Ideal types of family business management: Horizontal fit between family and business decisions and the relationship with family business performance

2011 ◽  
Vol 2 (3) ◽  
pp. 151-165 ◽  
Author(s):  
Rodrigo Basco ◽  
María José Pérez Rodríguez
Keyword(s):  
Family Business ◽  
Business Performance ◽  
Business Management ◽  
Business Decisions ◽  
Ideal Types ◽  
The Relationship

Direct and indirect effect of entrepreneurial orientation, family involvement and gender on family business performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Erny Rachmawati ◽  
Suliyanto ◽  
Agus Suroso
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Family Businesses ◽  
Future Research ◽  
Content Type ◽  
The Family ◽  
The Relationship

PurposeThis study aims to determine the direct effect of entrepreneurial orientation on family business performance. This study also discusses the role of family involvement as a mediating variable and the role of gender as a moderating variable in the relationship between entrepreneurial orientation and family business performance.Design/methodology/approachA total of 328 hotels in Yogyakarta, Indonesia, were selected as samples by the convenience sampling method. Primary data is collected through structured questionnaires that are delivered by themselves to key people in the hotel such as owners, directors and key staff (HRD, financial, relationship). Hypotheses are tested by structural equation modeling procedures using AMOS 22.0. Sobel test is used to determine the indirect effect of the mediation variable.FindingsThe results showed that entrepreneurial orientation had no significant effect on family business performance. Family involvement acts as a full mediation in the relationship between entrepreneurial orientation and family business performance. Gender acts as a moderating variable that can strengthen the relationship between entrepreneurial orientation and family business performance. The results showed support for previous research.Research limitations/implicationsThe results of the study cannot conclude the national family business because it adopts convenience sampling and the sampling area is limited in Yogyakarta. Future research can use a larger sample. This study only researches hotels managed by family businesses, so it is not feasible to conclude for family businesses in general. Future research may choose to use several types of family businesses so that more varied results can be obtained. Future research could also compare hotels managed by family businesses with non-family businesses. The results also found that in addition to gender roles, respondent heterogeneity was an important component in the study of social identity. Therefore, research examining the influence of different cultures on the relationship between entrepreneurial orientation and family business performance should be an extraordinary topic for future study. Other results from this study also indicate that there is a role for religion in improving hotel performance. Future research is needed to further explore Islamic business modeling for family businesses.Practical implicationsThis finding has significant implications that can help family businesses in developing strategies that are suitable for business management. Entrepreneurial orientation occupies a strategic position in developing sustainable competitive advantage in the family business of the tourism sector especially the hotel business in Yogyakarta for the better. Besides, the results of the study also showed that entrepreneurial orientation had no significant effect on performance. This relationship becomes significant when combined with active family involvement. This finding also shows that entrepreneurial orientation has the potential to have a more beneficial effect because of the active involvement of the family in helping with business management, alleviating business-related problems, and having a significant influence when the family also acts as management.Social implicationsResearch findings indicate the role of gender in strengthening the relationship between entrepreneurial orientation and family business performance. This provides a good position for women in the social environment to show achievement. To place women on the side of gender equality and justice in the family business in Indonesia. By opening wider access for Indonesian women in the realm of business management, expanding women's participation in a family business, increasing the role of control for women, and increasing women's knowledge and skills to increase the benefits in managing family businesses so that they have sustainable resilience in the face of global competition.Originality/valueThe results of this study provide a new model in providing an overview of the direct and indirect roles (mediating and moderating) in the assessment of family business performance. This study uses three variables which are important in performance appraisal, namely entrepreneurial orientation (independent variable), family involvement (mediating variable) and gender (moderating variable). Where research that combines these four variables, directly and indirectly, has never been done before.

scholarly journals Performance Achievements of Family Business through Successor Readiness and The Relationship between Family and Business Members

2020 ◽  
Vol 13 (2) ◽  
pp. 198
Author(s):  
Gracia Ongkowijoyo ◽  
Timotius F.C.W Sutrisno ◽  
Teofilus Teofilus
Keyword(s):  
Family Business ◽  
Business Performance ◽  
Sampling Technique ◽  
Total Sample ◽  
Family Businesses ◽  
Partial Least Square ◽  
Least Square ◽  
Business Community ◽  
Succession Plan ◽  
The Relationship

Family businesses are one of the biggest contributors to Indonesia’s gross domestic product (GDP). Universitas Ciputra facilitate their students with family business guild. Succession plan and communication are important aspects for family businesses. Family businesses must educate potential successors in order to implement the succession plan well. The purpose of this study was to examine the effect of preparation level of successors towards family business performance; examine the effect of relationships among family and business members towards family business performance. A quantitative approach was used with a population of Universitas Ciputra’s Family Business Community. Purposive random sampling technique was used, yeilding a total sample of 93 people. The data analysis method used is Partial Least Square (PLS). The results showed that preparation level of heirs variable has a positive and significant effect on family business performance; the relationship among family and business members variable has a positive and significant effect on family business performance.

Succession planning and family business performance in SMEs

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

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

Does family capital outweigh the negative effects of conflict on firm performance?

2014 ◽  
Vol 4 (1) ◽  
pp. 46-61 ◽  
Author(s):  
Mark L. Hoelscher
Keyword(s):  
Competitive Advantage ◽  
Family Business ◽  
Business Performance ◽  
Task Conflict ◽  
Business Success ◽  
Content Type ◽  
Business Outcomes ◽  
Sustained Competitive Advantage ◽  
Family Capital ◽  
The Relationship

Purpose – Scholars have articulated the importance of family capital for successful family business outcomes. In the review of literature, empirical evidence supporting this assertion has been lacking. The purpose of this paper is to offer an empirical study of the relationship between family capital and family business success as well as the moderating effects of conflict to this relationship. Design/methodology/approach – Hierarchical regression was used in this study. Using a sample of 299 firms the author investigates the relationship between family capital and family business performance as well as the moderating role of conflict on this relationship. Findings – Results support the notion that family capital is a significant predictor of family business performance. Furthermore, the author finds that task conflict moderates the relationship between family capital and family business performance, while relational conflict has no impact on performance. Practical implications – The revelation that family capital can lead to a sustained competitive advantage makes the decision to support and nurture it much easier. Also, family capital appears to compensate for ineffective levels of task conflict. Finally, family capital shows much promise in being that rare, valuable, inimitable, and unsubstitutable resource that leads to sustained competitive advantage. Originality/value – This research begins the empirical validation process for the theoretical construct family capital as well as exploring the moderating relationship of conflict.

scholarly journals Managing Knowledge, Dynamic Capabilities, Innovative Performance, and Creating Sustainable Competitive Advantage in Family Companies: A Case Study of a Family Company in Indonesia

2020 ◽  
Vol 6 (3) ◽  
pp. 90 ◽  
Author(s):  
Sugiarto Koentjoro ◽  
Sri Gunawan
Keyword(s):  
Competitive Advantage ◽  
Business Performance ◽  
Dynamic Capabilities ◽  
Single Case ◽  
Business Management ◽  
Sustainable Competitive Advantage ◽  
Innovative Performance ◽  
New Ideas ◽  
The Relationship

Family businesses often face significant challenges while trying to develop and increase their sustainability throughout generations. This is often due to their inability to properly manage the knowledge required to develop their resources to increase sustainability. Therefore, this study examines the relationship between processes of managing knowledge, dynamic capabilities, and innovative performance in an Indonesian family company in order to improve business performance. This is qualitative research with a single case study used to obtain data from nineparticipants in an Indonesian family company (“Ardiles”) that focuses on footwear. The findings showed that a family company that mobilizes knowledge can improve its members’ dynamic capabilities for proper business management and growth. Furthermore, the frequent process of mobilizing knowledge improves family members’ dynamic capabilities to create new ideas. This creative process helps to improve its innovative performance, thereby creating a sustainable competitive advantage among family companies.

scholarly journals The effect of socioemotional wealth on the relationship between entrepreneurial orientation and family business performance

2020 ◽  
Vol 23 (3) ◽  
pp. 174-192
Author(s):  
Remedios Hernández-Linares ◽  
Franz W Kellermanns ◽  
María Concepción López-Fernández ◽  
Soumodip Sarkar
Keyword(s):  
Family Business ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Family Firms ◽  
Jel Classification ◽  
Moderating Effect ◽  
Socioemotional Wealth ◽  
Competitive Aggressiveness ◽  
The Relationship

This study examines how five key entrepreneurial orientation (EO) dimensions—risk taking, innovativeness, proactiveness, competitive aggressiveness, and autonomy—affect family business performance, as well as the moderating effect of socioemotional wealth (SEW) on these relationships. The findings, based on a sample of 609 Spanish and Portuguese family firms, reveal that not all EO dimensions are equally important for performance, as only proactiveness, competitive aggressiveness, and autonomy were significant. However, we also find that the EO–performance relationship is affected by concern for SEW preservation, as our SEW measure moderates risk taking positively and innovativeness negatively. JEL CLASSIFICATION: L20; L26; M10

scholarly journals Family Constitution and Business Performance: Moderating Factors

2017 ◽  
Vol 30 (4) ◽  
pp. 320-338 ◽  
Author(s):  
Rocio Arteaga ◽  
Susana Menéndez-Requejo
Keyword(s):  
Family Business ◽  
Business Performance ◽  
Positive Relationship ◽  
Family Businesses ◽  
Moderating Factors ◽  
Spanish Family ◽  
Improved Performance ◽  
The Government ◽  
The Relationship ◽  
Family Constitution

This study analyzes the relationship between implementing a Family Constitution (Protocol) and future family business performance. We analyze a unique sample of 530 Spanish family businesses. Half of these firms received financial aid from the government to implement a Family Protocol during 2003-2013. The analysis reveals that family businesses that implemented a Family Constitution had significantly improved performance within 2 years after the implementation. The positive relationship between the implementation of a Family Constitution and future firm performance is stronger for firms that had a nonfamily CEO, had multiple family owners, or were controlled by later generations.

scholarly journals A structural relationship between the sufficiency economy philosophy and the transport performance of small and medium-sized enterprises (SMEs) in Thailand

2021 ◽  
Vol 258 ◽  
pp. 06039
Author(s):  
Pisit Potjanajaruwit
Keyword(s):  
Business Performance ◽  
Statistical Significance ◽  
Business Management ◽  
Business Owners ◽  
Arithmetic Mean ◽  
Sample Population ◽  
Social Immunity ◽  
High Level ◽  
Sufficiency Economy Philosophy ◽  
The Relationship

The purposes of this study were; (1) to explore the application level of the Sufficiency Economy Philosophy in Small and Medium-sized Enterprises in Thailand, and (2) to explore the relationship between the Sufficiency Economy Philosophy and business performance of Small and Medium-sized Enterprises in Thailand. The assigned sample population included 395 business owners of Small and Medium-sized Enterprises in Thailand and a questionnaire was used as a tool for data collection. The statistics used in the analysis were Arithmetic Mean, Standard deviation, and the Pearson Product Moment Correlation Coefficient with defined statistical significance of .05. The study revealed that the application level of the Sufficiency Economy Philosophy to business management of Small and Medium-sized Enterprises in Thailand was at a high level. Knowledge in the Sufficiency Economy Philosophy, however, was applied at a moderate level. It was found that the relationship between the application of the Sufficiency Economy Philosophy and the business performance of Small and Medium-sized Enterprises in Thailand was a significant relationship with statistical significance of .05. For the related components; Moderation, Reasonableness, Social Immunity, Knowledge, and Virtue, each was also found relevant to the business performance of Small and Medium-sized Enterprises with statistical significance of .05.

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