scholarly journals From family business orientation to organisational citizenship behaviour: prosocial behaviour in family business performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aluisius Hery Pratono ◽  
Ling Han
Keyword(s):  
Family Business ◽  
Moral Obligation ◽  
Social Practice ◽  
Business Performance ◽  
Additional Contribution ◽  
Prosocial Behaviour ◽  
Content Type ◽  
Family Orientation ◽  
Business Orientation

PurposeThis article seeks to understand the role of prosocial behaviour and moral obligation in family business to explain the indirect relationship between family business orientation and citizenship behaviour.Design/methodology/approachThis study proposes a model to examine the role of moral obligation and prosocial behaviour in such a relationship to understand a link between family orientation and organisational citizenship behaviour. The authors provide empirical evidence to test the hypothesis by conducting an online survey of family business behaviour in the Indonesia context.FindingsThe family business orientation has a significant impact on citizenship behaviour, while prosocial behaviour and moral obligation offer an additional contribution. The results suggest that family business performance demonstrates how a family that owns the business sets the social purposes from various performance alternatives beyond profit, such as family orientation, prosocial behaviour, moral obligation and organisational citizenship behaviour.Originality/valueThis study extends the agency and stewardship theory by examining how family business performance becomes different from other firm performance where the mainstream of economic theory argues that the business attempts to maximise profit for the stakeholders. The findings suggest that incorporating the theory of social practice in family business enhances the concept of prosocial behaviour in family business value.

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.

scholarly journals Family Business Orientation: A literature review

2018 ◽  
Author(s):  
Aluisius Hery Pratono ◽  
Maria Felecia Cindy Hutomo
Keyword(s):  
Literature Review ◽  
Family Business ◽  
Family Members ◽  
Five Dimensions ◽  
The Family ◽  
Family Orientation ◽  
Individual Family ◽  
Business Orientation

This study aims to discuss the concept of family orientation by addressing the question of how individual family members relate to the family business. This study extends the previous works on entrepreneurial family orientation. Family orientation has five dimensions, such as tradition, trust, loyalty, stability, and interdependency.

Knowing new managerial directions: the role of AIS

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Carmela Rizza ◽  
Daniela Ruggeri
Keyword(s):  
Social Practice ◽  
Accounting Systems ◽  
Accounting Information System ◽  
Content Type ◽  
Accounting Practice ◽  
Knowing That ◽  
Global Logistics ◽  
Knowledge Object

Purpose This paper aims to better understand how an accounting information system (AIS), working as a multidimensional knowledge object, engages users in a new round of knowledge development which allows them to explore new managerial directions. Drawing on the concept of the knowledge object and the knowing in practice perspective, this study considers the relationships between subjects and objects in the explication of accounting practice, underlining how AIS could become a knowledge object that can assume a variety of forms, starting from such contradictions emerging from practice. Design/methodology/approach Theoretical argumentations are applied to a case study at a global logistics provider in the South of Italy, which manages the supply chain from origin to destination, offering a multitude of services in the transport and distribution sector. Findings The case study shows that the process of knowledge accumulation promotes the mutation of AIS into a knowledge object that, in its variety of forms, allows managers to explore new managerial directions such as the reorganization of warehouse activities. Originality/value The paper seeks to enrich the interpretation of AIS as a multidimensional knowledge object becoming a catalyst of new managerial directions through knowing. That helps to understand the role of accounting tools as a social practice supporting decision-making and how accounting systems’ openness and questioning nature makes them objects of enquiry able to support the identification of new managerial directions and lead the AIS to continually explode and mutate into something else.

Servitization and business performance: the moderating effects of environmental uncertainty

2019 ◽  
Vol 35 (5) ◽  
pp. 803-815 ◽  
Author(s):  
Ying Zhang ◽  
Longwei Wang ◽  
Jie Gao ◽  
Xin Li
Keyword(s):  
Business Performance ◽  
Demand Uncertainty ◽  
Adjustment Costs ◽  
Manufacturing Firm ◽  
Content Type ◽  
Technological Turbulence ◽  
Coordination Costs ◽  
Benefits And Costs ◽  
Moderating Role

Purpose To obtain in-depth explanations of the effects of servitization, this paper aims to analyse the benefits and costs at different servitization levels. The authors also investigate the moderating roles of demand uncertainty and technological turbulence on such effects. Design/methodology/approach The authors use the resource-based view (RBV) and transaction cost economics (TCE) to analyse the varying benefits and costs associated with servitization at its different levels and proposes the hypotheses. Then they use the survey data of 239 Chinese manufacturing firms to empirically test these hypotheses. Findings The interplay among service benefits, adjustment costs and coordination costs results in a nonlinear relationship between servitization and business performance. A negative servitization–performance relationship is observed at low levels of servitization as adjustment costs would be dominant. At moderate servitization levels, a positive relationship is observed because service benefits increase substantially and outweigh the increase in adjustment and coordination costs. As servitization levels further increase, coordination costs become dominant and a negative servitization–performance relationship reappears. The study further shows the significant moderating role of demand uncertainty and the insignificant moderating role of technological turbulence. Research limitations/implications This study provides a nuanced understanding of the curvilinear effects of servitization on business performance in response to the calls for detailed insights from quantitative studies. Practical implications The findings provide guidance on the degree to which the manufacturing firm should extend its service businesses based on demand and technological environments. Originality/value This is one of the pioneering empirical studies applying RBV and TCE to examine the varying benefits and costs across different servitization levels. The findings provide insight into the ongoing discussion about “service paradox” and “deservitization”.

Frontline employees’ engagement and business performance: the mediating role of customer-oriented behaviors

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Behrooz Ghlichlee ◽  
Fatima Bayat
Keyword(s):  
Business Performance ◽  
Banking Sector ◽  
Retail Banking ◽  
Mediating Effect ◽  
Business Trend ◽  
Frontline Employees ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

Purpose Within the retail banking sector, the customer-centric business model has become an important and new business trend in recent years. The enhancement of the frontline service employees’ engagement and their customer-oriented behaviors are among the key factors affecting business performance (BP) in this sector of the banking industry. The purpose of this paper is to improve management decisions to enhance BP through examining the relationship between the frontline employees’ engagement and BP while taking into account the mediating effect of customer-oriented behaviors on this relationship. Design/methodology/approach A quantitative approach was adopted to conduct the present study, and the respondents were sampled from a large commercial bank in Iran using a structured questionnaire. Overall, 50 branch managers and 90 frontline employees were selected using random sampling. A confirmatory factor analysis was conducted to ascertain the validity and reliability of the observed items and a structural equation model was used for testing the proposed hypotheses and research framework. Findings The findings showed that customer-oriented behaviors mediated the relationship between the frontline employees’ engagement and bank’s branches’ BP. Higher levels of the frontline employees’ engagement enhance the customer-oriented behaviors. It was revealed that the frontline employees are engaged in their job and organization. Moreover, the engaged frontline employees listen carefully to customers, the customer’s problem is important to them and they complete their tasks precisely for customers. It has been confirmed that customer-oriented behaviors enhance branches’ BP. The bank frontline employees’ engagement and customer-oriented behaviors, in turn, affected the bank’s branches’ financial performance, process performance and employee performance compared with the bank’s key competitors. Research limitations/implications This study highlights the value of empirically establishing how employee customer-oriented behaviors are affected by employee engagement as an integrative construct bringing together BP. Practical implications This study can help improve BP by increasing the frontline employees’ engagement and their customer-oriented behaviors. This study suggests that organizations using the findings of this study could effectively assess their frontline employees’ engagement and their customer-oriented behaviors and then plan for improving them. Social implications This study offers a customer-oriented initiative as a social responsibility to be considered by retail banks. In light of the social exchange theory, the banks valuing customer-oriented can provide employees with knowledge, skills, values and support to develop motivation and abilities to demonstrate customer-oriented organizational citizenship behaviors. Originality/value Previous studies demonstrated that the employees’ engagement affects their customer-oriented behaviors. In addition, studies have referred to the effect of employees’ customer-oriented behaviors on BP. However, to the best of the knowledge, key questions regarding how the employees’ engagement at the branch level fosters customer-oriented behaviors and, in turn, the bank’s branches’ BP, remain unanswered. Hence, this study contributes to the investigation of the mediating role of the frontline employees’ customer-oriented behaviors in the relationship between their engagement and branches’ BP in the retail banking sector.

Passing on the legacy: exploring the dynamics of succession in family businesses in Pakistan

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asma AbdulRahim Chang ◽  
Muhammad Shujaat Mubarik ◽  
Navaz Naghavi
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Design Methodology ◽  
Family Firms ◽  
Family Members ◽  
Family Businesses ◽  
Content Type ◽  
Traditional Family ◽  
Interviewing Technique

PurposeBy taking the theory of entrepreneurial legacy as the baseline, this study explores the various aspects of succession planning in indigenous family businesses especially the role of female family members in succession and conflicts in family businesses.Design/methodology/approachThe study is qualitative in nature and adopts narrative inquiry to explore the aspects of succession planning. In doing so, the study utilizes an in-depth interviewing technique with nine participants who run their family-owned firms which are mostly in their second or third generation for analysis.FindingsThe findings are concurrent with the literature that indicates a lack of strategic succession planning although ordinary or natural succession does occur in some firms. The study also reports a lack of consideration for female members in succession, daughters in particular, for traditional family firms (FFs) in contrast to entrepreneurial FFs.Research limitations/implicationsThe study has many implications for family-owned firms in Pakistan as they need to align their family business with the theory of entrepreneurial legacy and its three strategic activities in order to ensure the longevity of their business.Originality/valueExploring how succession planning takes place in family indigenous family businesses and what is the role of female family members in succession and conflicts in family businesses are original contributions of this study.

R&D volatility and market value: the role of executive overconfidence

2019 ◽  
Vol 14 (2) ◽  
pp. 411-431
Author(s):  
Benlu Hai ◽  
Qingzhu Gao ◽  
Ximing Yin ◽  
Jin Chen
Keyword(s):  
Business Performance ◽  
Positive Impact ◽  
Market Value ◽  
Data Set ◽  
Content Type ◽  
Dynamic Perspective ◽  
Innovation Strategies ◽  
The Impact ◽  
The Relationship

Purpose Significant increase or decrease in research and development (R&D) expenditure may have an immense impact on market value. Based on the punctuated equilibrium theory, this paper aims to empirically analyze the impact of R&D volatilities on market value and the moderating effect of executive overconfidence. Design/methodology/approach The study uses the panel data set that covers 902 Shanghai and Shenzhen A-share manufacturing listed firms and multiple regression method to test the theoretical hypotheses. Findings The results show that both positive and negative R&D volatilities have a robust and significant positive impact on the market value. Further analysis shows that the executive overconfidence positively moderates the relationship between R&D volatilities and market value. Research limitations/implications In a rapidly changing and highly competitive environment, firms should recognize that the balance of innovation strategies will help to bring higher market value. Furthermore, firms could improve corporate governance to make the best of managerial characteristics, such as overconfidence, on the innovation decision-making process. Originality/value By pushing the static perspective to a dynamic perspective and empirically documenting the role of executive overconfidence, this study contributes to the literature on the relationship between R&D expenditure and market value, generating theoretical and practical insights for firms to improve innovation governance and innovation strategies to achieve better business performance.

The relationship between EFQM enablers and business performance

2019 ◽  
Vol 30 (4) ◽  
pp. 684-706 ◽  
Author(s):  
Dimitrios Kafetzopoulos ◽  
Katerina Gotzamani ◽  
Dimitrios Skalkos
Keyword(s):  
Factor Analysis ◽  
Quality Management ◽  
Business Performance ◽  
Innovation Performance ◽  
Equation Modeling ◽  
Future Research ◽  
Content Type ◽  
Mediating Role ◽  
Efqm Model

PurposeThe purpose of this paper is to examine the extent to which the five European Foundation for Quality Management (EFQM) model enablers, as the latent factor “enabler excellence,” are associated with business performance, taking into consideration the mediating role of innovation in this relationship.Design/methodology/approachThe analysis followed in order to investigate the relations among the various constructs of the proposed model includes an initial exploratory factor analysis, followed by confirmatory factor analysis and finally structural equation modeling.FindingsAccording to the study findings, “enabler excellence” and innovation performance directly contribute to business performance. Moreover, this paper concludes that innovation performance partially mediates the effect of excellence enablers on business performance.Research limitations/implicationsThis study does not separate between radical and incremental innovation; thus, it would be very interesting to explore this issue in future research. Moreover, it might be useful for researchers to reassess the proposed relationships examining the mediating role of organizational culture.Practical implicationsThis study offers clear implications for managers, proving that they should give higher emphasis on quality management (QM) and the four dimensions of innovation in order to achieve increased performance.Originality/valueBased on the multidimensional structure of the EFQM model, this empirical study determines the contribution of QM to business performance taking into consideration the role of innovation performance as a mediator in this relationship.

Intellectual capital and business performance: the role of dimensions of absorptive capacity

2019 ◽  
Vol 21 (1) ◽  
pp. 23-39 ◽  
Author(s):  
Syed Saad Ahmed ◽  
Jia Guozhu ◽  
Shujaat Mubarik ◽  
Mumtaz Khan ◽  
Essa Khan
Keyword(s):  
Absorptive Capacity ◽  
Intellectual Capital ◽  
Business Performance ◽  
Partial Least Square ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship ◽  
Realized Absorptive Capacity

Purpose The purpose of this paper is to empirically examine the mediating role of potential and realized absorptive capacity in intellectual capital (IC) and business performance. It also investigates the direct impact of the components of IC on business performance. Design/methodology/approach Partial least square-structural equation modeling (PLS-SEM) was used to assess the effect of IC dimensions on performance and to analyze the mediating role of absorptive capacity in this relationship. Data were collected from 192 managers using a survey questionnaire with Likert scale items. Findings The findings of the study show that potential absorptive capacity does not intervene in the relationship between the components of IC and those of business performance. However, realized absorptive capacity, measured as the transformation and exploitation of knowledge, played a positive mediating role in the relationship between the dimensions of IC and those of business performance. Social capital was also noted as a weak predictor of business performance, while human capital and organizational capital had a profound positive influence. Originality/value This study contributes to the literature on IC by examining the role of realized and potential absorptive capacity in the relationship between IC components and firm performance. This research also helps practitioners recognize the importance of transformation and the exploitation of knowledge for business performance.

Family business governance: what’s wrong? What’s right? What’s next?

2019 ◽  
Vol 9 (1) ◽  
pp. 1-23
Author(s):  
Irfan Saleem ◽  
Faiza Khalid ◽  
Muhammad Nadeem
Keyword(s):  
Family Business ◽  
Generation X ◽  
Family Firm ◽  
Board Structure ◽  
Content Type ◽  
Academic Level ◽  
The Family ◽  
Governance Practices

Learning outcomes This case study can help the reader to understand how to build an effective board for family business, and why evolving board structure can help family firm to sustain for a longer period in Market. Reader can also learn about role of independent director, CEO's Succession process and ways to deal with duality issue that family owned enterprise may face during a transition from generation X to Y. Case overview/synopsis This teaching case study describes various decision-making situations using example of a Pakistani family firm and entrepreneurs who started the business few decades back in France. This partially disguised case is based on actual events. The data are collected based on discussions with family business owners and minutes of meetings. The objective of study is to make sense of the family business theories e.g. socio emotional wealth stakeholder and agency. Case readers can also learn about the family’s business governance practices using diverse scenarios presented in this case. Complexity academic level This study is suitable for graduate and undergraduate studies. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 7: Management science.

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