Does family involvement help small migrant businesses survive? A closer examination of family in migrant entrepreneurship

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zonghui Li ◽  
Douglas Johansen
Keyword(s):  
Family Involvement ◽  
Small Businesses ◽  
Resource Constraints ◽  
Negative Relationship ◽  
Migrant Status ◽  
Content Type ◽  
Probability Of Survival ◽  
Migrant Entrepreneurship ◽  
Migrant Entrepreneurs ◽  
Resource Endowments

Purpose Drawing on the resource-based view, this study aims to examine how family involvement in migrant-founded small businesses gives rise to distinctive resources that help these businesses survive. Design/methodology/approach Using microdata from the 2007 US survey of business owners (SBO), this study uses logit regression modeling to test the hypothesized relationships. Findings Results show that small businesses founded by migrant entrepreneurs are less likely to survive and that family involvement weakens the negative relationship between founder migrant status and business survivability. In addition, the positive moderating effect associated with family involvement is further strengthened by the use of external/borrowing startup capital, thus migrant families founded small businesses with access to external capital have the highest probability of survival. Originality/value This study contributes to the literature on both migrant entrepreneurship and family business. This paper finds family involvement in the business, interacting with the founder’s migrant status, tends to create distinctive resource endowments that help to compensate for the resource constraints associated with migrant entrepreneurs. Such resource endowments may take the form of high levels of solidarity among migrant family members and the spanning role of the migrant kinship networks extended from the country of origin to the country of residence.

Family involvement in management in private businesses and the effect on professional managers’ psychological ownership

2018 ◽  
Vol 9 (2) ◽  
pp. 225-243
Author(s):  
Hang Zhu ◽  
Pengxiang Zhang ◽  
Xiaoyan Han ◽  
Ting Huang
Keyword(s):  
Family Involvement ◽  
Negative Relationship ◽  
Personal Relationships ◽  
Psychological Ownership ◽  
Family Management ◽  
Content Type ◽  
Relationship Closeness ◽  
Professional Managers ◽  
Family Involvement In Management ◽  
Management Involvement

Purpose The purpose of this paper is to unveil how family involvement in management teams of private Chinese companies affects professional managers’ psychological ownership and sense of “us”, in the hopes of understanding why their devotion cannot coexist with the higher level of commitment of family managers. Design/methodology/approach This paper includes two main studies. The first uses regression to analyze survey data provided by 165 professional managers working in Chinese private companies. The second is a scenario experiment in which 106 MBA candidates participate. Findings The study finds that there is a negative relationship between family management involvement and professional managers’ perceived relationship closeness to owners and psychological ownership of firms. It also finds that relationship closeness fully mediates the negative influence of family management involvement on managers’ psychological ownership. Originality/value This paper contributes to both the theoretical literature and management practice. From a theoretical perspective, it connects studies in indigenous sociological psychology with new literature on psychological ownership. The paper finds that personal relationships nurture the shared psychological ownership of managers by generating a sense of “us”, providing a new theoretical explanation for its formation process. Furthermore, this study offers an explanation for the negative signal effect of family involvement in management. From a practical perspective, this study finds that family involvement in management acts as a critical boundary condition for using personal relationships to stimulate professional managers.

Family ownership and R&D investment: the moderating role of banks and private equity

2019 ◽  
Vol 57 (7) ◽  
pp. 1675-1694 ◽  
Author(s):  
Alessandro Cirillo ◽  
Mario Ossorio ◽  
Luca Pennacchio
Keyword(s):  
Family Involvement ◽  
Private Equity ◽  
Family Firms ◽  
Negative Relationship ◽  
Future Research ◽  
Family Ownership ◽  
Content Type ◽  
The Impact ◽  
The Relationship ◽  
D Investment

Purpose The purpose of this paper is to contribute to innovation and family business literature by establishing whether institutional involvement of private equity (PE) and banks in family firms moderates the relationship between family ownership and research and development (R&D) investment. Design/methodology/approach This paper used the socio-emotional wealth lens to carry out an econometric analysis on a large sample of Italian non-listed family firms. Using the sample selection model meant it was possible to account for potential selection bias arising from firms’ discretionary disclosure of R&D expenditure. Findings Family involvement in ownership reduced firms’ R&D intensity. When PE investors also held shares, the negative relationship was diverted. Bank involvement, however, did not have a significant effect on the relationship. Research limitations/implications This paper enriches the innovation management literature by increasing the understanding of the determinants of R&D investments in family firms. The results support the view that non-financial priorities in family firms are contingent upon non-family shareholders. This enriches the debate about the heterogeneity of family businesses and is consistent with the socio-emotional wealth framework, which has shown that risk preferences may vary if desired and actual performances are different. This may be a fruitful area for future research. Originality/value Contradicting the assumption that institutional owners all share the same perspective, this study is the first to assess the impact of different institutional shareholders on R&D intensity of private family firms.

Conforming to the host country versus being distinct to our home countries

2019 ◽  
Vol 25 (5) ◽  
pp. 919-935 ◽  
Author(s):  
Hamizah Abd Hamid ◽  
Conor O’Kane ◽  
André M. Everett
Keyword(s):  
Host Country ◽  
Alternative Interpretation ◽  
Identity Work ◽  
Cross Cultural ◽  
Structured Interviews ◽  
Content Type ◽  
Migrant Entrepreneurship ◽  
Migrant Entrepreneurs ◽  
Optimal Distinctiveness ◽  
Optimal Distinctiveness Theory

PurposeThe purpose of this paper is to examine how ethnic migrant entrepreneurs (EMEs) utilise identity work to build legitimacy in a host country. According to optimal distinctiveness theory (ODT), legitimacy is achieved by balancing conformance and distinctiveness. This paper draws on ODT in the context of ethnic migrant entrepreneurship to examine how EMEs both fit in (conformance) and maintain their uniqueness (distinctiveness) in cross-cultural settings.Design/methodology/approachThis study adopts a qualitative approach utilising semi-structured interviews to examine the identity work of EMEs from three distinct countries (Indonesia, Pakistan and South Korea (henceforth Korea)) in one host country (Malaysia).FindingsThe results show that EMEs’ identity work incorporates both the blurring and strengthening of host-home country boundaries. Building on this study’s results, the authors develop a model of identity work and three propositions regarding legitimacy building through identity in the context of ethnic migrant entrepreneurship.Originality/valueThrough the model and propositions, this research contributes to the identity, international entrepreneurship and ethnic migrant entrepreneurship discourse by identifying the mechanisms, focus and key features of identity work for entrepreneurs operating in cross-cultural settings. In so doing, this research also offers an alternative interpretation on the apparent divergent views around identity work in the fields of organisation (advocate isomorphism) and entrepreneurship (advocate uniqueness).

Start‐up and growth constraints on small‐scale trading in Bangladesh

2009 ◽  
Vol 1 (3) ◽  
pp. 227-239 ◽  
Author(s):  
Serazul Islam
Keyword(s):  
Small Businesses ◽  
Resource Constraints ◽  
Journal Article ◽  
Primary Data ◽  
Small Scale ◽  
Large Sample Size ◽  
Content Type ◽  
Representative Sampling ◽  
Start Up ◽  
Starting Point

PurposeThe purpose of this paper is to ascertain the reasons for starting the new small business by the people and also to find out the difficulties they experienced at the time of and after starting their business at Pabna and Gazipur – two districts of Bangladesh.Design/methodology/approachTo attain the objectives, both primary and secondary data have been used. To collect the primary data, an interview schedule has been used to interview the selected 250 small entrepreneurs. For secondary sources, the journal, article, web site, textbooks, etc. have been consulted.FindingsThe paper reveals that money earning for family, self‐employment, relief from the curse of unemployment, family business tradition, previous experience of the similar or different line of business, lack of higher formal education, etc. are the broad general reasons for start‐up of new business. Shortage of fixed and working capital, lack of training and business skill, lack of collateral free institutional support, lack of experienced and reliable employees, etc. are the common factors that inhibit the entrepreneurs to start and run their business smoothly.Research limitations/implicationsThe paper is limited to two districts and trading enterprises only. Owing to time and resource constraints and non‐availability of official records of the number of small‐scale traders, statistically representative sampling cannot be chosen. In order to capture a large sample size, almost all trading concerns of Pabna and Gazipur will have to be visited, which is almost impossible. However, some of the limitations are overcome by synthesizing information from a number of sources. The present paper provides a starting‐point for further research in the small‐scale trading of suburban areas of other districts.Originality/valueThe paper provides useful information about the starting of new small businesses and initial difficulties.

Strategic coethnicity

2018 ◽  
Vol 12 (4) ◽  
pp. 418-436 ◽  
Author(s):  
Kofi Takyi Asante
Keyword(s):  
Design Methodology ◽  
Large Scale ◽  
Community Resources ◽  
Content Type ◽  
Migrant Entrepreneurship ◽  
Large Scale Survey ◽  
Migrant Entrepreneurs ◽  
Entrepreneurial Strategies ◽  
Survey Designs ◽  
Practical Implications

Purpose This paper aims to present two distinct approaches to migrant entrepreneurship. Design/methodology/approach Drawing on ethnography of two Ghanaian migrant businesses, one of which draws on the Ghanaian community and another which distances itself from it, the author shows that the current understandings of social capital romanticise the notion of community. The author argues that to gain a better appreciation of the ways in which community resources are used by migrant entrepreneurs, we would need to reject such romanticised notions. Findings The ethnography revealed the operation of two entrepreneurial strategies. These, in turn, were shaped by the nature of the migrant community and the resources that entrepreneurs have at their disposal. Research limitations/implications The limitation of this research is that it draws on only two cases. Focusing on two cases allowed for an in-depth understanding of the mechanisms at play but limits the ability to generalise beyond these two cases. Further research will have to use large-scale survey designs to test the mechanisms which have been identified in this paper. Practical implications There are multiple, sometimes conflicting, tendencies in any specific entrepreneurial context, and the author proposes that this configuration of factors leads to the dominance of one or the other entrepreneurial approach. Social implications Underlying these dynamics is an attempt to reconcile the demands of two competing tendencies within the entrepreneurial context: the profit motive versus the community spirit. Originality/value The author concludes with a brief discussion of concept of strategic coethnicity by which this dilemma can be solved.

The Other Entrepreneurs - Migrant Economies as Spaces for Social Innovation?

2019 ◽  
Vol 16 (2) ◽  
pp. 265-271
Author(s):  
Claudia Lintner
Keyword(s):  
Social Innovation ◽  
Close Relation ◽  
The Other ◽  
Structural Level ◽  
Structured Interviews ◽  
Economic Activities ◽  
Migrant Entrepreneurship ◽  
False Dichotomy ◽  
Migrant Entrepreneurs ◽  
The One

This article analyses the relationship between migrant entrepreneurship, marginalisation and social innovation. It does so, by looking how their ‘otherness’ is used on the one hand to reproduce their marginalised situation in society and on the other to develop new living and working arrangements promoting social innovation in society. The paper is based on a qualitative study, which was carried out from March 2014- 2016. In this period, twenty semi-structured interviews were conducted with migrant entrepreneurs and experts. As the results show, migrant entrepreneurs are characterised by a false dichotomy of “native weakness” in economic self-organisation against the “classical strength” of majority entrepreneurs. It is shown that new possibilities of acting in the context of migrant entrepreneurship are mostly organised in close relation to the lifeworlds and specific needs deriving from this sphere. Social innovation processes initiated by migrant entrepreneurs through their economic activities thus develop on a micro level and are hence less apparent. Supportive networks are missing on a structural level, so it becomes difficult for single innovative initiatives to be long-lasting.

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.

Conflict and creativity in inter-organizational teams

2017 ◽  
Vol 28 (1) ◽  
pp. 74-102 ◽  
Author(s):  
Nan Hu ◽  
Zhi Chen ◽  
Jibao Gu ◽  
Shenglan Huang ◽  
Hefu Liu
Keyword(s):  
Shared Leadership ◽  
Negative Relationship ◽  
Task Conflict ◽  
Relationship Conflict ◽  
Curvilinear Relationship ◽  
Team Creativity ◽  
Content Type ◽  
Conflict Situations ◽  
Organizational Teams ◽  
Study Offer

Purpose This paper aims to examine the effects of task and relationship conflicts on team creativity, and the moderating role of shared leadership in inter-organizational teams. An inter-organizational team normally comprises employees from collaborated organizations brought together to conduct an initiative, such as product development. Practitioners and researchers have witnessed the prevalence of conflict in inter-organizational teams. Despite significant scholarly investigation into the importance of conflict in creativity, a deep theoretical understanding of conflict framework remains elusive. Design/methodology/approach A questionnaire survey was conducted in China to collect data. Consequently, 54 teams, which comprised 54 team managers and 276 team members, were deemed useful for the study. Findings By testing our hypotheses on 54 inter-organizational teams, we found that relationship conflict has a negative relationship with team creativity, whereas task conflict has an inverted U-shaped (curvilinear) relationship with team creativity. Furthermore, when shared leadership is stronger, the negative relationship with team creativity is weaker for relationship conflict, whereas the inverted U-shaped relationship with team creativity is stronger for task conflict. Research limitations/implications The main limitation is cross-sectional, which cannot establish causality in relationships. Despite this potential weakness, the present research provides insights into conflict, leadership and inter-organizational collaboration literature. Practical implications The findings of this study offer some guidance on how managers can intervene in the conflict situations of inter-organizational teams. Social implications Managers are struggling to identify ways to effectively manage team conflict when a team of diverse individuals across organizational boundaries are brought together to solve a problem. The findings of this study offer some guidance on how managers can intervene in the conflict situations of inter-organizational teams. Originality/value This paper provides understandings about how relationship and task conflicts affect team creativity in inter-organizational teams.

The reflexive turn in key account management

2014 ◽  
Vol 48 (11/12) ◽  
pp. 2071-2104 ◽  
Author(s):  
Markus Vanharanta ◽  
Alan J.P. Gilchrist ◽  
Andrew D. Pressey ◽  
Peter Lenney
Keyword(s):  
Empirical Studies ◽  
Negative Relationship ◽  
Success Rates ◽  
Key Account Management ◽  
Content Type ◽  
Account Management ◽  
Long Run ◽  
Key Account ◽  
And Performance ◽  
The Uk

Purpose – This study aims to address how and why do formal key account management (KAM) programmes hinder effective KAM management, and how can the problems of formalization in KAM be overcome. Recent empirical studies have reported an unexpected negative relationship between KAM formalization and performance. Design/methodology/approach – An 18-month (340 days) ethnographic investigation was undertaken in the UK-based subsidiary of a major US sports goods manufacturer. This ethnographic evidence was triangulated with 113 in-depth interviews. Findings – This study identifies how and why managerial reflexivity allows a more effectively combining of formal and post-bureaucratic KAM practices. While formal KAM programmes provide a means to initiate, implement and control KAM, they have an unintended consequence of increasing organizational bureaucracy, which may in the long-run hinder the KAM effectiveness. Heightened reflexivity, including “wayfinding”, is identified as a means to overcome many of these challenges, allowing for reflexively combining formal with post-bureaucratic KAM practices. Research limitations/implications – The thesis of this paper starts a new line of reflexive KAM research, which draws theoretical influences from the post-bureaucratic turn in management studies. Practical implications – This study seeks to increase KAM implementation success rates and long-term effectiveness of KAM by conceptualizing the new possibilities offered by reflexive KAM. This study demonstrates how reflexive skills (conceptualized as “KAM wayfinding”) can be deployed during KAM implementation and for its continual improvement. Further, the study identifies how KAM programmes can be used to train organizational learning regarding KAM. Furthermore, this study identifies how and why post-bureaucratic KAM can offer additional benefits after an organization has learned key KAM capabilities. Originality/value – A new line of enquiry is identified: the reflexive-turn in KAM. This theoretical position allows us to identify existing weakness in the extant KAM literature, and to show a practical means to improve the effectiveness of KAM. This concerns, in particular, the importance of managerial reflexivity and KAM wayfinding as a means to balance the strengths and weaknesses of formal and post-bureaucratic KAM.

Do corporate diversification and earnings management practices affect capital structure?

2015 ◽  
Vol 7 (4) ◽  
pp. 360-378 ◽  
Author(s):  
Ranjitha Ajay ◽  
R Madhumathi
Keyword(s):  
Capital Structure ◽  
Earnings Management ◽  
Management Practices ◽  
Negative Relationship ◽  
Corporate Diversification ◽  
Content Type ◽  
Diversification Strategies ◽  
Market Product ◽  
Diversified Firms ◽  
The Impact

Purpose – The purpose of this paper is to empirically examine the impact of earnings management on capital structure across firm diversification strategies. Design/methodology/approach – The study focuses on firms operating in the manufacturing sector (diversified and focused). Panel data methodology compares diversification strategies and identifies the impact of diversification strategy with earnings management practices on capital structure decision. Findings – International and product diversified firms have lower levels of leverage than focused firms in their capital structure. Asset-based earnings management is positive for diversified (market/product) firms. Earnings management using discretionary expenditure (project based) is found to be higher for market diversified but product-focused firms. Earning smoothing method is found to be significant for focused firms and shows a negative relationship with capital structure. Originality/value – This study offers an insight into the relationship between corporate diversification, earnings management and capital structure decisions of manufacturing firms. The results provide an important contribution to accounting and strategy literature. A distinction is made between market- and product-diversified firms and influence of earnings management practices (asset-based, project-based and earnings smoothing (ESM)) on capital structure decisions. Diversified firms (market/product) tend to have lower levels of leverage than focused firms and earnings management practices within firm groups significantly influence the capital structure decisions.

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