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1 – 10 of over 2000
Article
Publication date: 7 March 2016

Matthew C Sonfield, Robert N Lussier and Josiane Fahed-Sreih

The purpose of this research was to compare the use of non-family-members in the higher-level management team of Arab/Islamic family businesses versus American family businesses…

Abstract

Purpose

The purpose of this research was to compare the use of non-family-members in the higher-level management team of Arab/Islamic family businesses versus American family businesses.

Design/methodology/approach

This research gathered survey data and tested the hypothesis using analysis of covariance.

Findings

American family businesses engaged the services of non-family-member managers to a statistically significant greater degree than did Arab/Islamic family businesses.

Originality/value

The research literature on Arab/Islamic entrepreneurship is very limited, and a family business study of this nature has not been previously conducted. This study furthermore challenges the common assumption that the findings generated in one specific country can usually be generalized to the broader phenomenon of family business, as it exists in most countries.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 8 no. 1
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 19 April 2013

Esra Memili, Kaustav Misra, Erick P.C. Chang and James J. Chrisman

The purpose of this paper is to use the socio‐emotional wealth perspective to examine how the level of family involvement reduces the propensity to use incentives to non‐family

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Abstract

Purpose

The purpose of this paper is to use the socio‐emotional wealth perspective to examine how the level of family involvement reduces the propensity to use incentives to non‐family managers in small to medium‐sized enterprises (SME) family firms.Design/methodology/approach – Primary data were collected from US firms. To evaluate the hypotheses, a logit model was employed on a final sample of 2,019 small family firms.

Findings

Results suggest that family influence and control and intra‐family transgenerational succession intentions are negatively related to the propensity to use incentives. Also, the interaction effects of family management and ownership reduce the propensity to use incentives.

Originality/value

The paper’s empirical findings imply that despite their potential economic benefits, family involvement reduces the probability that incentives will be offered to non‐family managers because such incentives are perceived to be inconsistent with the preservation of the family’s socioemotional wealth. Also, choices that reflect a preference for socioemotional wealth may not only be a function of decision framing and loss aversion but also by the size of the economic pay‐offs that might be available. The findings suggest that non‐family managers in SME family firms may be affected by a family’s preoccupation with its socioemotional endowments. Thus, the authors expect that this paper provides further avenues to explore the decisions about attaining non‐economic and economic goals and other strategic issues in family firms.

Article
Publication date: 11 June 2018

Wouter Broekaert, Bart Henssen, Johan Lambrecht, Koenraad Debackere and Petra Andries

The purpose of this paper is to analyze how the sense of control, psychological ownership and motivation of both family owners and non-family managers in family firms are…

Abstract

Purpose

The purpose of this paper is to analyze how the sense of control, psychological ownership and motivation of both family owners and non-family managers in family firms are interrelated. This paper analyzes the limits set by family owners when delegating control to their non-family managers and the resulting potential for conflict and demotivation of the non-family managers.

Design/methodology/approach

Building on the existing literature, first, an overview of the literature on psychological ownership and control is presented. Second, the paper analyzes the insights gained from interviews with 15 family owners and non-family managers in five family firms.

Findings

This study finds that motivating non-family managers is not merely a matter of promoting a sense of psychological ownership throughout the company. A strong sense of psychological ownership may facilitate but also hinder the cooperation between family and non-family. Family owners are often only willing to delegate operational control, while non-family managers also feel entitled to participate in strategic decision making. This leads to the proposition that non-family managers’ psychological ownership in family firms’ conflicts with family owners’ desire to maintain control.

Originality/value

This study answers the calls to seek additional insight in how non-family managers function within family firms. By shedding light on the complex relationship between control, psychological ownership and motivation in family firms, the study responds to the calls for more empirical validation of the psychological ownership framework and for more research into the potential negative effects of psychological ownership in the family business.

Details

Journal of Family Business Management, vol. 8 no. 2
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 27 September 2023

Mohammad Alzbaidi and Abdallah Abu Madi

This study explores the influence of Wasta, informal social network on the retention of non-family talented employees in family-owned SMEs in Jordan. Despite the increased…

Abstract

Purpose

This study explores the influence of Wasta, informal social network on the retention of non-family talented employees in family-owned SMEs in Jordan. Despite the increased attention received by talent management (TM) in the last decade, limited attention has focused on family-owned-SMEs. This study demonstrates while resource-based view explains how human capital provides sustainable competitive advantage the lack of strategic retention management may lead to losing this competitive advantage.

Design/methodology/approach

A multiple case study approach underpinned by a qualitative orientation was utilized to help explore the dynamics of TM practices in greater depth. The authors conducted a series of 18 semi-structured in-depth interviews with HR managers, non-family junior and middle managers from six family-owned enterprises.

Findings

Evidence showed that family Wasta accelerate employee dissatisfaction among non-family talented individuals and in turn enhances their intention to leave due to organizational injustice and lack of organizational support.

Practical implications

This study could help managers in family-owned organizations enforce the concept of organizational justice by implementing solid performance management systems and talent reviews to strengthen the social exchange with non-family competent employees.

Originality/value

First, this study demonstrates how access to Wasta accelerate the mobility of non-family talented individuals and in turn enhances their intention to leave. Second, this study provides a theoretical and contextual framework to deepen the authors’ understanding of the impact of social networks on strategic retention performance.

Details

Employee Relations: The International Journal, vol. 45 no. 6
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 4 May 2012

Bruce Gurd and Jill Thomas

The interaction of the chief financial officer (CFO) with family and non‐family managers is important for the financial management of a family business to maximise wealth creation…

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Abstract

Purpose

The interaction of the chief financial officer (CFO) with family and non‐family managers is important for the financial management of a family business to maximise wealth creation within the business. This paper explores the role and the possible conflict with managers from the family.

Design/methodology/approach

A mixed method is used combining interviews of CFOs, CEOs and a telephone survey of CFOs in Australia. Three propositions are tested.

Findings

Surprisingly, the authors find no evidence that there is substantial role conflict as has been found in previous research. Relationships with the family CEO and other family and non‐family managers are usually positive. Commitment to the business from the family and strong support from the CEO are identified as making the CFO's job easier. Conflict with external accountants appears to be minimised as external accountants usually focus on the management of personal financial affairs and taxation issues while the CFO focuses on business financial management.

Research limitations/implications

The sample is Australian and relatively small.

Practical implications

The contribution of the CFO will be optimised by giving them the opportunity to move out of the “bean counter” role to a more strategic financial management position.

Originality/value

There is limited empirical evidence relating to the role of the CFO in the family business.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 18 no. 3
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 1 May 1999

Stanley Cromie and Sarah O’Sullivan

Compares the career experiences of women managers who are members of the family that owns the organization and women managers who are not. Results of a survey show “women family…

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Abstract

Compares the career experiences of women managers who are members of the family that owns the organization and women managers who are not. Results of a survey show “women family managers” enjoy increased status, job security and flexibility. Many are able to take advantage of this flexibility to combine child rearing and career roles. “Non‐family women managers” perceive themselves as competitive and independent people, they have better academic qualifications and are less likely to be married and have children. However, both groups are unenthusiastic about their training, mentors and personal contacts and consider that career progress is easier for men. In general, all women managers feel they lack power and opportunities to make progress.

Details

Women in Management Review, vol. 14 no. 3
Type: Research Article
ISSN: 0964-9425

Keywords

Article
Publication date: 31 May 2013

Martin R.W. Hiebl, Birgit Feldbauer‐Durstmüller and Christine Duller

The purpose of the present paper is to investigate whether the transition from a family business to a non‐family business affects the institutionalisation of management accounting.

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Abstract

Purpose

The purpose of the present paper is to investigate whether the transition from a family business to a non‐family business affects the institutionalisation of management accounting.

Design/methodology/approach

This paper is based on an online survey among all large and medium‐sized Austrian firms. Univariate and multivariate statistical analyses were used to test the impact of the level of family influence on aspects of the institutionalisation of management accounting. Firm size is included as the main control variable.

Findings

A lower level of influence from the controlling family was found to be correlated with the institutionalisation and intensification of management accounting in medium‐sized firms. For large firms, such a linear relationship could not be drawn. The level of education of management accountants was inversely correlated with the level of family influence in both large and medium‐sized firms.

Research limitations/implications

Further research into the reasons, underlying drivers and inter‐organisational promoters of management accounting change in family businesses is needed. Furthermore, the organisational impacts of the transition from family businesses to non‐family businesses deserve further investigation.

Originality/value

A framework for assessing the organisational effects of the transition from family businesses to non‐family businesses is provided. The empirical results on the impact of the transition on the institutionalisation of management accounting are presented. The level of family influence was found to act as a significant contextual factor for the organisation of management accounting in medium‐sized firms.

Details

Journal of Accounting & Organizational Change, vol. 9 no. 2
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 1 February 2005

Bernice Kotey

To examine differences between family and non‐family SMEs in business goals, management practices and performance as they grow.

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Abstract

Purpose

To examine differences between family and non‐family SMEs in business goals, management practices and performance as they grow.

Design/methodology/approach

The study was based on 233 small non‐family and 362 small family firms. Medium firms comprised 305 family and 341 non‐family firms. Chi‐square tests and t‐tests were used to investigate the hypotheses formulated.

Findings

Small family firms were less likely to pursue growth compared with similar non‐family firms. Although medium family proprietors desired growth, their actual growth was lower than similar non‐family firms. Management practices were less formal in family firms and the gap between family and non‐family firms in this area widened with growth. Small family firms achieved greater profits than their non‐family counterparts, although this disparity disappeared at the medium level. Exports were low for both firms at the small level. However, medium family firms were less likely than similar non‐family firms to export.

Research limitations/implications

Firms in the various size groups examined were independent of one another. A longitudinal investigation of family and non‐family firms as they progress through various growth stages should complement the findings.

Practical implications

The findings should assist policies makers, advisers, owners and management in designing policies and programs, providing advice and managing the two ownership types. Informal management procedures and the associated flexibility may enhance performance of small family firms but may impede their performance at larger sizes.

Originality/value

The paper demonstrates that the relationship between goals, strategies and performance varies between family and non‐family firms and the variations change with firm size.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 11 no. 1
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 15 May 2009

Matthew C. Sonfield and Robert N. Lussier

The purpose of this paper is to investigate, in a multi‐country context, the inclusion of family‐member managers and non‐family‐member managers in family businesses, and the…

3437

Abstract

Purpose

The purpose of this paper is to investigate, in a multi‐country context, the inclusion of family‐member managers and non‐family‐member managers in family businesses, and the relationship of this variable to certain management activities, styles and characteristics.

Design/methodology/approach

This four‐country study involved survey research and correlational testing of nine hypotheses. The four countries, Croatia, France, India and the USA, provided a mixture of entrepreneurial contexts. Given limited prior research in this area, this study is exploratory and broadly focused.

Findings

There was limited support for the relationship between the percentage of non‐family‐member managers and the nine management activities, styles and characteristics studied, both between and within countries. The strongest support was for the positive relationship between the percentage of non‐family managers and the use of sophisticated financial management methods.

Research limitations/implications

Inherent in the choice of countries are some variations among the four country samples. Future research can build on these findings with more focused studies in areas that seem worthy of further analysis.

Practical implications

This study, along with further research, should allow family business owner/managers to better understand the possible impacts of bringing non‐family managers into their firms. Family businesses may not need to be concerned that their firms will lose their “familiness” if they hire non‐family managers.

Originality/value

This study begins to fill a gap in the family business literature identified by prior researchers and, as noted above, creates a base for future research and for possible practical implications for family firm practitioners.

Details

Journal of Small Business and Enterprise Development, vol. 16 no. 2
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 4 July 2016

Elena Casprini, Simona D'Antone, Bernard Paranque, Tommaso Pucci and Lorenzo Zanni

Drawing on family-business and business model (BM) literature the purpose of this paper is to explore whether a relationship exists between the family involvement in the…

Abstract

Purpose

Drawing on family-business and business model (BM) literature the purpose of this paper is to explore whether a relationship exists between the family involvement in the management (i.e. closed or mixed management) and BM choice.

Design/methodology/approach

A multiple case study analysis of family-owned wineries in Chianti (Italy) and Côtes du Rhône (France) has been conducted.

Findings

The analysis surprisingly reveals that no relationship exists between the BM ideal type chosen and the type of management composition. Rather, it seems that the choice of hiring non-family managers is dictated by the willingness to reinforce the BM chosen by the owner and that the role played by non-family managers is not revolutionary but reinforces the owner’s BM choice. The authors propose that the stewardship theory can contribute in explaining the findings.

Originality/value

A twofold contribution is offered by this study: first, it links the strategic management research on BMs to family business (FB) research on corporate governance and specifically on the composition of management teams; second, it provides an empirical example of a cross-national comparative analysis on FBs using multiple case studies.

Details

EuroMed Journal of Business, vol. 11 no. 2
Type: Research Article
ISSN: 1450-2194

Keywords

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