SU\G(𝔸)/K·U
Sign Up for free Log In
Business, Management and Accounting › Organizational Behavior and Human Resource Management

Family Business Performance and Succession

Works Count: 46361

Description

This cluster of papers focuses on the study and management of family businesses, covering topics such as socioemotional wealth, agency relationships, entrepreneurship, succession planning, corporate governance, innovation, social capital, internationalization, and stewardship.

Keywords

Family Firms; Socioemotional Wealth; Agency Relationships; Entrepreneurship; Succession Planning; Corporate Governance; Innovation; Social Capital; Internationalization; Stewardship

Generation to generation: life cycles of the family business

1997-04-01
Kelin E Gersick , J. A. Davis , Marion McCollom Hampton +1 more
The business development axis thae ownership developmental axis the family developmental axis three classic family business plans managing the developing family business. The business development axis thae ownership developmental axis the family developmental axis three classic family business plans managing the developing family business.

Understanding the small business sector

1995-04-01
David Storey

Corporate strategy: the quest for parenting advantage

1995-06-01
Andrew Campbell , Michael Goold

Bivalent Attributes of the Family Firm

1996-06-01
Renato Tagiuri , John A. Davis
Although family-owned and managed firms are the predominant form of business organization in the world today, little systematic research exists on these companies. This paper builds upon insights found in … Although family-owned and managed firms are the predominant form of business organization in the world today, little systematic research exists on these companies. This paper builds upon insights found in the emerging literature on these enterprises and upon our own observations to provide a conceptual framework to better understand these complex organizations. We introduce the concept of the Bivalent Attributes—a unique, inherent feature of an organization that is the source of both advantages and disadvantages— to explain the dynamics of the family firm.

Strategy Formation in an Adhocracy

1985-06-01
Henry Mintzberg , Alexandra McHugh

The Structure of Corporate Ownership: Causes and Consequences

1985-12-01
Harold Demsetz , Kenneth Lehn

Strategic Management of the Family Business: Past Research and Future Challenges

1997-03-01
Pramodita Sharma , James J. Chrisman , Jess H. Chua
This article reviews the literature on family business from a strategic management perspective. In general, this literature is dominated by descriptive articles that typically focus on family relationships. However, the … This article reviews the literature on family business from a strategic management perspective. In general, this literature is dominated by descriptive articles that typically focus on family relationships. However, the literature does not usually address how these relationships affect the performance of a family business. Taking a strategic management perspective, we outline a new set of objectives for family-business research. We also identify some of the key issues and gaps that should be explored in future studies if research is to contribute to improving the management practices and performance of family firms.

Diversification Decisions in Family‐Controlled Firms

2009-12-04
Luis R. Gómez‐Mejía , Marianna Makri , Martín Larraza‐Kintana
abstract This study examines diversification decisions of family firms and suggests that on average family firms diversify less both domestically and internationally than non‐family firms. When they do diversify, family … abstract This study examines diversification decisions of family firms and suggests that on average family firms diversify less both domestically and internationally than non‐family firms. When they do diversify, family firms tend to opt for domestic rather than international diversification, and those that go the latter route prefer to choose regions that are ‘culturally close’. Lastly, we find that family firms are more willing to diversify as business risk increases. The hypotheses are tested using a sample of 360 firms, 160 of them being family‐controlled and the rest (200) non‐family‐controlled.

Knowledge acquisition from foreign parents in international joint ventures: an empirical examination in the Hungarian context

2006-12-21
Marjorie A. Lyles , Jane E. Salk
View PDF Chat

Comparing the Agency Costs of Family and Non–Family Firms: Conceptual Issues and Exploratory Evidence

2004-05-14
James J. Chrisman , Jess H. Chua , Reginald A. Litz
Family involvement in a business has the potential to both increase and decrease financial performance due to agency costs. In this article we discuss the different nature of agency costs … Family involvement in a business has the potential to both increase and decrease financial performance due to agency costs. In this article we discuss the different nature of agency costs in family firms and specify the combination of conditions necessary to determine the relative levels of agency costs in family and non–family firms through the impacts of agency cost control mechanisms on performance. We also present exploratory results based on a study of 1,141 small privately held U.S. family and non–family firms that suggest the overall agency problem in family firms could be less serious than that in non–family firms.

Socioemotional Wealth and Corporate Responses to Institutional Pressures: Do Family-Controlled Firms Pollute Less?

2010-03-01
Pascual Berrone , Cristina Cruz , Luis R. Gómez‐Mejía +1 more
This paper compares the environmental performance of family and nonfamily public corporations between 1998 and 2002, using a sample of 194 U.S. firms required to report their emissions. We found … This paper compares the environmental performance of family and nonfamily public corporations between 1998 and 2002, using a sample of 194 U.S. firms required to report their emissions. We found that family-controlled public firms protect their socioemotional wealth by having a better environmental performance than their nonfamily counterparts, particularly at the local level, and that for the nonfamily firms, stock ownership by the chief executive officer (CEO) has a negative environmental impact. We also found that the positive effect of family ownership on environmental performance persists independently of whether the CEO is a family member or serves both as CEO and board chair.

Agency Relationships in Family Firms: Theory and Evidence

2001-04-01
William S. Schulze , Michael Lubatkin , Richard N. Dino +1 more
Does owner management necessarily eliminate the agency costs of ownership? Drawing on agency literature and on the economic theory of the household, we argue that private ownership and owner management … Does owner management necessarily eliminate the agency costs of ownership? Drawing on agency literature and on the economic theory of the household, we argue that private ownership and owner management expose privately held, owner-managed firms to agency threats ignored by Jensen’s and Meckling’s (1976) agency model. Private ownership and owner management not only reduce the effectiveness of external control mechanisms, they also expose firms to a “self-control” problem created by incentives that cause owners to take actions which “harm themselves as well as those around them” (Jensen 1994, p. 43). Thus, shareholders have incentive to invest resources in curbing both managerial and owner opportunism. We extend this thesis to the domain of the family firm. After developing hypotheses which describe how family dynamics and, specifically, altruism, exacerbate agency problems experienced by these privately held, owner-managed firms, we use data obtained from a large-scale survey of family businesses to field test our hypotheses and find evidence which suggests support for our proposed theory. Finally, we discuss the implications of our theory for research on family and other types of privately held, owner-managed firms.

The dynamics of family controlled firms: The good and the bad news

1993-12-01
Manfred F. R. Kets de Vries

The Bind that Ties: Socioemotional Wealth Preservation in Family Firms

2011-06-01
Luis R. Gómez‐Mejía , Cristina Cruz , Pascual Berrone +1 more
A growing body of research shows that family firms are different from other organizations in significant ways. In this paper we review this literature by examining how family firms differ … A growing body of research shows that family firms are different from other organizations in significant ways. In this paper we review this literature by examining how family firms differ from nonfamily firms along five broad categories of managerial decisions. These categories encompass a set of key organizational choices concerning management processes, firm strategies, corporate governance, stakeholder relations and business venturing. We argue that socioemotional wealth or affective endowment of family owners explain many of these choices. We also examine some contingency factors (namely family stage, firm size, firm hazard, and the presence of nonfamily shareholders) that moderate the influence of socioemotional wealth preservation as a point of reference when making managerial decisions in family firms. Lastly, we explore the firm performance consequences of family ownership.

Partial least squares structural equation modeling (PLS-SEM): A useful tool for family business researchers

2014-02-18
Marko Sarstedt , Christian M. Ringle , Donna Smith +2 more

Variations in R&D Investments of Family and Nonfamily Firms: Behavioral Agency and Myopic Loss Aversion Perspectives

2012-08-01
James J. Chrisman , Pankaj C. Patel
The behavioral agency model suggests that to preserve socioemotional wealth, loss-averse family firms usually invest less in R&D than nonfamily firms. However, behavioral agency model predictions are inconsistent with the … The behavioral agency model suggests that to preserve socioemotional wealth, loss-averse family firms usually invest less in R&D than nonfamily firms. However, behavioral agency model predictions are inconsistent with the well-accepted premise that family firms have a long-term investment orientation. We reconcile these seemingly incompatible predictions by adding insights from the myopic loss aversion framework, which deals with the impact of decision-making time horizons. The combination of these two prospect theory derivatives led us to hypothesize that family firms usually invest less in R&D than nonfamily firms but the variability of their investments will be greater owing to differences in the compatibility of long- and short-term family goals with the economic goals of a firm. However, when performance is below aspiration levels, we theorize that family goals and economic goals tend to converge. In this situation, the R&D investments of family firms are expected to increase and the variability of those investments decrease, relative to nonfamily firms. Analysis of 964 publicly held family and nonfamily firms from the Standard & Poor's 1500 between 1998 and 2007 support our hypotheses, confirming a need to take the heterogeneity of family firms more fully into account.

An Overview of the Field of Family Business Studies: Current Status and Directions for the Future

2004-03-01
Pramodita Sharma
Based on a review of 217 refereed articles on family business studies, the literature is organized according to its focus on individual, interpersonal or group, organizational, and societal levels of … Based on a review of 217 refereed articles on family business studies, the literature is organized according to its focus on individual, interpersonal or group, organizational, and societal levels of analyses. An assessment of the status of our current understanding at each level is provided and directions for future research are suggested. A discussion of definitional issues, bases of distinctiveness, and family firm performance is used to help understand the domain or scope of the field. Methodological issues and strategies aimed to enhance the pace at which the field achieves a distinctive legitimate place in organizational studies are presented.

Entrepreneurship in Family vs. Non–Family Firms: A Resource–Based Analysis of the Effect of Organizational Culture

2004-05-14
Shaker A. Zahra , James C. Hayton , Carlo Salvato
Organizational culture is an important strategic resource that family firms can use to gain a competitive advantage. Drawing upon the resource–based view (RBV) of the firm, this study examines the … Organizational culture is an important strategic resource that family firms can use to gain a competitive advantage. Drawing upon the resource–based view (RBV) of the firm, this study examines the association between four dimensions of organizational culture in family vs. non–family businesses and entrepreneurship. Using data from 536 U.S. manufacturing companies, the results show a nonlinear association between the cultural dimension of individualism and entrepreneurship. Further, there are positive linear relationships between entrepreneurship and an external orientation, an organizational cultural orientation toward decentralization, and a long– versus short–term orientation. With the exception of an external orientation, each of these dimensions is significantly more influential upon entrepreneurship in family firms when compared with non–family firms.

A unified systems perspective of family firm performance

2003-07-01
Timothy G. Habbershon , Mary L. Williams , Ian C. MacMillan

Family Involvement, Family Influence, and Family–Centered Non–Economic Goals in Small Firms

2010-09-08
James J. Chrisman , Jess H. Chua , Allison W. Pearson +1 more
Using behavioral and stakeholder theories, we suggest that family firms may have family–centered non–economic goals and that these goals could influence firm behaviors. This study extends the literature by hypothesizing … Using behavioral and stakeholder theories, we suggest that family firms may have family–centered non–economic goals and that these goals could influence firm behaviors. This study extends the literature by hypothesizing that the essence of family influence partially mediates the relationship between family involvement and family firms’ adoption of family–centered non–economic goals. The results using 1,060 small firms support the hypotheses. Aside from contributing to family business theory by explaining and testing mediating variables as sources of goal heterogeneity among family firms, our findings also imply that the involvement and essence approaches to defining family businesses may be hierarchically reconciled.

Socioemotional Wealth in Family Firms

2012-02-15
Pascual Berrone , Cristina Cruz , Luis R. Gómez‐Mejía
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 … 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.

The Role of Family in Family Firms

2006-05-01
Marianne Bertrand , Antoinette Schoar
History is replete with examples of spectacular ascents of family businesses. Yet there are also numerous accounts of family businesses brought down by bitter feuds among family members, disappointed expectations … History is replete with examples of spectacular ascents of family businesses. Yet there are also numerous accounts of family businesses brought down by bitter feuds among family members, disappointed expectations between generations, and tragic sagas of later generations unable to manage their wealth. A large fraction of businesses throughout the world are organized around families. Why are family firms so prevalent? What are the implications of family control for the governance, financing and overall performance of these businesses?

The Development of Organizational Social Capital: Attributes of Family Firms*

2007-01-01
Jean-Luc Arrègle , Michael A. Hitt , David G. Sirmon +1 more
abstract We develop and extend social capital theory by exploring the creation of organizational social capital within a highly pervasive, yet often overlooked organizational form: family firms. We argue that … abstract We develop and extend social capital theory by exploring the creation of organizational social capital within a highly pervasive, yet often overlooked organizational form: family firms. We argue that family firms are unique in that, although they work as a single entity, at least two forms of social capital coexist: the family's and the firm's. We investigate mechanisms that link a family's social capital to the creation of the family firm's social capital and examine how factors underlying the family's social capital affect this creation. Moreover, we identify contingency dimensions that affect these relationships and the potential risks associated with family social capital. Finally, we suggest these insights are generalizable to several other types of organizations with similar characteristics.
View PDF Chat

Trends and Directions in the Development of a Strategic Management Theory of the Family Firm

2005-08-15
James J. Chrisman , Jess H. Chua , Pramodita Sharma
This article provides a review of important trends in the strategic management approach to studying family firms: convergence in definitions, accumulating evidence that family involvement may affect performance, and the … This article provides a review of important trends in the strategic management approach to studying family firms: convergence in definitions, accumulating evidence that family involvement may affect performance, and the emergence of agency theory and the resource–based view of the firm as the leading theoretical perspectives. We conclude by discussing directions for future research and other promising approaches to inform the inquiry concerning family business.

A Resource-Based Framework for Assessing the Strategic Advantages of Family Firms

1999-03-01
Timothy G. Habbershon , Mary L. Williams
The Resource-Based View (RBV) of competitive advantage provides a theoretical framework from the field of strategic management for assessing the competitive advantages of family firms. The RBV isolates idiosyncratic resources … The Resource-Based View (RBV) of competitive advantage provides a theoretical framework from the field of strategic management for assessing the competitive advantages of family firms. The RBV isolates idiosyncratic resources that are complex, intangible, and dynamic within a particular firm. The bundle of resources that are distinctive to a firm as a result of family involvement are identified as the “familiness” of the firm. This approach provides a research and practice method for assessing the specific behavioral and social phenomena within a firm that provide an advantage. Using a familiness model for assessing competitive advantage overcomes many of the problems associated with the generic claim that family companies have an advantage over nonfamily companies. It also provides a unified systems perspective of family firm performance.

Agency Problems in Large Family Business Groups

2003-05-16
Randall Mørck , Bernard Yeung
Greater managerial ownership in family firms need not mitigate agency problems, especially when each family controls a group of publicly traded and private firms, as is the case in most … Greater managerial ownership in family firms need not mitigate agency problems, especially when each family controls a group of publicly traded and private firms, as is the case in most countries. Such structures give rise to their own set of agency problems, as managers act for the controlling family, but not for shareholders in general. For example, to avoid what we call “creative self–destruction,” a family might quash innovation in one firm to protect its obsolete investment in another. At present, we do not know whether these agency problems are more or less serious impediments to general prosperity than those afflicting widely held firms.

Family Firms and Social Responsibility: Preliminary Evidence from the S&P 500

2006-11-01
William G. Dyer , David A. Whetten
Little is known about the impact of family ownership and management on corporate social performance. Some scholars have suggested that family firms are not likely to act in a socially … Little is known about the impact of family ownership and management on corporate social performance. Some scholars have suggested that family firms are not likely to act in a socially responsible manner, while others have indicated that socially responsible behavior on the part of the family firm protects the family's assets. This preliminary study compares the degree to which family and nonfamily firms are socially responsible using data from 1991 to 2000 from the S&P 500. Two hundred sixty–one firms (202 nonfamily and 59 family) appeared in the S&P 500 for the 10–year period. Findings show that family firms are more socially responsible than nonfamily firms along several dimensions. This is likely due to family concern about image and reputation and a desire to protect family assets.

Family Governance and Firm Performance: Agency, Stewardship, and Capabilities

2006-03-01
Danny Miller , Isabelle Le Breton–Miller
After decades of being viewed as obsolete and problem ridden, recent research has begun to show that major, publicly traded family-controlled businesses (FCBs) actually out-perform other types of businesses. This … After decades of being viewed as obsolete and problem ridden, recent research has begun to show that major, publicly traded family-controlled businesses (FCBs) actually out-perform other types of businesses. This article examines the nature of such family businesses in an attempt to explain why some seem to do so well and others so poorly. It begins with four fundamental governance choices that distinguish among different kinds of family businesses: level and mode of family ownership, family leadership, the broader involvement of multiple family members, and the planned or actual participation of later generations. Using precepts from agency and stewardship theory, it relates these dimensions to the nature of the resource-allocation decisions made by the business and capability development, which in turn have implications for financial performance. Propositions are drawn about the drivers that make some family businesses great competitors—while leaving others at a disadvantage.

The F-PEC Scale of Family Influence: A Proposal for Solving the <i>Family Business</i> Definition Problem1

2002-03-01
Joseph H. Astrachan , Sabine B. Klein , Kosmas X. Smyrnios
This article proposes an alternative method for assessing the extent of family influence on any enterprise, enabling the measurement of the impact of family on outcomes such as success, failure, … This article proposes an alternative method for assessing the extent of family influence on any enterprise, enabling the measurement of the impact of family on outcomes such as success, failure, strategy, and operations. This proposed method, utilizing a standardized and valid instrument— the F-PEC—enables the assessment of family influence on a continuous scale rather than restrict its use as a categorical (e.g., yesqno) variable. The F-PEC comprises three subscales: power, experience, and culture. This article discusses these scales in detail.

Toward a theory of agency and altruism in family firms

2003-07-01
William S. Schulze , Michael Lubatkin , Richard N. Dino

Entrepreneurial Orientation, Risk Taking, and Performance in Family Firms

2007-02-15
Lucia Naldi , Mattias Nordqvist , Karin Sjöberg +1 more
This article focuses on risk taking as one important dimension of entrepreneurial orientation and its impact in family firms. Drawing on a sample of Swedish SMEs, we find that risk … This article focuses on risk taking as one important dimension of entrepreneurial orientation and its impact in family firms. Drawing on a sample of Swedish SMEs, we find that risk taking is a distinct dimension of entrepreneurial orientation in family firms and that it is positively associated with proactiveness and innovation. We also find that even if family firms do take risks while engaged in entrepreneurial activities, they take risk to a lesser extent than nonfamily firms. Moreover, and most importantly for our understanding of entrepreneurial orientation in family firms, we find that risk taking in family firms is negatively related to performance. Both theoretical and practical implications of our findings are provided.

Corporate Governance and Competitive Advantage in Family–Controlled Firms

2005-04-22
Michael Carney
Recent attempts to identify the basis of family–controlled firms’ competitive advantage have drawn upon the resource–based view of the firm. This article supplements these efforts and advances the argument that … Recent attempts to identify the basis of family–controlled firms’ competitive advantage have drawn upon the resource–based view of the firm. This article supplements these efforts and advances the argument that family–controlled firms’ competitive advantage arises from their system of corporate governance. Systems of corporate governance embody incentives, authority patterns, and norms of legitimation that generate particular organizational propensities to create competitive advantages and disadvantages. For comparative purposes, the characteristics of managerial, alliance, and family governance are reviewed. The impact of a family's control rights over a firm's assets generates three dominant propensities (parsimony, personalism, and particularism). These propensities give advantages in scarce environments, facilitate the creation and utilization of social capital, and engender opportunistic investment processes. The experience of family–controlled firms in emerging markets is drawn upon to illustrate the argument.

Entrepreneurial Risk Taking in Family Firms

2005-02-25
Shaker A. Zahra
Family firms are widely recognized as a major source of technological innovation and economic progress. Yet, over time, some family firms become conservative and unwilling to take the risks associated … Family firms are widely recognized as a major source of technological innovation and economic progress. Yet, over time, some family firms become conservative and unwilling to take the risks associated with entrepreneurial activities. Adopting a broad definition of entrepreneurial risk taking, this study uses agency theory to highlight key correlates of risk taking among 209 U.S. manufacturing family firms. The results show that family ownership and involvement promote entrepreneurship, whereas the long tenures of CEO founders have the opposite effect. These results urge managers to capitalize on the skills and talents of their family members in promoting entrepreneurship and selective venturing into new market arenas.

Contextualizing Performances of Family Firms

2011-11-07
Andrea Colli
Performances have only recently been addressed in business history research, partly because of problems concerning data quality and availability. As a consequence, performance measurement in family firms has been a … Performances have only recently been addressed in business history research, partly because of problems concerning data quality and availability. As a consequence, performance measurement in family firms has been a neglected area in historical studies. Family business historians are thus increasingly interested in this topic. However, the longitudinal perspective adopted requires a problematical approach to the concept of performance. This article provides a critical assessment of the relationship between family firms and performance measurement from the perspective of business history and, at the same time, suggests the potential contribution of historical analysis to theory building in this field.

Socioemotional Wealth and Business Risks in Family-controlled Firms: Evidence from Spanish Olive Oil Mills

2007-03-01
Luis R. Gómez‐Mejía , Katalin Takács Haynes , Manuel Núñez Nickel +2 more
This paper challenges the prevalent notion that family-owned firms are more risk averse than publicly owned firms. Using behavioral theory, we argue that for family firms, the primary reference point … This paper challenges the prevalent notion that family-owned firms are more risk averse than publicly owned firms. Using behavioral theory, we argue that for family firms, the primary reference point is the loss of their socioemotional wealth, and to avoid those losses, family firms are willing to accept a significant risk to their performance; yet at the same time, they avoid risky business decisions that might aggravate that risk. Thus, we propose that the predictions of behavioral theory differ depending on family ownership. We confirm our hypotheses using a population of 1,237 family-owned olive oil mills in Southern Spain who faced the choice during a 54-year period of becoming a member of a cooperative, a decision associated with loss of family control but lower business risk, or remaining independent, which preserves the family's socioemotional wealth but greatly increases its performance hazard. As shown in this study, family firms may be risk willing and risk averse at the same time.
View PDF Chat

Identity Salience and Role Performance: The Relevance of Symbolic Interaction Theory for Family Research

1968-11-01
Sheldon Stryker

A Behavioral Theory of the Firm.

1964-08-01
Kenneth E. Boulding , Richard M. Cyert , James G. March

GUANXI: CONNECTIONS AS SUBSTITUTES FOR FORMAL INSTITUTIONAL SUPPORT.

1996-12-01
Katherine K. Xin , Jone L. Pearce
Interview data from China are used to test an argument that executives develop personal connections in societies with underdeveloped legal support for private businesses. In China, such connections... Interview data from China are used to test an argument that executives develop personal connections in societies with underdeveloped legal support for private businesses. In China, such connections...
View PDF Chat

Consumption and Identity at Work.

1997-03-01
Douglas B. Holt , Paul du Gay

Simulation modeling and analysis

1999-01-01
View PDF Chat

Relationship Lending and Lines of Credit in Small Firm Finance

1995-01-01
Allen N. Berger , Gregory F. Udell
This article examines the role of relationship lending in small firm finance. It examines price and nonprice terms of bank lines of credit extended to small firms. The focus on … This article examines the role of relationship lending in small firm finance. It examines price and nonprice terms of bank lines of credit extended to small firms. The focus on bank lines of credit allows the examination of a type of loan contract in which the bank-borrower relationship is likely to be an important mechanism for solving the asymmetric information problems associated with financing small enterprises. The authors find that borrowers with longer banking relationships pay lower interest rates and are less likely to pledge collateral. These results are consistent with theoretical arguments that relationship lending generates valuable information about borrower quality. Copyright 1995 by University of Chicago Press.
View PDF Chat

Managing Resources: Linking Unique Resources, Management, and Wealth Creation in Family Firms

2003-05-16
David G. Sirmon , Michael A. Hitt
The appropriate resources are necessary but insufficient to achieve a competitive advantage. Resources must also be managed effectively. Herein, we develop a resource management process model composed of three components … The appropriate resources are necessary but insufficient to achieve a competitive advantage. Resources must also be managed effectively. Herein, we develop a resource management process model composed of three components that can lead to a competitive advantage. These components include the resource inventory (evaluating, adding, and shedding), resource bundling, and resource leveraging. We examine resource management in family firms and thus explore the unique characteristics of five resources and attributes of family firms that provide potential advantages over nonfamily firms. The resources are human capital, social capital, patient capital, survivability capital, along with the governance structure attribute.

Cultural entrepreneurship: stories, legitimacy, and the acquisition of resources

2001-06-01
Michael Lounsbury , Mary Ann Glynn
Abstract We define cultural entrepreneurship as the process of storytelling that mediates between extant stocks of entrepreneurial resources and subsequent capital acquisition and wealth creation. We propose a framework that … Abstract We define cultural entrepreneurship as the process of storytelling that mediates between extant stocks of entrepreneurial resources and subsequent capital acquisition and wealth creation. We propose a framework that focuses on how entrepreneurial stories facilitate the crafting of a new venture identity that serves as a touchstone upon which legitimacy may be conferred by investors, competitors, and consumers, opening up access to new capital and market opportunities. Stories help create competitive advantage for entrepreneurs through focal content shaped by two key forms of entrepreneurial capital: firm‐specific resource capital and industry‐level institutional capital. We illustrate our ideas with anecdotal entrepreneurial stories that range from contemporary high‐technology accounts to the evolution of the mutual fund industry. Propositions are offered to guide future empirical research based on our framework. Theoretically, we aim to extend recent efforts to synthesize strategic and institutional perspectives by incorporating insights from contemporary approaches to culture and organizational identity. Copyright © 2001 John Wiley &amp; Sons, Ltd.

International Handbook of Research on Conceptual Change

2009-05-07

The Bind that Ties: Socioemotional Wealth Preservation in Family Firms

2011-06-01
Luis R. Gómez‐Mejía , Cristina Cruz , Pascual Berrone +1 more
A growing body of research shows that family firms are different from other organizations in significant ways. In this paper we review this literature by examining how family firms differ … A growing body of research shows that family firms are different from other organizations in significant ways. In this paper we review this literature by examining how family firms differ from nonfamily firms along five broad categories of managerial decisions. These categories encompass a set of key organizational choices concerning management processes, firm strategies, corporate governance, stakeholder relations and business venturing. We argue that socioemotional wealth or affective endowment of family owners explain many of these choices. We also examine some contingency factors (namely family stage, firm size, firm hazard, and the presence of nonfamily shareholders) that moderate the influence of socioemotional wealth preservation as a point of reference when making managerial decisions in family firms. Lastly, we explore the firm performance consequences of family ownership.

The Pervasive Effects of Family on Entrepreneurship: Toward a Family Embeddedness Perspective

2011-10-31

Keeping the Family Business Healthy

2011-01-01
John L. Ward

Defining the Family Business by Behavior

1999-07-01
Jess H. Chua , James J. Chrisman , Pramodita Sharma
It is generally accepted that a family's involvement in the business makes the family business unique; but the literature continues to have difficulty defining the family business. We argue for … It is generally accepted that a family's involvement in the business makes the family business unique; but the literature continues to have difficulty defining the family business. We argue for a distinction between theoretical and operational definitions. A theoretical definition must identify the esence that distinguishes the family business from other businesses. It is the standard against which operational definitions must be measured. We propose a theoretical definition based on behavior as the essence of a family business. Our conceptual analysis shows that most of the operational definitions based on the components of family involvement overlap with our theoretical definition. Our empirical results suggest, however, that the components of family involvement typically used in operational definitions are weak predictors of intentions and, therefore, are not always reliable for distinguishing family businesses from non-family ones.

Human‐Centric Digital Transformation in Industry 5.0: A Phenomenological Study of Family‐Owned <scp>SME</scp> in Sri Lanka

2025-06-24
Dilogini Sangarathas , Shivany Shanmugathas | The Electronic Journal of Information Systems in Developing Countries
ABSTRACT This phenomenological study explores human‐centric digital transformation within Industry 5.0, specifically focusing on family‐owned SMEs in Sri Lanka. Despite their crucial economic role, these businesses encounter distinct challenges, such … ABSTRACT This phenomenological study explores human‐centric digital transformation within Industry 5.0, specifically focusing on family‐owned SMEs in Sri Lanka. Despite their crucial economic role, these businesses encounter distinct challenges, such as succession transformation and the preservation of traditional values amid technological advancements. This study addresses the significant gap in literature regarding Industry 5.0 digital transformation in family‐owned SMEs, particularly in developing economies like Sri Lanka. By exploring the lived experiences of a third‐generation family‐owned business, the study provides novel insights into balancing technological progress with the preservation of traditional values, contributing to a deeper understanding of digital transformation in culturally embedded SMEs. Using Interpretative Phenomenological Analysis (IPA), the research explores the lived experiences of ‘Aaseer Mixture’, a third‐generation family‐owned food and snacks manufacturing SME located in Northern Sri Lanka. Key themes identified through detailed interviews with family members include ownership insights on digital integration, empowering family‐centric digital evolution and digital integration for business strategies. The study reveals how family dynamics and intergenerational differences impact decision‐making processes related to digital transformation. Emphasizing the need for inclusive strategies that consider the intersecting circles of ownership, family, and business, the study develops a new human‐centric digital transformation model tailored for family‐owned SMEs. This model balances technological progress with the preservation of core family values and traditions, offering valuable insights for navigating digital integration. By highlighting the necessity of embracing digital technologies to maintain relevance and attractiveness to future generations, the study contributes to the literature on digital transformation in family‐owned SMEs, especially within developing economies.

Práticas e Comportamentos de Liderança na Gestão Feminina em Organização Familiar

2025-06-23
Amanda Lavinia de Souza da Silva , César Ricardo Maia de Vasconcelos , Hilderline Câmara de Oliveira +1 more | Revista de Gestão e Secretariado (Management and Administrative Professional Review)
Este estudo explorou os comportamentos e práticas de liderança adotados pela gestora de uma empresa familiar, na perspectiva do modelo das Cinco Práticas de Liderança Exemplar de Kouzes e Posner. … Este estudo explorou os comportamentos e práticas de liderança adotados pela gestora de uma empresa familiar, na perspectiva do modelo das Cinco Práticas de Liderança Exemplar de Kouzes e Posner. A pesquisa, de natureza quantitativa e descritiva, contou com a participação de 125 funcionários, dos quais 118 forneceram respostas válidas. Os resultados mostraram que a gestora apresenta um perfil de liderança alinhado ao modelo proposto. Houve uma diferença significativa nas respostas entre os gêneros, com o gênero feminino pontuando mais a gestora que o gênero oposto. A pesquisa sugere a realização de novos estudos sobre gênero e sucessão em empresas familiares. Esses resultados fornecem uma base para futuras investigações sobre liderança e gênero, destacando a importância da liderança exemplar no contexto organizacional.

Bienestar financiero de mujeres trabajadoras del sector turístico en México: Desde el conocimiento y la actitud

2025-06-23
| Revista de ciencias sociales.

Intergenerational technology adoption barriers in Indonesian family-owned MSME: A multi-level structural equation modeling analysis

2025-06-23
Enina Putri , Sabar Aritonang Rajagukguk | Priviet Social Sciences Journal
The digital transformation of Micro, Small, and Medium Enterprises (MSME) in Indonesia faces unique challenges in family owned businesses, where intergenerational dynamics significantly influence technology adoption decisions. This study examines … The digital transformation of Micro, Small, and Medium Enterprises (MSME) in Indonesia faces unique challenges in family owned businesses, where intergenerational dynamics significantly influence technology adoption decisions. This study examines how generational differences create barriers to technology adoption in Indonesian family owned MSME using a multilevel structural equation modeling approach. Using a multi-generational dyadic design with 350 family owned MSME representatives from two or more generations (N=700), we investigated the relationships between generational gaps, family harmony, and digital adoption intentions. Data were collected through structured interviews across traditional industries including textiles, food processing, and handicrafts. The results revealed that family harmony significantly mediates the relationship between generational gaps and technology adoption intentions (β=0.42, p&lt;0.001), while communication quality moderates this relationship (β=0.28, p&lt;0.01). Younger generations’ technology advocacy proves more effective when combined with respect for older decision-making authority, suggesting that successful digital transformation requires culturally sensitive approaches that honor traditional family hierarchies while embracing technological innovation. This study contributes a theoretically grounded framework for understanding technology adoption in family businesses within collectivist cultures, offering practical implications for policymakers and business consultants in designing digital transformation programs for MSME.

The construct of place attachment in family and non-family businesses: validation of a measurement tool

2025-06-23
Stefano Amato , Rodrigo Basco , Miruna Radu-Lefebvre | Journal of Family Business Management
Purpose Place attachment enables CEOs to leverage local resources, access information, and seize business opportunities, thereby enhancing firm performance. However, its influence may vary between family and non-family firms due … Purpose Place attachment enables CEOs to leverage local resources, access information, and seize business opportunities, thereby enhancing firm performance. However, its influence may vary between family and non-family firms due to the family’s socioeconomic ties, nonfinancial goals and local community engagement. This study introduces the multidimensional construct of place attachment to business research, extending its theoretical foundations from environmental psychology to organizational studies. Design/methodology/approach Drawing from survey data of 528 French firms, this study uses a stepwise empirical strategy – combining exploratory factor analysis and partial least squares structural equation modeling (PLS–SEM) – to test and validate the construct of place attachment and examine its relationship with firm performance. Findings Place attachment emerges as a reflective second-order construct composed of five dimensions: place identity, place dependence, nature bonding, family bonding and friend bonding. Multigroup analysis reveals that, while the structure of place attachment is consistent across both family and non-family businesses, its impact on performance varies. The CEO’s place attachment is positively associated with economic, employee and environmental performance in non-family businesses but shows no significant relationship in family ones. Originality/value By integrating the construct of place attachment into the business domain, this study offers a novel framework for understanding how CEOs’ socioemotional connections to a given place shape firm-level outcomes, advancing the context-sensitive approach of management theory. This contextualization enriches family business literature by emphasizing place as a critical, yet overlooked, element of organizational behavior and strategic decision-making.

Grounded theory and succession in family businesses: an overview and some directions

2025-06-23
Noellen Silva Amorim Feuser , Erlaine Binotto , Lidiane Parron Gonçalves +1 more | Revista de Administração da UFSM
Purpose: The study aimed to analyze research on succession in family businesses that applied Grounded Theory (GT) method and propose a research agenda.Methodology: A systematic literature review was conducted using … Purpose: The study aimed to analyze research on succession in family businesses that applied Grounded Theory (GT) method and propose a research agenda.Methodology: A systematic literature review was conducted using Scopus and Web of Science databases. Data analysis was carried out using two distinct approaches: the first explored the conceptual and theoretical aspects of the studies, while the second focused on the application of the GT method.Findings: The analyzed studies examined succession from different perspectives, identifying four thematic clusters: Family Businesses, Successors, Family, and Grounded Theory. This research explored succession stages and processes, successor development and leadership, family roles and influence, as well as intergenerational communication, conflicts, and decision-making. Based on these clusters, a research agenda was developed that offers insights into the field of family business succession through the application of the GT method. Despite the extensive literature, studies that generate theories or strictly adhere to the fundamental principles of GT remain scarce.Research implications: This study highlights research opportunities through the application of the GT method, contributing to a deeper understanding of the succession process in family businesses and the formulation of sustainable business policies.Originality: This study outlines pathways for future research in this field based on the four identified thematic groups, addressing research gaps, providing insights, and fostering continued investigations to support the development of family businesses.

Nonprimogeniture succession and innovation investment in family businesses

2025-06-23
Weibin Xu , Yang Xiaojuan , Yaxian Wang +1 more | Chinese Management Studies
Purpose This study aims to explore the impact of nonprimogeniture succession on family business innovation investment decisions during intergenerational succession, focusing on how the role-expectation conflict between the successor’s family … Purpose This study aims to explore the impact of nonprimogeniture succession on family business innovation investment decisions during intergenerational succession, focusing on how the role-expectation conflict between the successor’s family and social roles functions in this process. The research objective is to reveal the specific impact of nonprimogeniture succession on family business innovation investment and to propose corresponding countermeasures. Design/methodology/approach Based on role congruence theory, this study uses data from Chinese family business listed companies between 2008 and 2022 to examine the relationship between nonprimogeniture succession and family business innovation investment through ordinary least squares regression analysis. Findings Compared with primogeniture succession, nonprimogeniture succession results in a significant decrease in family businesses’ innovation investment. Further analysis reveals that this negative effect is more pronounced when the successor is a female successor, when the successor adopts a radical succession mode, and in regions where Confucianism exerts a profound influence. Originality/value The existing literature explores family firm innovation investment in second-generation succession through social-emotional wealth theory. This study analyses and verifies that differences in social role expectations and legitimacy needs triggered by the birth order of successors are important antecedent motives affecting innovation investment in family firms. Thus, it provides new explanatory variables for understanding the differential drivers of family firms’ innovation investment in second-generation succession scenarios. Furthermore, this paper shifts the explanatory logic of the birth order impact effect from the impact of birth order on individual character to its impact on individual identity legitimacy, enriching the literature on the economic consequences of birth order and expanding the application of the role congruence theory.

Family faith, altruistic values and community CSR in family firms

2025-06-21
Steven Kofford , William G. Dyer , Ritch L. Sorenson +2 more | Journal of Family Business Management
Purpose The purpose of this study is to examine the relationships between family faith, altruistic family business values and community CSR in private family firms. Design/methodology/approach This study uses structural … Purpose The purpose of this study is to examine the relationships between family faith, altruistic family business values and community CSR in private family firms. Design/methodology/approach This study uses structural equation modeling to analyze survey data from 378 US-based private family firms. Findings This study finds a positive relationship between altruistic business values and community CSR. The study also finds a positive relationship between family faith beliefs and altruistic business values when family faith participation is high. However, when family faith participation is low, the relationship between family faith beliefs and altruistic business values is nonsignificant. Originality/value While prior work has argued that family firms often engage in CSR more than non-family firms, less work has been done to understand heterogeneity in CSR amongst family firms. This study identifies key antecedents that help explain such heterogeneity—altruistic business values and family faith—and identifies conditions under which they have a positive effect on CSR.

The relationship between family ownership, governance structure and corporate philanthropy

2025-06-19
Ahmed Imran Hunjra , Hafiza Aishah Hashim , Waleed M. Alahdal +1 more | Journal of Asia Business Studies
Purpose Family ownership and corporate governance play a crucial role in influencing the philanthropic activities within firms, prompting their commitment to community engagement and social responsibility. This study aims to … Purpose Family ownership and corporate governance play a crucial role in influencing the philanthropic activities within firms, prompting their commitment to community engagement and social responsibility. This study aims to analyze the impact of family ownership and governance mechanisms on corporate philanthropy. Design/methodology/approach The authors use panel data of 745 listed nonfinancial firms operating in Asian emerging economies covering the time period from 2010 to 2024 to analyze the results. The authors use fixed effect as the primary approach model, whereas GMM technique is applied for robustness check. Findings The authors find that family ownership and family control have significant and positive impacts on corporate philanthropy. However, the authors further find that board size, board independence, board effectiveness as measured by board meetings and gender diversity significantly increase corporate philanthropic activities. Originality/value The present study contributes to the body of knowledge while evaluating the effects of family ownership including family control and corporate governance on corporate philanthropy. Furthermore, family members involved in both management and ownership can provide a stronger commitment in promoting social aspects together with corporate philanthropy.

Global Wanderings

2025-06-19
Marion Christina Rohrleitner | Cambridge University Press eBooks

A Commentary on Fezzey et al. (2025): CEO Activism in Family Firms

2025-06-19
Steven Kofford , Vitaliy Skorodziyevskiy , James J. Chrisman | Group & Organization Management

Gender and the Family Business Network

2025-06-18
Mary Louise Nagata | Routledge eBooks

Impact of Knowledge Transfer and Sharing on Sustainable Family Business Performance: The Moderating Role of Digital Transformation

2025-06-18
Nandini Varshney , Krishna Dixit , Shweta Pandey +1 more | The Electronic Journal of Information Systems in Developing Countries
ABSTRACT Sustainable family business performance has a complex relationship with knowledge transfer and knowledge sharing, as well as the mediating role of digital transformation and innovation capability of family businesses. … ABSTRACT Sustainable family business performance has a complex relationship with knowledge transfer and knowledge sharing, as well as the mediating role of digital transformation and innovation capability of family businesses. This study examines these dynamics within family businesses in India. Data was collected from 259 family businesses using a survey method, and the analysis was performed using Partial Least Squares Structural Equation Modeling (PLS‐SEM). The findings show positive and significant relationships among most variables, except for knowledge transfer and digital transformation, which showed a positive but insignificant effect. This weak correlation can be attributed to several factors, such as cultural and value differences and a lack of integrity and trust across generations. This study provides valuable insights into the benefits of digital transformation for policymakers, practitioners, and family business owners, emphasizing its importance in the context of an emerging advanced economy.

How do family firms balance economic and non-economic goals: from symbiosis to competition

2025-06-18
Wei Zhang , Bingde Wu , Chen Ling +2 more | Frontiers in Psychology
Introduction The coexistence of non-economic and economic goals is a prominent feature of family firms. However, does the pursuit of non-economic goals necessarily imply that the economic goals should be … Introduction The coexistence of non-economic and economic goals is a prominent feature of family firms. However, does the pursuit of non-economic goals necessarily imply that the economic goals should be sacrificed? Our research addresses this question by exploring the symbiotic or competitive relationship between non-economic goals and economic goals in Chinese family firms, and the moderating effect of firm size and firm age. Methods Based on 2877 firm-year observations of Chinese listed family firms from year 2009 to 2019, this paper examines the relationship between non-economic goals (measured by family management) and economic goals (measured by firm performance). A panel data fixed-effects regression model was employed for the primary analysis. To further ensure the credibility of our conclusions, we performed several robustness tests, such as utilizing alternative variable measurement and conducting an endogeneity test. Results The empirical analysis revealed an inverted U-shaped relationship between family management and firm performance, where the extent to which non-economic goals are positively related to economic goals up to a point, after the turning point it becomes negative, which shows the trend from symbiosis to competition. Furthermore, as firm age increases and firm size expands, the inverted U-shaped curve flattens, and the turning point shifts to the right. Discussion Employing a willingness and ability perspective, this research contributes to the socioemotional wealth (SEW) framework by offering insights into the dynamic interplay between economic and non-economic goals in Chinese family firms. Moreover, by examining Chinese family firms influenced by Confucian values, our study highlights the importance of cultural context for generalizability, while simultaneously enriching SEW discourse and fostering avenues for cross-regional comparative analysis.

Family 3.0

2025-06-18
Cayetano García-Castrillón Armengou | Routledge eBooks

Conflict dynamics and preventive strategies in family firms: insights from ethnic entrepreneurial communities in Pakistan

2025-06-18
Omar Javaid , Aamir Feroz Shamsi , Irfan Hyder | Journal of Enterprising Communities People and Places in the Global Economy
Purpose This paper aims to examine the causes of conflict in family firms within Pakistan’s leading ethnic entrepreneurial communities and identifies potential conflict prevention strategies. Prior research highlights the significance … Purpose This paper aims to examine the causes of conflict in family firms within Pakistan’s leading ethnic entrepreneurial communities and identifies potential conflict prevention strategies. Prior research highlights the significance of these firms’ philanthropic nature in sustaining social cohesion across the community. However, internal conflicts can disintegrate family firms and influence the long-term community survival. Therefore, this study investigates the underlying sources of conflicts within family firms and explores strategies for their prevention. Design/methodology/approach This qualitative study uses Eisenhardt’s research strategy within the social constructivist paradigm. Data from 24 in-depth interviews, memos, newsletters and community periodicals are analyzed to achieve the research objective. Findings The upbringing environment and religiosity are key factors in preventing conflicts among family members in family firms. Rational measures, such as professionalizing the business environment and establishing a family constitution, also contribute to conflict prevention. However, their effectiveness may be limited without strong social bonds. Additionally, lifestyle choices influenced by contemporary consumerist trends appear to create distance among family members, increasing the likelihood of conflict. Social implications The findings highlight the need for a holistic approach that acknowledges the multidimensional and long-term causes behind conflicts and their preventive strategies in family firms. Further, the inherent tension between a family’s socioemotional dynamics and a firm’s rational structure can be mitigated when both are aligned with a moral purpose rooted in religious beliefs and values shared by family members. Originality/value Existing research does not capture the perspectives of family firms within Pakistan’s entrepreneurial communities, or explore preventive measures embedded in upbringing, lifestyle choices and religious worldviews. This study addresses this gap, offering novel insights into conflict prevention in family businesses.

Family Entrepreneurship and Sustainability: Empirical Analysis from Hungary

2025-06-17
Melinda Krankovits , Márta Konczosné Szombathelyi , Judit Csákné Filep +1 more | Central European Business Review

Navigating complexity: Unveiling the nonlinear relationship between family engagement and dynamic capabilities in the hotel industry

2025-06-17
Lorena Ruiz‐Fernández , Laura Rienda , Rosario Andreu | International Journal of Hospitality Management

Perubahan Strategis Dalam Bisnis Keluarga: Studi Kasus Sinarmas

2025-06-16
Anastasia Galieh , Erick Raymond Pijoh , Agustinus Toko Susetio +2 more | COMSERVA Jurnal Penelitian dan Pengabdian Masyarakat
This study evaluates how Sinarmas manages a structured and continuous change process. The method used is a qualitative case study with a descriptive approach, based on secondary data from annual … This study evaluates how Sinarmas manages a structured and continuous change process. The method used is a qualitative case study with a descriptive approach, based on secondary data from annual reports, interviews with industry experts, and thematic synthesis from several accredited family business journals. Sinarmas has diversified horizontally into the real estate, telecommunications, and digital economy sectors, as well as vertical integration in the paper, agribusiness, and energy industry sectors. The shift from the founder's centralistic leadership style (one-man-show) to a hybrid leadership model with the participation of non-family professionals is a key highlight of the second- to third-generation transition strategy. The results show that family social capital such as trust and long-term vision play an important role in supporting organizational resilience. But without structural updates and innovations, this can be an obstacle to strategic adaptation. The study underscores the importance of dynamic governance and external stakeholder engagement, including in the ESG agenda, to drive sustainability. This research enriches the discourse of strategic change in Asian family businesses and proposes a conceptual model for long-term transformation in the era of disruption.

Family firm heterogeneity and innovation: The role of firm origin and family involvement

2025-06-16
Saier Su , Fei Zhu , Haibo Zhou +1 more | Journal of Small Business Management

<scp>AI</scp> Adoption in Family Firms: A Mixed‐Methods Study on the Paradoxical Roles of Passive and Active Family Involvement

2025-06-14
Jonas Soluk , Ivan Miroshnychenko , Satish Nambisan | Journal of Product Innovation Management
ABSTRACT Artificial intelligence (AI) technologies have gained significance for all types of firms, including family firms. However, unlike other business contexts, family firms face unique challenges in adopting complex and … ABSTRACT Artificial intelligence (AI) technologies have gained significance for all types of firms, including family firms. However, unlike other business contexts, family firms face unique challenges in adopting complex and generative technologies, such as AI. This is particularly evident when examining the heterogeneous nature of family firms distinguished by passive (i.e., family ownership) and active (i.e., family management) family involvement. Specifically, we adopt a social capital perspective and combine inductive qualitative and deductive quantitative research into a mixed‐methods design. In the first step, we conduct a multiple case study of eight firms using rich data from 125 interviews and archival documents. While the case evidence shows that strong external network ties with suppliers, customers, and competitors help overcome the challenges related to AI technologies, we reveal opposing impacts of passive and active family involvement. Interestingly, our qualitative insights emphasize a negative moderation effect for passive family ownership exacerbating the challenges of AI and a positive moderation effect for active family management facilitating AI adoption. In the second step, we conduct a quantitative test of this conceptual model. On the basis of large‐scale data from 1444 firms, we find empirical support that increasing strengths of external network ties with suppliers, customers, and competitors drive AI adoption. Moreover, we find support for the opposing roles of passive family ownership as a negative moderator and active family management as a positive moderator in the relationship between supplier ties on the one hand and AI adoption on the other. Our study contributes toward a nuanced understanding of the idiosyncratic challenges of AI adoption faced by different types of family firms and the role of social capital in this regard and, more broadly, to research on innovation and technology adoption in family firms.

Unpacking the role of entrepreneurial orientation in the digital transformation of family SMEs: The importance of leadership structure and generational involvement

2025-06-14
Amaia Maseda , Txomin Iturralde , Unai Arzubiaga | Technological Forecasting and Social Change

Minority Shareholders Activism in Family Firms: A Comparative Study of Indonesian and South Korean Law

2025-06-14
Jahja Hamdani Widjaja , Ulya Yasmine Prisandani | Hang Tuah Law Journal
Family firms significantly contribute to the economies of Indonesia and South Korea. Despite their importance, these firms face challenges related to succession and minority shareholder rights. Indonesia lacks a robust … Family firms significantly contribute to the economies of Indonesia and South Korea. Despite their importance, these firms face challenges related to succession and minority shareholder rights. Indonesia lacks a robust regulatory framework for minority shareholder activism, relying primarily on the Indonesian Company Law despite the existence of the General Guidelines for Governance of Indonesian Family-Owned Businesses. In contrast, South Korea's chaebols, large family-controlled conglomerates, face stricter regulatory oversight to protect minority shareholders, including the Monopoly Regulation and FairTrade Act and the Korean Stewardship Code. Therefore, this paper aims to find the differences between Indonesian and South Korean legal regime on the minority shareholder activism regulation for family firms, while also aiming to bring practical policy suggestions. To achieve such purpose, this study employs a juridical legal method with comparative approach. The study provides comparative analysis from the two different jurisdictions based on its regulations, and suggesting that providing stricter regulation on institutional investors for family-firms, as well as adding the guidelines with more specific recommendation for minority shareholding member of family firms may help in promoting a more equitable corporate governance regime in family-owned businesses.

How are family businesses approaching the double materiality principle? A multiple case study

2025-06-13
Francesca Bartolacci , Roberto Del Gobbo , Michela Soverchia | Management Decision
Purpose Considering the new regulations on corporate sustainability reporting in Europe, the paper offers insights concerning the approach of family businesses to the double materiality principle. Specifically, the aim is … Purpose Considering the new regulations on corporate sustainability reporting in Europe, the paper offers insights concerning the approach of family businesses to the double materiality principle. Specifically, the aim is to understand if such companies are embracing both perspectives of impact materiality and financial materiality and developing the same awareness and confidence for both. Design/methodology/approach To realize the research aim, after delving into the double materiality principle, qualitative research based on a multiple case study is carried out, examining two large Italian family businesses that are working to meet the Corporate Sustainability Reporting Directive requirements. Findings The main findings suggest that the family businesses analyzed are more focused on financial materiality than on impact materiality. The approach to the double materiality principle could be interpreted in light of the relationship between the company and its stakeholders: as the company’s role toward its stakeholders evolves from agent to steward, the awareness of the double materiality principle will also likely grow. Originality/value This paper offers an original contribution to the understanding of the approach to the double materiality principle of early adopters in the unique context of family businesses, a topic on which the literature is very poor, mainly because most of them have not yet undertaken the relevant analysis, except those that have done so voluntarily.

<i>Hamiltonella</i> symbionts benefit whitefly fertilization by regulating the maternal protein Tudor–mediated piRNA pathway

2025-06-12
Xiang Sun , Huan Li , Zhan-Bo Chen +5 more | Proceedings of the National Academy of Sciences
Although it is widely recognized that nutritional symbionts can manipulate host reproduction, the underlying molecular and cellular mechanisms are largely unclear. The facultative symbiont Hamiltonella in bacteriocyte induces female-biased sex … Although it is widely recognized that nutritional symbionts can manipulate host reproduction, the underlying molecular and cellular mechanisms are largely unclear. The facultative symbiont Hamiltonella in bacteriocyte induces female-biased sex ratio of whiteflies. Here, we demonstrate that a maternal gene tudor ( tud ) and its encoded protein have lower expression levels in ovaries of Hamiltonella- cured whiteflies. Tud family proteins can interlink the various stages of biosynthesis of PIWI-interacting RNA (piRNA), a class of small noncoding RNAs. We find that Hamiltonella affects the abundance of a piRNA through the maternal gene tud , thereby regulating the expression of the vacuolar ( H+ ) -ATPase H subunit ( VATPH ), which is the switch of activity of the vacuolar (H+)-ATPase that plays a crucial role in maintaining the homeostasis of intracellular energy and supporting mitochondrial respiration. This regulation adjusts the ATP level in ovaries of whiteflies. The ATP level shapes the F-actin pattern in ovaries and eggs of whiteflies, ultimately manipulating whitefly fertilization. Silencing tud inhibited whitefly fertilization by impairing ATP levels and F-actin patterns in ovaries and eggs. This study reveals that symbiont and maternal protein associations can regulate host fertilization by piRNA biosynthesis.

Navigating Workforce Challenges: A Family Business at a Crossroads

2025-06-12
Amandeep Dhaliwal | Asian Case Research Journal
This case study delves into the strategic human resource and organizational challenges faced by Indo Autotech (IAT), a renowned family-run business manufacturing automotive spare parts. The narrative revolves around Mr. … This case study delves into the strategic human resource and organizational challenges faced by Indo Autotech (IAT), a renowned family-run business manufacturing automotive spare parts. The narrative revolves around Mr. Anand Jain, the Managing Director of IAT, who was facing a complex web of human resource challenges in areas of employee welfare, technological adaptation, operational efficiency, and workforce diversity — while navigating market volatility exacerbated by the COVID-19 pandemic. These challenges, caused by both external disruptions and internal weaknesses, had threatened to slow down the company’s growth and put at risk Anand’s ambitious goal of reaching $20 billion in turnover within five years. Beyond the financial target, these issues had also endangered the legacy of employee-centric values that had been passed down to him. The situation demanded immediate strategic interventions by Anand to ensure that IAT preserved the company’s market position, enhanced operational efficiency, and upheld its legacy of employee-centric values to remain competitive in the dynamic automotive industry. This scenario presents students with a compelling opportunity to analyze real-world decision-making in a high-stakes management context.

Parenting advantage and equity control-performance relationships: the asymmetric effect of institutional distance

2025-06-12
Lu Liu , Lei Wang , Yi Wang | International Journal of Emerging Markets
Purpose Drawing on the asymmetric effect of institutional distance and parenting advantage theory, we develop a theoretical framework that examines how directions of institutional distance and Chinese multinational enterprises (MNE) … Purpose Drawing on the asymmetric effect of institutional distance and parenting advantage theory, we develop a theoretical framework that examines how directions of institutional distance and Chinese multinational enterprises (MNE) parenting advantages interact with equity control to affect subsidiary performance. Design/methodology/approach We test the hypotheses using panel data for 297 listed Chinese companies and their 2660 foreign subsidiaries for the period 2012–2020. Findings The empirical results show that while equity control increases performance in countries with high (upward) institutional distance, it adversely influences performance in countries with high (downward) institutional distance. In addition, we find that when a Chinese MNE climbs up the institutional ladder, its capability to manage institutional voids attenuates the positive effect of equity control. Conversely, affiliation with a business group strengthens the positive effect of equity control. On the other hand, when a Chinese MNE climbs down the institutional ladder, managing institutional void capability weakens the negative impact of equity control on performance, while business group affiliation strengthens the detrimental effect of equity control. Originality/value By adopting a perspective based on institutional distance, we investigate the asymmetric effects of equity control and institutional distance on foreign subsidiary performance in different directions and how parenting advantage of Chinese MNEs moderate above interaction effects for better subsidiary performance, enriching the literature on parenting advantage and institutional theory.

El impacto de la sucesión en el clima organizacional de las empresas familiares

2025-06-11
Laura Leticia Gaona Tamez , Gabriel Aguilera-Mancilla , Juan Carlos Centeno-Maldonado | Ciencias Administrativas Teoría y Praxis
Las empresas familiares presentan una última prueba el paso de una generación a la siguiente es de los más complicado, por lo que es conveniente que la sucesión se efectúe … Las empresas familiares presentan una última prueba el paso de una generación a la siguiente es de los más complicado, por lo que es conveniente que la sucesión se efectúe mientras el fundador se encuentra aun laborando en la empresa. El objetivo de esta investigación es conocer sí el cambio generacional afecta el clima organizacional de las empresas familiares, considerando los siguientes factores: la pertenencia, la colaboración y los objetivos. Con el propósito de originar nuevas estrategias y conocimientos que ayuden a controlar el efecto que genere la sucesión en el clima organizacional en las empresas familiares. Se utilizó un instrumento de 73 reactivos que se aplicaron al total de los empleados de un grupo de empresas familiares que tuvieron un proceso de sucesión recientemente en el que se midió el clima organizacional arrojando que la sucesión en las variables analizadas no genera un impacto negativo en el clima organizacional.

Local Wisdom in the Creative Economy of the Baduy Community

2025-06-10
Usman Supendi , Agus Permana , Asep Sandi Ruswanda +1 more | International Journal of Nusantara Islam
Local wisdom is cultural values ​​and traditions that are passed down from generation to generation, playing an important role in supporting the sustainability of the creative economy in the Baduy … Local wisdom is cultural values ​​and traditions that are passed down from generation to generation, playing an important role in supporting the sustainability of the creative economy in the Baduy community. This study aims to examine how the local wisdom of the Baduy community is integrated into their creative economy practices, which include handicrafts, traditional weaving, and honey products. A qualitative approach was used in this study, with data collection through direct observation, in-depth interviews, and documentation studies. The results of the study indicate that the local wisdom of the Baduy community, such as the principle of living in harmony with nature and strict customary rules, is the main foundation in the production and marketing of their creative products. In addition, these values ​​also encourage environmental sustainability and maintain their cultural identity amidst the influence of modernization. This study concludes that the integration of local wisdom into the creative economy not only provides added value to the product, but also strengthens the social, cultural, and economic sustainability of the Baduy community.

Desafios da gestão em empresas familiares no ramo automotivo em Marabá

2025-06-10
Denyse Barroso Souza | Contribuciones a las Ciencias Sociales
Este trabalho analisa os desafios das micro e pequenas empresas familiares em Marabá-PA, destacando o impacto da carga tributária. O objetivo geral foi avaliar como esses fatores influenciam a longevidade … Este trabalho analisa os desafios das micro e pequenas empresas familiares em Marabá-PA, destacando o impacto da carga tributária. O objetivo geral foi avaliar como esses fatores influenciam a longevidade e o desempenho organizacional. A pesquisa utilizou abordagem qualiquantitativa, com predominância qualitativa, e método descritivo, por meio de questionários estruturados aplicados a empreendimentos locais. Os resultados mostraram que 45,5 % das empresas não possuem processo sucessório, 31,8 % não utilizam indicadores de desempenho e 90,9 % não recebem incentivos públicos; durante a pandemia, 40 % realizaram reorganização financeira. Conclui-se que a carência de governança estruturada e de suporte institucional compromete a competitividade e a continuidade do negócio. Recomenda-se a implantação de conselhos familiares, uso de indicadores gerenciais, sucessão planejada e programas de capacitação, além de políticas públicas específicas. Para investigações futuras, sugere-se estudos longitudinais e comparativos em outras regiões da Amazônia, visando aprofundar a compreensão dos fatores que favorecem a sustentabilidade empresarial.

Homework Battles

2025-06-06
David Adams | Routledge eBooks

The influence of CEO succession on ambidextrous strategies in family versus nonfamily SMEs: A knowledge- and resource-based view

2025-06-05
Hilde Hannevig | BRQ Business Research Quarterly
Chief executive officer (CEO) succession is a critical event for Small and medium-sized enterprises (SMEs), often leading to significant organizational and strategic changes, uncertainty, and the risk of failure if … Chief executive officer (CEO) succession is a critical event for Small and medium-sized enterprises (SMEs), often leading to significant organizational and strategic changes, uncertainty, and the risk of failure if mishandled. An essential yet underexplored topic is how CEO succession influences the long-term strategy of organizational ambidexterity (OA). This inductive multiple-case study investigates this influence by comparing three family and two nonfamily SMEs in Norway. Using the knowledge- and resource-based theories, the findings indicate that maintaining OA post-succession requires: (1) a clear strategic intent for OA before succession; (2) successors who have ambidextrous leadership abilities, the ability to acquire these skills, or the capability to build ambidextrous teams; (3) effective transfer of knowledge and networks; (4) appropriate organizational structures; and (5) a culture that supports OA. The study highlights similarities and differences between family and nonfamily firms, offering insights into how and why CEO succession affects strategic continuity in SMEs. JEL CLASSIFICATION: D22, M10

Learning With Kids: Testing Business Training Modalities for Women with Children

2025-06-04
Alejandro Estefan | AEA Randomized Controlled Trials