Applying an organizational effectiveness approach to measure family business performance

2019 ◽  
Vol 9 (3) ◽  
pp. 349-374 ◽  
Author(s):  
Ralph I. Williams Jr ◽  
Torsten Pieper ◽  
Franz Kellermanns ◽  
Joe Astrachan
Keyword(s):  
Organizational Effectiveness ◽  
Family Business ◽  
Structural Equation ◽  
Business Performance ◽  
Measurement Scale ◽  
Equation Modeling ◽  
Entire Family ◽  
Content Type ◽  
Business Goals ◽  
The Family

Purpose Current approaches to measuring family business performance have limitations: failing to acknowledge the entire family business holistically, and lacking recognition of the idiosyncratic nature of family business goals. By applying organizational effectiveness and the achievement of desired organizational outcomes, the purpose of this paper is to develop a scale to measure performance based on a family business’ idiosyncratic goals. Design/methodology/approach This study applies mixed methods, including qualitative research, two surveys and structural equation modeling. Findings The authors develop a scale employing 21 items, representing six goal dimensions, to measure the family business performance. Originality/value The family business performance measurement scale from this study responds to multiple calls for a scale gauging family business performance in a manner including both financial and non-financial outcomes.

Is socioemotional wealth being influenced by the intentions to pursue succession on incumbent owners? Empirical research on Mexican family business

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Carlos Rafael Contreras-Lozano ◽  
Maria Virginia Flores-Ortiz ◽  
Ma. Del Carmen Alcalá-Álvarez
Keyword(s):  
Family Business ◽  
Structural Equation ◽  
Equation Modeling ◽  
Socioemotional Wealth ◽  
Content Type ◽  
The Social ◽  
The Family ◽  
Mexican Family ◽  
New Research ◽  
Structured Approach

PurposeThe authors identify the theoretical constructions measuring the intentions to pursue succession as well as the socioemotional wealth theoretical framework, and the authors propose an objective of testing the relationships existing between them so as their importance giving evidence of their relevance.Design/methodology/approachIt is a research with a positivist philosophical position measuring in a quantitative way with a deductive and structured approach applied to 98 CEO owners of Mexican companies, using nonparametric methodologies the authors simulated subsamples with structural equation modeling in SmartPLS 3.3.2, the metrics on the model are described as a functionalist paradigm.FindingsDirectors' attitudes paired up with the intentions of succession are significantly related to the socioemotional aspect of the family business; although the theory proposes three aspects to measure these intentions, the social norm in this research has not been strong enough to be a predictor as an influence on the company's socioemotional wealth.Originality/valueThe authors found this a valuable paper for the complement of theory focused on purely manifesting aspects in family companies, because they identified theoretical and empirical relationships opening up guidelines for new research in socioemotional aspects in accordance with the entrepreneurs attitudes to achieve succession, the differentiation lies in measuring psychological aspects of the director's behavior toward succession and not to the succession per se as done in most research; also, the methodology of data analysis facilitates the reader to easily recognize the relationships between the proposed theoretical constructions, showing the detailed metrics development by researchers in the family business field.

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.

Effect of social capital on agribusiness diversification intention in the emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Le Dang Lang ◽  
Abhishek Behl ◽  
Nguyen Trung Dong ◽  
Yama Temouri ◽  
Nguyen Hong Thu
Keyword(s):  
Social Capital ◽  
Global Economy ◽  
Structural Equation ◽  
Emerging Market ◽  
Measurement Scale ◽  
Equation Modeling ◽  
Group Discussions ◽  
Content Type ◽  
Depth Interviews

PurposeCoronavirus disease 2019 (COVID-19) has seriously affected the global economy. How agribusinessmen are overcoming this crisis is being noticed in emerging markets. Using social capital to diversify agribusiness for getting more customers is a useful solution for the growth of agribusiness. However, there is a lack of evidence on the aggregate measurement scale of social capital and the influence of behavioral goals on the intention toward agribusiness diversification. Therefore, this study aims to develop an integrated measurement of social capital and investigate its effect on agribusiness diversification intention using the expanded theory of planned behavior (TPB).Design/methodology/approachA mixed-methods approach is used, including four in-depth interviews, three focus group discussions and two surveys. Structural equation modeling is applied to a sample of 484 respondents to test the proposed hypotheses.FindingsThe study shows the role of social capital in influencing the intention to diversify agribusiness under the premises of the resource-based view (RBV). The scale of social capital is also developed, which is the first integrated measurement of this asset. The findings contribute significantly to the existing knowledge of social capital, the TPB and diversifying agribusiness.Originality/valueThis is the first study to explore the comprehensive effect of the facets of social capital on behavioral intention through behavioral goals and determinants of the TPB under the premises of the RBV. The findings will help emerging economies, for example, Vietnam, where most farmers are family business owners or microscaled entrepreneurs in agriculture.

Exploring loyalty to specialty foods among tourists and residents

2018 ◽  
Vol 120 (5) ◽  
pp. 1120-1131 ◽  
Author(s):  
Dwi Suhartanto ◽  
Brendan T. Chen ◽  
Zurinawati Mohi ◽  
Adila Sosianika
Keyword(s):  
Structural Equation ◽  
Business Performance ◽  
Perceived Quality ◽  
Equation Modeling ◽  
Content Type ◽  
Motivation Factors ◽  
Perception Of Quality ◽  
Retail Managers ◽  
Internal And External Factors ◽  
The Relationship

PurposeThe purpose of this paper is to examine a specialty food loyalty model which includes perceived quality, satisfaction, and motivation, and to assess the model’s applicability in two distinct groups of customers: tourists and residents.Design/methodology/approachData were collected from 455 specialty food customers in Bandung, Indonesia. Variance-based structural equation modeling (partial least squares (PLS)) was used to examine the relationship between the drivers (perceived quality, satisfaction and motivation) and loyalty according to the data presented by tourists and residents.FindingsThis study indicates that the perception of quality is an important factor affecting tourists’ and residents’ satisfaction with, and loyalty to, a product. Furthermore, this study suggests that motivation factors are important for tourists and residents in regard to developing loyalty to specialty foods.Practical implicationsThis study provides a venue for retail managers and producers to improve their business performance by developing specialty foods of high quality. To improve their quality, this research suggests that managers and retailers focus on innovation based on exotic and unique traditional food reflecting the richness of local culture. To ensure their loyalty, customers of specialty foods need to be motivated by internal and external factors.Originality/valueThis study is one of the first to examine the formation of specialty food loyalty in two distinct groups of customers: tourists and residents.

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.

Musical intelligence: explication, measurement, and implications for consumer behavior

2014 ◽  
Vol 31 (4) ◽  
pp. 278-289 ◽  
Author(s):  
Vijaykumar Krishnan ◽  
Karen A. Machleit ◽  
James J. Kellaris ◽  
Ursula Y. Sullivan ◽  
Timothy W. Aurand
Keyword(s):  
Structural Equation ◽  
Measurement Scale ◽  
Equation Modeling ◽  
Commercial Music ◽  
Content Type ◽  
Musical Intelligence ◽  
Personality Research ◽  
Confirmatory Factor ◽  
Potential Applications ◽  
Sonic Branding

Purpose – The purpose of the paper is to develop and test a psychometrically valid scale for musical intelligence as an individuating variable. This scale can elicit individual differences on reactions to sonic branding stimuli such as audio logos, radio jingles and commercial music. Design/methodology/approach – A two-step confirmatory factor analysis followed by structural equation modeling was used to develop and test the scale. Data were collected across three studies consisting of 470 participants. The scale was developed and nomologically validated. Findings – Findings suggest that musical intelligence discriminates reactions to music as evidenced by the three component conceptualization of musical intelligence. Originality/value – This study offers an original, three-component conceptualization of musical intelligence, proposes a measurement scale and then presents evidence of construct validity. Finally, the paper discusses potential applications of the scale in personality research.

Competency based superior performance and organizational effectiveness

2019 ◽  
Vol 68 (4) ◽  
pp. 753-773 ◽  
Author(s):  
Sateesh V. Shet ◽  
S.V. Patil ◽  
Meena R. Chandawarkar
Keyword(s):  
Performance Measurement ◽  
Performance Management ◽  
Organizational Effectiveness ◽  
Structural Equation ◽  
Superior Performance ◽  
Equation Modeling ◽  
Performance Practices ◽  
Content Type ◽  
Competency Based ◽  
The Relationship

Purpose The purpose of this paper is to explore the relationship between competency-based performance management and organizational effectiveness (OE). It signifies the importance of developing competency-based performance concept in organizations. Since conventional performance management systems (PMSs) are diminishing and as organizations are looking for breakthrough PMSs, this research attempted to fill the gap from stakeholder’s perspective – employee, manager and organization in devising new approach in PMS. Design/methodology/approach The research design involved developing scale for “competency-based superior performance” and validating scale for “organizational effectiveness,” The data for this survey are collected from 292 respondents through structured questionnaire. Hypotheses depicting aforementioned relationships were empirically tested in the context of competency-based performance practices in organizations based in India. Structural equation modeling (SEM) technique was used for data analysis. Findings The empirical results provide methods to accelerate the performance management initiatives based on a leadership competency model (LCM), which are necessary for building performance culture in the organization. The paper contributes by developing a new scale for measuring competency-based performance practices. The scale for OE is revisited. A positive relationship between competency-based superior performance and OE with productivity, adaptability and flexibility has been empirically confirmed using SEM. Research limitations/implications The paper limits the performance measurement concept using leadership competencies. Practical implications The developed model will act as a building block for performance measurement in organizations. This paper promotes LCM to be applied in creating a performance-based culture. Originality/value This is a unique attempt to test the relationship between competency-based performance management and OE.

Innovation orientation and its relationship with business performance: moderating role of firm size

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rayees Farooq ◽  
Sandeep Vij ◽  
Jaspreet Kaur
Keyword(s):  
Firm Size ◽  
Structural Equation ◽  
Business Performance ◽  
Equation Modeling ◽  
National Capital Region ◽  
Confirmatory Factor Analyses ◽  
Content Type ◽  
National Capital ◽  
Managerial Level ◽  
The Relationship

Purpose The study aims to test the relationship between innovation orientation (INO) and business performance. It also explores the moderating effect of firm size on the relationship between INO and business performance. Design/methodology/approach A purposive sample of 278 firms (manufacturing and service) was taken from the National Capital Region and the Punjab state of India. The survey questionnaire was administered to two to three managerial-level employees from each of the 278 firms. Exploratory and confirmatory factor analyses were used to validate the INO and business performance scales. The hypotheses were tested using multi-group moderation analysis and structural equation modeling. Findings The study shows that INO has a significant positive effect on business performance. The results have indicated that firm size (based on the number of employees) moderates the relationship between INO and business performance. However, firm size (based on investment) does not moderate the relationship between INO and business performance. Originality/value The study is an attempt to synthesize the fragmented results testing innovation–performance relationship using firm size as a moderator on the relationship between INO and business performance and provides insights for both academicians and practitioners.

How salespersons induce trust between consumers and retailers

2015 ◽  
Vol 43 (12) ◽  
pp. 1104-1125 ◽  
Author(s):  
Molka Abbes ◽  
Alain Goudey
Keyword(s):  
Structural Equation ◽  
Well Being ◽  
Product Distribution ◽  
Measurement Scale ◽  
Equation Modeling ◽  
Content Type ◽  
Brick And Mortar ◽  
Key Dimensions ◽  
Managerial Level

Purpose – Although there is existing research investigating trust itself, there is a need for research on the concept of trust, specifically in retail environments. The purpose of this paper is to identify specific the dimensions of the concept of trust with retailing and to note impactful antecedents as activators for managers to secure long-term business. Design/methodology/approach – The authors propose a multi-dimensional measurement scale of trust that is examined through a structural equation modeling the connections between the determinants of the concept and its various features. Findings – This research has identified two new key dimensions for trust, specific to the well-being retailing context: customer/salesperson relationship and customer/sales environment relationship. Hence, this research primarily highlights the role of the salesperson and advice in establishing and sustaining the customer-retailer trust relationship. Practical implications – On the managerial level, this research helps further an advanced relational approach in the area of consumer product distribution by paying particular attention to building and developing a trust-based relationship. This research may serve as a “handbook” for any retailer looking to establish and sustain a durable relationship with their customers. Originality/value – The paper adapts the concept of trust in the specific context of brick-and-mortar retailing and tests it thanks to a quantitative study in the field of well-being retailing. The paper uses empirical data to establish original indications regarding: new relevant dimensions for trust in a retailing context that could be used by shop managers to develop a better comprehension of trust and impactful antecedents of trust in a retailing context that could be activated by shop managers to enhance trust regarding their shops.

scholarly journals Localization of computer-mediated communication and corporate impression on online communities

2019 ◽  
Vol 29 (4) ◽  
pp. 940-969 ◽  
Author(s):  
Christine Hallier Willi ◽  
Bang Nguyen ◽  
T.C. Melewar ◽  
Suraksha Gupta ◽  
Xiaoyu Yu
Keyword(s):  
Online Communities ◽  
Structural Equation ◽  
Source Credibility ◽  
Computer Mediated Communication ◽  
Measurement Scale ◽  
Equation Modeling ◽  
Intention To Use ◽  
Measurement Scales ◽  
Content Type ◽  
Context Cues

Purpose The purpose of this paper is to investigate the importance of localizing online communities (OCs) and examines how OC members form impressions of organizations that use OCs in their communication activities. A conceptual framework and measurement scale are developed that consist of complex latent constructs. Design/methodology/approach A sequential multi-method approach is adopted with both qualitative and quantitative investigations. Using Structural equation modeling, the research refines and validates the measurement scales of impression formation in OCs. Findings Findings reveal that comprehensive messages have a direct effect on the impressions that an OC member forms. In particular, social context cues are an important predictor of online community corporate impression (OCCIP). Source credibility, affiliation, characteristics and interpersonal communication are all critical to OCCIP, which in turn, influence members’ attitudes toward the company and the intention to use it again. Surprisingly, relevance, timeliness, accuracy and perceived similarity did not have any significant effect on the corporate impression. Originality/value Three contributions are offered: First, the study provides reliable scales for measuring OCCIP. Second, support is given to the conceptual model that links OCCIP to a set of consequences, namely, attitudes toward the company, intention to use the company, and word-of-mouth. Finally, the study is conducted across two different and unique types of OC contexts, stipulating further insights into the localization of OCs.

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