scholarly journals Contested takeovers of family firms and socioemotional wealth: a case study

2017 ◽  
Vol 12 (4) ◽  
pp. 447-463 ◽  
Author(s):  
Kevin Campbell ◽  
Magdalena Jerzemowska
Keyword(s):  
Family Firms ◽  
Stock Exchange ◽  
Supervisory Board ◽  
Socioemotional Wealth ◽  
Content Type ◽  
Warsaw Stock Exchange ◽  
Gains And Losses ◽  
Takeover Bids

Purpose The purpose of this paper is to provide an understanding of the importance of socioemotional wealth (SEW) to family firms in Poland viewed through the lens of the events surrounding the first hostile takeover bid of the post-communist era on the Warsaw Stock Exchange when the clothing company Vistula & Wólczanka (V&W) made an unsolicited, leveraged bid for the family-controlled jewelry company W. Kruk. Design/methodology/approach The 2008 takeover and its aftermath are described in the context of the corporate governance and legal environment in Poland. The case study events demonstrate the connection between firm behavior and SEW theory. Findings After the acquisition of W. Kruk by V&W, the Kruk family purchased stock in the newly named Vistula Group and gained influence over the supervisory board in concert with a business ally, eventually wresting back control of the company in the style of a Pac-Man “defense.” The case study illustrates the importance of SEW in family firm takeovers. Research limitations/implications The case study design has limitations for generalizability. Nevertheless the research highlights the important role of SEW preservation in understanding the market for corporate control of listed family firms in Poland. Practical implications Understanding the reaction by family firms to takeover bids requires recognition that there is a tradeoff between financial and SEW considerations, not just financial gains and losses. Originality/value The case study demonstrates the importance of SEW to family firms and suggests that the balance of power in takeovers on the Polish stock market rests with incumbent management.

scholarly journals Family members as hybrid owner-managers in family-owned newspaper companies: handling multiple institutional logics

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Börje Boers ◽  
Thomas Andersson
Keyword(s):  
Design Methodology ◽  
Family Firms ◽  
Family Members ◽  
Institutional Logics ◽  
Content Type ◽  
Secondary Sources ◽  
Study Approach ◽  
Empirical Material

PurposeThis article aims to increase the understanding of the role of individual actors and arenas in dealing with multiple institutional logics in family firms.Design/methodology/approachThis study follows a case-study approach of two family-owned newspaper companies. Based on interviews and secondary sources, the empirical material was analysed focussing on three institutional logics, that is, family logic, management logic and journalistic logic.FindingsFirst, the authors show how and in which arenas competing logics are balanced in family-owned newspaper companies. Second, the authors highlight that family owners are central actors in the process of balancing different institutional logics. Further, they analyse how family members can become hybrid owner-managers, meaning that they have access to all institutional logics and become central actors in the balancing process.Originality/valueThe authors reveal how multiple institutional logics are balanced in family firms by including formal actors and arenas as additional lenses. Therefore, owning family members, especially hybrid owner-managers, are the best-suited individual actors to balance competing logics. Hybrid owner-managers are members of the owner families who are also skilled in one or several professions.

Entrepreneurial orientation and the role of the context. The case of the firm “Sa Panada Srl”

2020 ◽  
Vol 27 (3) ◽  
pp. 349-363 ◽  
Author(s):  
Michela Floris ◽  
Angela Dettori ◽  
Camilla Melis ◽  
Cinzia Dessì
Keyword(s):  
Entrepreneurial Orientation ◽  
Best Practice ◽  
Family Firms ◽  
Single Case ◽  
Narrative Approach ◽  
Content Type ◽  
Exploratory Approach ◽  
Practical Implications

PurposeThe paper aims to analyse the case of “Sa Panada srl”, a tiny Sardinian family firm, to provide intriguing insights for the study of entrepreneurial orientation in a context that is anchored in an apparent and hostile past.Design/methodology/approachAn exploratory approach is used to analyse a single-case study through a narrative approach. Data were analysed through the hermeneutic trio consisting of three phases: (1) explication – contextualisation, reconstruction and synthesis of the history; (2) explanation – identification, description and understanding of the meaning of the narrative; and (3) exploration – discussion and identification of theoretical and practical implications.FindingsThe study introduces novel best practices that help enhance entrepreneurial orientation in a difficult setting based on change reluctance and past anchored culture.Research limitations/implicationsTheoretically, the study contributes to the literature on entrepreneurial orientation, internationalisation and innovativeness of family firms embedded in a hostile context. The main drawback of the study is its explorative analysis of a single case.Practical implicationsFor practitioners, the research proposes the case study as a best practice able to inspire successful resilient behaviour and decisions for other firms that experience daily challenges.Originality/valueThe study elucidates the relevance of individual factors of family owners as endogenous elements that can balance contextual obstacles with ambitions of growth and development.

scholarly journals The role of entrepreneurial orientation in crisis management: evidence from family firms in enterprising communities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Börje Boers ◽  
Thomas Henschel
Keyword(s):  
Crisis Management ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Family Firms ◽  
Annual Reports ◽  
Longitudinal Case Study ◽  
Content Type ◽  
Study Approach

Purpose The purpose of this paper is to explore and understand how family firms manage a crisis by applying a processual and longitudinal perspective. The objective is to find out how crisis management is approached by family firms in Sweden, Scotland and Germany, using entrepreneurial orientation (EO) as an analytical lens. Further, this paper investigates the role of the owning family in creating and solving a crisis in family firms. Design/methodology/approach This study follows a processual and longitudinal case study approach. Cases are drawn from Germany, Scotland and Sweden. Data collection is based on a combination of interviews with archival data such as annual reports and press clippings. Findings The results show that all studied firms had high levels of autonomy combined with high risk-taking. It is noteworthy, that these dimensions also help to overcome the crisis. Risk-taking and proactiveness can be useful for addressing the crisis. Under certain circumstances, even innovativeness can help to develop new offers. Autonomy is considered central in family firms and only extraordinary circumstances can be owning families make willing to compromise on it. The EO-dimensions are not all relevant at all times. Rather, family firms will emphasize the dimensions during the consecutive stages differently. Originality/value This study compares case companies from Germany, Scotland and Sweden and how EO contributes to their crisis management by taking a longitudinal and processual perspective. Its originality lies in the in-depth studies of companies from three countries.

Moderating role of CEO compensation in lean innovation strategies of Chinese listed family firms

2020 ◽  
Vol 20 (5) ◽  
pp. 887-902
Author(s):  
Muhammad Zulfiqar ◽  
Khalid Hussain ◽  
Muhammad Usman Yousaf ◽  
Nadeem Sohail ◽  
Sadeen Ghafoor
Keyword(s):  
Ceo Compensation ◽  
Family Firms ◽  
Stock Exchange ◽  
Emerging Economy ◽  
Content Type ◽  
Innovation Strategies ◽  
Patent Applications ◽  
The Impact ◽  
Moderating Role

Purpose The purpose of this paper is to examine the impact of Chinese listed family firms on lean innovation strategies. Additionally, the authors also examined the moderating role of CEO compensation on the family ownership and lean innovation strategies relationship. Design/methodology/approach Data is obtained from CSMAR database about Chinese family firms listed at Shenzhen Stock Exchange and Shanghai Stock Exchange. Panel data comprising of firm year observations from 2007 to 2016 is analyzed using STATA. Findings Family firms are proactive towards research and development investment (innovation input) as well as towards patent applications (innovation output). Moreover, family firms show propensity towards patent applications and towards converting their R&D investment into granted patent applications. CEO compensation negatively moderates the nexus between family firms and lean innovation which seriously needs to be addressed to reduce agency costs. Research limitations/implications The study has focused on Chinese market only. The study is useful for policy makers to address the serious concerns identified in the conclusion section, i.e. effectiveness of CEO compensation in addressing the lean innovation strategies in emerging economy like that of China. Originality/value Given the usually considered conservative approach of family firms towards innovation, this is the first study which has tested the moderating role of CEO compensation on family firms and lean innovation relationship in an emerging economy. This study is unique because it provides a detailed analysis of lean innovation process by splitting the process into different stages. The negative moderating impact of CEO compensation raises new concerns to resolve agency conflicts.

scholarly journals Board characteristics and earnings forecasts accuracy in IPO prospectuses

2019 ◽  
Vol 55 (1) ◽  
pp. 25-39
Author(s):  
Tomasz Sosnowski ◽  
Anna Wawryszuk-Misztal
Keyword(s):  
Initial Public Offering ◽  
Stock Exchange ◽  
Supervisory Board ◽  
Earnings Forecasts ◽  
Ordinary Least Squares ◽  
Board Characteristics ◽  
Management Board ◽  
Warsaw Stock Exchange ◽  
Public Offering

AbstractUsing a sample of 104 companies that conducted initial public offering (IPO) on the Warsaw Stock Exchange between 2006 and 2016, we investigated the relationship between the accuracy and bias of the earnings forecast disclosed in the IPO prospectus and the firm corporate governance attributes. Applying multiple Ordinary Least Squares (OLS) regressions models, we focused on the role of the board size, the percentage of women on the board, the board age diversity measure, and the proportion of shares owned by the members of the board. Generally, our findings show that some characteristics of management and supervisory board improve the usefulness of earnings forecasts’ credibility. Especially, a more diversified board in terms of age and higher management ownership results in more accurate forecasts. This is the first study giving an insight into the role of supervisory and management board characteristics on precision of earnings forecasts revealed in the prospectus by Polish IPO companies.

Culture, Islamic capital and the entrepreneurial behaviour of family firms in Saudi Arabia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dalal Alrubaishi ◽  
Maura McAdam ◽  
Richard Harrison
Keyword(s):  
Saudi Arabia ◽  
Cultural Context ◽  
Family Firms ◽  
Content Type ◽  
Family Ties ◽  
Study Approach ◽  
Entrepreneurial Behaviour ◽  
Saudi Family

PurposeThere is a significant gap in understanding with regards to the role of cultural context in family business research. This paper aims to address this by exploring the critical and pervasive influence of culture in shaping the entrepreneurial behaviours of family businesses based in Saudi Arabia.Design/methodology/approachThe authors adopt a qualitative interpretive case study approach, which draws upon interviews with the incumbents and successors of ten Saudi Arabian family firms.FindingsThe authors’ empirical evidence reveals the importance of family ties and culture on the entrepreneurial behaviour of family firms in general, and the influence of “Islamic capital” on the intergenerational transfer of family legacy in particular.Originality/valueThe authors provide critical insights on how Islamic capital motivates Saudi family firms to maintain harmony, avoid disputes and create a legacy for future generations by engaging in entrepreneurial behaviours.

Emotional intelligence in family firms

2014 ◽  
Vol 4 (1) ◽  
pp. 4-23 ◽  
Author(s):  
Gonzalo Gómez Betancourt ◽  
Isabel C. Botero ◽  
Jose Bernardo Betancourt Ramirez ◽  
Maria Piedad López Vergara
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Members ◽  
Family Firm ◽  
Business Owners ◽  
Interpersonal Dynamics ◽  
Content Type ◽  
The Family

Purpose – Although researchers have highlighted the importance of relational and family factors for the sustainability of a family firm, there is not much empirical research exploring how emotions and the management of emotions play a role in the interpersonal dynamics of family business owners. The purpose of this paper is to explore how the way family members manage their emotions affects the interpersonal dynamics in the family, business, and ownership subsystems of a family firm. Design/methodology/approach – The paper presents an in-depth case study from a family firm in Colombia-South America. Findings – The results indicate that the capability that family members have to manage their emotions influences the interpersonal dynamics that take place in the family firm at the individual and group level. In this case, the paper found that although emotional intelligence (EI) affected interpersonal relationships in a firm, this effect was based on the individual's willingness to use their EI capabilities, previous history between people, and the goals individuals have within each subsystem in a family firm. The paper also found that interpersonal dynamics, in turn, influence how family members work together. Research limitations/implications – Because this study uses an in-depth case study, the intention of the paper is to provide an initial picture of how EI can play a role in the interpersonal interactions between family business owners. The authors hope that this study can be used as a building block to enhance the understanding of the role of EI in family firms. Practical implications – EI represents an individual's capability to perceive, understand, manage, and regulate self and other's emotions. For family firms, this means that family business owners can use this capability to determine how to enact their roles in the family firm and how to interact with other to ensure harmony in their relationships. Originality/value – This paper builds on previous work on emotions in family firms to explore the role of EI in family firms, and provides an empirical exploration of the role of management of emotions in family firms.

scholarly journals Audit Committee Formation: The Case of Poland

2021 ◽  
Vol 29 (2) ◽  
pp. 169-212
Author(s):  
Karolina Puławska ◽  
◽  
Dorota Dobija ◽  
Katarzyna Piotrowska ◽  
Grygorii Kravchenko ◽  
...  
Keyword(s):  
Logistic Regression ◽  
Audit Committee ◽  
Stock Exchange ◽  
Supervisory Board ◽  
Primary Analysis ◽  
Important Relationship ◽  
Warsaw Stock Exchange ◽  
And Control ◽  
Nonfinancial Firms

Purpose: This study investigates the determinants of audit committee (AC) formation in a semi-mandatory setting of a European economy, in which ownership and control are predominantly in the hands of families and business groups, and the voluntary practice of forming an AC has not been widely accepted. Methodology: This research uses a sample of Polish nonfinancial firms listed on the Warsaw Stock Exchange (WSE) in 2008–2015. The study implemented logistic regression to test the role of the supervisory board (SB) and companies’ compositional characteristics in AC creation. Findings: Primary analysis provided evidence of an inverted association between commonly accepted determinants of AC formation – such as the number of independent members on the supervisory board (SB) – and accounting and finance expertise of the SB members. The study also revealed that companies with foreign ownership are more likely to have an AC. Originality: This study indicates an important relationship between the existence of other SB committees as a meaningful determinant of AC formation. This article is valuable for supervisory bodies and regulators as they provide insights into factors that influence audit committee formation.

scholarly journals Limiting role of resource dependence: an examination of director interlocks, board meetings and family ownership

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vidya Sukumara Panicker ◽  
Rajesh Srinivas Upadhyayula
Keyword(s):  
Board Of Directors ◽  
Resource Dependence ◽  
Family Firms ◽  
Emerging Market ◽  
Resource Provisioning ◽  
Independent Directors ◽  
Family Ownership ◽  
Independent Director ◽  
Content Type

PurposeThis paper attempts to examine the activity and involvement of board of directors in internationalization activities of firms in emerging markets, by evaluating the resource provisioning roles of interlocks provided by board of directors, and the frequency of board meetings. We demonstrate that the effectiveness of board involvement is contingent upon the levels of family ownership in firms since family ownership could impact the firm’s ability to utilize the presence of different types of board members.Design/methodology/approachThe authors test our hypotheses on a sample of listed Indian companies, extracted from the Prowess database published by the Centre for Monitoring Indian Economy (CMIE), a database of the financial performance of Indian companies. On a panel of 3,133 firm years of 605 unique Indian firms with foreign investments, over a time period of 2006–2017, the authors apply different estimation techniques.FindingsThe results demonstrate that both board meeting frequency and director interlocks are instrumental in supporting internationalization activities in emerging market firms. However, family ownership moderates the role of insider and independent interlocks on internationalization investments in different ways; the authors find that interlocks provided by independent directors support internationalization activities in family firms, whereas those provided by insider directors do not. Further, the study also finds that board meetings are less effective in internationalization of family firms.Practical implicationsThe authors conclude that family firms aiming at international diversification require to develop more connected and networked independent directors to enable internationalization in firms. While independent director interlocks enhance the international investments, it is also useful to know that board meetings are ineffective in utilizing the resources in family firms. This points to the possibility that family firms should device mechanisms to integrate family meetings with board meetings so that they can utilize the within-family processes to aid in their internationalization decisions.Originality/valueThe study contributes to resource dependence theory by understanding its limiting role in family firms. Theoretically, it helps delineate the limiting resource provision role of the insider directors vis-à-vis independent directors. The authors argue that the resource provision role of insider director interlocks does not effectively help in internationalization in comparison to independent director interlocks in family-dominated firms. Consequently, the study shows the limiting role of resource provision and utilization by family-owned firms in comparison to non-family-owned firms.

Digital forensics and evolving cyber law: case of BIMSTEC countries

2019 ◽  
Vol 22 (4) ◽  
pp. 744-752
Author(s):  
Sisira Dharmasri Jayasekara ◽  
Iroshini Abeysekara
Keyword(s):  
Information Technology ◽  
Design Methodology ◽  
Digital Forensics ◽  
Content Type ◽  
Global Context ◽  
Study Approach ◽  
Legal Frameworks ◽  
Work Done

Purpose The purpose of this paper is to discuss the role of digital forensics in an evolving environment of cyber laws giving attention to Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) countries, comprising Bangladesh, India, Myanmar, Sri Lanka, Thailand, Nepal and Bhutan, in a dynamic global context. Design/methodology/approach This study uses a case study approach to discuss the digital forensics and cyber laws of BIMSTEC countries. The objective of the study was expected to be achieved by referring to decided cases in different jurisdictions. Cyber laws of BIMSTEC countries were studied for the purpose of this study. Findings The analysis revealed that BIMSTEC countries are required to amend legislation to support the growth of information technology. Most of the legislation are 10-15 years old and have not been amended to resolve issues on cyber jurisdictions. Research limitations/implications This study was limited to the members of the BIMSTEC. Originality/value This paper is an original work done by the authors who have discussed the issues of conducting investigations with respect to digital crimes in a rapidly changing environment of information technology and deficient legal frameworks.

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