I choose my business model! A cross-national analysis of business model choice in family firms

2016 ◽  
Vol 11 (2) ◽  
pp. 212-231 ◽  
Author(s):  
Elena Casprini ◽  
Simona D'Antone ◽  
Bernard Paranque ◽  
Tommaso Pucci ◽  
Lorenzo Zanni
Keyword(s):  
Business Model ◽  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
Content Type ◽  
Case Study Analysis ◽  
Multiple Case ◽  
National Analysis ◽  
Cross National

Purpose – Drawing on family-business and business model (BM) literature the purpose of this paper is to explore whether a relationship exists between the family involvement in the management (i.e. closed or mixed management) and BM choice. Design/methodology/approach – A multiple case study analysis of family-owned wineries in Chianti (Italy) and Côtes du Rhône (France) has been conducted. Findings – The analysis surprisingly reveals that no relationship exists between the BM ideal type chosen and the type of management composition. Rather, it seems that the choice of hiring non-family managers is dictated by the willingness to reinforce the BM chosen by the owner and that the role played by non-family managers is not revolutionary but reinforces the owner’s BM choice. The authors propose that the stewardship theory can contribute in explaining the findings. Originality/value – A twofold contribution is offered by this study: first, it links the strategic management research on BMs to family business (FB) research on corporate governance and specifically on the composition of management teams; second, it provides an empirical example of a cross-national comparative analysis on FBs using multiple case studies.

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.

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.

scholarly journals The effect of family business professionalization on dividend payout

2017 ◽  
Vol 24 (4) ◽  
pp. 971-990 ◽  
Author(s):  
Anneleen Michiels ◽  
Lorraine Uhlaner ◽  
Julie Dekker
Keyword(s):  
Control Systems ◽  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
Tobit Regression ◽  
Dividend Payout ◽  
Content Type ◽  
Dividend Policies ◽  
Governance Systems ◽  
Privately Held

Purpose The topic of dividend policies of private family-controlled firms has aroused the interest of corporate finance and governance scholars and practitioners alike. However, a lot of questions concerning the dividends in privately held family firms remain unanswered. The purpose of this paper is to examine whether a private family firm’s dividend payout is influenced by its degree of professionalization. Design/methodology/approach The hypotheses are tested on a sample of 492 small to medium-sized Belgian family-controlled businesses with Tobit regression models. Findings The results show that professionalized family-controlled firms pay higher dividends to their shareholders than do less-professionalized firms. In particular, the use of financial control systems, non-family involvement in governance systems, and the use of human resource control systems have a positive significant impact on the average level of dividend payout. Practical implications This study may be of interest to family business consultants and (potential) investors, as the results contradict the assumption that family businesses (especially those privately held) will always have a no or low dividend policy. Originality/value Investigating dividend payout in the context of other components than family ownership (in this case, professionalization) can broaden our understanding of dividend payout.

Family involvement and the impact of information and communication technology on performance

2017 ◽  
Vol 30 (1) ◽  
pp. 23-39 ◽  
Author(s):  
Ana Felicitas Gargallo Castel ◽  
Carmen Galve Górriz
Keyword(s):  
Information And Communication Technology ◽  
Family Involvement ◽  
Communication Technology ◽  
Family Business ◽  
Family Firms ◽  
Moderating Effect ◽  
Content Type ◽  
Information And Communication ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to explore the moderated effect of family involvement on the relationship between information and communication technology (ICT) and firm performance. Design/methodology/approach According to agency and transaction cost theories, distinctive family business characteristics provide a unique context that favours a more efficient use of ICT. The authors perform a multivariate analysis that includes the moderating effect of family involvement and considers the possible endogeneity of the ICT variable. Findings The results, using a large panel of Spanish manufacturing firms, confirm the importance of family involvement for explaining differences in terms of the impact of this technology in family and non-family businesses. The relationship between ICT and performance is stronger for family firms than for non-family firms. Research implications The paper provides new evidence for the academic literature on ICT impact and family firms. It corroborates the importance of using an organizational perspective to explain differences in the effect of ICT on performance. Practical implications Family firms should understand the opportunities that family involvement offers regarding ICT impact on performance, and exploit this moderating effect to achieve competitive advantages. Originality/value No previous studies deal with the impact of family involvement on ICT-performance analysis. This study fills this gap and increases the understanding of how family business involvement moderates the ICT-performance relationship.

e-Business management assessment: framework proposal through case study analysis

2019 ◽  
Vol 18 (2) ◽  
pp. 237-254
Author(s):  
Pedro Isaías ◽  
Luisa Cagica Carvalho ◽  
Nildo Cassundé Junior ◽  
Fernanda Roda Cassundé
Keyword(s):  
Case Studies ◽  
Business Model ◽  
Qualitative Content Analysis ◽  
Customer Relationship ◽  
Assessment Framework ◽  
Content Type ◽  
Case Study Analysis ◽  
Online Presence ◽  
Business Approach

Purpose The purpose of this paper is to propose an e-business assessment framework for organizations that aim to enhance the effectiveness of their online presence and maximize the benefits that result from it. The framework is based on three main pillars derived from the academic literature research: e-marketing strategies, customer relationship management (CRM) strategies and business model strategies. Design/methodology/approach This paper reviews the literature from e-Marketing, CRM and business model strategies, leading to the generation of an e-Business assessment framework. Second, it takes 19 case studies and analyzes them using ATLAS.ti, through qualitative content analysis, to validate that framework. Findings Pragmatic advice for practitioners derives from research results considering that this framework enables managers to characterize the company in terms of its e-business approach, making it possible to determine the level of depth of competitive online strategies. Lessons for an improved e-business approach can be derived from this paper. Originality/value This study proposes a novel e-business framework to assist organizations that want to have an online presence. This framework is comprised of the factors identified in the literature review that contribute to define and scope that online presence. The framework is then validated through the collection of 19 case studies of companies that have this online presence, validating the theoretical findings.

Do dissimilarities in the family involvement in family firms lead to different levels of indebtedness? Evidence from Spain

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
María Comino-Jurado ◽  
Sonia Sánchez-Andújar ◽  
Purificación Parrado-Martínez
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Design Methodology ◽  
Family Firms ◽  
Governance Structure ◽  
Three Dimensions ◽  
Content Type ◽  
The Family ◽  
Family Business Group ◽  
Different Levels

PurposeThis paper examines how differences in the family involvement in a family business can influence its level of indebtedness. Assuming the influence of family is not the same for all family firms, we consider each company as a combination of the family involvement in three dimensions of the business: ownership, management and governance structure.Design/methodology/approachUsing the partial least squares technique allows us to address the heterogeneity of family firms through an integral concept of family involvement in business that jointly considers the level of family participation in the ownership, management and governance structure of each firm.FindingsOur results demonstrate that the level of family involvement in a family firm, considering the heterogeneity existing within the family business group, directly influences its level of indebtedness. In addition, we find that family involvement in ownership and governance structures individually considered are positively related to the level of indebtedness of the family business.Originality/valueOur findings prove that some indebtedness patterns, which previous literature has described as common to all Spanish family businesses, may actually be valid only for specific family firms with a particular level of family involvement. In addition, the way of measuring family business heterogeneity through our integral concept of family involvement can be replicated by other authors because of the manageability of the items, thus contributing to an increased understanding of the effects of family involvement in firms' development.

scholarly journals Analysis of business models innovation – a multiple case study

2019 ◽  
Vol 16 (1) ◽  
pp. 17-35 ◽  
Author(s):  
Moema Pereira Nunes ◽  
Ana Paola Russo
Keyword(s):  
Business Model ◽  
Business Models ◽  
Multiple Case Study ◽  
Business Model Innovation ◽  
Manufacturing Companies ◽  
Content Type ◽  
Analysis Technique ◽  
New Business ◽  
Multiple Case

Purpose This paper aims to analyze the business model innovation in medium and large Brazilian manufacturing companies located in Rio do Sul State. Design/methodology/approach A holistic multiple case study in five companies was developed. Data were collected through interviews and analyzed according to the content analysis technique. Findings The main motivation to business model innovation was the innovation in products and services, while the difficulties were the factors relating to the cost. The most common practice among cases was innovation in value proposition and the most widely used method was learning-by-searching. While part of the theory was demonstrated in the case studies, new motivations and practices were identified. The investigation of the learning process on business models’ innovation is pioneered in this study. Further studies on this subject are required. Originality/value New business models are likely to provide new opportunities to better address customer needs, generating differentiating itself from its competitors. It is a subject little investigated in the international context, and there are no studies to investigate the experience of Brazilian companies.

Achieving success with Lean

2015 ◽  
Vol 6 (3) ◽  
pp. 263-280 ◽  
Author(s):  
Julie Sisson ◽  
Ahmad Elshennawy
Keyword(s):  
Case Studies ◽  
Successful Implementation ◽  
Content Type ◽  
Case Study Analysis ◽  
Lean Transformation ◽  
The Usa ◽  
Multiple Case ◽  
Broad Variety ◽  
Research Propositions

Purpose – The purpose of this research is to identify key interrelated components of successful, sustained lean transformation. When implemented successfully, lean not only allows for cost reduction while improving quality but it can also position a company to achieve tremendous growth. However, although many companies are attempting to implement lean, only an estimated 2-3 per cent are achieving the desired level of success. Design/methodology/approach – A thorough literature review was conducted and the findings indicated six key constructs that can act as enablers or inhibitors to implementing and sustaining lean. A theoretical framework was developed that integrates these constructs and develops research propositions for each. A multiple-case study analysis was used to test the framework on four companies that have achieved successful lean transformations to validate the model. Findings – Sixteen propositions were supported in all four of the case studies and one proposition was supported in three of the four case studies. Originality/value – This research proposed and tested a model lean transformation on cases drawn from the very small number of companies in the USA that have achieved successful, sustained lean improvement. The case studies represented a broad variety of manufacturing industries, increasing the likelihood of the research being able to be broadly generalized and applied. The model provides a set of related tangible actions that organizations planning to undertake a lean transformation can focus on to help insure successful implementation and sustainment.

scholarly journals Collaborative consumption: business model opportunities and barriers for fashion libraries

2015 ◽  
Vol 19 (3) ◽  
pp. 258-273 ◽  
Author(s):  
Esben Rahbek Gjerdrum Pedersen ◽  
Sarah Netter
Keyword(s):  
Business Model ◽  
Business Models ◽  
Small Scale ◽  
Fashion Industry ◽  
Collaborative Consumption ◽  
Content Type ◽  
New Business ◽  
Multiple Case ◽  
Barriers And Opportunities

Purpose – The purpose of this paper is to explore barriers and opportunities for business models based on the ideas of collaborative consumption within the fashion industry. Design/methodology/approach – The analysis is based on a multiple-case study of Scandinavian fashion libraries – a new, clothes-sharing concept that has emerged as a fashion niche within the last decade. Findings – It is concluded that fashion libraries offers interesting perspectives, e.g. by allowing people to experiment with styles without having to pay the full cost and becoming a meeting place for young designers and end consumers. However, at present fashion libraries remain a small-scale phenomenon with difficulties reaching the mainstream market, not least due to limited financial and human resources as well as conventional fashion consumption patterns. Research limitations/implications – The study is limited to the new phenomenon of fashion libraries and does not cover other types of collaborative consumption within the fashion industry (Swap-parties, etc.). Originality/value – The paper is one of the first attempts to examine new business models of collaborative consumption in general and the fashion library concept in particular. The study contributes to the discussions of whether and how fashion sharing and collaboration holds promise as a viable business model and as a means to promote sustainability.

Adapting business models in buyer-seller relationships: paradoxes in the fast fashion supply chain

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Simone Guercini ◽  
Andrea Runfola
Keyword(s):  
Supply Chain ◽  
Business Model ◽  
Business Models ◽  
Multiple Case Study ◽  
Research Programme ◽  
Fast Fashion ◽  
Content Type ◽  
Multiple Case ◽  
A Chain

Purpose This paper aims to deal with the issue of business model change in industrial markets. It considers the fast-fashion supply chain by addressing the following research questions: What are the paths of change of the supplier’s business model to match the business model of fast fashion customers? How can a supplier’s business model be adapted to customer’s requirements in these paths of change? Design/methodology/approach Empirically, the paper presents a multiple case study of 10 semi-finished textile suppliers, carried out through a long-term research programme in the Italian textile industrial district of Prato. Findings The multiple-case study shows some key drivers of change in the suppliers’ business models. Three main paths emerged from the interactions with fast fashion clients. Paradoxes in the supplier’s business model changes are identified and discussed. Research limitations/implications The paper proposes implications for suppliers interacting with fast fashion clients and discusses how the adaptation of business models may be interpreted. This study points out how matching the business model of the customers does not call for alignment of similar features. Originality/value The paper deals with an understudied topic within the literature: business models change in business to business markets, taking into consideration the perspective of the supplier. It considers buyers-seller relationships in industrial supply chains as being part of a chain of business models and the need for the supplier’s business model to adapt and match one of the clients. The paper proposes two potential interpretations of such adaptation.

Sign in / Sign up

Export Citation Format

Share Document