scholarly journals TMT diversity and innovation ambidexterity in family firms

2019 ◽  
Vol 9 (4) ◽  
pp. 377-392 ◽  
Author(s):  
Irina Röd
Keyword(s):  
Family Involvement ◽  
Family Firms ◽  
Firm Heterogeneity ◽  
Family Firm ◽  
Cross Sectional ◽  
Firm Innovation ◽  
Content Type ◽  
Mediating Role ◽  
The One ◽  
The Relationship

Purpose Family firms that simultaneously engage in multiple levels of innovation – incremental and radical – are likely to enjoy performance advantages across generations. The purpose of this paper is to research under which management conditions (i.e. top management team (TMT) diversity in terms of generational or non-family involvement) family firms are more likely to achieve innovation ambidexterity. Also, the paper addresses the mediating role of open innovation (OI) breadth in this relationship. Design/methodology/approach A large cross-sectional sample of 335 small- and medium-sized family firms is used. The hypotheses were tested in a mediation model. The relationship between TMT diversity and ambidexterity is measured using a binominal regression analysis, the one between TMT diversity and OI breadth using a Tobit model. Findings Drawing on the family firm upper echelon perspective, the results indicate that TMT diversity induced through external managers and multiple generations is positively related to innovation ambidexterity. As the mediation analysis reveals, the relationship can be explained by the higher propensity of diverse TMTs to get involved in OI breadth. The findings add to the discussion on family firm heterogeneity and its influence on different kinds of innovation. Originality/value So far, few studies have been concerned with ambidextrous family firms. Contrary to their reputation, this study identifies family firms as radical as well as open innovators. As such, this research takes account not only of the heterogeneity of family firms, but also of the heterogeneity of family firm innovation.

Understanding family firm innovation heterogeneity

2016 ◽  
Vol 6 (2) ◽  
pp. 103-121 ◽  
Author(s):  
Zonghui Li ◽  
Joshua J. Daspit
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
Firm Heterogeneity ◽  
Family Firm ◽  
Firm Innovation ◽  
Content Type ◽  
Business Studies ◽  
The Family ◽  
Innovation Strategies

Purpose – In family business studies, inconsistent findings exist regarding the relationship between family involvement and firm innovation. The purpose of this paper is to understand the heterogeneity of family firm innovation. Design/methodology/approach – The authors draw on governance literature and the socioemotional wealth (SEW) perspective to examine how the extent of family governance and the type of SEW objectives jointly influence innovation strategies in family firms. Findings – The authors develop a typology of family firm innovation strategies, positing that the family firm’s risk orientation, innovation goal, and knowledge diversity vary depending on the degree of family involvement in governance and the type of SEW objective. The authors propose that four family firm innovation strategies (e.g. Limited Innovators, Intended Innovators, Potential Innovators, and Active Innovators) emerge when family involvement in the dominant coalition (high or low) is contrasted with the SEW objective (restricted or extended) pursued by the family. Practical implications – Understanding how governance and SEW goals work together to influence the firm’s innovation strategies is potentially valuable for managers of family firms. The authors offer practical suggestions for how to strategically reposition the firm to pursue innovation strategies more in line with those of the Active Innovator. Originality/value – This study contributes to the family business literature by using a multi-dimensional approach to examine family firm heterogeneity. In addition, by articulating various family firm innovation strategies, the authors offer insight into the previously inconsistent findings concerning firm innovation behavior and outcomes in family business studies.

The role of cooperation agreements in the internationalization of Spanish winery and olive oil family firms

2019 ◽  
Vol 31 (4) ◽  
pp. 555-577 ◽  
Author(s):  
Valeriano Sanchez-Famoso ◽  
Myriam Cano-Rubio ◽  
Guadalupe Fuentes-Lombardo
Keyword(s):  
Olive Oil ◽  
Family Involvement ◽  
Family Firms ◽  
International Strategy ◽  
Content Type ◽  
Oil Companies ◽  
Mediating Role ◽  
High Level ◽  
The Relationship

Purpose This study aims to identify the mediating role of cooperation agreements in the relationship between family involvement in international firms and their level of international commitment. Design/methodology/approach The study focuses on Spanish international wine and olive oil companies that have varying levels of family involvement. The final sample consists of 263 companies. SmartPLS was used to perform the analysis. Findings A higher level of family involvement in business implies greater difficulties with cooperation agreements. Additionally, family involvement is negatively associated with the firm’s level of international commitment, and the perceived difficulties of cooperation agreements mediate this relationship. Practical implications This study is of interest to business managers with different levels of family involvement. The study clarifies their perceptions of cooperation agreements and international business commitment. Managers of firms with a high level of family involvement should emphasize the multiple benefits of cooperation agreements for international strategy performance rather than the drawbacks of cooperation. Additionally, through cooperation, companies can learn about destination markets, which may help them to focus their resources effectively in those markets. Originality/value This study contributes to the literature on the internationalization strategies of family businesses. This study is the first to address the mediating role of cooperation agreements in the relationship between family involvement and international commitment.

Innovation and family firms: ability and willingness and German SMEs

2016 ◽  
Vol 6 (3) ◽  
pp. 251-269 ◽  
Author(s):  
Jonas Heinrich Steeger ◽  
Malte Hoffmann
Keyword(s):  
Family Firms ◽  
Family Firm ◽  
Family Impact ◽  
Self Assessment ◽  
Firm Level ◽  
Cross Sectional ◽  
Firm Innovation ◽  
Content Type ◽  
Innovation Research ◽  
Ability And Willingness

Purpose Research disputes whether family businesses are more or less innovative than their nonfamily counterparts. So far, no consistent results have been achieved. The recently introduced willingness and ability framework suggest that idiosyncratic behavior is only to be expected if both sufficiency conditions – willingness and ability – are fulfilled. The purpose of this paper is to test this hypothesis empirically. Design/methodology/approach A large cross-sectional sample of German small- and medium-sized enterprises is used. The sample offers – alongside numerous moderators commonly used in innovation research – several family firm definitions. Given the censored nature of the endogenous variable chosen, a Tobit model is used. Findings Drawing upon agency theory and the ability and willingness paradox in family firm innovation, it finds family firms to be less innovative only if both willingness and ability conditions are fulfilled. Originality/value To the best of the knowledge, the study provides the first attempt to test the willingness and ability theorem. Therefore, the commonly used family firm-specific measures (self-assessment-, ownership-, and management criterion) are operationalized to better understand what drives innovativeness in family firms. The findings thus add to the ongoing discussion on what really drives family impact on firm-level decisions.

Examining entrepreneurial orientation’s dimensions – performance relationship in Saudi family businesses

2018 ◽  
Vol 8 (2) ◽  
pp. 126-145 ◽  
Author(s):  
Wassim J. Aloulou
Keyword(s):  
Family Involvement ◽  
Risk Taking ◽  
Family Firms ◽  
Family Firm ◽  
Survey Study ◽  
Content Type ◽  
Saudi Family ◽  
Family Involvement In Management ◽  
Entrepreneurial Activities ◽  
The Relationship

Purpose The purpose of this paper is to contribute to family firm and entrepreneurship literature by providing an examination of how family involvement in management (FIM) moderates the relationship between entrepreneurial orientation (EO)’s dimensions and family firm performance (FFP). Design/methodology/approach Through a survey study, the research was developed using a sample of 175 family firms in Saudi Arabia to test the proposed hypotheses using hierarchical linear regression. Findings The findings revealed a strong positive and significant linkage of proactiveness and FIM with FFP, but, no significant relationship between innovativeness and risk-taking with FFP. However, when FIM contingencies were hypothesized, a new significant influence from the interaction between risk-taking and FIM on FFP was found. Research limitations/implications The main limitation lies in the fact that it is not possible to claim generalization of findings to family firms in other emerging or transitional countries as the research is focused on Saudi family firms. Theoretical and practical implications are discussed in order to produce new knowledge on EO of family firms and to help these firms not consider FIM as an impediment to the development of resources and capabilities necessary to the promotion of entrepreneurial activities within their operations. Originality/value There is a contribution to the literature on EO by showing that EO construct and its dimensions have great generality within family firms in a transitional context.

Birth mode of family firms, family entering time and R&D investment: evidence from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Zulfiqar ◽  
Shihua Chen ◽  
Muhammad Usman Yousaf
Keyword(s):  
Agency Theory ◽  
Family Firms ◽  
Family Firm ◽  
Research Database ◽  
Content Type ◽  
Firm Birth ◽  
The Relationship ◽  
D Investment ◽  
Moderating Role

PurposeOn the basis of behavioural agency theory and resource-based view, this study investigates the influence of family firm birth mode (i.e. indirect-established or direct-established), family entering time on R&D investment and the moderating role of the family entering time on the relationship between birth mode and R&D investment.Design/methodology/approachThe authors collected 2,990 firm-year observations from family firms listed on A-share in China from 2008 to 2016 in the China Stock Market and Accounting Research database. They used pooled regression for data analysis and Tobit regression for robustness checks.FindingsIndirect-established family firms show more inclined behaviour towards R&D investment than direct-established counterparts. Family entering time positively affects the R&D investment of family firms. Moreover, family entering time plays a significant moderating role in the relationship between family firm birth mode (i.e. indirect-established or direct-established) and R&D investment.Originality/valueTo the best of the authors’ knowledge, this work is a pioneering study that introduced the concept of family firm birth mode (i.e. indirect-established or direct-established) and family entering time. This work is novel because it differentiated family firms according to their birth modes, an approach which is a contribution to the existing literature of family firms. Moreover, the investigation of the moderating role of family entering time has also produced notable results that help understand the impact of family entering time on different types of family firms. The interpretation of outcomes according to behavioural agency theory also produced useful insights for future researchers as well as for policymakers.

Intellectual capital and performance of listed companies: empirical evidence from Italy

2014 ◽  
Vol 18 (1) ◽  
pp. 22-35 ◽  
Author(s):  
Domenico Celenza ◽  
Fabrizio Rossi
Keyword(s):  
Explanatory Power ◽  
Value Added ◽  
Listed Companies ◽  
Cross Sectional ◽  
Content Type ◽  
Accounting Performance ◽  
And Performance ◽  
The One ◽  
Two Stages ◽  
The Relationship

Purpose – The aim of this paper is to investigate the relationship between corporate performance and Value Added Intellectual Coefficient (VAICTM) on the one hand, and the relationship between the variations in market value and the variations in VAIC on the other hand. Design/methodology/approach – Starting from the VAIC model, 23 Italian listed companies were examined with the aim of investigating the relationship between VAIC and the performance of the firms in the sample. The analysis was divided into two stages. In the first stage, eight models of linear regression were estimated to verify the presence of a positive and statistically significant relationship between M/BV and VAIC and between accounting performance indicators (ROE, ROI, ROS) and the VAIC. In the second stage, six other models were tested, considering as an independent variable the variations in VAIC and the variations in profitability indicators. Findings – The outcomes of the application stress the importance of VAIC in the explanation of the variations in MV and its role as “additional coefficient” in the analysis of equity performance. Originality/value – This methodology highlights some very interesting aspects. In particular, whereas the relationship between M/BV and VAIC and between profitability indicators (ROI, ROE, ROS) and VAIC is statistically insignificant, the subsequent analysis highlights the importance of VAIC as a variable capable of increasing the explanatory power of the regression in a cross-sectional perspective.

Does family involvement matter post IPO? Adding value through advertising in family firms

2018 ◽  
Vol 8 (3) ◽  
pp. 218-234 ◽  
Author(s):  
Atanas Nik Nikolov ◽  
Yuan Wen
Keyword(s):  
Firm Performance ◽  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
Family Firm ◽  
Family Businesses ◽  
Publicly Traded ◽  
Content Type ◽  
The Public ◽  
The Family

PurposeThis paper brings together research on advertising, family business, and the resource-based view (RBV) of the firm to examine performance differences between publicly traded US family vs non-family firms. The purpose of this paper is to understand the heterogeneity of family vs non-family firm advertising after such firms become publicly traded.Design/methodology/approachThe authors draw on the RBV of the firm, as well as on extensive empirical literature in family business and advertising research to empirically examine the differences between family and non-family firms in terms of performance.FindingsUsing panel data from over 2,000 companies across ten years, this research demonstrates that family businesses have higher advertising intensity than competitors, and achieve higher performance returns on their advertising investments, relative to non-family competitors. The results suggest that the “familiness” of public family firms is an intangible resource that, when combined with their advertising investments, affords family businesses a relative advantage compared to non-family businesses.Research limitations/implicationsFamily involvement in publicly traded firms may contribute toward a richer resource endowment and result in creating synergistic effects between firm “familiness” and the public status of the firm. The paper contributes toward the RBV of the firm and the advertising literature. Limitations include the lack of qualitative data to ground the findings and potential moderating effects.Practical implicationsUnderstanding how family firms’ advertising spending influences their consequent performance provides new information to family firms’ owners and management, as well as investors. The authors suggest that the “familiness” of public family firms may provide a significant advantage over their non-family-owned competitors.Social implicationsThe implications for society include that the family firm as an organizational form does not need to be relegated to a second-class citizen status in the business world: indeed, combining family firms’ characteristics within a publicly traded platform may provide firm performance benefits which benefit the founding family and other stakeholders.Originality/valueThis study contributes by highlighting the important influence of family involvement on advertising investment in the public family firm, a topic which has received limited attention. Second, it also integrates public ownership in family firms with the family involvement–advertising–firm performance relationship. As such, it uncovers a new pathway through which the family effect is leveraged to increase firm performance. Third, this study also contributes to the advertising and resource building literatures by identifying advertising as an additional resource which magnifies the impact of the bundle of resources available to the public family firm. Fourth, the use of an extensive panel data set allows for a more complex empirical investigation of the inherently dynamic relationships in the data and thus provides a contribution to the empirical stream of research in family business.

Personality and boredom at work: the mediating role of job crafting

2019 ◽  
Vol 24 (4) ◽  
pp. 315-330
Author(s):  
Bogdan Oprea ◽  
Dragos Iliescu ◽  
Vlad Burtăverde ◽  
Miruna Dumitrache
Keyword(s):  
Job Crafting ◽  
Negative Consequences ◽  
Cross Sectional ◽  
Content Type ◽  
Work Related ◽  
Mediating Role ◽  
Cross Sectional Design ◽  
The Individual ◽  
The Relationship

Purpose Boredom at work is associated with negative consequences, therefore it is important to investigate whether employees engage in job crafting behaviors that reduce boredom and what are the individual differences associated with these behaviors. The paper aims to discuss these issues. Design/methodology/approach A questionnaire study was designed to examine the mediating role of job crafting in the relationship between conscientiousness and emotional stability and boredom among 252 employees (Study 1) and in the relationship between Machiavellianism and psychopathy and boredom among 216 employees (Study 2). Findings The results showed that conscientiousness is negatively related to work-related boredom. This relationship is mediated by job crafting. Neuroticism and psychopathy are positively associated with boredom at work, but these relationships are not mediated by job crafting behaviors. Research limitations/implications The study was based on self-reported measures, which might raise questions of common-method bias, and the research samples contained mostly women and young employees, which raises questions about generalizability of our findings. At the same time, the cross-sectional design does not allow causal inferences. Practical implications Organizations can select employees based on their personality for jobs that predispose to boredom and give them enough autonomy to be able to craft them. Moreover, they can identify employees who need support to manage their boredom and include them in job crafting interventions. Originality/value Traditionally, boredom at work has been considered as resulting from characteristics of tasks and jobs. The findings indicate that some employees can make self-initiated changes to their work in order to reduce their boredom and possibly its negative consequences.

External knowledge sourcing and innovation in family firms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manzoor Ul Akram ◽  
Koustab Ghosh ◽  
Rojers P. Joseph
Keyword(s):  
Social Capital ◽  
Absorptive Capacity ◽  
Product Innovation ◽  
Family Firms ◽  
Family Firm ◽  
Content Type ◽  
External Knowledge ◽  
Mediating Role ◽  
Realized Absorptive Capacity

Purpose This study aims to investigate the external knowledge search behaviors in terms of search breadth and search depth in family firms and the resultant product innovation in Indian context. The authors theorize the mediating role of absorptive capacity (potential and realized absorptive capacity) between knowledge sourcing from external sources and product innovation. Further, the authors examine the moderating role of crucial internal social capital of the family firm in enhancing the use of external knowledge for firm innovation activities. Design/methodology/approach The study uses a quantitative research design taking single informant for collection of data from 151 family small and medium enterprises in automotive sector in India. The authors use structural equation modeling to test hypothesized relationships. Findings The findings indicate that both search breadth and search depth of family firms are positively associated with product innovation in family firms. The authors also find evidence for partial mediating role of potential and realized absorptive capacity in the relationship between search breadth and innovation and search depth and innovation. The results show how family firms learning taking place while scanning external knowledge sources in terms of external absorptive capacity routines. Finally, the authors find that family firm internal social capital positively moderate the relationship between search breadth and depth, and product innovation. Practical implications Family firms need to innovate to remain relevant in the long-run and as such development of superior capabilities is of great significance to them. Family firm managers must be open to external knowledge as such knowledge help them improve the firm level of innovation through absorptive capacity. Further, family firms must realize and act upon the importance of their social capital for the integration and utilization of acquired knowledge. Originality/value This paper is amongst a few papers that take dynamic capability views of innovation in family firms wherein the authors theorize how external search breadth and depth lead to the development of potential and realized absorptive capacity in family firms. The importance of family firm internal social capital as a strong integrating and knowledge sharing mechanism that helps family firms transform external knowledge into innovation is also highlighted.

The mediating role of entrepreneurial ambition in the relationship between entrepreneurial efficacy and entrepreneurial drive for female nascent entrepreneurs

2019 ◽  
Vol 35 (1) ◽  
pp. 76-91
Author(s):  
Randi L. Sims ◽  
Ravi Chinta
Keyword(s):  
Black Women ◽  
Gender Discrimination ◽  
White Women ◽  
The State ◽  
Direct Effects ◽  
Cross Sectional ◽  
Content Type ◽  
Mediating Role ◽  
And Gender ◽  
The Relationship

Purpose Using Vroom’s expectancy theory of motivation as a theoretical basis, this study aims to test the relationship between female entrepreneurial efficacy, entrepreneurial ambition and nascent entrepreneurial drive, accounting for the potential barriers of race and minority disadvantage. Design/methodology/approach The sample included 950 respondents comprising 213 Black women and 737 White women living in the state of Alabama, USA, who expressed an intention to starting their own business. Findings The results indicate that race and perceptions of minority disadvantage are perceived barriers in the mediated relationship between female entrepreneurial efficacy, entrepreneurial ambition and entrepreneurial drive. However, the findings suggest that, unlike race, minority disadvantage is not perceived as a significant factor in the mediated relationship between entrepreneurial confidence, entrepreneurial ambition and entrepreneurial drive. Research limitations/implications Limitations of this study include the lack of an experimental design and the use of cross-sectional data. Practical implications Results are discussed in terms of the context of the history of racial and gender discrimination within the state of Alabama, USA. Social implications The results show that the direct effects of minority disadvantage on entrepreneurial ambition are significantly higher for the Black women compared with the White women in our sample. Originality/value The results of this study show that the direct effects of minority disadvantage on entrepreneurial ambition are significantly higher for the Black women compared with the White women. For the subgroup of Black women, the greater the perception of minority disadvantage, the greater the entrepreneurial ambition reported.

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