Unleashing the Relationship Power of Family Firms: Identity Confirmation as a Catalyst for Performance

2008 ◽  
Vol 32 (6) ◽  
pp. 1063-1081 ◽  
Author(s):  
Laurie P. Milton
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Theory Of The Firm ◽  
Family Businesses ◽  
Relationship Power ◽  
Business Research ◽  
Broad Perspective ◽  
Relational Capabilities ◽  
The Impact ◽  
The Relationship

This paper adopts a broad perspective on identity and identity relations and argues that family businesses can develop identity confirmation as a unique, hard to imitate competitive resource that unleashes and leverages the relational capabilities that differentiate them from nonfamily businesses. A person's identities are “confirmed” in a business, to the extent they are supported therein. Identity and identity confirmation research is marshaled to consider the impact of identity confirmation on succession. Implications for other relational challenges family businesses face are explored. The potential for family business research to contribute to a general theory of the firm is illustrated.

Family involvement and the impact of information and communication technology on performance

2017 ◽  
Vol 30 (1) ◽  
pp. 23-39 ◽  
Author(s):  
Ana Felicitas Gargallo Castel ◽  
Carmen Galve Górriz
Keyword(s):  
Information And Communication Technology ◽  
Family Involvement ◽  
Communication Technology ◽  
Family Business ◽  
Family Firms ◽  
Moderating Effect ◽  
Content Type ◽  
Information And Communication ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to explore the moderated effect of family involvement on the relationship between information and communication technology (ICT) and firm performance. Design/methodology/approach According to agency and transaction cost theories, distinctive family business characteristics provide a unique context that favours a more efficient use of ICT. The authors perform a multivariate analysis that includes the moderating effect of family involvement and considers the possible endogeneity of the ICT variable. Findings The results, using a large panel of Spanish manufacturing firms, confirm the importance of family involvement for explaining differences in terms of the impact of this technology in family and non-family businesses. The relationship between ICT and performance is stronger for family firms than for non-family firms. Research implications The paper provides new evidence for the academic literature on ICT impact and family firms. It corroborates the importance of using an organizational perspective to explain differences in the effect of ICT on performance. Practical implications Family firms should understand the opportunities that family involvement offers regarding ICT impact on performance, and exploit this moderating effect to achieve competitive advantages. Originality/value No previous studies deal with the impact of family involvement on ICT-performance analysis. This study fills this gap and increases the understanding of how family business involvement moderates the ICT-performance relationship.

scholarly journals Family Business and Financial Performance: What are the Effects of Tax Cut Policy on Them in Uzbekistan?

2020 ◽  
Vol 6 (4) ◽  
pp. 27-45
Author(s):  
Yusupov Jasurbek ◽  
Sakata Kei
Keyword(s):  
Financial Performance ◽  
Family Business ◽  
Family Firms ◽  
The Family ◽  
The Difference ◽  
The Impact ◽  
The Relationship ◽  
Unbalanced Panel Data ◽  
Business Study

This study is the first comprehensive empirical study to examine the relationship between the family business and the firm’s performance in Uzbekistan. In this research, we investigate the relationship between family firms and financial performance using enough extensive unbalanced panel data from 2012 through 2015 on 3148 non-banking/non-government firms. Moreover, we analyze the impact of tax cut policy on SMEs, including family firms from a case study of Uzbekistan by using the difference-in-difference estimator. These two will be a major contribution to the family business study field in Uzbekistan.

scholarly journals Change in Illiquidity of Family Firms with Institutional Pressure: Evidence from India

2021 ◽  
Vol 24 (2) ◽  
pp. 173-197
Author(s):  
Amit Chakrabarti ◽  
Kaveri Krishnan
Keyword(s):  
Panel Data ◽  
Multiple Regression ◽  
Family Business ◽  
Family Firms ◽  
Emerging Market ◽  
Family Businesses ◽  
Regulatory Changes ◽  
Institutional Pressure ◽  
The Family ◽  
The Impact

This paper investigates the impact of the family business on illiquidity in an emerging market and how it evolves with regulatory changes. The study uses panel data multiple regression on a sample of 25,418 observations on 3,606 firms from India within nine years from 2006 to 2014. The study finds that family firms have significantly higher illiquidity compared to non-family firms. Moreover, family businesses have successfully resisted the institutional pressure to decrease illiquidity and have also defied these coercive pressures to increase the illiquidity of family businesses finally. The study also found heterogeneity in the behaviour of family businesses based on their ownership characteristics.

scholarly journals My Forty Years in Studying and Helping Family Businesses

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Gibb Dyer
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Businesses ◽  
Theory And Practice ◽  
The Past ◽  
Family Capital ◽  
The Family ◽  
The Impact

This article will describe the trends in the field of family business over the past forty years in terms of theory and practice. Topics such as succession, consulting with family businesses, the effectiveness of family firms, the role of socio-emotional wealth in family firms, heterogeneity in family businesses, and the impact of family capital on the business and the family will be discussed.

Succession planning and family business performance in SMEs

2017 ◽  
Vol 36 (3) ◽  
pp. 330-347 ◽  
Author(s):  
Mozhdeh Mokhber ◽  
Tan Gi Gi ◽  
Siti Zaleha Abdul Rasid ◽  
Amin Vakilbashi ◽  
Noraiza Mohd Zamil ◽  
...  
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Business Performance ◽  
Positive Impact ◽  
Family Businesses ◽  
Related Factors ◽  
Content Type ◽  
The Family ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the impact of preparation level of heirs and the relationship between family and business members on the performance of family business in small- and medium-sized enterprises (SMEs) in Malaysia. Design/methodology/approach A quantitative research design involving the use of a survey questionnaire was implemented to investigate the influences of succession planning factors on the performance of family business in SMEs. The survey was conducted on 50 family business successors in Malaysian SMEs. Findings The result showed that the two studied factors – preparation level of heirs and the relationship between family and business members – have a positive impact on the performance of family business. Research limitations/implications The research concentrated on the performance of family business in SMEs in Malaysia’s southern region. The generalization therefore must be made very cautiously to the overall Malaysian SMEs. Practical implications The findings help family businesses to better understand the importance of the preparation level of heirs and the relationship between family and business members on business performance. This study shows the importance of key factors influencing succession planning so that the successor to the family business can bring the family firm to the next stage of success. Originality/value This study serves as a reference or guide for the management of family businesses to better understand the important factors for effective succession planning. It considers the best possible preparation and family-related factors affecting the end results of business, particularly in Malaysian SMEs.

Effects of Family-to-Work Conflict on Business Owners

2011 ◽  
Vol 25 (2) ◽  
pp. 178-190 ◽  
Author(s):  
Ho Kwong Kwan ◽  
Victor P. Lau ◽  
Kevin Au
Keyword(s):  
Job Satisfaction ◽  
Social Networks ◽  
Family Business ◽  
Business Owners ◽  
Family Businesses ◽  
Business Research ◽  
Personal Lives ◽  
Chinese Business ◽  
Work Conflict ◽  
The Relationship

Family plays an important part in personal lives, career success, and organizational success. This study examines how type of businesses (family business vs. nonfamily business) moderates the relationships between family-to-work conflict (FWC) and job satisfaction and social networks. Results of a study on 158 Chinese business owners indicate that among nonfamily businesses, the relationship between owners’ FWC and job satisfaction is negative, whereas the relationship between their FWC and social networks is positive. Among family businesses, in comparison, owners’ FWC is not related to their job satisfaction and social networks. It is hoped that these findings will offer a springboard for future family business research.

FOUNDER CENTRALITY, MANAGEMENT TEAM CONGRUENCE AND PERFORMANCE IN FAMILY FIRMS: A KENYAN CONTEXT

2008 ◽  
Vol 13 (04) ◽  
pp. 383-407 ◽  
Author(s):  
LOUISE KELLY ◽  
PETER M. LEWA ◽  
KINYUA KAMARIA
Keyword(s):  
Social Network ◽  
Firm Performance ◽  
Family Business ◽  
Family Firms ◽  
Negative Influence ◽  
Family Businesses ◽  
Management Team ◽  
Research Findings ◽  
And Performance ◽  
The Impact

Applying social network theory to family business, founder centrality has been generally shown to positively affect top-management-team congruence and, as a consequence, firm performance. This study applies social network and strategic leadership theory to an examination of founder centrality in family businesses. It focuses on family businesses in Kenya, and examines the impact of the founder's influence on management team congruence in the three strategic areas of culture, vision, and goals. The discussion considers the research findings in Kenya of a negative influence of founder centrality on management team congruence and firm performance. The study concludes with a presentation of some possible reasons for this dynamic in developing countries like Kenya, where family business is prevalent, and in which the founder plays a central role.

Family Business

2016 ◽  
Author(s):  
John Sanders
Keyword(s):  
Family Business ◽  
Family Relationships ◽  
Succession Planning ◽  
Small Firms ◽  
Family Firms ◽  
Family Businesses ◽  
Business Research ◽  
National Statistics ◽  
Company Culture

National statistics across countries suggest that 60% to 70% of all small firms (less than 50 employees) are family-owned. However, family firms can be difficult to define and categorize, as they participate in a myriad of activities and take many forms. Despite this diversity, common patterns and characteristics of working occur amongst family-owned firms. To appreciate family businesses requires an understanding of these unique characteristics and how they develop. The unique characteristics possessed by family businesses include the influence of family relationships, company culture and succession planning. Investigating the scope of family business research conducted is also worthwhile, as there are many gaps in our understanding of how family companies operate.

The effect of institutional transition on entrepreneurial orientation of family businesses

2018 ◽  
Vol 26 (1) ◽  
pp. 76-97
Author(s):  
Amit Baran Chakrabarti ◽  
Arindam Mondal
Keyword(s):  
Family Business ◽  
Entrepreneurial Orientation ◽  
Family Firms ◽  
Emerging Market ◽  
Family Businesses ◽  
Least Square ◽  
Family Ownership ◽  
Content Type ◽  
Institutional Transition ◽  
The Impact

Purpose The purpose of this paper is to ascertain the impact of family ownership on the entrepreneurial orientation (EO) of firms in an emerging market and the contingencies under which it is likely to be affected. Design/methodology/approach The paper adopted a panel data multiple regression using ordinary least square methodology on a sample of 51,972 observations belonging to 12,250 firms from India. Findings The study finds that family businesses have higher EO than non-family firms. However, it is likely to be affected during institutional transition due to environmental uncertainty. Furthermore, during institutional transition, there will be differences in the EO of family business groups and stand-alone family firms due to the former’s ubiquitous network-level resource advantages. Research limitations/implications This paper contributes to the literature on family business by reconciling the positive and negative views on the effect of family ownership on EO by arguing that the risk-taking behavior of family firms is contingent on the environmental conditions and the resource position of the firm. Practical implications This study will enable managers and other stakeholders to predict the entrepreneurial attitude of family-owned firms during environmentally stable as well as turbulent times. Social implications This study highlights the implication of institutional transition through reforms on a vital part of the economy. Policy makers have to be sensitive to repercussions on family business due to environmental turbulence. Originality/value This is one of the first papers that investigate the influence of institutional transition and the resource position of Indian family firms on their EO.

scholarly journals Diversity and uniqueness of Family business in the North of Portugal

2018 ◽  
Vol 4 (2) ◽  
pp. 80
Author(s):  
Ana Paula Marques
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Businesses ◽  
Growth Potential ◽  
Ongoing Research ◽  
The North ◽  
Core Elements ◽  
Definition Of ◽  
The Impact ◽  
Business Family

Family businesses are the most omnipresent form of business organisations at the international and national levels. In Portugal, family firms account for more than 70% of all businesses, contributing with 50% in employment creation. Yet, most of the existing literature does not converge in a consensual and operative definition of what are core elements which distinguish family business from non-family business. Therefore, it is crucial to extend our knowledge on important family business topics due to the broadness, diversity, uniqueness and growth potential of family business in the whole world. In this sense, the ongoing project “Roadmap for Portuguese Family Businesses” (NORTE2020/FEDER) is focused on providing a better understanding and assessment of the impact of family businesses in the North of Portugal on the local, national and international economies. This research addresses a major problem that has been identified in Europe and consists in the lack of institutional visibility, particularly of accurate and up-to-date statistics in this sector. This paper begins by identifying some of the interesting research questions that emerge from examining the business family portraits. Then, based on some preliminary empirical findings gathered from ongoing research, first of all, we intend to identify interesting profiles of family business by mobilising some socioeconomic variables; and secondly, to point out major challenges faced by Portuguese family business.

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