Search results

1 – 6 of 6
To view the access options for this content please click here
Article

Giacomo Laffranchini, John S. Hadjimarcou, Si Hyun Kim and Mike Braun

The purpose of this paper is to explore the internationalization process of small and medium family-owned businesses (FOBs). The authors strive to explain the extent to…

Abstract

Purpose

The purpose of this paper is to explore the internationalization process of small and medium family-owned businesses (FOBs). The authors strive to explain the extent to which family business CEOs identify a signal in either the domestic or international environment for internationalization as a viable business opportunity.

Design/methodology/approach

The authors rely on signal detection theory to develop a conceptual model that explains the cognitive process inducing the CEO-founder of an FOB to discover and exploit an opportunity in the international market.

Findings

The conceptual model proposes that constraints in a family-firm’s domestic market, as well as opportunities in the foreign market act, as signal strength. However, family business CEO-founders’ centrality and inward orientation might lead them to ignore a signal by generating noise and reducing the motivation to collect further information concerning the trustworthiness of the signal.

Research limitations/implications

The model is conceptual; future research should strive for a potential way to operationalize the cognitive process described herein. In addition, the theoretical argument has been developed in the context of family firms wherein the founder plays a pivotal role. Future research may extend the theoretical arguments to those family firms that are at an advanced stage of development.

Originality/value

The study reconciles conflicting findings concerning the internationalization of FOBs. In doing so, the authors employ an interdisciplinary approach and develop a conceptual model that sheds additional light on the cognitive processes underlying internationalization decisions among founder-centered family firms.

Details

Journal of Family Business Management, vol. 6 no. 3
Type: Research Article
ISSN: 2043-6238

Keywords

To view the access options for this content please click here
Article

Torbjörn Ljungkvist and Börje Boers

This paper addresses the phenomenon of venture capital firms which are also family businesses (VCFBs). The purpose of this paper is to explore and understand the…

Abstract

Purpose

This paper addresses the phenomenon of venture capital firms which are also family businesses (VCFBs). The purpose of this paper is to explore and understand the phenomenon of VCFB by answering the following questions: What are the features of professionalization in VCFBs? And, how do professionalization and types of family businesses explain the strategies and governance of VCFBs?

Design/methodology/approach

As an explorative case study, it maps the Swedish venture capital (VC) industry and compares two VCFBs and their business investments with regard to strategy and governance.

Findings

By suggesting two major configurations, the study explains how family business development and levels of professionalization relate to differences in VCFBs’ strategies, which in turn, affect their governance. The personal VCFB features active owners who personally take responsibility roles and strongly focus on customers and relationships. The administrative VCFB strongly focuses on predetermined financial metrics, high ethical awareness among board members, and ongoing interplay between the active family board members and minority shareholders.

Research limitations/implications

The study was conducted in Sweden and concerns Swedish VCFBs. The paper contributes to the literature by combining the two currently separate research streams, i.e. family business and VC, highlighting the importance and consequences of family ownership in VC businesses.

Practical implications

The present study provides stock market investors and stock analysts with a deeper understanding of VCFBs’ strategy incentives. By identifying the kind of VCFB and its relation to strategy, more reasonable assessments and analyses of the VCFBs’ actions will be possible. Family firms willing to accept VC-finance should consider the type of VC and the potential consequences of family ownership.

Originality/value

This study is the first to classify VC firms as family businesses. Moreover, it shows the features of professionalization in VCFBs by suggesting a set of configurations.

Details

Journal of Family Business Management, vol. 7 no. 3
Type: Research Article
ISSN: 2043-6238

Keywords

To view the access options for this content please click here
Article

Tanja Kontinen and Arto Ojala

The purpose of this paper is to increase understanding of the internationalization of family firms; to investigate how the framework by Bell et al. on the…

Abstract

Purpose

The purpose of this paper is to increase understanding of the internationalization of family firms; to investigate how the framework by Bell et al. on the internationalization patterns of firms could explain the internationalization pathways taken by family‐owned small to medium‐sized enterprises (SMEs); and to identify typical patterns and features in the various pathways taken by family‐owned SMEs.

Design/methodology/approach

This paper reports findings from an in‐depth multiple case study with eight Finnish family‐owned SMEs.

Findings

The ownership structure had the most important role in defining the internationalization pathways followed by the family‐owned SMEs: a fragmented ownership structure led to traditional internationalization pathway whereas a concentrated ownership base led to born global or born‐again global pathways.

Practical implications

Family entrepreneurs should carefully consider the division of ownership and seek to build new relationships in foreign markets, in addition to their primary co‐operators.

Originality/value

The authors extend the integrative model of small firm internationalization by Bell et al. toward family‐owned SMEs and highlight the most important dimensions in the different internationalization pathways of family SMEs. The ownership dimension is integrated within discussion on differing internationalization pathways. The authors utilize a family business specific perspective (the stewardship perspective), in order to understand the specific features of internationalization among family SMEs, and also how these features differ between family SMEs and other firms.

Details

International Marketing Review, vol. 29 no. 5
Type: Research Article
ISSN: 0265-1335

Keywords

To view the access options for this content please click here
Article

Tanja Kontinen and Arto Ojala

The purpose of this paper is to investigate how psychic distance affects the internationalization process, foreign market entry (FME), and entry mode choice of Finnish…

Abstract

Purpose

The purpose of this paper is to investigate how psychic distance affects the internationalization process, foreign market entry (FME), and entry mode choice of Finnish small and medium‐sized family enterprises (family SMEs) operating in France.

Design/methodology/approach

The paper reports findings from an in‐depth case study covering four Finnish manufacturing family SMEs operating in the French market. The data were analyzed using the Uppsala model and distance creating and distance‐bridging factors encountered in the FME to France.

Findings

The findings reveal that the family SMEs mainly followed a sequential process and favored indirect entry modes before entering the French market. The French market was psychically distant, but the case firms were able to overcome the distance by using different distance‐bridging factors. Based on the findings, it can be argued that psychic distance has an especially important role in the internationalization and the FME of family SMEs, mainly because of their general cautiousness caused by family presence.

Research limitations/implications

Although the case study method made it possible to acquire detailed knowledge about the firms' internationalization, the findings can be generalized only to some extent.

Practical implications

Managers of family SMEs and family members should be provided with the capacity to overcome distance‐creating factors, they might encounter in their FME. The decision to internationalize is a strategic change that will most probably change the historical harmony of the firm.

Originality/value

Prior research has mainly focused only on general internationalization pathways of family SMEs. In addition and contrast to the previous studies, this paper investigates the role of perceived psychic distance in family SMEs' FME and entry mode choice in a certain target market.

Details

Journal of Small Business and Enterprise Development, vol. 17 no. 3
Type: Research Article
ISSN: 1462-6004

Keywords

To view the access options for this content please click here
Article

Alexander Chepurenko

The purpose of this paper is to deal with informal entrepreneurial activity of micro and small family businesses in the specific transitional environment.

Abstract

Purpose

The purpose of this paper is to deal with informal entrepreneurial activity of micro and small family businesses in the specific transitional environment.

Design/methodology/approach

The paper uses two cases – an informal micro business (“marginal” family business), and a formal retail small firm (“simpleton” family firm), respectively, of a panel conducted in 2013–2015 in Moscow.

Findings

First, the real distribution of responsibilities between family members is informal; it relies more on interpersonal trust and “common law.” Second, exactly the ease of governing such trust-based businesses for the founders’ generation sets limits of succession of small-scale family businesses. Third, as trust in the state is very low, the policy of Russian authorities to quickly force informal entrepreneurs to become legalized is substantially wrong; the results would be either a transformation of “simpleton” into “marginal” businesses or quitting business.

Research limitations/implications

Research limitations of the study are the number of observations and the localization of the panel only in the capital of Russia.

Practical implications

The fundamental failure of Russian State policy toward small-scale family businesses is its attempt to convince “marginal” to formalize and to oppress “simpleton” family businesses pushing them into informality. In fact, it should be designed vice versa: tolerate “marginal” businesses and let them to “live and die” while shaping a friendly environment for “simpleton” family firms.

Originality/value

The paper argues that the most important facet of informality in small family entrepreneurship is the informal property rights and governance duties’ distribution among the family members.

Details

International Journal of Sociology and Social Policy, vol. 38 no. 9/10
Type: Research Article
ISSN: 0144-333X

Keywords

To view the access options for this content please click here
Article

Wilson Ng and Richard Thorpe

The purpose of this paper is to explore the nature and process of leadership in a mid‐sized, family‐controlled bank in Singapore in order to understand how it grew and…

Abstract

Purpose

The purpose of this paper is to explore the nature and process of leadership in a mid‐sized, family‐controlled bank in Singapore in order to understand how it grew and developed under family control.

Design/methodology/approach

The paper draws on distributed leadership as a theoretical framework in exploring how a major corporate acquisition was conceived and undertaken to advance the bank's growth and development. Data were obtained through structured interviews with managers based on a three‐part discussion protocol following a pre‐interview questionnaire.

Findings

An “extended” system of leadership involving different levels of managers is developed that successfully completed the acquisition and produced significant growth from the combined businesses.

Research limitations/implications

Based on a single case, the paper does not claim that the observed phenomena are typical of mid‐sized family‐controlled businesses (FCBs). However, for scholars, the paper suggests how studying leadership practice in such FCBs may produce insights that challenge the popular view of an all‐powerful family leader by substituting a more nuanced perspective of a collaborative leadership system that facilitates entrepreneurial activity down the firm.

Practical implications

For managers, the study suggests how deeply developed collaboration among different levels of managers may produce competitive advantage for FCBs that seek further growth and development.

Social implications

It is suggested how further research of the growth processes of mid‐sized FCBs may maximize the value of entrepreneurial opportunities for their “extended” family of stakeholders, specifically for their customers with whom FCBs typically enjoy close relations.

Originality/value

The paper fills an empirical gap in the literature on competitive, mid‐sized FCBs by articulating a process in which a unique competency is developed for their ongoing survival as a family‐controlled enterprise.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 16 no. 5
Type: Research Article
ISSN: 1355-2554

Keywords

1 – 6 of 6