scholarly journals Organizational Psychological Capital in Family Firms: the Role of Family Firm Heterogeneity

2021 ◽  
Author(s):  
Denise Fischer-Kreer ◽  
Andrea Greven ◽  
Isabel Catherine Eichwald ◽  
David Bendig ◽  
Malte Brettel
Keyword(s):  
Family Involvement ◽  
Family Firms ◽  
Psychological Capital ◽  
Firm Heterogeneity ◽  
Top Management Team ◽  
Family Firm ◽  
Management Team ◽  
Top Management ◽  
The Family

AbstractOrganizational psychological capital—comprising hope, confidence, resilience, and optimism—is a vital resource for family firms in times of stress. Surprisingly, whether and how family firm idiosyncrasies impact organizational psychological capital remains unclear. Considering the theoretical paradigm of socio-emotional wealth, we investigate two important family firm characteristics as antecedents of organizational psychological capital: the family involvement in the top management team and the generation of the family firm. We further propose that these relationships are moderated by a board of directors’ tenure. Based on an empirical analysis of listed U.S. family firms, our results confirm a negative relationship between family membership in the top management team and organizational psychological capital. In addition, we find that descendant family firms exhibit higher levels of organizational psychological capital than founder family firms. The results also confirm the moderating role of board tenure. This study works toward a more holistic view of family firm heterogeneity and specifically how different types of family involvement shape a firm’s positive strategic resources.

The Shareholder Role in the Family Business: Conflict of Interests and Objectives Between Nonemployed Shareholders and Top Management Team

2002 ◽  
Vol 15 (4) ◽  
pp. 299-320 ◽  
Author(s):  
Alvaro Vilaseca
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Top Management Team ◽  
Management Team ◽  
Top Management ◽  
Conflict Of Interests ◽  
The Family ◽  
Firm Data ◽  
Commitment Level ◽  
Data Investigation

This article focuses on the role of the family business shareholder. Based on Agency Theory, it examines the elements that influence the conflict of interests and objectives between nonemployed shareholders and the top management team and its impact on commitment to the family firm. Data were empirically obtained from a field study of 156 shareholders and executives of 10 Spanish family firms. Combining quantitative and qualitative data, investigation results show that the degree of commitment to the family business is negatively correlated with the number of family members on the board of directors. Nevertheless, the most robust and statistically significant correlation (positive) was found between the number of external board members and the commitment level of the nonemployed shareholders. Regarding the mechanisms and processes implemented, results depended on the attention that the family business paid to the institutional overlap of the three subsystems: ownership, family, and business.

The “Most Wanted”: The Role of Family Strategic Resources and Family Involvement in CEO Succession Intention

2020 ◽  
Vol 33 (3) ◽  
pp. 284-309 ◽  
Author(s):  
Giovanna Campopiano ◽  
Andrea Calabrò ◽  
Rodrigo Basco
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Top Management Team ◽  
Management Team ◽  
Top Management ◽  
Ceo Succession ◽  
Data Set ◽  
Strategic Resources ◽  
Cross Country

Stemming from familiness and the notion of nonimitable strategic resources, we investigate, in the presuccession phase, the role of acquisition and accumulation of family strategic resources, along with the way family involvement in the top management team affects resource mobilization and deployment, in determining the intention to choose either a family or a nonfamily member as the next CEO. Data from a cross-country double-respondent family business data set (Successful Transgenerational Entrepreneurship Practices project) reveal that human capital is a significant family strategic resource reducing the intention to select a family CEO, although leveraging this resource by a top management team dominated by family members enhances this intention.

scholarly journals Family in Top Management Team and Firm Value: Do Gender and Education of Family Manager Matter?

2020 ◽  
Vol 5 (2) ◽  
pp. 146
Author(s):  
Hadi Sumarsono
Keyword(s):  
Firm Value ◽  
Empirical Relationship ◽  
Top Management Team ◽  
Family Members ◽  
Family Firm ◽  
Management Team ◽  
Top Management ◽  
Upper Echelons Theory ◽  
Gender And Education ◽  
The Family

The in-hand study sheds some light on empirical relationship between involvement of family members in the top management team and family firm value. Specifically, this study examines how gender and education of family managers affect firm value in Indonesian context. The total sample employed in this study consisted of 935 observations with 235 family companies. The data required in this study were collected from various sources. Drawing on fixed effect regression, the results identified that the involvement of family members in top management team significantly affected the family firm value. It was also revealed that the female family manager had a lower firm value than the male family manager. Moreover, the education level of the family manager positively affected the firm value. These results provide an empirical evidence on how gender and education of family managers influence family firm value. It is further depicted that the results of this study are in line with the upper echelons theory in which the differences in human resources (e.g. gender and education) arisen from the family involvement in a management undeniably affect family firm value. As for the practical contribution, this study suggests that powerful actors in the family firms should be a family member involved in a management. It is also a worth saying that the involvement of family members on the top management teams should consider gender and level of education.

scholarly journals Organizational Capabilities for Family Firm Sustainability: The Role of Knowledge Accumulation and Family Essence

2021 ◽  
Vol 13 (10) ◽  
pp. 5607
Author(s):  
Ismael Barros-Contreras ◽  
Jesús Manuel Palma-Ruiz ◽  
Angel Torres-Toukoumidis
Keyword(s):  
Family Involvement ◽  
Dynamic Capabilities ◽  
Family Firms ◽  
Family Firm ◽  
Organizational Capabilities ◽  
Knowledge Accumulation ◽  
External Knowledge ◽  
The Family ◽  
Research Gap

While prior studies recognize the importance of organizational capabilities for family firm sustainability, current research has still failed to empirically identify the role of different types of knowledge accumulation with regard to these organizational capabilities. Based on the dynamic capabilities theory, the main goal of this paper is to address this research gap and to explore the relationships between both internal and external knowledge accumulation, and ordinary organizational capabilities. This research also contributes to analyzing the complex effect of the family firm essence, influenced by both family involvement and generational involvement levels, as an antecedent of internal and external knowledge accumulation. Our analysis of 102 non-listed Spanish family firms shows that the family firm essence, which is influenced by the family involvement, strengthens only the internal knowledge accumulation but not the external one. Furthermore, our study also reveals that both internal and knowledge accumulation are positively related to ordinary capabilities.

Understanding Family Firm Profitability Heterogeneity

2020 ◽  
pp. 305-329 ◽  
Author(s):  
María J. Martínez-Romero ◽  
Rubén Martínez-Alonso ◽  
Alfonso A. Rojo-Ramírez ◽  
Julio Diéguez-Soto
Keyword(s):  
Family Involvement ◽  
Family Firms ◽  
Firm Heterogeneity ◽  
Family Firm ◽  
Research Field ◽  
The Family ◽  
Firm Profitability ◽  
Strategic Element ◽  
Family Involvement In Management ◽  
Positive Effect

Understanding family firm heterogeneity has become a topic of critical importance among academics and practitioners in the family business research field. This chapter aims to provide new insights into this theme by examining the differences in profitability within the pool of family firms. Furthermore, this chapter introduces an exceptional strategic element, namely innovative effort, to analyse when and to what extent the deployed innovative effort influences the family involvement in management-firm profitability relationship. Using a panel dataset on 3,164 observations of Spanish private manufacturing firms over the 2000–2015 period, the findings reveal significant differences in the profitability of family firms depending on the degree of family involvement in the firm's management. The findings also show that innovative effort reinforces the positive effect that family involvement in management exerts on firm profitability.

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