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.

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.

Achieving Sustained Competitive Advantage: A Family Capital Theory

2006 ◽  
Vol 19 (2) ◽  
pp. 135-145 ◽  
Author(s):  
James Hoffman ◽  
Mark Hoelscher ◽  
Ritch Sorenson
Keyword(s):  
Competitive Advantage ◽  
Business Performance ◽  
Family Businesses ◽  
Competitive Advantages ◽  
Capital Theory ◽  
Sustained Competitive Advantage ◽  
Family Capital ◽  
Low Levels ◽  
Potential Impact

Although it has been long asserted that family businesses hold advantages over nonfamily businesses, to date, there have been very few theories developed as to exactly why family businesses hold competitive advantages over nonfamily businesses. This article introduces the concept of family capital and proposes that family capital has potential impact on business performance. Specifically, this article suggests that family businesses with high levels of family capital possibly do hold a sustained competitive advantage over family businesses with low levels of family capital and/or nonfamily businesses.

Assessing the mediating effect of sustainable competitive advantage on the relationship between organisational innovativeness and firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vural Çağlıyan ◽  
Melis Attar ◽  
Aleem Abdul-Kareem
Keyword(s):  
Firm Performance ◽  
Competitive Advantage ◽  
Customer Value ◽  
Business Performance ◽  
Mediating Effect ◽  
Survey Method ◽  
Sustainable Competitive Advantage ◽  
Content Type ◽  
Theoretical Contribution ◽  
The Relationship

Purpose This study aims to assess the mediating effect of sustainable competitive advantage (SCA) on the relationship between organisational innovativeness (OI) and performance of small- and medium-sized enterprises (SMEs) operating in Konya, Turkey. Design/methodology/approach A survey method is used to collect the necessary data for this research. A total of 264 respondents from 83 SMEs partook in the study. In choosing the sample size, both purposive sampling and simple random techniques are used. The data gathered are analysed using SPSS program and Hayes PROCESS macro v.3.4.1. Findings The results of the analyses reveal that OI has a statistically significant positive effect on SCA and firm performance (FP). Moreover, SCA is found to have a mediating effect on the relationship between OI and FP. Practical implications Policymakers and management of SMEs need to show great commitment to innovativeness and relate it to SCA to create superior customer value, thereby leading to a holistic and long-term FP. Originality/value This study brings to the fore empirical evidence on how SCA serves as a mediator between OI and FP. It also contributes to the literature by focusing on three distinct but related variables. The study makes theoretical contribution by highlighting the role of the resource-based theory in enhancing business performance and SCA through strategic internal resources and innovative activities.

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.

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.

Cognitive consequences of business shut down. The case of Ugandan repeat entrepreneurs

2014 ◽  
Vol 20 (3) ◽  
pp. 263-277 ◽  
Author(s):  
Arthur Sserwanga ◽  
Gerrit Rooks
Keyword(s):  
Attribution Theory ◽  
Business Performance ◽  
Business Failure ◽  
Business Success ◽  
Past Performance ◽  
Content Type ◽  
Practical Applications ◽  
Subsequent Performance ◽  
Start Up ◽  
The Relationship

Purpose – The purpose of this paper is to focus on the cognitive and motivational consequences of a business failure, and their relation with subsequent start up success. The paper hypothesizes that if previous business failure was attributed to an internal and stable cause, subsequent business would be less successful compared to where an entrepreneur attributed business failure to an internal and unstable cause. Design/methodology/approach – The authors reviewed the literature on attribution theory in an achievement context and derived a hypothesis about the relation between causal thinking and subsequent business success. A survey amongst entrepreneurs in Uganda was carried out to yield insights on how attributions to past performance influence subsequent business performance. Findings – Entrepreneurs who attributed previous business failure to an internal, stable cause were found to be less successful in subsequent business start up. When repeat entrepreneurs attribute previous shut down to a lack of ability, they are less successful in a subsequent business start up. However, attributing the failure to a lack of effort, does not affect subsequent business success. Originality/value – The study reaffirms the importance of attributional thinking in entrepreneurship and provides empirical evidence on the relationship between the way entrepreneurs think about their previous performance and subsequent performance. Attributional thinking influences subsequent business actions and outcomes, which offers important practical applications. For instance training to change attributions of entrepreneurs may be used to influence their eventual performance.

Exploring the role of organizational learning activities in the quality management context

2017 ◽  
Vol 38 (3) ◽  
pp. 380-397 ◽  
Author(s):  
Seok-young Oh ◽  
K. Peter Kuchinke
Keyword(s):  
Organizational Learning ◽  
Quality Management ◽  
Competitive Advantage ◽  
Business Performance ◽  
Process Management ◽  
Management Practices ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Content Type ◽  
Business Outcomes

Purpose The purpose of this paper is to investigate the relationships between three quality management (QM) practices, leadership, people focus, and process management practices and organizational learning (OL) activities and business performance in Korean manufacturing businesses. Design/methodology/approach The study draws on 204 responses to a survey of Korean manufacturing companies listed on the Korea Composite Stock Price Index to test nine hypotheses with structural equation modeling (SEM). Findings The results from SEM show that leadership practices have a significant effect on people focus and process management practices, and that the three QM practices jointly influence OL. However, leadership, people focus, and process management practices do not have direct associations with business performance, but rather show statistically influence only via OL activities. The findings verify that OL has a mediating role in QM practices and business performance as a crucial resource that determines a firm’s competitive advantage. Originality/value An important implication of this study’s findings for managers or QM professionals is that learning takes place at multiple levels and is a crucial resource that determines a firm’s competitive advantage, bridging quality and business outcomes.

Supply risk management and competitive advantage: a misfit model

2015 ◽  
Vol 26 (3) ◽  
pp. 459-478 ◽  
Author(s):  
Jury Gualandris ◽  
Matteo Kalchschmidt
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Competitive Advantage ◽  
Business Performance ◽  
Future Research ◽  
Supply Chain Risk ◽  
Supply Risk ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications

Purpose – The purpose of this paper is to develop a model of congruence for the management of supply risk that is easy to apply, but also accurate. The authors also aim at providing empirical evidence about the relationship between misfit – i.e. the incongruence between a firm’s preparedness in (supply) risk management and the potential riskiness characterising the context – and competitive advantage. Design/methodology/approach – In line with the purpose, literature and field interviews were used to develop a model of congruence in the context of supply risk management (SRM) and operationalise it within a questionnaire. Then, the authors collected survey data to validate the model. Findings – Results show that competitive advantage decreases when the firm’s preparedness in SRM does not match to the pattern of risk conditions (i.e. environmental vulnerabilities). Research limitations/implications – The model of congruence here developed is simple to apply but offer effective decisions support. This study, thus, stimulates future research on the assessment and management of supply chain risk. This study, also, fosters the attention to the non-linear relationship between risk management and business performance. Practical implications – This study develops a model that can be used by practitioners to configure an optimal adoption of SRM practices. Also, the analysis allows to draw some specific recommendations for supply chain managers aiming at improving their preparedness in SRM. Originality/value – By relying on SRM literature, the balanced-resilience logic and the theoretical framework of contingency theory, this study develops and test a model of congruence that shows how companies can gain competitive advantage through the management of supply risk.

Business leaders’ views on the importance of strategic and dynamic capabilities for successful financial and non-financial business performance

2015 ◽  
Vol 64 (7) ◽  
pp. 908-931 ◽  
Author(s):  
Alan Simon ◽  
Chloe Bartle ◽  
Gary Stockport ◽  
Brett Smith ◽  
Jane E. Klobas ◽  
...  
Keyword(s):  
Business Performance ◽  
Dynamic Capabilities ◽  
Business Success ◽  
Organisational Performance ◽  
Content Type ◽  
Financial Measures ◽  
Big Picture ◽  
Strategic Capabilities ◽  
And Performance ◽  
The Relationship

Purpose – The purpose of this paper is to report on research that identifies the relationships that senior managers believe exist between capabilities and business success. In doing so, it addresses the need for more empirical research about the role of strategic and dynamic capabilities in organisational performance. It also highlights the critical strategic and dynamic capabilities that are most valuable for practising managers. Design/methodology/approach – A multi-method study was conducted. Eight types of strategic capability and ten types of dynamic capability commonly found in organisations were identified through consecutive literature review, web site content analysis and interviews with senior executives. A questionnaire survey was then used to ask senior officers of publicly listed Australian firms about the importance of each capability and financial and non-financial performance indicators. The relationship between capabilities and performance was measured by regression modelling. Findings – Good leadership with an innovative vision and selection and retention of good staff and developing their skills and capabilities were the stand out strategic capabilities. Strategic thinking about the big picture and the long-term and flexible leaders who can lead and manage adaptation to change were considered to be the most important dynamic capabilities. Strategic capabilities were more often associated with indicators of financial success, and dynamic capabilities were more often associated with non-financial measures of organisational performance. Originality/value – This is the first study to make a distinction between strategic and dynamic capabilities in examining the relationship between capabilities and business success. The results demonstrate that the distinction has both theoretical and practical value.

scholarly journals Linking Halal food certification and business performance

2017 ◽  
Vol 119 (7) ◽  
pp. 1606-1618 ◽  
Author(s):  
Mohamed Syazwan Ab Talib ◽  
Thoo Ai Chin ◽  
Johan Fischer
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Business Performance ◽  
Study Data ◽  
Operational Performance ◽  
Manufacturing Companies ◽  
Content Type ◽  
Business Outcomes ◽  
Halal Food ◽  
The Relationship

Purpose The purpose of this paper is to explore the relationship between Halal food certification (HFC) and business performance. This study argues that Halal food certificate implementation positively influences business performance. Design/methodology/approach A total of 210 Halal certified food manufacturing companies in Malaysia participated in the study. Data were gathered through a structured questionnaire and were analysed using partial least squares structural equation modelling technique. Findings The study proved that HFC has a positive relationship with operational performance. Additionally, operational performance mediates the relationship between HFC and financial performance. Altogether, this signifies that Halal food certificate implementation positively influences business performance. Practical implications By linking HFC and business performance, managers may be aware of the significant role of HFC in influencing operational and financial performance. It would entice more food companies to become Halal certified that opens up an opportunity to a lucrative Halal food industry. It also empirically justifies that a religion-based food certification has the ability to influence business performance, consistent with other established food standards such as ISO 22000 or HACCP. Originality/value Although numerous studies have concentrated on well-established food certifications, the expanding Muslim population, rising demand for Halal food, and lucrative Halal food market have raised the attention on HFC research among academicians and practitioners. This research is able to highlight the importance of implementing HFC among food companies as it could potentially lead to superior business outcomes.

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