Drawing on the transgenerational entrepreneurship perspective, we employ a multiple case study approach to investigate why multigenerational family firms innovate. The data collection process drew ...upon five in-depth cases comprising 42 semistructured interviews, 25 participant observations, and several thousand pages of historical data dating from 1916 to 2017. We find patterns on how the firms’ long-term view—embracing both the past and the future—influences the innovation motives of these firms. Specifically, we identify three innovation patterns: conserving, persisting and legacy-building. We introduce a set of propositions and a framework linking long-term orientation dimensions to innovation motives and innovation outcomes. Our research thus contributes to a more fine-grained understanding of innovation behavior in family firms.
•We present a model describing daughters’ paths to succession in family businesses in the U.S., based on a study of supply and demand factors that influence daughter succession.•We examine contextual ...factors that influence the selection and self-selection of successors in family businesses, using gender theory combined with the theory of planned behavior, a decision model.•Gender norms, which are automatically activated, blind daughters to possibilities of succession.•Gender norms make daughters invisible to others as successors.•Gender norms may be overcome when a critical event occurs followed by mentoring.
Statistics reveal a dearth of daughters among successors of family business owners. In one of very few empirical studies on the subject of daughters who do not follow in the footsteps of their entrepreneurial fathers, we examined factors that may contribute to daughters’ self-assessments of succession. Findings reveal that daughters’ own blindness to the possibility of succession, often resulting from automatically activated gender norms, impedes their ascendancy. Interviews with daughters who did not pursue executive positions with decision making responsibilities in their family firms, as well as both sons and daughters who did, indicate that daughters may not deliberately consider succession until a critical event motivates them to do so. Additionally, parental support and mentoring for leadership are seen to facilitate daughter succession.
Gender in management is a widely studied topic. Since business families are social units and gender-based discrimination is entrenched in the social system, family firms are more likely to be ...susceptible to gender issues. Therefore, gender in family business offers a unique disposition for systematic exploration and scholarly inquiry. Using bibliometric analysis tools, we map a broader canvas of literature on women in family businesses, incorporating the literature from other disciplines, such as sociology and social psychology, that address the fundamental issues affecting the involvement of women in the family business. We uncover the state of research on women in family businesses, try and understand the drivers influencing their involvement in the family business, how family business behaviours and outcomes are influenced by the family women discharging different roles and responsibilities in business, and draw up a comprehensive framework that scholars can use to find the gaps in the literature.
This review examines how family businesses manage family-related conflicts that occur at three interfaces: family-business, family-ownership, and family-business-ownership. We find that work-family ...conflicts, conflicts of interest, and relationship conflicts are prevalent family-related conflicts. Four conflict management strategies are frequently used to deal with these conflicts: vacillation, domination, separation, and third-party intervention. The popularity of these strategies is influenced by some unique characteristics of family businesses, such as high emotional attachment among family members. By integrating insights from the broader conflict research, paradox and dialectic studies, we develop a research agenda targeted at better connecting family-related conflicts to conflict management strategies.
Emotion significantly affects strategic decision-making by entrepreneurs in family business organisations. This paper proposes a cognitive framework of strategic decision-making that emphasises the ...importance of emotion, based on a micro-foundational perspective: that is, an integrated hierarchy of cognitive processes underlying entrepreneurs' strategic decision-making and the interactions with external affective events. Previous studies that used traditional behavioural methodologies are reviewed with reference to the proposed cognitive framework to highlight importance of understanding effect of emotion-cognition interactions on entrepreneurs’ strategic decision-making process. New techniques using biological, physiological, and neuroscientific tools are then introduced as complementary methods for this line of research. Finally, future research directions are discussed with a focus on implicit cognitive processing, complex emotions, and cognitive interventions.
Family Business Growth Around the World Miroshnychenko, Ivan; De Massis, Alfredo; Miller, Danny ...
Entrepreneurship theory and practice,
07/2021, Letnik:
45, Številka:
4
Journal Article
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Growth is important for the long-term success of a business. Regrettably, the impact of family influence on firm growth is largely neglected. We examine whether family firms have a higher growth rate ...than their nonfamily counterparts. Based on a large sample of firms across 43 countries over a 10-year period, we show that family firms on average have higher growth rates than nonfamily firms, and this positive effect is greater for family firms operating in strong national institutional environments which are less corrupt, more democratic, more subject to rule of law, and have effective government policies. We also find that the positive effect of family influence on firm growth varies significantly across different types of family firms and different business cycles. These findings show that family control has an economically significant impact on growth rates and important implications for both family firm theory and practice.
Family business brands are said to represent a source of differentiation that can create benefits for family firms in today’s competitive market. However, research finds that not all family ...businesses are likely to promote their family business nature as part of their marketing efforts. Given the limited understanding that we have regarding which family firms promote their family business brand, and the effects that family business brand promotion can have on performance outcomes of the firm, this paper explores the extent to which family ownership and firm age affect the communication of the family business brand in corporate websites. Additionally, it analyzes the effects of communicating the family business brand on firm revenue, and how website quality moderates this relationship. We rely on data from the Global Family Business Index and the coding of the top 300 family firm websites to test our ideas. Results indicate that a higher percentage of family business ownership is related to the communication of the family business brand in the 300 largest family businesses. Additionally, the communication of the family business brand is also positively related to the revenue of the firm, particularly for family firms that have less complex websites. We discuss the implications of these results for future research and practice.
•This study is one of the first to provide evidence on mitigation mechanisms of family businesses in developing Asia during the COVID-19 pandemic.•We use original household survey data from seventeen ...countries in Southeast and Central Asia.•We study the role of coping strategies and government financial aid in mitigating the adverse impacts of the pandemic on family business conditions.•Coping strategy is associated with lower probability of both a decline in family business income and family business closure.•Financial aid is associated with lower probability of a decline in family business income and a higher probability of adopting coping strategies.
The COVID-19 pandemic has heavily affected economic activities. In emerging Asia, where small family businesses play central roles in their economies, previous studies found that the sector was particularly hard hit by the pandemic. However, little is known about how households have mitigated the negative shocks on their family business during the pandemic. Using datasets from representative household surveys in seventeen Asian countries from the Association of Southeast Asian Nations (ASEAN) and the Central Asia Regional Economic Cooperation (CAREC) regions, this study investigates the role of business coping strategies and government financial aid in mitigating the adverse impacts of the pandemic on family business conditions in the short run. We find that (i) adoption of coping strategy is associated with a lower probability of both a decline in family business income and family business closure; and (ii) government financial aid is associated with a lower probability of a decline in family business income and a higher probability of adopting coping strategies. This study is one of the first to provide empirical evidence on mitigation mechanisms of family business in emerging Asia. This is important to understand what policies will enable the family business sector to perform better during the future pandemics and other economic crises.
Exploring the psychological foundations of management in family firms is necessary to understand why they formulate and implement strategies differently from nonfamily firms, and why and how family ...firm behavior varies across different family firms. Picone et al. (2021. The psychological foundations of management in family firms: Values, biases, and heuristics. Family Business Review, 34(1), 12-32) have proposed a conceptual framework for the psychological foundations of management in family business, examining how the values, biases, and heuristics of family firm members affect strategic decision-making and family firm outcomes. Drawing on this framework, we examine emotions, memories, and experiences in family firms, disentangling “what we know” from “what we should know”, and offering some relevant questions to advance the field.
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