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1 – 10 of 16Murad Harasheh, Alessandro Capocchi and Andrea Amaduzzi
There is still an ongoing debate on the value relevance of capital structure and its determinants. Recently the issue has been explored in family firms after being explored in…
Abstract
Purpose
There is still an ongoing debate on the value relevance of capital structure and its determinants. Recently the issue has been explored in family firms after being explored in mature firms. This paper investigates the role of institutional investors and the firm's innovation activity in influencing the firm's decision and ability to acquire debt capital.
Design/methodology/approach
A large sample of 700 privately-held family firms in Italy from 2010 to 2019. Two analysis techniques are used: panel analysis and path analysis. The value of debt and the debt ratio are used as leverage measures. The value of patent (as a proxy for innovation) and institutional investor are the explanatory variables.
Findings
The results show that institutional investors have no relationship with financial leverage measures except when controlling for an interaction variable (Institutional investors × Lombardy region). The patent value is positively correlated with debt; however, the ratio patent-to-asset is negatively related to financial leverage indicating higher risk exposure. The nonlinearity test demonstrates a turning point when the relationship between patent value and debt inverts.
Practical implications
Firms should monitor their innovation activity since excessive innovation increases risk exposure and affects financing opportunities and value. The involvement of institutional investors does not always enhance value.
Originality/value
Existing literature focuses separately on family firm innovations and financial leverage as outcome variables, emphasizing the role of institutional investors in both fields by adopting agency theory and socioemotional wealth framework. In this study, the authors go further by merging both relationships, investigating the dynamics of the institutional-family firm innovation relationship in influencing the firm's capital structure. The authors contribute to the ongoing debate by providing original findings on capital structure, governance and innovation, supported by rigorous methods to enhance family firms' decision-making.
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J. Lukas Thürmer, Maik Bieleke, Frank Wieber and Peter M. Gollwitzer
This study aims to take a dual-process perspective and argues that peer influence on increasing impulse buying may also operate automatically. If-then plans, which can automate…
Abstract
Purpose
This study aims to take a dual-process perspective and argues that peer influence on increasing impulse buying may also operate automatically. If-then plans, which can automate action control, may, thus, help regulate peer influence. This research extends existing literature explicating the deliberate influence of social norms.
Design/methodology/approach
Study 1 (N = 120) obtained causal evidence that forming an implementation intention (i.e. an if-then plan designed to automate action control) reduces peer impact on impulse buying in a laboratory experiment with young adults (students) selecting food items. Study 2 (N = 686) obtained correlational evidence for the role of norms, automaticity and implementation intentions in impulse buying using a large sample of high-school adolescents working on a vignette about clothes-shopping.
Findings
If-then plans reduced impulse purchases in the laboratory (Study 1). Both reported deliberation on peer norms and the reported automaticity of shopping with peers predicted impulse buying but an implementation intention to be thriftily reduced these links (Study 2).
Research limitations/implications
This research highlights the role of automatic social processes in problematic consumer behaviour. Promising field studies and neuropsychological experiments are discussed.
Practical implications
Young consumers can gain control over automatic peer influence by using if-then plans, thereby reducing impulse buying.
Originality/value
This research helps understand new precursors of impulse buying in understudied European samples of young consumers.
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J. Lukas Thürmer, Frank Wieber and Peter M. Gollwitzer
Crises such as the Coronavirus pandemic pose extraordinary challenges to the decision making in management teams. Teams need to integrate available information quickly to make…
Abstract
Purpose
Crises such as the Coronavirus pandemic pose extraordinary challenges to the decision making in management teams. Teams need to integrate available information quickly to make informed decisions on the spot and update their decisions as new information becomes available. Moreover, making good decisions is hard as it requires sacrifices for the common good, and finally, implementing the decisions made is not easy as it requires persistence in the face of strong counterproductive social pressures.
Design/methodology/approach
We provide a “psychology of action” perspective on making team-based management decisions in crisis by introducing collective implementation intentions (We-if-then plans) as a theory-based intervention tool to improve decision processes. We discuss our program of research on forming and acting on We-if-then plans in ad hoc teams facing challenging situations.
Findings
Teams with We-if-then plans consistently made more informed decisions when information was socially or temporally distributed, when decision makers had to make sacrifices for the common good, and when strong social pressures opposed acting on their decisions. Preliminary experimental evidence indicates that assigning simple We-if-then plans had similar positive effects as providing a leader to steer team processes.
Originality/value
Our analysis of self-regulated team decisions helps understand and improve how management teams can make and act on good decisions in crises such as the Coronavirus pandemic.
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Kristina M. Eriksson, Anna Karin Olsson and Linnéa Carlsson
Both technological and human-centric perspectives need to be acknowledged when combining lean production practices and Industry 4.0 (I4.0) technologies. This study aims to explore…
Abstract
Purpose
Both technological and human-centric perspectives need to be acknowledged when combining lean production practices and Industry 4.0 (I4.0) technologies. This study aims to explore and explain how lean production practices and I4.0 technologies may coexist to enhance the human-centric perspective of manufacturing operations in the era of Industry 5.0 (I5.0).
Design/methodology/approach
The research approach is an explorative and longitudinal case study. The qualitative data collection encompasses respondents from different job functions and organizational levels to cover the entire organization. In total, 18 interviews with 19 interviewees and five focus groups with a total of 25 participants are included.
Findings
Identified challenges bring forth that manufacturing organizations must have the ability to see beyond lean production philosophy and I4.0 to meet the demand for a human-centric perspective in socially sustainable manufacturing in the era of Industry 5.0.
Practical implications
The study suggests that while lean production practices and I4.0 practices may be considered separately, they need to be integrated as complementary approaches. This underscores the complexity of managing simultaneous organizational changes and new digital initiatives.
Social implications
The research presented illuminates the elusive phenomena comprising the combined aspects of a human-centric perspective, specifically bringing forth implications for the co-existence of lean production practices and I4.0 technologies, in the transformation towards I5.0.
Originality/value
The study contributes to new avenues of research within the field of socially sustainable manufacturing. The study provides an in-depth analysis of the human-centric perspective when transforming organizations towards Industry 5.0.
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Yuping Yin, Frank Crowley, Justin Doran, Jun Du and Mari O'Connor
This paper examines the innovation behavior of family-owned firms versus non-family-owned firms. The role of internal family governance and the influence of external stimuli…
Abstract
Purpose
This paper examines the innovation behavior of family-owned firms versus non-family-owned firms. The role of internal family governance and the influence of external stimuli (competition) on innovation are also considered.
Design/methodology/approach
The data of 20,995 family and non-family firms across 38 countries are derived from the World Bank Enterprise Survey during the period 2019–2020. Probit models are used to examine the impact of family ownership, family governance, and competition on innovation outcomes.
Findings
Family firms are more likely to make R&D investments, acquire external knowledge, engage in product innovation (including innovations that are new to the market) and process innovation, relative to non-family firms. However, a high propensity of family member involvement in top management positions can reduce innovation. Competition has a negative impact on innovation outcomes for both family and non-family firms, but it has a positive moderating effect on the innovation activities of family firms where a higher level of family member involvement in management is present.
Originality/value
This paper provides novel insights into family firm innovation dynamics by identifying family firms as more innovative than non-family firms for all types of indicators, debunking the idea that family firms are conservative, reluctant to change, and averse to the risks in innovation activities. However, too much family involvement in decision making may stifle some innovation activities in family firms, except in cases where the operating environment is highly competitive; this provides new insights into the ownership-management dynamic of family firms.
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Beata Agnieszka Żukowska, Olga Anna Martyniuk and Robert Zajkowski
Survivability capital is a unique resource resulting from the “familiness” constituting an inherent feature of family firms. Familiness represents the ability of family members to…
Abstract
Purpose
Survivability capital is a unique resource resulting from the “familiness” constituting an inherent feature of family firms. Familiness represents the ability of family members to reinforce the financial and non-financial resources of businesses facing threats to their economic existence. This work proposes and examines various dimensions of the survivability capital construct, verifying whether family firms expecting deterioration of their economic situation or problems with survival due to the COVID-19 crisis can mobilise sufficient capital to survive.
Design/methodology/approach
This article provides empirical evidence based on a cross-sectional online survey of 167 Polish family firms, conducted at the beginning of the COVID-19 pandemic. The method (scale) of survivability capital measurement was elaborated and validated using principal component analysis (PCA) and confirmatory factor analyses (CFA). Next, the mobilisation of the different dimensions of survivability capital was examined using PLS-SEM modelling.
Findings
The survivability capital of family firms is composed of two dimensions: internal (based on directly involved family members) and external (based on not directly involved family members). Family firms facing crisis-induced deterioration of the economic situation engage its internal component. Subsequently, family firms forecasting decreasing probability of survival during a crisis try to engage both the internal and the external components of survivability capital. Such behaviour is in line with the resource-based view as well as with the sustainable family business theory.
Originality/value
To the best of the authors' knowledge, this is one of the first studies to examine analytically the survivability capital construct. While previous studies mentioned the existence of survivability capital, this study attempts to introduce its various dimensions and test the mobilisation of survivability capital during the COVID-19 crisis.
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Practical wisdom (PW; phronesis), as one of the human virtues, is experiencing a renewal in the contemporary management literature. The aim of this conceptual paper is first, to…
Abstract
Purpose
Practical wisdom (PW; phronesis), as one of the human virtues, is experiencing a renewal in the contemporary management literature. The aim of this conceptual paper is first, to explore the core practices of managers and leaders in the literature and second, to demonstrate how PW can manifest itself in these practices.
Design/methodology/approach
The research follows the interpretivist research philosophy, inductive approach, qualitative method and the theory-building research strategy. The data collection method is a literature review. The practice ecosystem framework is applied to demonstrate the presence of PW in the core practices of managers and leaders.
Findings
The paper proposes a practice-based paradigm of management and leadership. From the literature study, envisioning, enabling, energizing, engaging and executing as five fundamental practices are identified.
Research limitations/implications
The most significant literature was selected based on decisions of the author. Therefore, it might be that important sources were overlooked. The paper proposes future research questions, and it calls for an empirical validation of the proposed conceptual model in management and leadership practices context.
Practical implications
The practical implications for managers and leaders are in applying the framework developed in this paper as a tool or guidelines to cultivate PW in their practices. The paper offers implications for management education, traditional educational institutions and educational practitioners because they are the key influencers of wise thinking and actions of future managers and leaders.
Originality/value
The novelty of this paper is in making explicit how the eight features of PW can manifest themselves in the everyday actions of managers and leaders. Applying the practice ecosystem framework for this purpose is an original contribution.
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