & Alvarez-Gomez, 2017), which was created to support decision processes in family businesses. This model was proven successful in the analysis of DMPs in large family businesses. The model was simplified as CHROMA-SHADE (Parra, Tort-Martorell, Ruiz-Viñals, & Alvarez-Gomez, 2019), more adequate for the analysis of small and medium-sized family businesses. Despite being a good DMP analysis instrument, intangible aspects such as family values and emotions have not yet been included. Both entrepreneurial emotions and entrepreneurial cognition must be taken into account when analyzing the DMP of the family business. In this chapter, the authors wish to explore attributes that can be introduced into a new dimension in the CHROMA model in order to make it more specific in the analysis of DMPs of family businesses regardless of size. The resulting FAMILY-CHROMA model represents a specific maturation model to evaluate DMPs based on the use of business information of family businesses.

Details

The Entrepreneurial Behaviour: Unveiling the cognitive and emotional aspect of entrepreneurship
Type: Book
ISBN: 978-1-78973-508-6

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Article
Publication date: 1 September 2020

Mengyun Wu, Martha Coleman, Abdul Rashid Abdul Rahaman and Bless Kofi Edziah

Succession of family enterprises has been an issue of concern to a number of researchers, and extensive studies have been conducted on this. Transfer of family business

Abstract

Purpose

Succession of family enterprises has been an issue of concern to a number of researchers, and extensive studies have been conducted on this. Transfer of family business from one generation to next has resulted in collapse of most family business in both developed and developing economies. This study looked at succession in family enterprise in Ghana using theory of planned behaviour (Ajzen, 1991) and cognitive dimension of social capital theory to know the intention of founder/incumbent to hand over the family business to an internal successor.

Design/methodology/approach

Our target population for this study is family businesses run in Ghana, Western region. Ghana is not having statistical database on family businesses; therefore, the study relied on the database of registered SMEs which was gotten from Registrar General's Department, Ghana. This is the government department that is in charge of registering business in Ghana. A sample of 596 was used and received a response rate of 60%. The study used structural equation model to find out how the variables correlate to discover the intention of the founder/successor on internal succession.

Findings

It was discovered that intention of founder/incumbent to hand over to an internal successor is predominantly determined by attitude, subjective norm, perceived behavioural control and cognitive dimension of the social capital. Trust does not influence the intention of founder/incumbent but attitude; this rejects the findings of most researchers.

Research limitations/implications

Most family enterprises were not registered, which made it difficult to reach out to all family businesses. This limited the authors approach to only the registered family enterprises.

Practical implications

Family firms are the backbone of any economy, which comprise mostly of SMEs. Therefore, the understanding of succession by incumbents/founders as well as policymakers enhances firms' value and continuity.

Originality/value

The study was conducted in Africa, Ghana in particular, owing to the limited studies in this region.

Details

Journal of Small Business and Enterprise Development, vol. 27 no. 6
Type: Research Article
ISSN: 1462-6004

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Article
Publication date: 31 December 2021

Michela Floris, Michela Marongiu, Cinzia Dessi and Angela Dettori

This study investigates the relationship between Total Quality Management (TQM) and internationalization in small family firms, focusing on the role that the dimensions of…

Abstract

Purpose

This study investigates the relationship between Total Quality Management (TQM) and internationalization in small family firms, focusing on the role that the dimensions of TQM may have as strategic resources to implement successful internationalization strategies.

Design/methodology/approach

Building on the Resource-Based View (RBV), the study is based on a single case study, and data were gathered through in-depth interviews with the family owner-manager.

Findings

Findings show that small family businesses that aim to operate in international markets have to invest constant attention toward TQM by developing strategies able to achieve excellence. More in detail, for small and medium family firms, TQM represents a driver to internationalize. Therefore, family-owned managers sustain that internationalization success depends on the increasing attention exhibited toward the following dimensions of quality, specifically on three main pillars: relationships, professionalization and long-term vision, which appear to be strategic resources in international markets. An interpretive model is proposed with a set of propositions.

Research limitations/implications

Scholarly implications are threefold. First, findings contribute to the RBV theory by introducing the long-term vision as a strategic resource able to activate a loop between TQM and internationalization success. Second, results contribute to TQM literature, highlighting that it represents a driver to internationalize, and following a long-term perspective, its enhancement is stimulated by internationalization. Third, findings contribute to family business studies, underlining the relevance done of owners on professionalization as a strategic resource to ensure excellence and obtain success in overseas markets. The main drawback refers to the fact that results stemmed from one single case study. Further studies could deepen the analysis on multiple cases.

Practical implications

The proposed case study represents a best practice and can stimulate other entrepreneurs and consultants to invest in TQM to thrive internationalization strategies.

Originality/value

The current study, elucidating that TQM is the driver to stimulate family business internationalization, proposes an interpretive model to study TQM and internationalization in small and medium family firms.

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: 9 August 2021

Md Imtiaz Mostafiz, Mathew Hughes and Murali Sambasivan

The purpose of this study is to test the thesis that the family firm’s success hinges on effective strategic knowledge management (SKM) capability coupled with an…

Abstract

Purpose

The purpose of this study is to test the thesis that the family firm’s success hinges on effective strategic knowledge management (SKM) capability coupled with an entrepreneurial orientation (EO). Contingency theory holds that entrepreneurial success is contingent on strategic capabilities and resource orchestration theory explains how well family firms nurture capabilities to structure, bundle and leverage resources that define competitive advantage (CA). This study combines these two theoretical viewpoints to propose the effects of EO and SKM capability on CA to achieve successful performance in family firms.

Design/methodology/approach

This study uses a hybrid approach applying structural equation modelling (SEM) and deep-learning artificial intelligence (DL-AI) analysis to survey data on 268 Malaysian family firms.

Findings

SEM results confirm that CA mediates the relationship between innovativeness, proactiveness and risk-taking dimensions of EO and firm performance. Autonomy and competitive aggressiveness have no bearing, however. The relationships among innovativeness, proactiveness and risk-taking with CA and performance are positively moderated by SKM capability, becoming more potent at higher levels. Moreover, four additional DL-AI models reveal the necessity of specific EO dimensions and the interacting effects of EO–SKM capability to influence CA and to attain performance success subsequently.

Originality/value

This study theorizes and presents two new boundary conditions to a knowledge-based theory of the family firm and its firm performance. First, CA mediates the relationship between EO and performance; and second, SKM capability moderates the relationships between EO and CA and between EO and family firm performance. Methodologically, this study uses DL-AI to embrace non-linearity and prioritize predictor variables based on normalized importance to produce greater accuracy over regression analysis. Hence, DL-AI adds methodological novelty to the knowledge management and family firm literature.

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Article
Publication date: 30 May 2018

Wassim J. Aloulou

The purpose of this paper is to contribute to family firm and entrepreneurship literature by providing an examination of how family involvement in management (FIM…

Abstract

Purpose

The purpose of this paper is to contribute to family firm and entrepreneurship literature by providing an examination of how family involvement in management (FIM) moderates the relationship between entrepreneurial orientation (EO)’s dimensions and family firm performance (FFP).

Design/methodology/approach

Through a survey study, the research was developed using a sample of 175 family firms in Saudi Arabia to test the proposed hypotheses using hierarchical linear regression.

Findings

The findings revealed a strong positive and significant linkage of proactiveness and FIM with FFP, but, no significant relationship between innovativeness and risk-taking with FFP. However, when FIM contingencies were hypothesized, a new significant influence from the interaction between risk-taking and FIM on FFP was found.

Research limitations/implications

The main limitation lies in the fact that it is not possible to claim generalization of findings to family firms in other emerging or transitional countries as the research is focused on Saudi family firms. Theoretical and practical implications are discussed in order to produce new knowledge on EO of family firms and to help these firms not consider FIM as an impediment to the development of resources and capabilities necessary to the promotion of entrepreneurial activities within their operations.

Originality/value

There is a contribution to the literature on EO by showing that EO construct and its dimensions have great generality within family firms in a transitional context.

Details

Journal of Family Business Management, vol. 8 no. 2
Type: Research Article
ISSN: 2043-6238

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Book part
Publication date: 8 July 2010

Vipin Gupta and Nancy Levenburg

Family businesses must be examined within the cultural contexts in which they are bred, nourished, and grown. According to Chrisman, Chua, and Steier (2003), family

Abstract

Family businesses must be examined within the cultural contexts in which they are bred, nourished, and grown. According to Chrisman, Chua, and Steier (2003), family businesses are launched for reasons other than the desire for dollars and cents (or rupees and yen). In fact, the authors note, “Family businesses… bring together so starkly the economic and non-economic realities of organizational life…” (2003, p. 442). Calls for family business research that extend beyond traditional geographical boundaries to include global comparisons have been issued by Hoy (2003) and others. Fortunately, recent developments in cultural assessment and measurement methodology have provided tools to enable a better understanding of families and family businesses vis-à-vis the use of regional clusters and comparative lenses (Gupta & Hanges, 2004). Gupta and Hanges (2004) note three clusters of the Catholic ethic: Southern (or Latin) Europe, Latin America, and Eastern Europe. As shown in Table 1, more than three-fourths of the population in these clusters follows the Catholic faith. In this study, we examine the spirit of family business in these three clusters.

Details

Entrepreneurship and Family Business
Type: Book
ISBN: 978-0-85724-097-2

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