Immigrant family businesses: social capital, network benefits and business performance

2015 ◽  
Vol 21 (6) ◽  
pp. 842-866 ◽  
Author(s):  
Jasmine Tata ◽  
Sameer Prasad
Keyword(s):  
Social Capital ◽  
Family Business ◽  
Business Performance ◽  
Business Owners ◽  
Family Businesses ◽  
Community Capacity ◽  
Immigrant Family ◽  
Immigrant Community ◽  
Content Type ◽  
Family Capital

Purpose – The purpose of this paper is to look at immigrant family business through the framework of social capital by investigating how the social capital of immigrant family business owners helps them obtain network benefits and improve business performance. Design/methodology/approach – This paper presents an empirical investigation of 170 immigrant family business owners. The authors examine social capital as a multidimensional construct and focus on two attributes of social capital: structural embeddedness and relational embeddedness. In addition, this study examines how social capital influences business performance through the mediating effect of network benefits. Finally, the constructs of family capital and immigrant community capacity are also investigated. Findings – The results suggest that the two attributes of social capital differed in their effects on network benefits, and that network benefits mediated the influence of social capital attributes on family business performance. Specifically, relational social capital influenced access to resources and information, and structural social capital influenced access to resources. Family ties affected network benefits and business performance, and immigrant community capacity had the predicted moderating effect on the relationship between immigrant community ties and network benefits. Originality/value – This investigation has the potential to advance understanding of immigrant family businesses by assessing how the overall social capital of the family business owner influences business performance. The study also furthers the understanding of family capital and immigrant community capacity. In addition, these results serve practitioners by helping identify avenues to increase immigrant family business performance, an issue that is increasingly important today given the contribution of such businesses to the economic vitality of societies.

scholarly journals Investigating value-laden leadership styles among family business owners

2016 ◽  
Vol 47 (4) ◽  
pp. 35-46 ◽  
Author(s):  
E. Venter ◽  
S. M. Farrington
Keyword(s):  
Leadership Styles ◽  
Leadership Style ◽  
Family Business ◽  
Business Performance ◽  
Business Owners ◽  
Primary Objective ◽  
Family Businesses ◽  
Participative Leadership ◽  
Significant Relationships ◽  
The Family

Given the need for a different approach to leadership, as well as the need for further investigation on leadership among family businesses, this study investigates several value-laden leadership styles among family businesses. More specifically the primary objective is to establish the levels of Servant, Ethical, Authentic, and Participative leadership displayed by family business owners and the influence thereof on the Perceived business performance of the family business. A survey was undertaken and 266 usable questionnaires were returned from 133 family business owners and 133 from family business employees. The data analysis involved calculating descriptive statistics and undertaking t-tests. Multiple regression analysis (MRA) was done to test the hypothesised relationships. Although the MRA analysis revealed no statistically significant relationships between the leadership styles investigated and Perceived business performance, the vast majority of respondents agreed that the styles investigated were displayed by the family business owners. For both sample groups Ethical leadership returned the highest mean score, followed by Servant and Participative leadership. The importance of these value-laden leadership styles to family businesses is thus highlighted, contradicting the literature that family businesses owners are often autocratic in their leadership style. In addition, increased clarity on the effectiveness of these value-laden leadership styles within the context of family business is provided.

Direct and indirect effect of entrepreneurial orientation, family involvement and gender on family business performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Erny Rachmawati ◽  
Suliyanto ◽  
Agus Suroso
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Family Businesses ◽  
Future Research ◽  
Content Type ◽  
The Family ◽  
The Relationship

PurposeThis study aims to determine the direct effect of entrepreneurial orientation on family business performance. This study also discusses the role of family involvement as a mediating variable and the role of gender as a moderating variable in the relationship between entrepreneurial orientation and family business performance.Design/methodology/approachA total of 328 hotels in Yogyakarta, Indonesia, were selected as samples by the convenience sampling method. Primary data is collected through structured questionnaires that are delivered by themselves to key people in the hotel such as owners, directors and key staff (HRD, financial, relationship). Hypotheses are tested by structural equation modeling procedures using AMOS 22.0. Sobel test is used to determine the indirect effect of the mediation variable.FindingsThe results showed that entrepreneurial orientation had no significant effect on family business performance. Family involvement acts as a full mediation in the relationship between entrepreneurial orientation and family business performance. Gender acts as a moderating variable that can strengthen the relationship between entrepreneurial orientation and family business performance. The results showed support for previous research.Research limitations/implicationsThe results of the study cannot conclude the national family business because it adopts convenience sampling and the sampling area is limited in Yogyakarta. Future research can use a larger sample. This study only researches hotels managed by family businesses, so it is not feasible to conclude for family businesses in general. Future research may choose to use several types of family businesses so that more varied results can be obtained. Future research could also compare hotels managed by family businesses with non-family businesses. The results also found that in addition to gender roles, respondent heterogeneity was an important component in the study of social identity. Therefore, research examining the influence of different cultures on the relationship between entrepreneurial orientation and family business performance should be an extraordinary topic for future study. Other results from this study also indicate that there is a role for religion in improving hotel performance. Future research is needed to further explore Islamic business modeling for family businesses.Practical implicationsThis finding has significant implications that can help family businesses in developing strategies that are suitable for business management. Entrepreneurial orientation occupies a strategic position in developing sustainable competitive advantage in the family business of the tourism sector especially the hotel business in Yogyakarta for the better. Besides, the results of the study also showed that entrepreneurial orientation had no significant effect on performance. This relationship becomes significant when combined with active family involvement. This finding also shows that entrepreneurial orientation has the potential to have a more beneficial effect because of the active involvement of the family in helping with business management, alleviating business-related problems, and having a significant influence when the family also acts as management.Social implicationsResearch findings indicate the role of gender in strengthening the relationship between entrepreneurial orientation and family business performance. This provides a good position for women in the social environment to show achievement. To place women on the side of gender equality and justice in the family business in Indonesia. By opening wider access for Indonesian women in the realm of business management, expanding women's participation in a family business, increasing the role of control for women, and increasing women's knowledge and skills to increase the benefits in managing family businesses so that they have sustainable resilience in the face of global competition.Originality/valueThe results of this study provide a new model in providing an overview of the direct and indirect roles (mediating and moderating) in the assessment of family business performance. This study uses three variables which are important in performance appraisal, namely entrepreneurial orientation (independent variable), family involvement (mediating variable) and gender (moderating variable). Where research that combines these four variables, directly and indirectly, has never been done before.

Inertia as inhibiting competitiveness in Philippine family businesses

2015 ◽  
Vol 5 (2) ◽  
pp. 257-276 ◽  
Author(s):  
Andrea Santiago
Keyword(s):  
Life Cycle ◽  
Family Business ◽  
Family Members ◽  
The Philippines ◽  
Business Owners ◽  
Family Businesses ◽  
Business Failure ◽  
Content Type ◽  
Business Operations ◽  
Practical Implications

Purpose – The failure to innovate has been recognized as one of the prime causes of business failure. In addition to this, the purpose of this paper is to explore whether it is the failure to act or inertia that can also explain the inability of family businesses to move forward. Design/methodology/approach – This research documented the experiences of five family businesses in the Philippines that were unable to sustain their business operations. Only five families were identified since it was difficult to trace the business owners of businesses that failed, and once identified, not all were willing to discuss the reason for their business failure. Findings – The cases showed that business decline actually results from the failure of family members to address the challenges brought about the change in the different life cycle dimensions. In hindsight, arresting a downward trend necessitates varied strategic approaches. While some family members may felt incapable of introducing innovation in their business, the failure to act, by itself, was a guarantee of business failure. Research limitations/implications – The research was limited to five family businesses in the Philippines. It is possible that there may be many other reasons for family business failure based on the experiences of other families. Unfortunately, many business families in the Philippines are tight-lipped about failure, even if there are lessons to be learned. Practical implications – This paper brings attention to the need of family business owners to be more proactive in meeting the changing needs of their family business. Formula that worked before may not be appropriate at a different time. Originality/value – Research has shown that there are many reasons for family business failure. This paper shows the importance of transcending the feeling of inertia so that family members can be more proactive in meeting the challenges that they are bound to face as their families, their products, their businesses, and the industries they are in, move from one stage of the life cycle to another.

Gender and business owner satisfaction

2019 ◽  
Vol 9 (4) ◽  
pp. 416-428 ◽  
Author(s):  
Wenxuan Li ◽  
Maria I. Marshall
Keyword(s):  
Family Business ◽  
Business Owners ◽  
Family Businesses ◽  
Medium Size ◽  
Role Satisfaction ◽  
Business Owner ◽  
Men And Women ◽  
Content Type ◽  
Factors Associated ◽  
Farm Family

Purpose The purpose of this paper is to investigate how the factors associated with role satisfaction in farm and non-farm family businesses differ by gender of the business owner. Design/methodology/approach The data used are from a 30-minute telephone survey of owners of farm and non-farm family businesses in Indiana, Illinois, Michigan and Ohio. The sample consists of 627 small- and medium-size family businesses. Three ordered probit regressions are used to analyze role satisfaction. Findings Women’s participation in management and the number of family members in management are positively associated with women’s role satisfaction, while tension from resource competition is negatively associated with role satisfaction. In contrast, men’s role satisfaction is increased through high family business functioning and profit. Practical implications There is no difference in the level of role satisfaction between men and women when one controls for the owner, family and business characteristics. However, there is a difference in the factors that drive role satisfaction between men and women. This may be driven, in part, by what their roles are vis-à-vis the financial aspects of the business. Male and female business owners seem to focus on different aspects of their family business to achieve role satisfaction. Originality/value This paper determines the impact of gender on the role satisfaction of business owners of farm and non-farm family businesses in four Midwestern states. It identifies the different factors associated with role satisfaction for female and male family business owners based on their actual roles.

Succession planning and family business performance in SMEs

2017 ◽  
Vol 36 (3) ◽  
pp. 330-347 ◽  
Author(s):  
Mozhdeh Mokhber ◽  
Tan Gi Gi ◽  
Siti Zaleha Abdul Rasid ◽  
Amin Vakilbashi ◽  
Noraiza Mohd Zamil ◽  
...  
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Business Performance ◽  
Positive Impact ◽  
Family Businesses ◽  
Related Factors ◽  
Content Type ◽  
The Family ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the impact of preparation level of heirs and the relationship between family and business members on the performance of family business in small- and medium-sized enterprises (SMEs) in Malaysia. Design/methodology/approach A quantitative research design involving the use of a survey questionnaire was implemented to investigate the influences of succession planning factors on the performance of family business in SMEs. The survey was conducted on 50 family business successors in Malaysian SMEs. Findings The result showed that the two studied factors – preparation level of heirs and the relationship between family and business members – have a positive impact on the performance of family business. Research limitations/implications The research concentrated on the performance of family business in SMEs in Malaysia’s southern region. The generalization therefore must be made very cautiously to the overall Malaysian SMEs. Practical implications The findings help family businesses to better understand the importance of the preparation level of heirs and the relationship between family and business members on business performance. This study shows the importance of key factors influencing succession planning so that the successor to the family business can bring the family firm to the next stage of success. Originality/value This study serves as a reference or guide for the management of family businesses to better understand the important factors for effective succession planning. It considers the best possible preparation and family-related factors affecting the end results of business, particularly in Malaysian SMEs.

Differences in management styles, levels of profitability, and performance across generations, and the development of the Family Business Success Model

2019 ◽  
Vol 32 (1) ◽  
pp. 32-50 ◽  
Author(s):  
Josiane Fahed Sreih ◽  
Robert N. Lussier ◽  
Matthew C. Sonfield
Keyword(s):  
Family Business ◽  
Financial Management ◽  
Emerging Market ◽  
Business Owners ◽  
Family Businesses ◽  
Business Success ◽  
Content Type ◽  
Success Model ◽  
The Family ◽  
Probability Of Success

Purpose The purpose of this paper is to, first, investigate the differences between generations in family businesses and, second, develop and verify the Family Business Success Model ability to improve the probability of business success measured by perceived profits, growth and meeting the owners’ expectations. Design/methodology/approach Data were collected through questionnaires and personal interviews. Overall, 98 usable questionnaires were collected for statistical analysis with a response rate of 82 percent. Findings One-way ANOVA hypotheses testing of the variables found four significant differences between generations. Regression analysis found the Family Business Success Model to be significant. Family business owners can improve the probability of success by utilizing a team-management decision-making approach, effectively handling conflict effectively, formulating specific succession plans, developing strategic plans, using sophisticated financial management methods, dealing effectively with the founder’s influence and if they seek to grow, they should consider going public. Practical implications This study provides family business owners, managers, educators and public policy makers with the means to help family businesses survive and grow effectively throughout generations by using the Family Business Success Model. In addition, this study can help consultants and advisors of family businesses to understand the differences between the first, second and third generation family businesses from a holistic perspective and help them implement the family business model. Originality/value This study contributes to the literature as one of the few studies in the Lebanese emerging market that examines how the first, second and third generations of family businesses differ. More importantly, it develops a Family Business Success Model that improves the probability of success.

Innovation orientation and performance of Kuwaiti family businesses: evidence from the initial period of COVID-19 pandemic

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Zainal
Keyword(s):  
Family Business ◽  
Risk Taking ◽  
Significant Relationship ◽  
Business Performance ◽  
Future Orientation ◽  
Family Businesses ◽  
Equation Modeling ◽  
Content Type ◽  
Openness To Change ◽  
The Impact

PurposeThis paper analyses the impact of innovation orientation on the family business performance in Kuwait. Further, the aim of this paper is to understand the innovation culture among Kuwaiti family businesses and the innovation orientation concept and its importance for these businesses.Design/methodology/approachThe study will use a quantitative research methodology in order to investigate the relationship between independent variables: creativity, risk-taking, future orientation, openness to change and proactiveness with Kuwaiti business performance as a dependent variable. A well-structured questionnaire is distributed to 150 family businesses that operate in Kuwait, where 114 of the respondents responded positively. Structural equation modeling (SEM) analysis was used for evaluating the proposed model.FindingsThe results show that creativity, risk-taking and future orientation have significant relationship with business performance, while openness to change and proactiveness do not have any significant relationship with business performance.Research limitations/implicationsThis research is conducted during the period of initial months of COVID-19 pandemic, March–July 2020 respectively, and responses might be influenced by the current situation.Originality/valueThe correlation between family businesses and innovation orientation is not studied so far in Kuwait. There is a lack of studies about family business in general in Kuwait since there are only very few research studies. This is the first research about this topic that covers Kuwait as a country.

Does family capital outweigh the negative effects of conflict on firm performance?

2014 ◽  
Vol 4 (1) ◽  
pp. 46-61 ◽  
Author(s):  
Mark L. Hoelscher
Keyword(s):  
Competitive Advantage ◽  
Family Business ◽  
Business Performance ◽  
Task Conflict ◽  
Business Success ◽  
Content Type ◽  
Business Outcomes ◽  
Sustained Competitive Advantage ◽  
Family Capital ◽  
The Relationship

Purpose – Scholars have articulated the importance of family capital for successful family business outcomes. In the review of literature, empirical evidence supporting this assertion has been lacking. The purpose of this paper is to offer an empirical study of the relationship between family capital and family business success as well as the moderating effects of conflict to this relationship. Design/methodology/approach – Hierarchical regression was used in this study. Using a sample of 299 firms the author investigates the relationship between family capital and family business performance as well as the moderating role of conflict on this relationship. Findings – Results support the notion that family capital is a significant predictor of family business performance. Furthermore, the author finds that task conflict moderates the relationship between family capital and family business performance, while relational conflict has no impact on performance. Practical implications – The revelation that family capital can lead to a sustained competitive advantage makes the decision to support and nurture it much easier. Also, family capital appears to compensate for ineffective levels of task conflict. Finally, family capital shows much promise in being that rare, valuable, inimitable, and unsubstitutable resource that leads to sustained competitive advantage. Originality/value – This research begins the empirical validation process for the theoretical construct family capital as well as exploring the moderating relationship of conflict.

Social capital in entrepreneurial family businesses: the role of trust

2015 ◽  
Vol 21 (6) ◽  
pp. 814-841 ◽  
Author(s):  
Henry X. Shi ◽  
Deborah M. Shepherd ◽  
Torsten Schmidts
Keyword(s):  
Social Capital ◽  
Family Business ◽  
Quantitative Methods ◽  
Empirical Work ◽  
Family Businesses ◽  
Dark Side ◽  
Single Type ◽  
Chinese Family ◽  
Content Type ◽  
Relational Form

Purpose – The purpose of this paper is to provide empirical insights to understanding trust as a relational form of social capital, and its effects on entrepreneurial processes, in small- and medium-sized family businesses. Design/methodology/approach – This paper adopts a qualitative case-study approach, with data from fieldwork interviews, observations, and secondary sources analysed by using interpretative methods. Findings – Although multiple types of trust exist concurrently in small- and medium-sized Chinese family businesses, it is interpersonal trust on the basis of goodwill and competence that prevails, while contractual trust is weak and marginal. Three patterns of trusting relationships are identified, each of which has both positive and negative effects on entrepreneurship and innovation in family businesses. There is a potential “dark side” of trust, which incurs extra cost and commitment to small- and medium-sized family businesses in their entrepreneurial processes. Research limitations/implications – Future research with larger sample sizes is suggested to generalise the insights, by using both qualitative and quantitative methods. More empirical work is needed to further clarify the antecedents of trust as a social capital and the potential “dark side” of trust in small- and medium-sized family businesses, particularly across generations. Practical implications – Family business owner-managers should try to avoid relying on a single type of trust, which may incur extra costs to the entrepreneurial processes. They need to better understand why they trust certain actors in their business and social networks before assigning resources to specific business activities. Policy makers are suggested to recognise the “benefits” of the traditionally family-oriented values and that kinship-based trust is also a relational form of social capital and can produce entrepreneurial outcomes. Originality/value – The paper critically reviews existing literature on social capital, trust, entrepreneurship, and family business at their point of intersection and identifies gaps and oversights. Drawing on case studies from China, the paper explores different patterns in which trust develops in second-generation small- and medium-sized Chinese family businesses and their varying effects on entrepreneurship.

scholarly journals Family across borders social capital and diaspora entrepreneurial preparedness

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eva Karayianni ◽  
Elias Hadjielias ◽  
Loukas Glyptis
Keyword(s):  
Social Capital ◽  
Interpersonal Relationships ◽  
Family Business ◽  
Business Owners ◽  
Social Capital Theory ◽  
Business Owner ◽  
Content Type ◽  
Family Ties ◽  
The Family ◽  
Practical Implications

Purpose The purpose of this paper is to study the way in which family ties influence the entrepreneurial preparedness of the diaspora family business owner. Design/methodology/approach In-depth interviews were carried out with 15 Cypriot family business owners hosted in various countries. The paper draws on social capital theory and uses an abductive analytical approach. Findings The findings of this paper illustrate that family ties coming from the family across borders play a significant role for diaspora family business owners’ entrepreneurial preparedness. Hidden values deriving from the interpersonal relationships within the family across borders drive the diaspora family business owners to learn upon self-reflection and become entrepreneurially prepared, led by both urgency and esteem. Practical implications This study provides practical implications for the entrepreneurial preparedness of diaspora family business owners and those who wish to become family business owners in a diaspora context. Originality/value This study contributes theoretically through the conceptualization of “family across borders social capital” and “diaspora entrepreneurial preparedness”. It also contributes empirically to the fields of diaspora family business, entrepreneurial learning and diaspora entrepreneurship through new knowledge regarding the role of family across borders social capital in the entrepreneurial preparedness of the diaspora family business owner.

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