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In this chapter, we explore the impact of socioemotional and financial wealth on the resource management of family firms. We use MoDo, a Swedish pulp and paper firm, covering three generations of owner-managers from 1873 to 1991, to grasp the shifting emphases on socioemotional and financial wealth in the management of the company. Identifying four strategic issues of decisive importance for the development of MoDo, we analyze the organizational values that guided the management of these issues. We propose that financial and socioemotional wealth stand for two different rationalities that infuse organizational values. The MoDo case illustrates how these rationalities go hand in hand for extended periods of time, safeguarding both financial success and socioemotional endowments. However, in a situation where the rationalities are no longer in line with the development of the industry context, the conflict arising between the two rationalities may have fatal consequences for the firm in question.

The phenomenon of defamilization of family firms is gradually increasing for the growth of family firms, that is, nonfamily executives are increasingly present in the executive teams of family firms. Although previous scholars have identified various determinants of family firms' defamilization, whether and when innovation underperformance affects the decision to defamilize family firms has not been explore. This study aims to fill the aforementioned research gaps.

This study empirically tests the theoretical view based on the data of Chinese A-share family listed companies from 2009 to 2017.

The authors found that innovation underperformance drives family companies to increase the percentage of nonfamily executives in their executive teams. Further, the authors found that family firms are less willing to hire nonfamily executives with an increase in socioemotional wealth, particularly when founders of such businesses serve as directors or are major shareholders, even when they are not directors.

This study shows that innovation underperformance and socioemotional wealth are important predictors of family firms’ defamilization decisions.

The purpose of this paper is to focus on the interactive effects of intrinsic and extrinsic factors on R&D output by analysing Chinese-listed industrial family firms. It proposes modelling the moderating influence of quality of government (QOG) on the relationship between family firm governance types (family control and family management) and R&D output from the “twin agency” perspective (Stulz, 2005).

The data set is organised as an unbalanced panel. This study exploits random-effects GLS regression, analysing both cross-sectional and time variation, and estimating the mean effects. The GLS model corrects the variance- and sequence-related problems of linear model random items and remains consistent and robust when the error term is heteroscedastic and non-normally distributed.

The findings provide several empirical conclusions: in areas with a higher QOG, family firms with greater family control (i.e. voting rights of the board) achieve more R&D output than firms with less family control; and QOG has no significant interactive effects with family management (i.e. the ratio of family managers among top managers) on R&D output. The main contribution of this paper is to show that in areas with a higher QOG, greater R&D output for family firms depends on greater family control rather than family management. These findings give a better understanding of the interactive influence of inside and outside agency problems in family firms in general and their R&D output in particular across different cities, and may help both family firms’ leaders and government policy makers to foster innovation by controlling intrinsic and extrinsic agency problems.

To date, most family firm innovation research has concentrated upon governance and R&D behaviour (Block, 2012; Brinkerink and Bammens, 2018; Chrisman and Patel, 2012; Lee and O’Neill, 2003). Few studies, however, have been performed from the major strategic (control) and operational (management) orientations, into the influence of outside (QOG) and inside (governance) factors upon innovation. This study attempts to fill that gap. It uses patent counts to measure the economic and technological importance of innovation. It argues that different QOG may lead major controllers or executives in family firms to have different motivations, and hence to approach innovation differently from the agency perspective.

The main contribution of this study is to show that in areas with a higher QOG, higher R&D outputs of family firms depend on higher family control rather than family management, due to the interactive influence of inside and outside agency problems. When family management is high, the direct effect is high, because family management may reduce the principal–agent agency cost (PAAC), but the interactive effect of QOG and family management is not significant. In areas with high QOG, although family management may reduce the PAAC, principal–principal and altruism agency costs may increase. Based on the twin agency theory, differing inside expropriation issues between strategic (family control) and operational (family management) orientations are the main differentiator, one accentuated by the external expropriation issues of QOG.

These results contribute to a better understanding of family firms in general and their R&D output in particular across different cities. The findings also show of interest for government policy makers who should be aware of the significance of FFs’ characteristics for innovation and their incentives to conduct R&D projects.

The research uses Stulz’s (2005) “Twin agency” concept to analyse the interacting effects of state-level agency problems of governments with firm-level agency problems of family firms on R&D output. This paper answers the main question: What are the interactive effects of QOG and family firm governance on R&D output? The main contribution of the paper is to bridging the current gap in the literature.

Socioemotional wealth (SEW) has emerged as the most differentiating aspect in family firms and has become the focal issue in family firm decision making. Family firms have to face the jeopardy of financial gains and socioemotional. The purpose of this paper is to investigate the different dimensions of SEW in developing the firm as corporate entrepreneurial and which dimensions engage stakeholders.

The authors designed a survey questionnaire to obtain primary data for the study using purposive sampling method. The study conducted on the family firm using the questionnaire to investigate for corporate entrepreneurship (CE), and stakeholder engagement (SE) depended on family control and influence, family identity, binding social ties, emotional attachment and renewal of family bonds.

The study identified different SEW factors affecting CE and SE. The authors found that binding social ties and renewal of family bonds has a statistically significant impact on SE, whereas family identity and social ties have a statistically significant impact on CE.

The authors receive data from the CEOs with low response rate and expected to have better results with more observations. The same study been conducted in different parts of the world may give different results and a cultural bias may restrict the findings.

From the research, family firms can take twofold benefits. In short term, a family firm with better SE can generate satisfied employees with lesser turnover intentions. For long-term objectives with respect to CE, a firm can get a result in terms of market innovations through for better firm’s performance.

Since her inception, Pakistan has emerged as a society of commodity traders and technology importers. This society can easily generate an import-driven business. Nonetheless this import-driven economy always remains under great economic distress due to limited potential for actual innovations and market disruptions. The family businesses of any emerging market like Pakistan need to learn CE and SE while safeguarding social-emotional wealth, thereby being successful as firm to become export-driven economy at large.

The study identifies different SEW factors that help in developing a firm as corporate entrepreneurial and stakeholder’s engagement. Findings of the study are valuable for managing the family firms in developing economies where the family structures are very vibrant and businesses have a clear dependency on family formations.

The purpose of this research is to study the financial, family, and cultural incidences on the investment policy of unlisted Moroccan family firms passed on to the second generation or more in times of crisis.

The design is based on an innovative methodological approach of contextualization in times of crisis with 20 unlisted Moroccan family firms, 3 sociologists and 2 researcher-experts in times of crisis.

This research work gives rise to a result that can be summarized through a logic of combined rationality. Explicitly, in the family business, it is necessary to combine the two effects: financial rationality in times of crisis, and the emotionality that reigns in family logic (everything that is culture, family traditions and psychological backgrounds) to make arbitrations in terms of investments.

Thus, the originality of this research is rooted by a field made up of transmitted Moroccan family firms. The major problems related to the investment of the family firm begin to emerge once there are a multitude of generations involved in the management. This accentuates the family and socio-cultural effects of family reputation and religiosity and the firm's strategic imitation. In this sense, this paper proposes a way forward in the research on family businesses, by integrating family and cultural logics following a hybrid approach that integrates these factors with classical financial logics.

This study aims to examine the impact of internal corporate governance and audit quality on the level of COVID-19 disclosure in Egypt.

The authors use manual content analysis to measure levels of COVID-19 disclosure in the narrative sections of annual reports. The authors analyze all companies listed on the Egyptian Stock Exchange over 2020–2021. The authors use different regression models to test the research hypotheses.

The analysis adds to the literature in two crucial respects. First, it provides a measure for COVID-19 disclosure in Egypt. Second, it provides evidence that governance mechanisms (board diversity, audit committee [AC] independence), auditor type and audit opinion affect the level of COVID-19 disclosure. The higher level of COVID-19 disclosure is associated with firms with more female directors on the board, being audited by one of the big four audit firms and receiving standard clean audit opinion. While the inexistence of an AC and more executives on the AC negatively affect COVID-19 disclosure levels.

To the best of the authors’ knowledge, it is the only paper that examines COVID-19 disclosure in the Egyptian context. It is also the first paper that provides evidence on the impact of internal governance and audit quality on COVID-19 disclosure.

As the prioritization of family goals depends on the resolution of family conflict, this study's purpose is to explain how a dominant coalition (DC) of parental family members prioritizes their family economic and non-economic goals when faced with different types of family conflict.

A conceptual framework is developed drawing on a socio-cognitive approach to explain a family's goal formation process. This socio-cognitive approach extends the stakeholder salience underpinnings of family influence/essence theory. It shows that family conflict arises from the complex and novel social settings of a family business and that a DC prioritizes their family's goals by drawing on heuristic biases to resolve such family conflict.

A key finding of this study is the introduction of a distinct type of agency to family influence/essence research. Unlike the salient explanations, a family's goal formulation process is attributed to a DC's heuristic response in resolving their family business conflict.

Scholars have called for a greater need to investigate the social and cognitive underpinnings of a family's goal formation process. While the social settings of a family business are often explained in terms of family conflict, an understanding of the sources of such conflict and their resolution have received limited attention. This study opens new avenues to understanding the sources of such family conflict and the cognitive mechanisms needed to overcome them. This understanding is critical not only to the prioritization of a family's goals but also to the idea that “influence” defines the essence of a family business.

This study aims to investigate the effect of intellectual capital components on firms’ performance, and also examines the influence of the mediating role of family management on such a relationship.

The hypotheses are tested using structural equation modeling for a sample of 46 Jordanian service listed firms during 2014–2019.

The results indicate that intellectual capital efficiency is a key factor that enables firms to achieve higher financial performance and higher market value. Human capital efficiency has a significant positive effect on firms’ profitability as measured by return on assets and earnings per share. No evidence is shown to support that family management has a mediating role on the relationship between intellectual capital and firms’ performance.

The results indicate strong evidence of the important role of intellectual capital on firm performance. Accordingly, this study recommends that the managers of service firms should continue to enhance and improve the components of intellectual capital, especially investing more in the competencies and capabilities of employees, including their skills, education and training programs to achieve competitive advantage and ensure continued success in the future, and investors to pay special attention to the components of intellectual capital to predict the performance of the firm and be able to choose the best investment opportunities.

This study provides additional insights into the literature of both intellectual capital and family businesses by analyzing data from an emerging market.

The purpose of this paper is to explore the main factors of family harmony in Moroccan family businesses.

Exploratory approach based on face-to-face interviews was employed to examine how Moroccan family firm owners perceive the main factors of preserving family harmony in the long term.

In the present exploratory study, the importance of having an open communication among family members is emphasized. The findings that were reached suggest that the relationship between family members must be built on trust and commitment, without neglecting the importance of autonomy at work including division of tasks. Furthermore, the respect of the family and the business emerged as one of the most paramount components of our exploratory study.

Based on our exploratory study, the authors developed a model of the main factors of family harmony in the Moroccan family business considering the culture and habits of the country.

The purpose of this research is to study the influence of professionalization on Moroccan family businesses and the challenges that hinder its success.

The design is based on exploratory qualitative approach based on semi-directive interviews with 15 CEOs of unlisted Moroccan family businesses to gain a better understanding of CEOs' perceptions of management professionalization.

This research work gives rise to a result that professionalization helps family businesses cope with their competitive environment, improve the quality of strategic decisions and thus increase their performance. However, successful professionalization process requires certain cognitive, managerial, cultural and emotional skills that allow the overcoming of socio-emotional barriers and guarantee the efficacious implementation of change.

This paper guarantees the identification of the mechanisms to be put in place to overcome the challenges that prevent the success of this professionalization by implementing a new professional culture inspired by family values and standards while respecting the conditions of economic profitability.

The originality of this paper lies in the analysis of the influence of professionalization on the family businesses' in the Moroccan context and the proposal of professionalization tracks to align with market requirements and strengthen the competitiveness of the company. Thus, this paper guarantees the identification of the mechanisms to be put in place to overcome the challenges that prevent the success of this professionalization by implementing a new professional culture inspired by family values and standards while respecting the conditions of economic profitability.