scholarly journals Research on the influencing factors of family firm innovation

2021 ◽  
Vol 235 ◽  
pp. 02017
Author(s):  
Yingrui Liu
Keyword(s):  
Influencing Factors ◽  
Family Involvement ◽  
Family Business ◽  
External Environment ◽  
Family Firm ◽  
Economic Activities ◽  
Firm Innovation ◽  
Strategic Focus ◽  
The Stability ◽  
Innovation Behavior

Family business plays an important role in the world’s economic activities, and has made great contributions to the stability and development of the economy of various countries. Innovation is an important but inexplicable part of the strategic focus of family business. Based on the existing literature, this paper discusses the factors that influence the innovation behavior of enterprises from the perspective of family involvement and external environment.

Understanding family firm innovation heterogeneity

2016 ◽  
Vol 6 (2) ◽  
pp. 103-121 ◽  
Author(s):  
Zonghui Li ◽  
Joshua J. Daspit
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
Firm Heterogeneity ◽  
Family Firm ◽  
Firm Innovation ◽  
Content Type ◽  
Business Studies ◽  
The Family ◽  
Innovation Strategies

Purpose – In family business studies, inconsistent findings exist regarding the relationship between family involvement and firm innovation. The purpose of this paper is to understand the heterogeneity of family firm innovation. Design/methodology/approach – The authors draw on governance literature and the socioemotional wealth (SEW) perspective to examine how the extent of family governance and the type of SEW objectives jointly influence innovation strategies in family firms. Findings – The authors develop a typology of family firm innovation strategies, positing that the family firm’s risk orientation, innovation goal, and knowledge diversity vary depending on the degree of family involvement in governance and the type of SEW objective. The authors propose that four family firm innovation strategies (e.g. Limited Innovators, Intended Innovators, Potential Innovators, and Active Innovators) emerge when family involvement in the dominant coalition (high or low) is contrasted with the SEW objective (restricted or extended) pursued by the family. Practical implications – Understanding how governance and SEW goals work together to influence the firm’s innovation strategies is potentially valuable for managers of family firms. The authors offer practical suggestions for how to strategically reposition the firm to pursue innovation strategies more in line with those of the Active Innovator. Originality/value – This study contributes to the family business literature by using a multi-dimensional approach to examine family firm heterogeneity. In addition, by articulating various family firm innovation strategies, the authors offer insight into the previously inconsistent findings concerning firm innovation behavior and outcomes in family business studies.

Does family involvement matter post IPO? Adding value through advertising in family firms

2018 ◽  
Vol 8 (3) ◽  
pp. 218-234 ◽  
Author(s):  
Atanas Nik Nikolov ◽  
Yuan Wen
Keyword(s):  
Firm Performance ◽  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
Family Firm ◽  
Family Businesses ◽  
Publicly Traded ◽  
Content Type ◽  
The Public ◽  
The Family

PurposeThis paper brings together research on advertising, family business, and the resource-based view (RBV) of the firm to examine performance differences between publicly traded US family vs non-family firms. The purpose of this paper is to understand the heterogeneity of family vs non-family firm advertising after such firms become publicly traded.Design/methodology/approachThe authors draw on the RBV of the firm, as well as on extensive empirical literature in family business and advertising research to empirically examine the differences between family and non-family firms in terms of performance.FindingsUsing panel data from over 2,000 companies across ten years, this research demonstrates that family businesses have higher advertising intensity than competitors, and achieve higher performance returns on their advertising investments, relative to non-family competitors. The results suggest that the “familiness” of public family firms is an intangible resource that, when combined with their advertising investments, affords family businesses a relative advantage compared to non-family businesses.Research limitations/implicationsFamily involvement in publicly traded firms may contribute toward a richer resource endowment and result in creating synergistic effects between firm “familiness” and the public status of the firm. The paper contributes toward the RBV of the firm and the advertising literature. Limitations include the lack of qualitative data to ground the findings and potential moderating effects.Practical implicationsUnderstanding how family firms’ advertising spending influences their consequent performance provides new information to family firms’ owners and management, as well as investors. The authors suggest that the “familiness” of public family firms may provide a significant advantage over their non-family-owned competitors.Social implicationsThe implications for society include that the family firm as an organizational form does not need to be relegated to a second-class citizen status in the business world: indeed, combining family firms’ characteristics within a publicly traded platform may provide firm performance benefits which benefit the founding family and other stakeholders.Originality/valueThis study contributes by highlighting the important influence of family involvement on advertising investment in the public family firm, a topic which has received limited attention. Second, it also integrates public ownership in family firms with the family involvement–advertising–firm performance relationship. As such, it uncovers a new pathway through which the family effect is leveraged to increase firm performance. Third, this study also contributes to the advertising and resource building literatures by identifying advertising as an additional resource which magnifies the impact of the bundle of resources available to the public family firm. Fourth, the use of an extensive panel data set allows for a more complex empirical investigation of the inherently dynamic relationships in the data and thus provides a contribution to the empirical stream of research in family business.

Your Old Men Shall Dream Dreams, Your Young Men Shall See Visions: Toward a Theory of Family Firm Innovation with Help from the Brubeck Family

2001 ◽  
Vol 14 (4) ◽  
pp. 335-351 ◽  
Author(s):  
Reginald A. Litz ◽  
Robert F. Kleysen
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Firm ◽  
Firm Innovation ◽  
Fine Grained ◽  
Family Enterprise ◽  
Depth Study ◽  
Definition Of ◽  
Old Men ◽  
Future Work

Despite significant advances, a conspicuous gap remains in family business research concerning the practice of innovation in family firms. After reviewing innovation and family business literature, we offer coarse- and fine-grained conceptualizations of intergenerational innovation in the family enterprise. Given the fine-grained distinctions inherent in our resulting definition of family firm innovation, we move on to an in-depth study of one family involved in the innovative activity of jazz improvisation. After offering our analysis of the core dynamics apparent in this family's interactions, we conclude this paper with a research agenda for future work on family firm innovation.

scholarly journals Organizational culture and family business: A configurational approach

2017 ◽  
Vol 6 (2) ◽  
Author(s):  
Gregorio Sánchez Marín ◽  
Antonio José Carrasco Hernández ◽  
Ignacio Danvila del Valle ◽  
Miguel Ángel Sastre Castillo
Keyword(s):  
Organizational Culture ◽  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
Family Firm ◽  
Assessment Instrument ◽  
Configurational Approach ◽  
Clan Culture ◽  
Cultural Assessment

This paper adopts a configurational approach to explore the degree of matching among typologies of organizational culture and categories of family firm. Based on a sample of 491 Spanish firms with diverse levels of family involvement and using the organizational cultural assessment instrument (OCAI), results show that family owned and managed firms and professionally managed family are characterized by a clan culture typology while market and hierarchy cultures are more relevant in non-family firms. Potential determinants and consequences of these matches are explained and discussed.

scholarly journals TMT diversity and innovation ambidexterity in family firms

2019 ◽  
Vol 9 (4) ◽  
pp. 377-392 ◽  
Author(s):  
Irina Röd
Keyword(s):  
Family Involvement ◽  
Family Firms ◽  
Firm Heterogeneity ◽  
Family Firm ◽  
Cross Sectional ◽  
Firm Innovation ◽  
Content Type ◽  
Mediating Role ◽  
The One ◽  
The Relationship

Purpose Family firms that simultaneously engage in multiple levels of innovation – incremental and radical – are likely to enjoy performance advantages across generations. The purpose of this paper is to research under which management conditions (i.e. top management team (TMT) diversity in terms of generational or non-family involvement) family firms are more likely to achieve innovation ambidexterity. Also, the paper addresses the mediating role of open innovation (OI) breadth in this relationship. Design/methodology/approach A large cross-sectional sample of 335 small- and medium-sized family firms is used. The hypotheses were tested in a mediation model. The relationship between TMT diversity and ambidexterity is measured using a binominal regression analysis, the one between TMT diversity and OI breadth using a Tobit model. Findings Drawing on the family firm upper echelon perspective, the results indicate that TMT diversity induced through external managers and multiple generations is positively related to innovation ambidexterity. As the mediation analysis reveals, the relationship can be explained by the higher propensity of diverse TMTs to get involved in OI breadth. The findings add to the discussion on family firm heterogeneity and its influence on different kinds of innovation. Originality/value So far, few studies have been concerned with ambidextrous family firms. Contrary to their reputation, this study identifies family firms as radical as well as open innovators. As such, this research takes account not only of the heterogeneity of family firms, but also of the heterogeneity of family firm innovation.

scholarly journals Managerial Controls in Private Family Firms: The Influence of a Family’s Decision Premises

2021 ◽  
Vol 13 (4) ◽  
pp. 2158
Author(s):  
Daniel Magalhães Mucci ◽  
Ann Jorissen ◽  
Fabio Frezatti ◽  
Diógenes de Souza Bido
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
Firm Behavior ◽  
Family Firm ◽  
Single Family ◽  
The Family ◽  
Family Involvement In Management ◽  
Formal Controls ◽  
New System

In most studies, the affiliation of the manager (family-affiliated or non-family affiliated) and supposedly related behavior (agent or steward) is considered the sole antecedent to explain a family business’ (non) professionalization of managerial controls. This paper, based on Luhmann’s new system theory, examines whether a family’s decision premises influence the design of managerial controls in family firms in addition to a manager’s family affiliation status. Using survey data of 135 large and medium-sized Brazilian family firms and testing the hypotheses with SEM, this study provides evidence that a family’s decision premises significantly influence the design of managerial controls in family firms. This study provides evidence that when a family’s intention to transfer the firm to next generation (TGO) is high, more formal controls, as well as controls of a more participative nature are adopted in a family firm. Moreover, the results do not indicate that the level of family involvement in management affects the design of controls in firms with high TGO. The results only showed a significant relationship between a family’s intention to control and influence (FCI) the firm and the absence of participative controls. In addition, these findings also illustrate that each single family-induced decision premise has the potential to explain family firm behavior, since each of the two premises considered in our study is related to a different design of the controls adopted by the family firm.

The effects of goals attainment on CEO-owner satisfaction and the role of family involvement

2019 ◽  
Vol 10 (2) ◽  
pp. 116-127
Author(s):  
Ondřej Machek ◽  
Jiří Hnilica
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Firm Value ◽  
Family Firms ◽  
Hierarchical Regression ◽  
Content Type ◽  
Business Goals ◽  
Growth Increase ◽  
The Family ◽  
Owner Satisfaction

Purpose The purpose of this paper is to examine how the satisfaction with economic and non-economic goals achievement is related to the overall satisfaction with the business of the CEO-owner, and whether family involvement moderates this relationship. Design/methodology/approach Based on a survey among 323 CEO-owners of family and non-family businesses operating in the Czech Republic, the authors employ the OLS hierarchical regression analysis and test the moderating effects of family involvement on the relationship between the satisfaction with different goals attainment and the overall satisfaction with the business. Findings The main finding is that family and non-family CEO-owner’s satisfaction does not differ significantly when economic goals (profit maximisation, sales growth, increase in market share or firm value) and firm-oriented non-economic goals (satisfaction of employees, corporate reputation) are being achieved; both classes of goals increase the overall satisfaction with the firm and the family involvement does not strengthen this relationship. However, when it comes to external non-economic goals related to the society or environment, there is a significant and positive moderating effect of family involvement. Originality/value The study contributes to the family business literature. First, to date, most of the studies focused on family business goals have been qualitative, thus not allowing for generalisation of findings. Second, there is a lack of evidence on the ways in which family firms integrate their financial and non-financial goals. Third, the authors contribute to the literature on the determinants of personal satisfaction with the business for CEOs, which has been the focus on a relatively scarce number of studies.

scholarly journals Regional Coordination and Security of Water–Energy–Food Symbiosis in Northeastern China

2021 ◽  
Vol 13 (3) ◽  
pp. 1326
Author(s):  
Hongfang Li ◽  
Huixiao Wang ◽  
Yaxue Yang ◽  
Ruxin Zhao
Keyword(s):  
External Environment ◽  
Northeastern China ◽  
Decision Makers ◽  
Human Survival ◽  
A Value ◽  
Natural Factors ◽  
Regional Coordination ◽  
Micro Level ◽  
The Stability ◽  
Coordination Degree

The interactions of water, energy, and food, which are essential resources for human survival, livelihoods, production, and development, constitute a water–energy–food (WEF) nexus. Applying symbiosis theory, the economic, social, and natural factors were considered at the same time in the WEF system, and we conducted a micro-level investigation focusing on the stability, coordination, and sustainability of the symbiotic units (water, energy, and food), and external environment of the WEF system in 36 prefecture-level cities across three northeastern provinces of China. Finally, we analyzed the synergistic safety and coupling coordination degree of the WEF system by the combination of stability, coordination, and sustainability, attending to the coordination relationship and influences of the external environment. The results indicated that the synergistic safety of the WEF system in three northeastern provinces need to equally pay attention to the stability, coordination, and sustainability of the WEF system, since their weights were 0.32, 0.36 and 0.32, respectively. During 2010–2016, the synergistic safety indexes of the WEF system ranged between 0.40 and 0.60, which was a state of boundary safety. In the current study, the coupling coordination degree of the WEF system fluctuated around a value of 0.6, maintaining a primary coordination level; while in the future of 2021–2026, it will decline to 0.57–0.60, dropping to a weak coordinated level. The conclusion could provide effective information for decision-makers to take suitable measures for the security development of a WEF system.

scholarly journals Modeling Changes in the Enterprise Information Capital in the Digital Economy

2021 ◽  
Vol 7 (3) ◽  
pp. 166
Author(s):  
Dmitriy Rodionov ◽  
Andrey Zaytsev ◽  
Evgeniy Konnikov ◽  
Nikolay Dmitriev ◽  
Yulia Dubolazova
Keyword(s):  
External Environment ◽  
Electronic Version ◽  
Social Processes ◽  
Information Environment ◽  
External Information ◽  
Digital Information ◽  
Information Analysis ◽  
Enterprise Information ◽  
Attractor Model ◽  
The Stability

The global COVID-19 pandemic has led to the self-isolation of people and the transformation of many economic and social processes into an electronic version thus contributing to the digitalization of all spheres. Being part of this environment, enterprises generate information resources to develop their desired image, which may vary according to the factors characterizing the information environment. Information capital is a comprehensive characteristic of an enterprise and determines its effectiveness and sustainability. The purpose of this study is to develop a toolkit that allows one to assess the information capital of an enterprise, reflecting its perception within the digital information environment. It is necessary to develop the methodology for the formation of such tools. As a result, a fuzzy-plural approach has been developed to evaluate the index of external information capital. This model allows us to assess the external information capital and to simulate its changes caused by various kinds of information events. The study of key elements, for example, the stability and tonality indices, index of target perception made it possible to systematize chaotic changes in the external environment and describe them using the Chen–Lee attractor model. The results of this study can be useful for researchers in the field of digital information analysis, in particular for the comparative analysis of enterprises and the assessment of their information capital.

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