scholarly journals Conflicts in Family Firms in the International Context: A Literature Review

2018 ◽  
Vol 10 (1) ◽  
pp. 43-61
Author(s):  
Martin Jurek
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Research Question ◽  
Empirical Studies ◽  
Value Added ◽  
Life Cycles ◽  
Generational Status ◽  
Business Research ◽  
Screening Criteria ◽  
Theoretical Approaches

Abstract Objective: This paper reviews the major family business research papers that address factors related to relationship and work-to-family conflicts. Methodology: The procedure this paper applies follows recommendations for literature reviews by Fink (2010) consisting of: (1) selecting a research question (2) selecting bibliographic or article databases, (3) choosing search terms, (4) applying practical screening criteria, (5) applying methodical screening criteria, (6) doing the review and (7) synthesizing the results. Findings: The article summarizes that, although family business research is progressing in terms of theory building, it continues to lack a systematic adoption of longitudinal, cross-national and multi-theoretical approaches. To date, research on conflict in family firms remains underdeveloped in the CEE. Value Added: Outlining the state of the art of theoretical and empirical studies by applying a resource-based view. Recommendations: Application of control variables, such as size of the business, business life cycles, generational status, type of industry and various cultural settings. Furthermore, the role of communication, sibling rivalry and perceived justice of family members could be investigated more thoroughly.

Differences between family and non-family SMEs: A comparative study of Australia and Belgium

2008 ◽  
Vol 14 (1) ◽  
pp. 40-58 ◽  
Author(s):  
Max Smith
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Empirical Studies ◽  
Business Relationship ◽  
Detailed Understanding ◽  
National Differences ◽  
The Family ◽  
Family Smes ◽  
Australian Experience ◽  
Cross National

AbstractThis study attempts to further the development of family business theory by providing a more detailed understanding of the differences between family and non-family firms' profitability, growth, exporting and networking behaviour. Utilising data from 2190 Australian SMEs, the study compares the Australian experience of differences between family and non-family firms with those found among Belgium firms. The Australian results are consistent with the growth and some of the networking behaviour found among Belgium firms, but not with their profitability and exporting behaviour. The study's findings support the contentions that the differences between family and non-family firms may be less than many earlier studies have indicated and that industry differences and cross-national differences in corporate governance environments may lead to variances in these differences. It also demonstrates that the underlying theoretical rationale for a number of predicted differences between family and non-family firms appears flawed. These findings indicate that new empirical studies that control for context are urgently needed to ensure the scholarly literature on family businesses is not being built on false assumptions. They also indicate that studies designed to explain differences in the family/non-family business relationship between industries and nations may lead to advances in family business theory.

scholarly journals Coupling Family Business Research with Organization Studies: Interpretations, Issues and Insights

2019 ◽  
Vol 40 (6) ◽  
pp. 775-791 ◽  
Author(s):  
Carlo Salvato ◽  
Francesco Chirico ◽  
Leif Melin ◽  
David Seidl
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Limited Attention ◽  
Organizational Studies ◽  
Business Organization ◽  
Business Organizations ◽  
Business Research ◽  
Scholarly Research ◽  
Organization Studies ◽  
Empirical Context

Family-controlled firms are the most widespread form of business organization, but they have so far attracted limited attention from organizational scholars. The present work suggests that coupling research on family business organizations with organization studies will substantially benefit both areas of scholarly research. We explore how the five core defining features of family firms – ownership, management and governance, transgenerational intention, generational involvement and perceived identity – may be illuminated by extant research in organization studies, and how, in turn, organizational studies may be extended by investigating its key themes in the empirical context of family firms.

Conflict between Controlling Family Owners and Minority Shareholders: Much Ado about Nothing?

2017 ◽  
Vol 41 (6) ◽  
pp. 999-1027 ◽  
Author(s):  
Geoffrey Martin ◽  
Luis R. Gómez–Mejía ◽  
Pascual Berrone ◽  
Marianna Makri
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Agency Problem ◽  
Family Firm ◽  
Business Research ◽  
Minority Shareholders ◽  
Publicly Traded ◽  
Much Ado About Nothing ◽  
Shareholder Proposals ◽  
Unique Nature

We examine the unique nature of conflict between controlling family owners and minority shareholders (principal–principal conflict) in publicly traded family controlled firms through examining shareholder proposals. Implicit in prior governance and family business research has been that nonfamily shareholders are likely to be in conflict with the dominant family owners. In general, we find that much of this fear may be unwarranted except under specific circumstances. Our findings elucidate sources of heterogeneity in family firm principal–principal conflict and add greater nuance to our understanding of this type of agency problem within family firms.

Family Business Research: A Strategic Reflection

2004 ◽  
Vol 17 (4) ◽  
pp. 331-346 ◽  
Author(s):  
Shaker A. Zahra ◽  
Pramodita Sharma
Keyword(s):  
Research Methods ◽  
Family Business ◽  
Family Firms ◽  
Strong Preference ◽  
Business Managers ◽  
Business Research ◽  
Research Topics ◽  
Conducting Research ◽  
Oriented Research

As research on family business continues to grow, six key trends have become evident. These trends include a continuing pursuit of a few research topics such as succession, a strong preference for practice-oriented research methods, a tendency to borrow heavily from other disciplines without giving back to these fields, and a strong preference to talk to other researchers conducting research on family firms—failing to communicate with scholars from other disciplines. Therefore, we suggest strategies to expedite the growth of family business research toward better understanding the paradoxes faced by family business managers, deepen insights into the problems they encounter, improve rigor in reported research, find ways to promote a dialog with scholars in sister disciplines, and give back to the disciplines from which we borrow heavily.

Socioemotional Wealth in Family Firms

2012 ◽  
Vol 25 (3) ◽  
pp. 258-279 ◽  
Author(s):  
Pascual Berrone ◽  
Cristina Cruz ◽  
Luis R. Gomez-Mejia
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Firm ◽  
Socioemotional Wealth ◽  
Future Studies ◽  
Theoretical Approaches ◽  
The Family ◽  
Different Dimensions ◽  
Dominant Paradigm

This article makes the case for the socioemotional wealth (SEW) approach as the potential dominant paradigm in the family business field. The authors argue that SEW is the most important differentiator of the family firm as a unique entity and, as such, helps explain why family firms behave distinctively. In doing so, the authors review the concept of SEW, its different dimensions, and its links with other theoretical approaches. The authors also address the issue of how to measure this construct and offer various alternatives for operationalizing it. Finally, they offer a set of topics that can be pursued in future studies using the SEW approach.

scholarly journals Family Firm Heterogeneity and Tax Avoidance: The Role of the Founder

2019 ◽  
Vol 32 (3) ◽  
pp. 296-317 ◽  
Author(s):  
Alexander Brune ◽  
Martin Thomsen ◽  
Christoph Watrin
Keyword(s):  
Family Business ◽  
Loss Aversion ◽  
Family Firms ◽  
Firm Heterogeneity ◽  
Tax Avoidance ◽  
Family Firm ◽  
One Dimension ◽  
Direct Influence ◽  
Business Research

Family business research suggests that the population of family firms cannot be regarded as a homogenous group. Therefore, with respect to tax avoidance, we analyze the role of the founder as one dimension of family firm heterogeneity. Specifically, we consider socioemotional wealth loss aversion and find that founders may affect the level of tax avoidance not only when they have direct influence (i.e., serving as CEO) but also when they possess solely indirect influence (i.e., having substantial ownership or a seat on the board). Overall, our results suggest that founders remain attached to their firms despite giving up executive positions.

Research on Technological Innovation in Family Firms

2012 ◽  
Vol 26 (1) ◽  
pp. 10-31 ◽  
Author(s):  
Alfredo De Massis ◽  
Federico Frattini ◽  
Ulrich Lichtenthaler
Keyword(s):  
New Product Development ◽  
Technological Innovation ◽  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
New Product ◽  
Future Research ◽  
Moderating Effects ◽  
Business Research ◽  
Promising Area

The purpose of this article is to review and systematize prior work on technological innovation in family firms and to open up an agenda to guide future research into this promising area. The study shows that family involvement has direct effects on innovation inputs (e.g., R&D expenditures), activities (e.g., leadership in new product development projects), and outputs (e.g., number of new products), as well as moderating effects on the relationships between these steps of technological innovation. The article uses theories applied in family business research (e.g., agency theory) to discuss opportunities for extending technological innovation frameworks by considering family involvement.

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.

scholarly journals Family conflict and non-family managers in family business: A Pitch

2020 ◽  
Vol 19 (4) ◽  
Author(s):  
Nikola Rosecká ◽  
Ondrej Machek
Keyword(s):  
Family Business ◽  
Family Conflict ◽  
Family Firms ◽  
Research Question ◽  
Family Conflicts ◽  
Research Areas ◽  
Challenging Research ◽  
Personal Reflections ◽  
Research Domain

From the research viewpoint, conflicts in family firms belong to very challenging research areas. At the same time, the literature is fragmented, and it is not easy to identify and articulate a clear research question in this research domain. Based on Faff’s (2015, 2019) pitching research template, we develop a real pitch and describe our experience with its use from the student’s and supervisor’s viewpoints. The research question is: “What is the role of non-family managers in family conflicts in family firms?” This pitching research letter also presents personal reflections on the pitching template application.

scholarly journals Towards the construct of paternalism to investigate control in family business governance

2013 ◽  
Vol 10 (4) ◽  
pp. 317-328
Author(s):  
Mariavittoria Cicellin ◽  
Donata Mussolino ◽  
Marcello Martinez ◽  
Mario Pezzillo Iacono
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Research Field ◽  
Business Research ◽  
Starting Point ◽  
The Family ◽  
Research Stream ◽  
And Control ◽  
Succession Processes ◽  
Conceptual Work

The aim of this study is to adopt the construct of paternalism to understand control in family business governance. In particular, we want to investigate the concept of paternalism as mechanism of control in family firms. The theoretical reflections we here present first try to challenge the main theories used in family business literature, with a discussion about their limitations and boundaries of validity. Then, we present the construct of paternalism as a mechanism of governance and control that influences the decision making process, and in particular the succession processes. The construct of paternalism still needs sound methodological as well conceptual work, but we argue that it may be a starting point for building a rigorous and relevant research stream. This endeavour may help the family business research field to gain legitimacy in the broader academic arena.

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