Management capability and performance in Spanish family firms

2016 ◽  
Vol 29 (3) ◽  
pp. 303-325 ◽  
Author(s):  
Lucia Garcés-Galdeano ◽  
Carmen García-Olaverri ◽  
Emilio Huerta
Keyword(s):  
Human Resource ◽  
Family Firms ◽  
Operational Performance ◽  
Management Skills ◽  
Content Type ◽  
Human Resource Policies ◽  
Management Capability ◽  
Spanish Family ◽  
And Performance ◽  
Performance Gains

Purpose The purpose of this paper is to explore the possible causes of the heterogeneous productivity observed in Spanish firms, finding evidence of a link between managerial capability and higher productivity in the context of family firms. Also, innovative human resource policies are much more frequently found in companies where there is a high level of management capability. Design/methodology/approach Productivity differences in Spanish family firms are, for the first time, analysed from a managerial view, and using multiple correspondence analysis (MCA). Findings This paper proposes a way to measure managerial capability. Innovative human resource policies are much more frequently found in companies with high levels of management capability. The authors show that sustained competitive advantage is not just a function of single or isolated components, but rather a combination of human capital elements. Besides, a clear association between high managerial capability and performance in family firms is established. Thus, better management skills enable Spanish family firms to design the necessary strategies and internal structures to facilitate their adjustment to the business environment, and, thereby, achieve operational performance gains. Originality/value This paper proposes a way to measure managerial capability and its association with productivity in Spanish family firms using MCA. The authors also show a clear positive association between high managerial capability and performance in family firms. Thus, better management skills enable Spanish family firms to achieve operational performance gains.

Socioemotional wealth and human resource policies: effects on family firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Juan David Peláez-León ◽  
Gregorio Sánchez-Marín
Keyword(s):  
High Risk ◽  
Financial Performance ◽  
Human Resource ◽  
Family Firms ◽  
Equation Modeling ◽  
Positive Contribution ◽  
Socioemotional Wealth ◽  
Content Type ◽  
Firm Financial Performance ◽  
The Relationship

PurposeThis study analyses whether human resource management (HRM), through the use of four sets of high-performance work policies (HPWPs) (i.e. selection, training, motivation and opportunity policies), mediates the relationship between socioemotional wealth (SEW)—defined as a unique set of nonfinancial family goals—and firm financial performance when family firms face a high-risk context.Design/methodology/approachHypotheses were statistically tested using a structural equation modeling (SEM) methodology with a cross-sectional sample of 196 medium-sized and private family firms in a high-risk context in Spain.FindingsThe results indicate that the relationship between SEW and financial performance in family firms is fully mediated by the use of HPWPs, especially by training and motivation HR policies. The importance given to preserving SEW influences the use of four sets of HPWPs when family firms show clear evidence of being confronted by a financial decline (i.e. a high-risk context). However, to improve their financial results to avoid the firm's failure and thus the loss of their SEW, only those HR policies that focus on training and motivation made a significant and positive contribution to the firm financial performance.Originality/valueThis study contributes to the literature on family firms and HRM by adopting an alternative theoretical framework to understand how the importance of nonfinancial family goals may affect employee structures and management policies, thereby improving financial performance in family firms.

A competency framework for contractual workers of manufacturing sector

2019 ◽  
Vol 51 (3) ◽  
pp. 152-164 ◽  
Author(s):  
Musarrat Shaheen ◽  
MD Sikandar Azam ◽  
Mahesh Kumar Soma ◽  
T. Jagan Mohan Kumar
Keyword(s):  
Performance Management ◽  
Human Resource ◽  
Manufacturing Sector ◽  
Empirical Studies ◽  
Training And Development ◽  
Content Type ◽  
Competency Based ◽  
And Performance ◽  
Recruitment And Selection ◽  
Depth Interviews

PurposeThe purpose of this paper is to develop a competency dictionary and model for contractual workers of the steel manufacturing sector of India.Design/methodology/approachIn-depth interviews with 30 supervisors and behavioral events interviews (BEIs) with 40 contractual workers were conducted to identify and validate the competencies of the contractual workers.FindingsThe competencies identified are arranged according to the similarity and dissimilarity between it under three broad categories of competencies, i.e., knowledge, skills and attitudes. These categories are used to develop a competency dictionary which has behavioral indicators, and a framework that can be used to map and evaluate the competencies.Practical implicationsThe competency dictionary and the framework developed in the present study will assist human resource practitioners in implementing competency-based human resource processes such as recruitment and selection, training and development and performance management for the contractual workers in the manufacturing sector.Originality/valueThe present study is among the few empirical studies that provide a competency dictionary and a framework of contractual workers in the manufacturing sector of India.

Empirical analysis of enablers and performance outcome of manufacturing flexibility in an emerging economy

2020 ◽  
Vol 31 (6) ◽  
pp. 1301-1322 ◽  
Author(s):  
Ruchi Mishra
Keyword(s):  
Structural Equation ◽  
Positive Influence ◽  
Operational Performance ◽  
Equation Modeling ◽  
Extensive Literature ◽  
Product Mix ◽  
Content Type ◽  
Volume Flexibility ◽  
And Performance ◽  
Internal Integration

PurposeThe objective of this paper is to empirically test and verify the enablers of volume flexibility and product-mix flexibility and to assess the influence of these flexibilities on operational performance.Design/methodology/approachA research framework consisting of nine pairs of hypotheses was developed using an extensive literature review. Using a self-administered questionnaire, 391 responses were collected, and these responses were analyzed using descriptive statistics, factor analysis, and structural equation modeling techniques.FindingsThe findings empirically confirm the enablers of volume flexibility and product-mix flexibility. The proposed model explained 59 percent variance in volume flexibility and 63 percent variance in product-mix flexibility. Volume flexibility and product-mix flexibility together explained 38 percent variance in operational performance.Research limitations/implicationsTheoretically, this study advances flexibility literature in two significant ways. First, the study conducts first of its kind quantitative empirical investigation considering upstream, downstream, and internal integration practices as enablers of volume flexibility and product-mix flexibility. Second, this study adds to the flexibility literature by suggesting the positive influence of volume and product-mix flexibility on the operational performance of firms.Originality/valueThe study reinforces the role of enablers in the development of volume and product-mix flexibilities. Thus, the study provides a comprehensive view of flexibility enablers that can be used as a diagnostic tool, which practitioners can use to assess and deploy flexibility.

Family firms, family generation and performance: evidence from an emerging economy

2014 ◽  
Vol 4 (2) ◽  
pp. 197-219 ◽  
Author(s):  
Mohammad Badrul Muttakin ◽  
Arifur Khan ◽  
Nava Subramaniam
Keyword(s):  
Firm Performance ◽  
Family Firms ◽  
Emerging Market ◽  
Emerging Economy ◽  
Family Ownership ◽  
Content Type ◽  
Generation Family ◽  
And Performance ◽  
The Impact ◽  
Better Than

Purpose – The purpose of this paper is to examine the impact of family ownership on firm performance. In particular the authors investigate whether family firms outperform non-family firms and whether first generation family firms perform better than second generation family firms in an emerging economy using Bangladesh as a case. Design/methodology/approach – This study uses a data set of 141 listed Bangladeshi non-financial companies for the period 2005-2009. The methodology is based on multivariate regression analysis. Findings – The result shows that family firms perform better than their non-family counterparts. The authors also find that family ownership has a positive impact on firm performance. The analysis further reveals intergenerational differences where family firms and performance are associated positively only when founder members act as CEOs or chairmen. However, when descendents serve as CEOs or chairmen family firms are associated with poorer firm performance. Originality/value – The authors extend the findings of previous studies that investigate the family ownership and firm performance relationship in developed economy settings, but neglected emerging economies. The study also informs the literature about the intergenerational impact of family firms on performance in an emerging market.

Help chain in companies undergoing a lean implementation

2018 ◽  
Vol 9 (1) ◽  
pp. 113-132 ◽  
Author(s):  
Guilherme Tortorella ◽  
Diego Fettermann
Keyword(s):  
Performance Indicators ◽  
Success Factors ◽  
Operational Performance ◽  
Quality Performance ◽  
Lean Implementation ◽  
Content Type ◽  
Critical Success ◽  
The Subject ◽  
And Performance ◽  
Validated Instrument

Purpose The purpose of this paper is to propose an instrument for assessing the relationships between the critical success factors (CSFs) that promote help chain, providing means to enhance overall equipment effectiveness (OEE) and quality performance in companies undergoing a lean implementation. Design/methodology/approach The aforementioned relationships were determined and validated through a survey carried out with 50 Brazilian manufacturers. The authors, thus, provide an empirically validated instrument for assessing help chain CSFs and their impact on key operational performance indicators with no parallel in the existing literature. Quality (incidence of scrap and rework in manufacturing processes) and OEE (overall equipment effectiveness measured in percentage) were chosen as performance indicators because of their recognized relevance in previous research related to help chain approach. Findings The results of this paper show that the size of the company and CSFs have a significant relationship with quality. However, for OEE, time of lean implementation seems to be significantly important to predict its performance. Originality/value Identifying relevant relationships between CSFs and performance indicators may contribute to specify the context in which problems are expected to occur. With that knowledge, manufacturers will be able to emphasize the development of such factors that tend to improve their operational performance. Therefore, possible correlations are investigated to obtain a clearer comprehension around the subject and enable a better understating over the boundary conditions that surround the problem.

scholarly journals Entrepreneurial orientation, competitive advantage and strategic knowledge management capability in Malaysian family firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Md Imtiaz Mostafiz ◽  
Mathew Hughes ◽  
Murali Sambasivan
Keyword(s):  
Knowledge Management ◽  
Firm Performance ◽  
Risk Taking ◽  
Family Firms ◽  
Family Firm ◽  
Content Type ◽  
The Family ◽  
And Performance ◽  
The Relationship ◽  
Strategic Knowledge Management

Purpose The purpose of this study is to test the thesis that the family firm’s success hinges on effective strategic knowledge management (SKM) capability coupled with an entrepreneurial orientation (EO). Contingency theory holds that entrepreneurial success is contingent on strategic capabilities and resource orchestration theory explains how well family firms nurture capabilities to structure, bundle and leverage resources that define competitive advantage (CA). This study combines these two theoretical viewpoints to propose the effects of EO and SKM capability on CA to achieve successful performance in family firms. Design/methodology/approach This study uses a hybrid approach applying structural equation modelling (SEM) and deep-learning artificial intelligence (DL-AI) analysis to survey data on 268 Malaysian family firms. Findings SEM results confirm that CA mediates the relationship between innovativeness, proactiveness and risk-taking dimensions of EO and firm performance. Autonomy and competitive aggressiveness have no bearing, however. The relationships among innovativeness, proactiveness and risk-taking with CA and performance are positively moderated by SKM capability, becoming more potent at higher levels. Moreover, four additional DL-AI models reveal the necessity of specific EO dimensions and the interacting effects of EO–SKM capability to influence CA and to attain performance success subsequently. Originality/value This study theorizes and presents two new boundary conditions to a knowledge-based theory of the family firm and its firm performance. First, CA mediates the relationship between EO and performance; and second, SKM capability moderates the relationships between EO and CA and between EO and family firm performance. Methodologically, this study uses DL-AI to embrace non-linearity and prioritize predictor variables based on normalized importance to produce greater accuracy over regression analysis. Hence, DL-AI adds methodological novelty to the knowledge management and family firm literature.

Dimensions of organisational innovativeness and company financial performance in the biotechnology sector

2019 ◽  
Vol 40 (6) ◽  
pp. 1110-1130 ◽  
Author(s):  
Krista Jaakson ◽  
Hannele-Marianne Aljaste ◽  
Piia Uusi-Kakkuri
Keyword(s):  
Financial Performance ◽  
Human Resource ◽  
Statistical Tests ◽  
Qualitative Comparative Analysis ◽  
Small Sample ◽  
Content Type ◽  
Human Resource Policies ◽  
Biotechnology Companies ◽  
Biotechnology Sector ◽  
Pharmaceutical Biotechnology

Purpose The relationship between organisational innovativeness (OI) and company performance has been studied extensively, and the associations found have mostly been positive. However, as OI is a multidimensional concept, more nuanced research is needed to identify which dimensions of innovativeness companies should focus on. The purpose of this paper is to longitudinally investigate the links between dimensions of OI and company financial performance, based on a sample of Finnish and Estonian pharmaceutical biotechnology companies. Design/methodology/approach Interviews inquiring about OI were conducted in 26 biotechnology companies and then their performance was measured over three subsequent years using objective financial data. Due to limited sample size, qualitative comparative analysis is employed in addition to non-parametric statistical tests. Findings Overall, OI did not decisively influence financial performance in the studied sector. There were, however, dimensions related to human resource policies that appeared to have more potential to positively impact financial performance, whereas the strategic dimension was actually aversive to certain performance indicators. Research limitations/implications The study limitations are a small sample, possible managerial bias in the assessment of OI, and focus on financial measures only. Practical implications The study demonstrates that OI is a multidimensional construct and not all dimensions play an equal role in financial performance. Innovation-supportive human resource policies and strategic flexibility contributes to financial performance in the pharmaceutical biotechnology sector. Originality/value The contribution of the study is the analysis of a specific sector with a longitudinal approach by bridging quantitative and qualitative approach.

How does human resource management influence organisational performance? An integrative approach-based analysis

2017 ◽  
Vol 66 (6) ◽  
pp. 797-821 ◽  
Author(s):  
Anastasia A. Katou
Keyword(s):  
Job Satisfaction ◽  
Resource Management ◽  
Human Resource Management ◽  
Human Resource ◽  
Business Strategies ◽  
Operational Performance ◽  
Organisational Commitment ◽  
Organisational Performance ◽  
Content Type ◽  
Hr Practices

Purpose Drawing on the contingency perspective between business strategies and human resource (HR) practices, the purpose of this paper is to examine the effects of human resource management (HRM) system (which integrates both content and process of HR practices) on both proximal organisational outcomes (such as job satisfaction, motivation, and organisational commitment) and distal organisational outcomes (such as employee engagement, organisational citizen behaviour (OCB), co-operation among employees, intention to quit, and operational performance). Design/methodology/approach The analysis is based on a sample of 996 Greek employees working in 108 private organisations and the statistical method employed is structural equation modelling with bootstrapping estimation. Findings The results indicate that HRM content is more positively related to job satisfaction and motivation and less related to organisational commitment than HRM process. Moreover, HRM system is sequentially related to organisational outcomes (both directly and indirectly) and significantly influences employee job satisfaction and motivation, as well as OCB and co-operation among employees, and operational performance. Research limitations/implications The data were collected using a questionnaire at a single point in time, and thus, not allowing dynamic causal inferences. Considering that Greece is experiencing a severe financial crisis, the findings from this unique context may not generalise across other contexts. Practical implications The core messages to decision makers are that employee development and rewards are the major dimensions of the content of an HRM system and that consistency and distinctiveness are the principal features of the process of an HRM system, even in cases where the organisation is operating under an economic crisis environment. Originality/value Investigations into the relationship between HRM systems and organisational performance have become increasingly common. Nevertheless, empirical studies that measure the impact of HRM systems, which being contingent on business strategies integrate both content and process of HR practices on organisational performance are still rare. This paper partially fills this gap.

Ownership and Operating Performance of Spanish Family IPO Firms

2020 ◽  
pp. 210-233
Author(s):  
Fuencisla Martínez Lobato ◽  
C. José García Martín ◽  
José Emilio Farinós Viñas
Keyword(s):  
Empirical Evidence ◽  
Initial Public Offering ◽  
Ownership Structure ◽  
Family Firms ◽  
Operating Performance ◽  
Operational Performance ◽  
The Family ◽  
Spanish Family ◽  
Public Offering ◽  
A Company

Previous studies have shown the existence of a relationship between the ownership structure of a company and its operational performance. In this context, the empirical evidence reveals that after an initial public offering (IPO), companies experience a decline in their operational performance. In this research, the authors investigate whether the characteristics of Spanish family firms led to a different operating behavior with respect to non-family companies when they go public through an IPO. The results show that the particularities of the family firm do not turn into significant differences in operational performance after the listing process.

Role of “haraam” practices on behavior and performance of employees: a case study of business organization

2012 ◽  
Vol 2 (8) ◽  
pp. 1-3
Author(s):  
Muhammad Zia-ur-Rehman ◽  
Majid Rashid
Keyword(s):  
Organizational Behavior ◽  
Human Resource ◽  
Education Programme ◽  
Subject Area ◽  
Business Organization ◽  
Content Type ◽  
Mba Students ◽  
Human Resource Practitioners ◽  
And Performance

Subject area Management sciences (organizational behavior). Study level/applicability The case is suitable for MBA students, employees of any organization, human resource practitioners, organization administrators, human resource directors and senior line management. Case overview The study deals with unethical or “haraam” practices at the workplace. It is based on the observation of the researchers. The business organization was selected and the behavior of employees was observed for two months. An interesting behavior of an employee was observed and the change in behavior was followed. The study describes the various factors influencing the behavior and performance of the employee and emphasis is made on the “haraam” practices of drinking alcohol and unacceptable behavior. The focus is on the performance of the employee. Major events and changes were elaborated to deduce the descriptive cause and effect results based on observation. It was found that behavior as well as performance was reduced due to “haraam” practices, which can be a lesson for other employees to follow as well as for managers to devise strategies in order to improve the most important resource of their organization, i.e. the human resource. Expected learning outcomes As this case was designed for an executive education programme, no detail regarding where it fitted into the curriculum is applicable as would be the case with cases designed for students. The case is intended to develop skills in students to creatively approach a common and wide spread problem and to think about the solution in an innovative way. The overall purpose of the case is to engage human resource practitioners (students) in creatively constructing innovative solutions to address the problem of compulsive drinking in the organizational environment. Supplementary materials Teaching notes are available, please consult your librarian for access.

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