Search results
1 – 10 of 937James M. Vardaman, William E. Tabor, Darel C. Hargrove and Feigu Zhou
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…
Abstract
Purpose
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.
Design/methodology/approach
The study draws upon a sample of 194 small and medium-sized family business owners.
Findings
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.
Originality/value
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.
Details
Keywords
This study investigates whether broad-based employee ownership (BBEO), in isolation and in conjunction with cash profit sharing (CPS), can enhance labor productivity in family…
Abstract
Purpose
This study investigates whether broad-based employee ownership (BBEO), in isolation and in conjunction with cash profit sharing (CPS), can enhance labor productivity in family firms over nonfamily firms.
Design/methodology/approach
Hypothesis testing was conducted using cross-sectional time-series regression with a matched sample of 393 family and nonfamily firms listed on the US S&P 500 over a five-year timeframe.
Findings
Overall, the findings indicate that BBEO does not increase labor productivity more in family firms compared to nonfamily firms in the short term; however, BBEO does enable family firms to experience greater labor productivity relative to nonfamily firms beyond the short term. Moreover, when BBEO is combined with CPS, labor productivity improves more for family firms than nonfamily firms both in the short term and beyond.
Originality/value
While prior studies have relied largely on agency theory, this study contributes to the literature on family firms and employee incentives by being amongst the first to draw upon temporal motivation theory to distinguish between family and nonfamily firms regarding the incentive effect of BBEO on labor productivity.
Details
Keywords
Mohammad Rezaur Razzak, Golam Mostafa Khan and Salem AlAbri
This study investigates the influence of inclusion of nonfamily employees in family firms on their intellectual, social and affective engagement at the workplace. Furthermore, the…
Abstract
Purpose
This study investigates the influence of inclusion of nonfamily employees in family firms on their intellectual, social and affective engagement at the workplace. Furthermore, the framework proposed in the study considers the possible moderating influence of procedural justice in the above relationships.
Design/methodology/approach
A conceptual framework is developed with the support of the self-determination theory (SDT) and the social exchange theory. The study tests a set of hypotheses using survey data from 654 nonfamily employees working in private family firms in Malaysia.
Findings
The results reveal that inclusion has a positive and significant relationship with intellectual, social and affective engagement. While procedural justice moderates the association between inclusion and intellectual and affective engagement, it does not moderate the relationship between inclusion and social engagement.
Research limitations/implications
The outcome of this study presents a nuanced understanding on how perceptions of inclusion of nonfamily employees by the dominant work group (DWG) (i.e. employees related to the firm owners) lead to positive firm-centric behavior among nonfamily employees.
Practical implications
The study provides clues to family firm managers for creating a work environment where nonfamily employees perceive a sense of belongingness while their uniqueness is appreciated in order to be more engaged at the workplace.
Social implications
Little is known about how diversity created within family firms by inclusion of nonfamily employees impacts organizations. The outcome of this study may reinforce the positive effects of inclusiveness in any social context.
Originality/value
Diversity researchers have studied the influence of inclusion in areas related to sociology and psychology. However, there appears to be a dearth of studies in terms of how nonfamily employees would behave in family firms when they perceive a sense of inclusion in an organization dominated by employees who are related to the owners of the firm. Hence, this study appears to shed new light on how inclusion of nonfamily employees in family firms influences their behavior.
Details
Keywords
Michael Mustafa, Hazel Melanie Ramos and Siti Khadijah Zainal Badri
The purpose of this study seeks to examine how nonfamily employees' job autonomy and work passion can influence their job satisfaction and intention to quit in family…
Abstract
Purpose
The purpose of this study seeks to examine how nonfamily employees' job autonomy and work passion can influence their job satisfaction and intention to quit in family small-to-medium-sized enterprises (SMEs). Current, research regarding the determinants of nonfamily employees' job satisfaction and turnover intentions has largely focused on the effects of family influence and family firm characteristics. Accordingly, not much is known of how the job characteristics and emotions of nonfamily employees influence their job satisfaction and intention to quit.
Design/methodology/approach
Data were collected from 160 nonfamily employees across 28 family-SMEs. Process macro was used to analyze the mediating role of nonfamily employees' work passion in the relationship between their job autonomy and job satisfaction and intention to quit.
Findings
Findings showed that nonfamily employees' job autonomy only had a significant direct effects on their job satisfaction and not their intention to quit. Subsequently, nonfamily employees' work passion was found to only partially mediate the relationship between their job autonomy and job satisfaction.
Originality/value
By focusing on the concepts of job autonomy and work passion, the study adds additional insights about the drivers of nonfamily employees' pro-organizational attitudes in family-SMEs. Also the study represents one of the first efforts in the literature to establish a link between job autonomy and the work passion of nonfamily employees with respect to their job satisfaction.
Details
Keywords
Cristina Cruz, Shainaz Firfiray and Luis R. Gomez-Mejia
This chapter takes a socioemotional wealth (SEW) perspective to explain the adoption of human resource (HR) practices in family-controlled firms. Previous studies on human…
Abstract
This chapter takes a socioemotional wealth (SEW) perspective to explain the adoption of human resource (HR) practices in family-controlled firms. Previous studies on human resource management (HRM) in family firms have focused only on a small range of HR practices and have rarely utilized strong conceptual frameworks. As a result, these studies have overlooked important factors that contribute to the distinctiveness of HRM in these organizations. Based on ample evidence that shows family businesses' preference for non-economically motivated objectives collectively labeled as SEW, we propose that the presence of SEW influences HR practices in family firms.
Consequently, we reexamine existing empirical evidence of the determinants of HRM in family-controlled firms under the SEW approach. We also reinterpret existing theoretical models of family-controlled firms and their implications for HRM under the SEW umbrella. Our final goal is to establish an integrated framework through a set of sound propositions on HRM in family businesses. By integrating the literature, we aim to fill theoretical gaps in our understanding of the determinants of HR practices in the family business context and direct future research in this area.
Emil Knezović and Nedžla Greda
The purpose of this paper is to investigate whether there is a difference in career development programs between family and nonfamily companies. Moreover, the paper explores the…
Abstract
Purpose
The purpose of this paper is to investigate whether there is a difference in career development programs between family and nonfamily companies. Moreover, the paper explores the relationships between career development dimensions and affective commitment in a family business setting.
Design/methodology/approach
A cross-sectional questionnaire-based survey was used to collect data from 506 employees in Bosnia and Herzegovina across the different industries. Independent t-test and hierarchical regression were used to test the hypotheses developed in the study.
Findings
The findings supported our assumptions that there is a significant difference in career development opportunities between family and nonfamily companies. Moreover, career development has a higher influence on affective commitment in the family business setting.
Research limitations/implications
The data for this study was collected by using convenience sampling, as well as a cross-sectional survey method, which limits the generalization of results. Due to the unavailability of a public database, we relied on employees’ perceptions when it comes to the ownership of a company.
Practical implications
To keep key employees, family business owners and managers have to invest in career development programs. The study shows that by aligning employee and organizational goals, offering professional development and remunerating the positive performance helps in keeping the most valuable assets within the company.
Originality/value
So far, the research about career development in family businesses was insensible. This study provides an important contribution to the understanding of career development and its outcomes in family businesses.
Details
Keywords
Jahangir Wasim, James Cunningham, Alexander Maxwell-Cole and James Richard Taylor
Knowledge transfer plays a key role in the succession process. While much attention has been given to the passing of business knowledge form incumbent to successor, less is known…
Abstract
Purpose
Knowledge transfer plays a key role in the succession process. While much attention has been given to the passing of business knowledge form incumbent to successor, less is known about the use of nonfamily knowledge during this most crucial of family business events. The purpose of this paper is to look how knowledge from nonfamily employees is treated at times of succession. Importantly, it considers how the controlling family’s cultural background may influence nonfamily knowledge use, and subsequent implications for the succession process.
Design/methodology/approach
An exploratory comparative case study design is adopted in order to uncover the complex social and cultural dynamics around knowledge use. Four case studies are presented from family businesses of different, and contrasting, cultural origins. Data were collected using semi-structured interviews, observations and formal secondary data from the organisations, all of whom operate in the UK.
Findings
Findings reveal a complex picture, part influenced by the cultural dynamics of the family and part by business necessity. Specifically, power–distance appears as an informative cultural dimension, influencing how knowledge is used and nonfamily are perceived. While some family businesses privilege the knowledge from family, others see the need to build knowledge relationships more broadly.
Originality/value
This paper provides further evidence to the heterogeneity of family businesses. It moves beyond a processual explanation of succession to develop a more contextually aware understanding of the dynamics and sensitivities involved.
Details
Keywords
Edem M. Azila-Gbettor, Robert J. Blomme, Ad Kil and Ben Q. Honyenuga
The study examines organization citizenship behavior (OCB) as a mediating variable between instrumental work values (IWVs) and organizational performance; and group differences…
Abstract
The study examines organization citizenship behavior (OCB) as a mediating variable between instrumental work values (IWVs) and organizational performance; and group differences between family manager and nonfamily manager for integrated models in family hotels. Data were collected from 189 hotels (n = 921) ranging from budget to three-star family hotels in Ghana using questionnaire administered conveniently. Data were analyzed using structural equation modeling. Work value positively influences OCB and organizational performance of family hotels. OCB mediates the relationship between work values and organizational performance. The study also found significant support for group differences between family and nonfamily firms for IWVs and mediating effect of OCB on the relationship between IWVs and performance.
Details
Keywords
Emma Su and Joshua Daspit
The literature related to knowledge management (KM) is robust with respect to insights regarding firms in general. However, less is known about the KM of family firms despite…
Abstract
Purpose
The literature related to knowledge management (KM) is robust with respect to insights regarding firms in general. However, less is known about the KM of family firms despite these firms being the most common form of business organization worldwide. Further, even though the number of studies examining family-firm KM has increased in recent years, the insights gained remain fragmented. Therefore, the purpose of this study is to help coalesce and advance the study of family-firm KM.
Design/methodology/approach
In pursuit of these goals, a systematic literature review was conducted. Using a 6-step, systematic literature review protocol, 74 articles focused on family-firm KM published in 23 journals were identified and reviewed.
Findings
This literature review contributes to the synthesis and advancement of family-firm KM scholarship in several ways. First, key factors and relationships are identified and integrated into a robust framework. Second, scholarly insights are synthesized, and a review of the primary antecedents, outcomes and moderating factors associated with family-firm KM processes is presented. Third, promising opportunities for future research are highlighted to advance family-firm KM scholarship.
Originality/value
With a focus on reducing the fragmentation in the literature, this review synthesizes insights related to the most commonly studied antecedents, outcomes and moderators associated with family-firm KM. Additionally, antecedents are organized and reviewed according to the nature of their influence on family-firm KM processes, highlighting the simultaneous opposite effects of some influences. Further, key outcomes are synthesized based on their family versus firm-centric orientation. Even further, insights and opportunities focused on advancing the theory, antecedents, outcomes, moderators and other issues related to family-firm KM are presented in an effort to support the continued progress of scholarship in this area.
Details
Keywords
Jonathon R.B. Halbesleben and Anthony R. Wheeler
Changing work/family dynamics and economic developments have made it more likely that an employee might work with a family member or spouse. Such working relationships offer a…
Abstract
Changing work/family dynamics and economic developments have made it more likely that an employee might work with a family member or spouse. Such working relationships offer a unique perspective by which to understand the work/family interface; however, relatively little research has explored the implications of working with family for employee stress and well-being. In this chapter, we review the existing research concerning stress associated with working with family. We integrate this research into broader demand/resource perspectives on employee stress and well-being, highlighting the manner in which working with family provides unique demands and resources through differences in work–family linking mechanisms. We conclude with suggestions for future research that might enhance our understanding of the work/family interface by considering the dynamics of working with family.