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Experience suggests that a loss of trust may occur on both sides of the merger and acquisition (M&A) equation – acquirer and acquiree – though the latter is more generally considered the most affected. The purpose of this paper is to explore how a loss of trust during the M&A process in family firms can be avoided. An acquisition potentially triggers a loss of trust in the workplace and, as a result, a loss of productivity thereby causing the merged business to totter. Moreover, trust in a firm’s owner tends to be a key driver in merging family firms.

The authors investigated an expanding German family firm that recently acquired other family firms. They conducted in-depth interviews on all hierarchical levels in both the acquiring and the acquired firm. These cases are taken from a wider study of acquiring family firms completed in 2019.

Value congruence, integrity and openness are found to enhance trust during M&As, in particular, if the new owner of a merged enterprise is also a family entrepreneur. Under certain circumstances, the trust of employees in the acquired firm’s previous owner can be transferred to the new owner.

This study explores how specific circumstances of family firms impacts organizational trust in M&A processes. The developed framework helps family firms to use characteristics of their specific nature as an asset to maintain their employees’ organizational trust before, during and even after M&As.

Drawing on mindfulness theory, this study attempts to gain insights into whether leader-mindfulness (LM) influences workplace cynicism (WPC) among non-family employees (NFEs) working in small and medium-sized private family firms. Furthermore, the study leverages the self-determination theory to examine if the above relationship is mediated by the belongingness of the NFEs to the organization and leader–member exchange quality (LMXQ).

A conceptual framework with a set of hypotheses is developed. Using cross-sectional survey data collected from 376 NFEs working in small and medium-sized private family firms in Oman, the hypotheses are tested using structural equation modeling that was analyzed through PLS-SEM.

The results indicate that LM influences WPC both directly and through the mediating effect of LMXQ. The findings also suggest that, while LM influences belongingness, and that belongingness also mediates the relationship between LM and LMXQ. However, belongingness does not mediate the relationship between LM and WPC, either by itself or serially.

The prevalence of WPC among NFEs in family firms hinders the ability of such organizations to retain talented employees that are outside the family circle. Hence, this study presents nuanced insights to those who manage such organizations, as it reveals that leading the family business mindfully can markedly reduce WPC among NFEs, particularly when LM enhances LMXQ.

The study makes four novel contributions. First, this appears to be the first study at the crossroads of the family business and organizational behavior literature to investigate the under-researched topic of WPC among NFEs in family firms. Second, the study provides insights into the relationship between LM and WPC by developing a conceptual framework that draws on mindfulness theory and self-determination theory. Third, it identifies the mediating role of LMXQ in the link between LM and WPC. Finally, it reveals that, although the belongingness of NFEs to their organization is influenced by LM, it does not automatically influence WPC.

Human resource management is an understudied but burgeoning topic in the family business scholarly domain. This chapter provides a summary review of the existing literature on human resource management in family businesses and offers pathways for future research. The authors cluster the extant research into topic areas of compensation, recruitment and selection, training, employee performance, and turnover, and offer future research directions for each. In identifying gaps and tension in the literature, the chapter also highlights several broader theoretical pathways for future research. These opportunities include further inquiry into the outcomes of bifurcation bias, or the disparate treatment between family and non-family employees, the nuanced ways family firms recruit and select new employees, the role of high-performance work systems in family firms, the ways image considerations influence human resource practices in family firms, and the application of social network perspectives.

This chapter explores how stress may manifest among non-family member employees, family member employees, and family firm founders in family firms during the startup phases of the organization. Understanding how stress arises in family firm startups has received limited attention to date. Notably absent in the research is the understanding of how stress arises in non-family member employees, which is important to understand as non-family member employees often outnumber family member employees. As stress increases for the non-family member employee due to issues such as role ambiguity and conflict, negative outcomes resultant from this stress may increase the chances of the employee exhibiting withdrawal behaviors. It is suggested these outcomes increase the stress of the family firm entrepreneur and family members by increasing interrole and interpersonal conflicts and negatively impacting decision-making. These effects on the family members may adversely impact the family firm’s chances of performing well, thus decreasing its chances for survival. Recommendations for future research are also made.

This study aims to unravel a potential determinant of employee engagement in family firms. In particular, we focus on the role of the CEO by studying the influence of CEO transformational leadership on employee engagement. Moreover, we look into the potential mediating psychological safety might play in this relationship.

Based on an extensive literature review, we propose that there will be a significant positive relationship between family firm CEOs’ transformational leadership and the level of employee engagement. We argue that psychological safety will serve as an underlying mechanism explaining this positive relationship. We empirically tested our research model using quantitative data collected through a questionnaire, completed by 508 employees from Belgian family firms.

The results confirm the positive relationship between CEOs’ transformational leadership and employee engagement. Moreover, these results show that the degree of psychological safety mediates this relationship.

This study forms a significant contribution to family firm literature. Until now, even though existing studies on employee engagement in general are numerous, we had little to no knowledge of the factors influencing employee engagement taking into account the unique context of family firms. With this study, we take an important step in this matter. In addition, this study also contributes to the general literature on employee engagement, since previous studies on the impact of leadership on employee engagement tended to focus on the role of the immediate supervisors and not the CEO.

This study aims to examine the employment practices of family firms in emerging markets. Drawing from the social exchange theory, the authors propose that transgenerational control intention enhances the motivation for family owners to engage in favorable employment practices as inducement for future contribution of employees.

Multilevel regression models were applied to test the hypotheses with a sample of 3033 Chinese private family firms.

The results show that the employment practices of family firms are positively associated with transgenerational control intention, and the effect of transgenerational control intention is contingent on regional social trust.

This study highlights the role of transgenerational control intention of family owners in motivating favorable employment in family firms. The study adds nuance to the variances in employment behaviors of family firms as well as the family owner-employee exchange relationship in emerging markets.

The role of family business staffing practices in their ultimate success remains largely unknown. The purpose of this paper is to test the notion that firms with greater family essence manifest their commitment by leveraging referrals as a recruitment source, which in turn is associated with higher performance. The hypothesized model posits that reduced agency costs from hiring through owner referral utilization (ORU) provide high-family essence firms with stronger performance.

The study draws upon a sample of 194 small and medium-sized family business owners.

Findings from OLS regression and the PROCESS model in SPSS support the hypothesis that recruiting nonfamily employees from referrals helps lessen agency conflicts and serves as an intervening mechanism in the relationship between family firm essence and firm performance.

This study draws on agency theory to shed light on how family firms successfully bring nonfamily employees into the fold despite their human resource limitations. The results extend theory on family businesses by demonstrating that those with higher degrees of family essence are more likely to attract applicants via ORU. Leveraging this recruiting practice allows family businesses to hire nonfamily employees who share the values and goals of the family firm, thus lowering agency costs and fostering higher performance. More broadly, the findings offer insight into the role of staffing practices in family firm success.

Leveraging the mindfulness theory and the social exchange theory, this study examines the influence of perceived leader mindfulness (PLM) on turnover intentions (TOI) of non-family employees (NFEs) working in family firms. The study investigates whether the above relationship is mediated by employee perceptions of leader–member exchange quality (LMX quality) and their affective commitment (AC).

A conceptual framework is proposed that hypothesizes inverse relationship between PLM and TOI, which is posited to be mediated by both LMX quality and AC. The hypotheses are tested through survey data collected from 254 NFEs working in various family-owned businesses in Malaysia. The data analyzed through partial least square structural equation modeling (PLS-SEM).

The results indicate that PLM has a positive influence on both LMX quality and AC. Moreover, PLM has a strong negative affect on TOI. In terms of results of mediation analysis, it appears that two mediation hypotheses out of four are significant, that is mediating effect of AC between PLM and TOI and LMX quality between PLM and AC. However, the mediating role of LMX quality between PLM and TOI and the sequential mediation hypotheses were both non-significant.

The findings of the study imply is that to ensure retention of qualified and talented NFEs, mindfulness of family firm leaders plays a significant role in ensuring lower TOI. Furthermore, such a goal is better achieved by ensuring that such employees are supported through leadership that leads to their development of better LMX quality and AC towards the organization. The study however is limited, as other potential exogenous variables that may influence TOI were not considered.

Losing employees that join a firm and acquire valuable skills and experience is a significant concern for family firms that are known for discriminating between employees related to the owners and outsiders. This study presents evidence for owners and managers of family firms that by focusing on mindful behavior and working towards developing better LMX quality and AC of NFEs, the organization can reduce TOI of such employees.

This study contributes to the under-researched and fragmented literature on relationships between PLM among NFEs and TOI of such individuals working in family firms. Moreover, this appears to be the first study that investigates mediating roles of and LMX quality and AC among NFEs in the above relationship.

This paper aims to explore the impact of family ownership, and family commitment on employees' organizational identification (EOI) with Chinese family firms, and to test the mediating effect of corporate social responsibility (CSR) on this relationship.

The result reveals that family commitment positively influences employees’ organizational identification (EOI) with Chinese family firms. It is also shown that insiders’ responsibility (i.e. investors’ and employees’ responsibility) and public responsibility (i.e. community responsibility) positively influence EOI, and partially mediate the relationship between family commitment and EOI with Chinese family firms. In addition, the result indicates that family ownership positively influences insiders’ responsibility (i.e. investors’, and employees’ responsibility), outsiders’ responsibility (i.e. consumers’ responsibility), environmental responsibility and legal and ethical responsibility, and family commitment positively moderates the relationship between family ownership and insiders’ responsibility (i.e. investors’ and employees’ responsibility), outsiders’ responsibility (i.e. partners’ and consumers’ responsibility) and public responsibility (i.e. environmental responsibility) in Chinese family firms.

This study is the first to examine empirically the relationship between family involvement (i.e. family ownership, family commitment) and EOI from the viewpoint of CSR in Chinese family firms. The study contributes to the understanding of the relationship between family involvement and EOI, as well as the understanding of the influence of CSR on EOI with Chinese family firms.

One of the key characteristics that distinguishes the family business from other firms is the importance of accruing and maintaining socioemotional wealth (SEW). Using an experimental design, this exploratory study investigates the communication practices of family business leaders responding to employees responsible for a business disruption. The purpose of this paper is to determine whether managers take action to protect SEW while responding to a crisis.

Three employees of a family firm participated in the experiment. A family member employee and a non-family employee were instructed to write a message informing a family member leader of a business disruption they created (infecting a computer with malware). The family member leader then received these messages and wrote a response to each employee. These responses were then content analyzed to determine whether messages expressed SEW importance and to see if SEW content differed based on the recipient’s familial status.

Content analysis of messages intended for family members and non-family employees indicated that messages intended for family members contain significantly different content associated with dimensions of Socioemotional Wealth Importance scale, particularly in terms of reinforcing family dominance, sustaining family continuity, and maintaining family enrichment.

This study is the first to examine crisis communication within the family firm and whether SEW endowment occurs via internal communication within the family firm. By utilizing an experiment, this study extends the SEW literature further by adding to the diversity of techniques utilized to study this topic.