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Article
Publication date: 26 March 2024

Kristin 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.

Details

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

Keywords

Article
Publication date: 19 July 2022

Khadija Mubarka and Nadine H. Kammerlander

Ownership structure plays a significant role in determining board demographic diversity. However, it is still unclear how different ownership configurations impact the structures…

Abstract

Purpose

Ownership structure plays a significant role in determining board demographic diversity. However, it is still unclear how different ownership configurations impact the structures of firm's boards and how board diversity influences firm performance. This study aims to investigate the relationship between family ownership and board diversity. Therefore, in this study, the authors argue that family firms have a lower level of board demographic diversity (in terms of age, gender and nationality) than non-family firms and that board diversity moderates the relationship between ownership and firm performance.

Design/methodology/approach

To test the authors’ hypotheses, we draw data from a sample of 341 German family and non-family firms for a period of five years.

Findings

The results show that family firms are less diverse in terms of age, gender and nationality diversity than non-family firms.

Originality/value

This study contributes to the general understanding of family firms and in particular the role ownership plays in shaping board demographic diversity.

Details

Journal of Family Business Management, vol. 13 no. 4
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 9 May 2023

Md Tariqul Islam, Shrabani Saha and Mahfuzur Rahman

The empirical study aims to examine the impact of board diversity with respect to gender and nationality on firm performance in an emerging economy. This research further splits…

Abstract

Purpose

The empirical study aims to examine the impact of board diversity with respect to gender and nationality on firm performance in an emerging economy. This research further splits the sample into family and non-family domains and investigates the diversity–performance nexus in isolation.

Design/methodology/approach

The sample consists of 183 listed companies in Bangladesh over the period 2007 to 2017. This study employed the generalised method of moments (GMM) technique to address the possible endogeneity issue in the governance–performance connection. To underscore the strength of diversity, three distinctive assessment measures were used: percentage representation of females and foreign directors, the Blau index and the Shannon index.

Findings

The results for the full sample models reveal that board heterogeneity regarding both female and foreign directors positively and significantly influences firm performance as measured by return on assets (ROA). Further to this, female directors in family-owned businesses have a positive association with profitability, whereas foreign nationals demonstrate a significant positive association with performance in non-family firms. Additionally, at least three women directors are needed to make a positive difference in profitability; however, a sole director with foreign nationality is capable of demonstrating a similar impact on performance.

Practical implications

The findings are significant for policymakers and organisations that advocate diversity on corporate boards of directors, and the minimum number of diverse board members needs to be considered depending on the identity to bring about a significant change in organisational outcome. Therefore, the findings of this study may be applied to other emerging economies with similar institutional characteristics.

Originality/value

This study reinforces the existing stock of knowledge on the impact of board diversity on the profitability of firms, especially in the context of an emerging economy – Bangladesh. Irrespective of the given backdrop, this study finds that both gender and nationality diversity in the case of Bangladesh is found to have a positive and significant effect on financial performance with respect to all the diversity metrics, i.e. the proportionate number of female and foreign directors on the boards, the Blau index and the Shannon index.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 29 January 2024

Yahya Skaf, Zouhour El Abiad, Hani El Chaarani, Sam El Nemar and Demetris Vrontis

This paper aims to examine how gender diversity and women’s empowerment influence the performance of family entrepreneurships and explores the role of firm characteristics as a…

Abstract

Purpose

This paper aims to examine how gender diversity and women’s empowerment influence the performance of family entrepreneurships and explores the role of firm characteristics as a moderating factor.

Design/methodology/approach

The study used a structured questionnaire as the survey tool to collect data from 91 women managers working in family entrepreneurships, which originated from entrepreneurial initiatives, located in various Lebanese regions. The validity of the construct was assumed using the fitness of extracted index, incremental fit-index, non-normal fit-index, root mean square of residuals and standard root mean square residual. Composite reliability, Cronbach's alpha and value confirmatory factor analysis were used to measure the internal consistency. Data were analyzed using the structural equation modeling method.

Findings

This study reveals that gender equality, education level and family support significantly affect women's empowerment while an insignificant association was found between empowerment and earning social status and achieving financial independence. This paper also showed a significant interaction between women’s empowerment and the performance of family entrepreneurships. Additionally, the results showed that women holding managerial positions in family entrepreneurships is positively associated with firm performance. Finally, it was concluded that the location of the family firm moderates the relationship between gender diversity and firm performance.

Originality/value

This research contributes to theory and practice regarding the role of women in family entrepreneurships and sheds light on gender differences influencing family entrepreneurships and women empowerment issues.

Details

Journal of Asia Business Studies, vol. 18 no. 2
Type: Research Article
ISSN: 1558-7894

Keywords

Article
Publication date: 1 June 2000

Suzan Lewis, Carolyn Kagan and Patricia Heaton

An area of diversity currently receiving attention is the large proportion of the workforce with commitments to care for a family. Many organisations have introduced “family

2151

Abstract

An area of diversity currently receiving attention is the large proportion of the workforce with commitments to care for a family. Many organisations have introduced “family friendly” policies including parental leave, childcare assistance and reduced hours of work. But this tends to focus on mothers of healthy, young children. The intense, long‐term needs of disabled children can severely stretch the provision organisations make for parents. This article presents an interview survey of parents with disabled children. It argues that, while many of the parents experience problems establishing a work‐home balance, these are partly caused by blocks within the wider community. Organisations can certainly reap benefits from making special arrangements for employees with disabled children but there are limits to corporate responsibility in relation to non‐work barriers. The article highlights the need for diversity initiatives to look beyond the workplace and incorporate aspects of the wider context in which organisations operate.

Details

Personnel Review, vol. 29 no. 3
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 5 July 2022

Ajab Khan, Mustafa Kemal Yilmaz and Mine Aksoy

The purpose of this study is to investigate the impact of board demographic diversity on the dividend payout policy in Turkish capital markets.

Abstract

Purpose

The purpose of this study is to investigate the impact of board demographic diversity on the dividend payout policy in Turkish capital markets.

Design/methodology/approach

Using a sample of 67 non-financial companies listed on Borsa Istanbul 100 index from 2013 to 2018, this study examines the influence of board demographic diversity on dividend payout policies in Turkish capital markets. The authors also create a Demographic Board Diversity Index (DBDI) to estimate the composite cognitive diversity. The authors use dividend payment probability, dividend payout ratio, and dividend yield to measure the dividend policy and employ panel logit and tobit regression models.

Findings

The results indicate that diversity in nationality, experience and educational background play an influential role in encouraging companies to pay high dividends, while gender, tenure and age diversity are insignificant in affecting dividend payments. The findings also suggest that the DBDI positively affects the companies in formulating the dividend payout policies. Finally, the findings show that the family-owned companies with diverse board members have a negative influence on dividend payment intensity.

Originality/value

The results offer valuable insights for companies and policymakers in emerging markets to develop a more refined governance structure accommodating board demographic diversity attributes to mitigate agency conflicts between controlling and minority shareholders through setting up effective dividend payout policies.

Details

EuroMed Journal of Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1450-2194

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…

4429

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

Book part
Publication date: 3 October 2015

Karin H. Spencer and Lorelei E. Pisha

This chapter details the use of the Diversity Teacher Belief Q-Sort (DTBQ) as a springboard to reflective conversations about work with diverse populations of children and their…

Abstract

This chapter details the use of the Diversity Teacher Belief Q-Sort (DTBQ) as a springboard to reflective conversations about work with diverse populations of children and their families. The DTBQ tool is provided and guidelines, including concrete suggestions and discussion prompts, are outlined to support the use of the DTBQ to facilitate reflection and to open discourse about beliefs and practices. Furthermore, suggestions are provided for using the tool to measure or assess change or shifts in teachers’ beliefs and practices.

Article
Publication date: 28 February 2023

Ali Amin, Ramiz ur Rehman and Rizwan Ali

This study examines the effect of lone founder and family ownership on borrowing cost. In addition, the study examines the moderating influence of gender diversity on this…

Abstract

Purpose

This study examines the effect of lone founder and family ownership on borrowing cost. In addition, the study examines the moderating influence of gender diversity on this relationship.

Design/methodology/approach

The study used a sample of non-financial firms listed on Pakistan Stock Exchange over the period 2012–2021. The authors used ordinary least squares regression analysis method to test the hypotheses along with generalized method of moments estimation technique to control for unobserved heterogeneity, simultaneity and dynamic endogeneity.

Findings

The authors report that borrowing cost is higher in lone founder ownership, whereas borrowing cost is lower in family firms due to lesser risks attached to such firms by lenders. Further, the presence of female directors on the board weakens this relation in the case of lone founder ownership, whereas their presence further reduces borrowing cost in family-owned firms. Additionally, using the framework of critical mass theory, the authors found that higher number of female directors on boards reduces borrowing cost. Overall, this study’s results provide empirical support for social identity and critical mass theories in the sample firms.

Originality/value

The study provides novel evidence of the influence of lone founder and family ownership on borrowing cost in an emerging economy, as well as the moderating effects of gender diversity on this relationship.

Details

International Journal of Manpower, vol. 44 no. 5
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 20 April 2023

Amaia Maseda, Txomin Iturralde, Gloria Aparicio and Sarah Y. Cooper

This study aims to underline the importance of addressing gender issues in family firms. It reinvigorates research in this field by revealing its current state, identifying…

Abstract

Purpose

This study aims to underline the importance of addressing gender issues in family firms. It reinvigorates research in this field by revealing its current state, identifying research gaps and suggesting future agendas.

Design/methodology/approach

A bibliometric approach using a co-word analysis of 376 papers from the Web of Science database and their 885 keywords was performed to reveal the thematic structure of gender and family firm research, research topics, associations among them and their evolution over the last 30 years (1991–2021).

Findings

This review provides an extensive literature base and suggests research topics that facilitate the adoption of a gendered lens in family firm literature and business practice.

Research limitations/implications

This review demonstrates how gender issues are intertwined with management, leadership and family firm approaches. Our observations inform scholars, policymakers and practitioners on the need to integrate gender issues into organizational culture and to connect empowerment strategies with the sociocultural environment.

Originality/value

This study shows the need to address women’s empowerment in business, considering different sociocultural contexts in addition to a Western focus. It also calls for embracing gender and feminist perspectives in research.

Details

Gender in Management: An International Journal , vol. 38 no. 8
Type: Research Article
ISSN: 1754-2413

Keywords

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