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This paper aims to investigate the co-evolve relationship between informal relational governance (i.e. family involvement and personal authority) and family formal governance system in the process of growth and transformation. This co-evolve relationship is especially affected by the external institutional environment and market competition power. Thus, in the comprehensive process of deepening the reform and changing market, the modern transformation of family business means that rediscovery of unique superiority of family business and the core of this transformation is the governance of status privileges and private interests.

To test the hypotheses, this paper uses the 9th Chinese Private Enterprise Survey in 2010. A total of 4,900 questionnaires are issued, 4,614 are recovered and the total recovery rate is 94.16%. After clean the data, the study obtained 1,239 samples. To overcome the possible existence of heteroscedasticity, this study uses the feasible generalized least squares (FGLS) to estimate the model. Besides, as for dummy dependent variables, this study uses logistics regression.

This paper makes an empirical test for the evolution of family governance driven by institutional change and organizational growth willingness in the process of growth and transformation, including a co-evolve relationship between family involvement and governance institution. Meanwhile, the empirical analysis comes to the conclusion that the institutional constraint to relational governance improves firm performance, which further promotes the modern transformation of family business governance.

It is the key to transformation to the modern corporate organization that family business could beyond the intervention of the traditional nepotism, patriarchal authority and family will. The fundamental of this process is to take advantage of formal institutions to manage family power.

This paper discusses the modern transformation of the formal organization from the perspective of modern ideal dominant type proposed by Max Weber. Modern organization is a hybrid system of the non-personified and personified institution. The primary reason why modern organization suffered erosion and destruction is that informal institution (status and relationship network) were endowed with legal privileges and private interests in modern organization including family business. The governance of privileges and private interests has become the core issue that whether the family business could play an instrumental value and realize modern transformation successfully.

The modern family constitution is a written declaration summarizing a process of agreement and decision-making within an entrepreneurial family regarding the motives, guidelines, and regulations for the family members’ cooperation within the family and the family business association. This chapter exposes facets of family constitutions from a historical and a practical point of view. In order to do so, it begins with a review of the predecessors and origins of family constitutions. Subsequently, focusing especially on the interplay between a family constitution and the family business’ binding legal agreements, it describes four forms of family constitutions that have evolved from different consulting approaches in practice. The chapter concludes with some legal implications.

The aim of this research is to analyze empirical evidence of the effect of governance structure (GS) on perceived success of the succession process. It is also reported that in India, family firms have a more informal organization structure and governance and have an informal and unplanned approach to bringing the successors into family business. Previous studies have reported that GS is an important factor for a successful succession process. This study examines the role of management succession planning as an intervening variable to achieve perceived success of the succession process.

Data have been collected using a questionnaire schedule with 113 respondents who are successors from family business firms in Kerala, India. The study uses snowball sampling technique. Partial least square-structural equation modeling has been used to do data analysis.

The results of the study showed that GS has a significant positive effect on the success of the succession process. GS has a significant positive effect on management succession planning. Management succession planning partially mediates the relationship between GS and perceived success of the succession process.

The results of the study indicate the effect of GS on the relationship between, perceived success of the succession process and management succession planning. The mediating role of management succession planning in the above relationship is also confirmed. Therefore, before starting the succession process a good GS should be put in place for ensuring the success of the succession process. Family firms must implement the succession plan well to make the succession process successful.

The main contribution of the study is to empirically investigate the effect of GS and management succession planning to enhance the success of the succession process.

The purpose of this paper is to understand the influence of family ownership and governance mechanisms on corporate social responsibility (CSR) scores through the lens of the principal–principal (PP) perspective.

Using a random-effects model the authors sample 21 hundred board members across a 101 listed Mexican companies from 2008 to 2020.

The paper finds that board independence and board committees are positively related to CSR scores.

Results of this paper suggest that stronger governance can enhance CSR: board independence and committees can be a counterbalancing mechanism serving stakeholders aiming to improve CSR scores.

Most CSR research has focused on determinants and outcomes of CSR. The authors analyze an unexplored aspect of the corporate governance (CG) and CSR relationship: the potential influence of family ownership and governance mechanisms on CSR.

Comprender la influencia de la propiedad familiar y mecanismos de gobierno en las calificaciones de Responsabilidad Social Corporativa (RSC) a través de la perspectiva principal-principal.

Usando un modelo de efectos aleatorios en una muestra de dos mil cien consejeros en ciento un empresas públicas mexicanas del 2008 al 2020.

La independencia y comités del consejo tienen una relación positiva con calificaciones RSC.

Los resultados sugieren que instituciones más fuertes de gobierno pueden incrementar el RSC: la independencia y los comités del consejo pueden ser un mecanismo que haga dicho balance sirviendo a partes interesadas que deseen mejorar calificaciones de RSC.

La mayoría de la investigación en RSC se ha enfocado en determinantes y productos de RSC. Nosotros analizamos un aspecto no explorado en la relación de gobernanza y RSC: la potential influencia de la propiedad familiar y los mecanismos de gobierno en la RSC.

Rural regions have rarely been the topic of inquiry in economic development studies or research related to knowledge management. Most studies on knowledge management have focused on high‐tech regions. The purpose of this paper is to present a case which illustrates the mechanism and factors of learning regions with knowledge‐based development engaged in growing agricultural activities such as organic agriculture.

The paper is a case study of a Mexican cooperative.

The case study illustrates how organic agriculture standards and the attractiveness of the market change the rural setting by promoting knowledge creation and application in the field. The results of such knowledge generation are endogenous growth practices for people who otherwise abandon agriculture as a means of living. Learning, innovating and networking are requirements and outcomes of following organic standards. Simultaneously, the creation of efficient institutions and the solidity of local governance are promoted within the region.

This paper focuses on the description of the case rather than the theoretical features. This paper highlights characteristics and critical elements present in an agricultural success through the depiction of knowledge creation within a cooperative and surrounding community, that pose elements which consequently can be extended to promote regional development in other rural settings.

Characteristics of the organic industry place a region in a competitive position and encourage community involvement to coordinate, to learn, and to improve processes. The organic agriculture industry requires a knowledge foundation essential for meeting industry standards and, thus, requires organization of the community including farmers as well as local institutions.

Reflect on the influence of different lifecycle stages on the strategy of a family business; evaluate the impact of family, industry and company dynamics on the evolution of a family firm; assess the impact of ownership, governance and succession considerations on the sustainability of a family firm; and develop decision-making skills to overcome specific dilemmas and secure the family business longevity.

Five industries, three generations and one family business. What started off as an entrepreneur’s ambition, Almajid Limited has proven itself to a sustainable source of revenue and a diverse portfolio of businesses for multiple generations of a Saudi Arabian family. This case study offers an exclusive opportunity to follow the tumultuous journey of a Saudi family business and analyze the different phases of its evolution over seven decades and three generations. In particular, the case aims to highlight the complexities surrounding the management of a family firm and illustrate how various lifecycle stages stemming from a number of areas (e.g. family, company, industry, ownership and governance) simultaneously influence the family business strategy. Being deeply embedded in the context of Saudi Arabia, the case unveils the unique challenges of managing a family business in a conservative cultural setting. The case study is divided into four parts, with each of them putting the emphasis on a different lifecycle area of significance for the evolution of the family business. Each part culminates with the identification of an area-relevant dilemma that needs to be addressed for the family firm to be able to move into the next stage of its development. Part A focuses on the family area or axis, the Part B on the industry axis, Part C on the company axis, while Part D is based on the sustainability axis, which embraces as many as three dilemmas in relation to the ownership, governance and succession in the family firm. Moreover, each part incorporates a timeline of critical events that contributed to the emergence of a specific dilemma and a culturally-rooted anime that helps the readers visualize the story, picture somebody else’s reality, and empathize with the key protagonists of the case to achieve optimal decision-making.

Graduate audience: Master of Business Administration or Master of Global Entrepreneurial Management.

Teaching Notes are available for educators only.

CSS 11: Strategy.

Family business.

Specialized undergraduate courses, Elective MBA courses.

This case study uncovers the remarkable story of the relentless growth and sporadic weakening of Nurul Ain (NA) Limited, a family business conglomerate with major operations in the Eastern region of Africa. The case provides an opportunity to follow the different stages of development of this family-owned organization through a sequence of strategic events and family dynamics that led to its recurrent success, decline and rejuvenation. Despite the numerous successes of NA Limited since its establishment in the early 1990s, the ambiguous relationship between family, ownership and management systems has caused a ripple effect of strategic, structural and governance challenges that threaten the sustainability of the family business. Nowadays, the founder faces the pressing challenge of ensuring his legacy remains intact and is passed over to his chosen successor, who, in turn, is confronted with the dilemma of joining the family business or pursing an independent career outside NA Limited. Shedding light on the complexity of today’s family-run organizations, the case allows examining the effectiveness of strategic decision-making in an emerging market context by applying a variety of family business principles, theories and frameworks.

Discuss the sources of competitive advantage and the typical challenges that family firms face in the context of emerging markets. Perform a comprehensive corporate diagnosis and examine the specificities of strategic management process in family businesses. Assess the succession management practices in family-run organizations and design a profile of successful successor. Discuss the effectiveness of various corporate governance mechanisms in the context of family-owned enterprises. Evaluate the strategic choices of the top management team and offer recommendations for securing the family business longevity.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 11: Strategy.

This study aims to examine the relationship between board diversity and quality of corporate social responsibility (QCSR) disclosure.

The study estimates seven dimensions of board diversity including age, gender, nation, ethnicity, educational level, educational background and tenure by applying Blau’s index. The relationship between board diversity and QCSR disclosure from the perspective of the resource-based view theory is estimated by using panel random effects regression across 57 firms producing exclusive sustainability reports listed in the Pakistan Stock Exchange from 2010 to 2017. The robustness of the results has also been checked through alternative measurements of the variables under study.

The regression results reveal that gender and national diversities are the firms’ valuable resources, having the potential to promote QCSR disclosure. However, age diversity was found to be negatively associated to QCSR disclosure. Furthermore, educational level, educational background, ethnicity and tenure were insignificant on QCSR disclosure. The sensitivity analysis supports the findings of the baseline model.

Pakistani firms need to improve the level of board diversity through encouragement of the inclusion of diverse forces of gender and nationality to enhance disclosure on CSR practices.

This is the first study on board diversity and QCSR in the case of Pakistan.

In working towards a sustainable campus of public universities, energy consumption behaviour assessment is one of the several issues that requires attention by the facilities manager. Information on energy consumption behaviour is needed to determine potential energy savings. The purpose of this study is to assess energy consumption behaviour for student accommodations in Malaysian public universities.

This study focuses on developing energy consumption behaviour models (ECBMs) and assesses the potential energy savings. The “energy culture” framework consolidated with multiple regression analysis is used to strengthen the development of ECBMs. A self-administrated survey involving 1,009 respondents in selected public universities was carried out.

The result shows that five factors from the energy culture framework contribute to energy consumption behaviour, namely, building regulation, environmental concern, education, social marketing and direct factors (device and activities). These factors are included in the model for predicting energy consumption levels. The results show that there is a 78 per cent difference in energy consumption between the observed and predicted data.

This study indicates a high potential energy saving among students of Malaysian public universities.

The model was tested against the overall students among Malaysian public universities. In future, the model can be tested within hostel accommodations. The present assessment revealed the potential energy saving among the hostel buildings and sets the target regarding which building has a potential to reduce energy. It also helps the facilities managers to come up with strategies for programmes and energy policy in public universities.

This research seeks to understand how shareholder constituencies including controlling family, nonfamily insiders, as well as domestic and foreign institutions in the corporate governance system of emerging economy firms perceive institutional risks in terms of regulative, normative, and cognitive institutions and influence strategic choices in the internationalization of their invested firms.

The sample data are Taiwanese publicly listed companies in the electronics and computer industry. Panel data of the parent firms and their overseas affiliates are available from the annual report and Taiwan Economic Journal database. Country-level data are available from the World Investment Report and the IMD World Competitiveness Report. Statistical regression models including tobit and logistic regression are used to analyze the data.

Controlling family and nonfamily insider shareholders tend to influence their invested firms to enter in institutionally smaller host countries through a shared ownership. Domestic institutional shareholders tend to influence their invested firms to adopt a shared ownership and enter in host countries with larger and smaller institutional distances in terms of regulative and normative institution, respectively. Foreign institutional shareholders tend to influence their invested firms to enter in institutionally smaller host countries through a whole ownership.

The strategic choices of foreign market entry made by emerging economy firms are significantly shaped by the different risk perceptions of shareholder constituencies in their corporate governance system toward the institutional distances between the home and the host country.