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Article
Publication date: 23 May 2022

Xuemei 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…

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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.

Details

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

Keywords

Article
Publication date: 8 April 2021

Zonghui Li and Douglas Johansen

Drawing on the resource-based view, this study aims to examine how family involvement in migrant-founded small businesses gives rise to distinctive resources that help these…

Abstract

Purpose

Drawing on the resource-based view, this study aims to examine how family involvement in migrant-founded small businesses gives rise to distinctive resources that help these businesses survive.

Design/methodology/approach

Using microdata from the 2007 US survey of business owners (SBO), this study uses logit regression modeling to test the hypothesized relationships.

Findings

Results show that small businesses founded by migrant entrepreneurs are less likely to survive and that family involvement weakens the negative relationship between founder migrant status and business survivability. In addition, the positive moderating effect associated with family involvement is further strengthened by the use of external/borrowing startup capital, thus migrant families founded small businesses with access to external capital have the highest probability of survival.

Originality/value

This study contributes to the literature on both migrant entrepreneurship and family business. This paper finds family involvement in the business, interacting with the founder’s migrant status, tends to create distinctive resource endowments that help to compensate for the resource constraints associated with migrant entrepreneurs. Such resource endowments may take the form of high levels of solidarity among migrant family members and the spanning role of the migrant kinship networks extended from the country of origin to the country of residence.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 17 no. 1
Type: Research Article
ISSN: 1750-6204

Keywords

Article
Publication date: 2 March 2021

María Comino-Jurado, Sonia Sánchez-Andújar and Purificación Parrado-Martínez

This paper examines how differences in the family involvement in a family business can influence its level of indebtedness. Assuming the influence of family is not the same for…

Abstract

Purpose

This paper examines how differences in the family involvement in a family business can influence its level of indebtedness. Assuming the influence of family is not the same for all family firms, we consider each company as a combination of the family involvement in three dimensions of the business: ownership, management and governance structure.

Design/methodology/approach

Using the partial least squares technique allows us to address the heterogeneity of family firms through an integral concept of family involvement in business that jointly considers the level of family participation in the ownership, management and governance structure of each firm.

Findings

Our results demonstrate that the level of family involvement in a family firm, considering the heterogeneity existing within the family business group, directly influences its level of indebtedness. In addition, we find that family involvement in ownership and governance structures individually considered are positively related to the level of indebtedness of the family business.

Originality/value

Our findings prove that some indebtedness patterns, which previous literature has described as common to all Spanish family businesses, may actually be valid only for specific family firms with a particular level of family involvement. In addition, the way of measuring family business heterogeneity through our integral concept of family involvement can be replicated by other authors because of the manageability of the items, thus contributing to an increased understanding of the effects of family involvement in firms' development.

Details

Management Decision, vol. 59 no. 12
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 25 October 2019

Rawa Alwadani and Nelson Oly Ndubisi

Family centered non-economic (FCNE) goals, such as environmental and social goals, are sometimes strenuous to “sell” to non-family members in a family business, and are often open…

Abstract

Purpose

Family centered non-economic (FCNE) goals, such as environmental and social goals, are sometimes strenuous to “sell” to non-family members in a family business, and are often open to resistance. The purpose of this paper is to identify socio-psychological mechanisms for achieving FCNE goals because, in addition to economic goals, they are the other two components of the triple bottom line.

Design/methodology/approach

Through a juxtaposition of the literature on family businesses, and the theories of mindfulness and psychological ownership, this paper argues for the facilitating roles of family involvement and mindful organizing in the achievement of FCNE goals. An example of how a Kuwaiti oil company implements these ideas is appended.

Findings

A moderated link between family involvement, mindful organizing and FCNE goal of environmental sustainability. Besides its direct effect on environmental sustainability, mindful organizing also has a potential mediating role in the relationship between family involvement and environmental sustainability. Psychological ownership, environmental sensitivity and individual mindfulness will moderate the relationship between mindful organizing and the achievement of environmental sustainability goals.

Research limitations/implications

The paper presents ten propositions and argues that three types of family involvement (ownership, management and inter-generational), together with non-family engagement (through mindful organizing) would lead to success in achieving the FCNE goal of environmental sustainability. Psychological ownership, environmental sensitivity and individual mindfulness are potential moderators.

Practical implications

The paper suggests some key drivers of FCNE goal of environmental sustainability as well as several contingent factors. Applicable to family businesses, owners and/or managers of similar firms can apply knowledge from this study in the pursuit of environmental sustainability.

Originality/value

The paper’s model advances the current understanding of the link between family involvement, mindful organizing, environmental sustainability, psychological ownership, environmental sensitivity and individual mindfulness in the context of family business. The paper further suggests new future research directions.

Details

International Journal of Manpower, vol. 41 no. 7
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 1 April 2020

Shabir Ahmad, Rosmini Omar and Farzana Quoquab

The objective of this research is to investigate the influence of family involvement in business and innovation capability on sustainable longevity of family firms.

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Abstract

Purpose

The objective of this research is to investigate the influence of family involvement in business and innovation capability on sustainable longevity of family firms.

Design/methodology/approach

Data collected from 553 executives of 200 family firms that survived to the second generation and beyond was analyzed using partial least square (PLS) approach of structural equation modeling (SEM) to test the hypotheses and validate the model.

Findings

The results provided evidence of the significant influence of family involvement in business on sustainable longevity of family firms and partial mediation of innovation capability between family involvement in business and corporate sustainable longevity.

Research limitations/implications

The sample included family firms owned and governed by the owner family. The future researchers may focus on professionally managed or publicly listed family firms.

Practical implications

The path to family firms' sustainable longevity goes through innovation capability apart from effective family control, succession, commitment to the business and family enrichment. That requires the family firm to be proactive in innovation capability.

Originality/value

Family firms are the dominant form of business representing around 80% of global business structure that strives for survival and consistently pursues sustainable longevity strategies. In the current globally competitive environment, innovation capability has become a matter of life and death for any firm. Based on the transaction cost economics (TCE) theory of family firms, this study proposes an integrative model of sustainable longevity for family firms.

Details

Journal of Family Business Management, vol. 11 no. 1
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 12 November 2020

Erny Rachmawati, Suliyanto and Agus Suroso

This study aims to determine the direct effect of entrepreneurial orientation on family business performance. This study also discusses the role of family involvement as a…

1369

Abstract

Purpose

This study aims to determine the direct effect of entrepreneurial orientation on family business performance. This study also discusses the role of family involvement as a mediating variable and the role of gender as a moderating variable in the relationship between entrepreneurial orientation and family business performance.

Design/methodology/approach

A total of 328 hotels in Yogyakarta, Indonesia, were selected as samples by the convenience sampling method. Primary data is collected through structured questionnaires that are delivered by themselves to key people in the hotel such as owners, directors and key staff (HRD, financial, relationship). Hypotheses are tested by structural equation modeling procedures using AMOS 22.0. Sobel test is used to determine the indirect effect of the mediation variable.

Findings

The results showed that entrepreneurial orientation had no significant effect on family business performance. Family involvement acts as a full mediation in the relationship between entrepreneurial orientation and family business performance. Gender acts as a moderating variable that can strengthen the relationship between entrepreneurial orientation and family business performance. The results showed support for previous research.

Research limitations/implications

The results of the study cannot conclude the national family business because it adopts convenience sampling and the sampling area is limited in Yogyakarta. Future research can use a larger sample. This study only researches hotels managed by family businesses, so it is not feasible to conclude for family businesses in general. Future research may choose to use several types of family businesses so that more varied results can be obtained. Future research could also compare hotels managed by family businesses with non-family businesses. The results also found that in addition to gender roles, respondent heterogeneity was an important component in the study of social identity. Therefore, research examining the influence of different cultures on the relationship between entrepreneurial orientation and family business performance should be an extraordinary topic for future study. Other results from this study also indicate that there is a role for religion in improving hotel performance. Future research is needed to further explore Islamic business modeling for family businesses.

Practical implications

This finding has significant implications that can help family businesses in developing strategies that are suitable for business management. Entrepreneurial orientation occupies a strategic position in developing sustainable competitive advantage in the family business of the tourism sector especially the hotel business in Yogyakarta for the better. Besides, the results of the study also showed that entrepreneurial orientation had no significant effect on performance. This relationship becomes significant when combined with active family involvement. This finding also shows that entrepreneurial orientation has the potential to have a more beneficial effect because of the active involvement of the family in helping with business management, alleviating business-related problems, and having a significant influence when the family also acts as management.

Social implications

Research findings indicate the role of gender in strengthening the relationship between entrepreneurial orientation and family business performance. This provides a good position for women in the social environment to show achievement. To place women on the side of gender equality and justice in the family business in Indonesia. By opening wider access for Indonesian women in the realm of business management, expanding women's participation in a family business, increasing the role of control for women, and increasing women's knowledge and skills to increase the benefits in managing family businesses so that they have sustainable resilience in the face of global competition.

Originality/value

The results of this study provide a new model in providing an overview of the direct and indirect roles (mediating and moderating) in the assessment of family business performance. This study uses three variables which are important in performance appraisal, namely entrepreneurial orientation (independent variable), family involvement (mediating variable) and gender (moderating variable). Where research that combines these four variables, directly and indirectly, has never been done before.

Details

Journal of Family Business Management, vol. 12 no. 2
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 9 April 2019

Yu Zhou, Wenwen Zhao and Xueqing Fan

The purpose of this paper is to examine whether, how and when new venture creation progress (NVCP) affects work-to-family conflict (WFC) by introducing coping behavior strategies…

Abstract

Purpose

The purpose of this paper is to examine whether, how and when new venture creation progress (NVCP) affects work-to-family conflict (WFC) by introducing coping behavior strategies as mediators, entrepreneurs’ prior experience and family involvement in business as moderators.

Design/methodology/approach

This study performs multivariate regression analysis based on a sample of 260 nascent entrepreneurs from the Chinese Panel Study of Entrepreneurial Dynamics.

Findings

This study reveals that an entrepreneur’s WFC tends to increase along with the growth of the new venture. Specifically, NVCP impels entrepreneurs to adopt reactive role behavior strategy and meet both entrepreneurial and family demands; meanwhile, NVCP propels entrepreneurs to adopt prioritizing entrepreneurship behavior strategy for the increasing work demands, thus leading to more WFC; the mediation effect of prioritizing entrepreneurship behaviors is stronger than that of reactive role behaviors, which leads to an overall positive main effect. Moreover, the preceding mediating paths are moderated by entrepreneurs’ prior experience and family involvement.

Research limitations/implications

First, the authors have investigated how NVCP influenced WFC. However, the authors did not extend the research to the possible effect of WFC on entrepreneurial performance. Second, in the work-family-conflict literature, unmarried and those without children are often excluded since their private life demands differ significantly from parents’ demands. Although the authors control for marital status in the model, the number of children is still left uncontrolled. Furthermore, the authors only used the first two waves of data, leading to a potential selection bias. In addition, the Chinese context may have influenced the generalizability of the results in a complex manner.

Practical implications

This paper indicates that reactive role behavior strategy will decrease WFC, while prioritizing entrepreneurship behavior strategy will increase WFC. Therefore, the authors suggest entrepreneurs adopt more reactive strategy to reduce WFC. Besides, both prior experience and family involvement strengthen the relationship between NVCP and prioritizing entrepreneurship behavior strategy, thereby leading to more WFC. Therefore, entrepreneurs with prior experience and family involvement should pay more attention to their roles in family. Furthermore, entrepreneurs with family involvement can try to segment the entrepreneurship-family boundary psychologically. For example, entrepreneurs can avoid business talking with families but show concerns for them at rest time.

Social implications

WFC has been found negatively related to individual health and well-being. And entrepreneurs experienced even more WFC than employees in established organizations. Therefore, it is of great importance to focus on the topic of reducing entrepreneurs’ WFC. This research indicates that entrepreneurs can experience less WFC by choosing reactive role behavior strategy. Prior experience and family involvement can induce them to be more attached to new venture creation. This research provides practical suggestions and reminders for entrepreneurs.

Originality/value

This mediated moderation model elaborates whether, how and when NVCP affects WFC, thereby contributing to the knowledge of entrepreneurship-family interface and enlightening nascent entrepreneurs about balancing their start-up responsibilities with their family life.

Details

Management Decision, vol. 58 no. 6
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 28 August 2019

Valeriano Sanchez-Famoso, Myriam Cano-Rubio and Guadalupe Fuentes-Lombardo

This study aims to identify the mediating role of cooperation agreements in the relationship between family involvement in international firms and their level of international…

Abstract

Purpose

This study aims to identify the mediating role of cooperation agreements in the relationship between family involvement in international firms and their level of international commitment.

Design/methodology/approach

The study focuses on Spanish international wine and olive oil companies that have varying levels of family involvement. The final sample consists of 263 companies. SmartPLS was used to perform the analysis.

Findings

A higher level of family involvement in business implies greater difficulties with cooperation agreements. Additionally, family involvement is negatively associated with the firm’s level of international commitment, and the perceived difficulties of cooperation agreements mediate this relationship.

Practical implications

This study is of interest to business managers with different levels of family involvement. The study clarifies their perceptions of cooperation agreements and international business commitment. Managers of firms with a high level of family involvement should emphasize the multiple benefits of cooperation agreements for international strategy performance rather than the drawbacks of cooperation. Additionally, through cooperation, companies can learn about destination markets, which may help them to focus their resources effectively in those markets.

Originality/value

This study contributes to the literature on the internationalization strategies of family businesses. This study is the first to address the mediating role of cooperation agreements in the relationship between family involvement and international commitment.

Details

International Journal of Wine Business Research, vol. 31 no. 4
Type: Research Article
ISSN: 1751-1062

Keywords

Article
Publication date: 5 May 2022

Georges Samara, María Jose Parada and Ramzi Fathallah

The purpose of this study is to explore the drivers for proactive workplace social performance in family firms through a configurational approach. Comparative research on family

Abstract

Purpose

The purpose of this study is to explore the drivers for proactive workplace social performance in family firms through a configurational approach. Comparative research on family versus non-family firms and workplace social performance has produced mixed results. Consequently, several calls have been made to account for family business heterogeneity to understand better how family involvement in the business affects the workplace social performance. The authors respond to these calls by exploring the governance antecedents that can catalyze family firms’ workplace social performance.

Design/methodology/approach

Using qualitative comparative analysis, the authors analyze 131 family firms from the STEP survey data.

Findings

The authors find two governance configurations that lead to better family business workplace social performance. The first configuration is the combination of 100% family ownership, high family involvement in management and a mix of outside directors and family members on the board. The second configuration is the combination of less than 100% family ownership and low family involvement in management.

Originality/value

The study builds on and extends the nascent work suggesting the integration of agency and stewardship theories. The authors show that these two theoretical approaches are able to not only coexist, but that they can also be complementary in helping to understand the unique workplace social behaviors of family firms.

Open Access
Article
Publication date: 16 September 2022

Virginia Blanzo-Mazagatos, Juan Bautista Delgado-García and Jesús P. Barrero

The study aims to analyze for the Spanish context the influence of the involvement of several generations in the firm's management on family firm internationalization. The authors…

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Abstract

Purpose

The study aims to analyze for the Spanish context the influence of the involvement of several generations in the firm's management on family firm internationalization. The authors also respond to the call in the literature to consider the influence of SEW on family firm internationalizations by analyzing the moderating effect of the importance family managers attach to each of the socioemotional wealth (SEW) dimensions – enrichment, continuity and prominence on the relationship between multiple generations involved in management and family firm internationalization.

Design/methodology/approach

The information was obtained by means of a questionnaire sent to the CEOs of family businesses. The authors’ sample consists of 147 Spanish family firms.

Findings

The authors find that the involvement of multiple generations in management is positively related to the internationalization of family firms. Furthermore, the importance that family CEOs attribute to the enrichment dimension of SEW reduces the intensity of the effect of the involvement of several generations in management on family firm internationalization.

Originality/value

The authors’ results, for the Spanish context, complement previous studies (Meneses et al., 2014) showing that the entry of new generations into the family business opens a window of opportunity for the internationalization of the family business. Furthermore, their study shows that the diverse family objectives by CEOs can have different, even conflicting effects on the internationalization decision. These results suggest that the enrichment dimension, which focuses on the short-term family goals may restrain the internationalization of the family business. However, continuity and prominence dimensions, which are related with long term family objectives and jointly enable the fulfillment of nonfamily stakeholders’ objectives, do not influence the internationalization of the family firms analyzed.

Details

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

Keywords

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