Family involvement in top management team: Impact on relationships between internal social capital and innovation

2016 ◽  
Vol 23 (1) ◽  
pp. 136-162 ◽  
Author(s):  
Valeriano Sanchez-Famoso ◽  
Amaia Maseda ◽  
Txomin Iturralde
Keyword(s):  
Social Capital ◽  
Family Involvement ◽  
Family Firms ◽  
Structural Model ◽  
Top Management Team ◽  
Management Team ◽  
Family Group ◽  
Top Management ◽  
Family Social Capital ◽  
Family Involvement In Management

AbstractResearch on innovation in family firms has been increasing recently; however, the results are mixed, especially for non-listed firms. Based on internal social capital, we explore whether the relational antecedents of innovation are contingent on family involvement in management. Using a sample of 172 Spanish family small and medium-sized enterprises – an organisational form with prominent social and emotional factors – we test a structural model that examines the influence exerted by family involvement in the top management team on the relationships between innovation and internal social capital – in the form of family social capital and non-family social capital (family group and non-family group, respectively). The empirical findings obtained using the partial least squares technique show the importance of family involvement in management in such relationships in family firms. Family involvement in management was found to have negative effects in the relationship between internal social capital and innovation.

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 Firm-size elasticity of top management team compensation in Saudi Arabian listed firms

2016 ◽  
Vol 14 (1) ◽  
pp. 656-662
Author(s):  
Lakshmi Kalyanaraman ◽  
Basmah Altuwaijri
Keyword(s):  
Firm Size ◽  
Family Firms ◽  
Top Management Team ◽  
Market Value ◽  
Saudi Arabian ◽  
Management Team ◽  
Top Management ◽  
Listed Firms ◽  
Size Measure ◽  
Compensation Relationship

We evaluate the firm-size elasticity of top management team (TMT) compensation with a sample of 80 firms listed in Saudi Arabian stock market. We find that the TMT compensation increases with firm size. The results are found to be robust when the total assets as the firm size measure is altered with other proxies, sales and market value of the firm. We show that the firm size and TMT compensation relationship is same as in the case of all firms sample when the firms are grouped into family firms and nonfamily firms. This finding is in line with the results of the previous studies that analyze the link between CEO compensation and firm size. We conclude that the large firms are willing to pay high compensation not just to their CEOs but also to the entire team at the top

The Effect of Psychological Ownership on Corporate Entrepreneurship: Comparisons Between Family and Nonfamily Top Management Team Members

2018 ◽  
Vol 32 (1) ◽  
pp. 10-30 ◽  
Author(s):  
Kyootai Lee ◽  
Marianna Makri ◽  
Terri Scandura
Keyword(s):  
Family Involvement ◽  
Top Management Team ◽  
Corporate Entrepreneurship ◽  
Management Team ◽  
Psychological Ownership ◽  
Top Management ◽  
Team Members ◽  
Family Versus ◽  
Family Membership

Does family membership differentiate family and nonfamily top management team (TMT) members’ ownership-based motivations to pursue corporate entrepreneurship? We adopt the concept of psychological ownership to answer this question. Based on a sample of 192 TMT members from 90 Korean companies, this study found that family and nonfamily TMT members do not differ in the levels of psychological ownership of the organization or that of the job, nor do the two groups differ in the emphasis they place on corporate entrepreneurship. Family involvement and nepotism mitigate this relationship, but only for nonfamily TMT members. These results help reconcile discrepant findings for family versus nonfamily TMT members’ agency and stewardship behaviors.

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