Bankruptcy at family and non-family firms: do they fail differently?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Christine Mitter ◽  
Michaela Walcher ◽  
Stefan Mayr ◽  
Christine Duller
Keyword(s):  
Design Methodology ◽  
Family Firms ◽  
Social Ties ◽  
Social Bonds ◽  
Firm Characteristics ◽  
Management Tools ◽  
Content Type ◽  
Economic Slowdown ◽  
Bad Debt ◽  
Practical Implications

PurposeFamily firms strive for transgenerational survivability. Thus, bankruptcy is a daunting event. Whether family firms fail for other causes than non-family firms has been scarcely researched and is investigated in this study.Design/methodology/approachThe paper draws on a sample of 459 Austrian bankruptcy cases to examine the effects of the distinct characteristics of family firms on failure causes.FindingsOur results indicate that family firm characteristics impact their failure, as bankruptcy causes differ from non-family firms. While family firms fail less often than non-family firms due to unqualified management and poor business-economic competencies, external bankruptcy causes, in particular bad debt and economic slowdown, are more widespread.Practical implicationsAs our findings suggest that the close social bonds of family firms may become a burden in crisis situations and make them especially prone to external bankruptcy causes, owner-managers should pay more attention to the dependencies, deficiencies and risks that come with their binding social ties. Moreover, they should rely on external advice and appropriate management tools to better recognize and fend off the resulting risks.Originality/valueTo the best of our knowledge, this is the first study that quantitatively examines differences in bankruptcy causes between family and non-family firms.

Corporate payout-form: investors’ preference and catering theory

2018 ◽  
Vol 44 (12) ◽  
pp. 1418-1433
Author(s):  
Abdelaziz Chazi ◽  
Alexandra Theodossiou ◽  
Zaher Zantout
Keyword(s):  
Design Methodology ◽  
Policy Formulation ◽  
Future Research ◽  
Stock Repurchases ◽  
Firm Characteristics ◽  
Content Type ◽  
Robust Measures ◽  
Practical Implications ◽  
Form Preference ◽  
Number Of Firms

Purpose The purpose of this paper is to develop and validate new robust measures of investors’ preference for the form of regular corporate payout. Then, the paper adds to the empirical evidence on catering theory by examining managers’ catering to such preference. Design/methodology/approach The authors use the matching method to control for firm characteristics. The authors apply two robustness tests to validate the measures. The authors use the rigorous multivariate analysis. Findings US investors’ preference for regular dividends vs regular stock repurchases, being different forms of corporate payout, varies over time. Managers cater to investors’ preference for payout form. The findings are consistent with the catering theory of Baker and Wurgler (2004a). The number of firms that pay cash dividends regularly continue to outnumber the ones that purchase their shares regularly. Research limitations/implications The study only uses US data. It does not cover other countries. Practical implications The measures can be used in several future research endeavors, such as examining investors’ payout-form preferences in other countries (see Booth and Zhou, 2017) and exploring their determinants, the corporate governance characteristics of firms that cater to investors’ preference vs firms that do not, etc. Social implications The study contributes to understanding investors’ preferences and corporate payout behavior which is prerequisite to efficient policy formulation. Originality/value The proxies for investors’ payout-form preference control for firm characteristics and are unrelated to investors’ time-varying risk preferences. Also, they are robust to measurement issues. Moreover, the study covers a period of 40 years.

A family-enterprise collective certification trademark: consumer insight

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anna Maria Nikodemska-Wolowik ◽  
Piotr Zientara ◽  
Anna Zamojska
Keyword(s):  
Family Business ◽  
Design Methodology ◽  
Family Firms ◽  
Research Work ◽  
Strong Relationship ◽  
Content Type ◽  
Family Enterprise ◽  
Negative Perceptions ◽  
Consumer Insight ◽  
Practical Implications

PurposeThe purpose of this study is to find out how consumers respond to a proposed family-enterprise collective certification trademark and how they perceive family firms in general.Design/methodology/approachThe paper employs a quantitative approach. It draws on a questionnaire survey conducted among 1,091 Polish consumers in January 2018. Statistical methods, such as exploratory factor analysis, were applied.FindingsPolish consumers responded positively to the proposed trademark. It also turned out that those who pay attention to the producer or the brand owner in a given sector also pay attention to the symbols placed on products or services from these sectors. There was a strong relationship between consumers' positive perceptions of family firms and their assessments of the proposed trademark. This did not extend to negative perceptions. The findings from this study may be generalisable to other post-communist societies.Practical implicationsFamily firms should redouble their efforts to introduce a family-enterprise collective certification trademark (not only in Poland, but also in those countries where such a trademark is non-existent). This should be handled by umbrella bodies for family business.Originality/valueLittle research work, based on a large and representative sample, has so far focussed on the issue of how consumers respond to a family-enterprise identity. The value of this study lies in deepening understanding of the processes and mechanisms that underlie the organisation–consumer relationship within the context of family-enterprise operation.

Family firms taking surprising risks: building success on conservative values

2019 ◽  
Vol 40 (5) ◽  
pp. 21-27 ◽  
Author(s):  
Mark Lehrer ◽  
Stefan Schmid
Keyword(s):  
Risk Taking ◽  
Design Methodology ◽  
Family Firms ◽  
Risk Mitigation ◽  
Content Type ◽  
Substantial Risk ◽  
Conservative Values ◽  
Major Facilitator ◽  
Open Question ◽  
Practical Implications

Purpose This paper aims to explore hidden wellsprings of risk-taking in family firms. Design/methodology/approach The high tolerance for risk shown repeatedly by the famous family firm Hipp of Germany is documented. Three major risk-taking episodes at Hipp are examined. Findings Counterintuitively, conservative values were actually a major facilitator of risk-taking at Hipp. Research limitations/implications The ramifications for other family firms, especially in Germany’s so-called Mittelstand, are examined. An open question is whether the relevant scope of the foregoing analysis may be confined to national contexts like German Mittelstand with its highly developed sector of family firms. Practical implications Contrary to received wisdom, family firms with conservative values may actually have certain advantages in their capacity not only to assume certain types of risks but also to mitigate such risks. Especially the communitarian embeddedness of such values may provide a layer of risk mitigation. Social implications At least in some countries, such as Germany, family firms are indeed willing to engage in substantial risk-taking. With their approach of combining conservative values and risk-taking, they contribute to considerable wealth and societal development. Originality/value Conservatism in management and risk-taking propensity are usually thought of as antipodes. However, it is necessary to distinguish between conservatism (which usually equates to risk aversion) and conservative values (which, as shown, may be highly compatible with a willingness to engage and succeed in risky undertakings).

Quality management in the global brewing industry

2015 ◽  
Vol 32 (1) ◽  
pp. 42-52 ◽  
Author(s):  
Charisis G. Vrellas ◽  
George Tsiotras
Keyword(s):  
Quality Management ◽  
Best Practices ◽  
Design Methodology ◽  
Future Research ◽  
Brewing Industry ◽  
Management Tools ◽  
Content Type ◽  
The World ◽  
Quality Tools ◽  
Practical Implications

Purpose – The purpose of this paper is to stimulate interest in the use of quality management methods and tools and to provide a basis and direction for further improvement in the global brewing industry. Design/methodology/approach – The methodology that is followed in the paper is based on the study of quality management tools and best practices in global brewing companies. Findings – From all evidence found by this research, the conclusion is that quality management can dramatically improve certain operations and reduce cost or increase profit as well. All of the global brewing companies examined in this paper have their quality policies and each one of them uses what fits best to its business profile. Research limitations/implications – This study refers to some of the largest brewing companies in the world. Future research could be addressed toward the analysis of other smaller brewing companies, which are characterized by the concepts of quality management. Practical implications – The analysis of quality management in the global brewing industry may cause the interest of other brewing companies and other stakeholders affected by this industry. Quality tools can be very useful for dealing with problems and improving procedures in a brewery. Furthermore, the extension of this work with detailed references to these tools could produce a quality guide for brewing companies. Originality/value – The value of this paper lies in the identification and presentation of tools and quality policies which have been successfully developed by global brewing companies and may as well be implemented by others.

Strategic Agility: using Agile teams to explore opportunities for market-creating innovation

2017 ◽  
Vol 45 (3) ◽  
pp. 3-9
Author(s):  
Stephen Denning
Keyword(s):  
Strategic Management ◽  
Customer Value ◽  
Design Methodology ◽  
Marketing Concept ◽  
Management Tools ◽  
Content Type ◽  
Management Concepts ◽  
Strategic Agility ◽  
Agile Teams ◽  
Practical Implications

Purpose Describes how Agile teams can use strategic management tools and processes to discover market-creating innovations. Design/methodology/approach The related article “The next frontier for Agile: strategic management” in the previous issue of Strategy & Leadership explored the theory and possibilities of enterprise-wide Strategic Agility, a combination of Agile mindset and processes with strategic management theory to produce continuous market-creating innovation. This second installment offers insights from noted practitioners about implementing it. Findings The strategic concepts of Kim & Mauborgne’s Blue Ocean Strategy, Clayton Christensen’s Job to Be Done theory and Curt Carlson’s SRI Playbook – Need, Approach, Benefits per costs and Competition (NABC) can be adopted by Agile teams seeking innovations that create new customer value. Practical implications Identifying a well-defined Job to Be Done produces the start of an innovation blueprint which is unlike the traditional marketing concept of “needs” because of the much higher degree of specificity required to identify precisely what problem your potential solution would address. Originality/value Using strategic management concepts, Agile teams can redefine how needs are being met and in the process, discover value for customers from offering something or doing something that the company or the industry currently doesn’t provide.

The auditor as consigliere in family firm

2017 ◽  
Vol 7 (1) ◽  
pp. 2-20 ◽  
Author(s):  
Sven-Olof Yrjö Collin ◽  
Jenny Ahlberg ◽  
Karin Berg ◽  
Pernilla Broberg ◽  
Amelie Karlsson
Keyword(s):  
Design Methodology ◽  
Family Firms ◽  
Response Rate ◽  
Family Firm ◽  
Social Implications ◽  
Content Type ◽  
The Family ◽  
Professional Independence ◽  
Practical Implications

Purpose The purpose of this paper is to develop and test a concept of auditor as consigliere in family firms, that captures additional functions to monitoring, those of advice, mediating, and conveying. Design/methodology/approach The concept is tested through a survey conducted on 309 Swedish auditors. Findings The data indicate that the consigliere role is generally not emphasized, indicating that auditors primarily perform the monitoring role of the audit. However, the authors do find indications of the auditor performing the consigliere role, through performing the advisory and mediating functions and, to a smaller degree, the conveying function. Research limitations/implications The survey is limited in response rate and in separating governance situations from consigliere functions. Practical implications With reservation for professional independence, the auditor as consigliere could be part of the governance of the family firm, but should be trained for this activity. Social implications Regulators should pay attention to the consigliere role when, for example, stipulating compulsory rotation of auditors. Originality/value The paper shows that the auditor is more than a monitor in family firms. The consigliere role, even if not at all dominating, has to be considered, at least in family firms.

Exploring the influence of doctor–patient social ties and knowledge ties on patient selection

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shuqing Chen ◽  
Xitong Guo ◽  
Tianshi Wu ◽  
Xiaofeng Ju
Keyword(s):  
Health Literacy ◽  
Patient Selection ◽  
Design Methodology ◽  
Social Ties ◽  
Unstructured Data ◽  
Content Type ◽  
Online Consultation ◽  
Online Platforms ◽  
Patient Health ◽  
Practical Implications

PurposeWith the advent of the Digital 2.0 era, online doctor–patient (D–P) interaction has become increasingly popular. However, due to the fact that doctors use their fragmented time to serve patients, online D–P interaction inevitably has some problems, such as the lack of pertinence in the reply content and doctors' relative unfamiliarity with their individual patients. Therefore, the purpose of this study is to excavate whether potential D–P social ties and D–P knowledge ties accentuate or attenuate the influence of patient selection (online and offline selection).Design/methodology/approachThe authors used the methods of text mining and empirical analysis on the structured and unstructured data of an online consultation platform in China to examine the research hypotheses.FindingsThe findings illustrate that the potential D–P social ties increase the influence on patient selection, as do the potential D–P knowledge ties. Specifically, the effect of social ties on patient selection is positively moderated by patient health literacy. Conversely, health literacy weakens the link between knowledge ties and patient selection. In addition, the doctor's title weakens the influence of social ties on patient selection, in contrast to knowledge ties (partially).Originality/valueThis study provides guidance for doctors and patients on how to communicate effectively and alleviate tension within D–P relationships. The study’s findings have both theoretical and practical implications for both doctors' and online platforms' decision-making.

Risk management tools practiced in Islamic banks: evidence in MENA region

2014 ◽  
Vol 5 (1) ◽  
pp. 77-97 ◽  
Author(s):  
Rim Ben Selma Mokni ◽  
Abdelghani Echchabi ◽  
Dhekra Azouzi ◽  
Houssem Rachdi
Keyword(s):  
Risk Management ◽  
Design Methodology ◽  
Liquidity Risk ◽  
Public Disclosure ◽  
Islamic Banks ◽  
Mena Region ◽  
Management Tools ◽  
Content Type ◽  
Self Administered Questionnaire ◽  
Practical Implications

Purpose – The main purpose of this study is to investigate in detail the way each risk is being measured and managed by Islamic banks in the MENA region. Design/methodology/approach – This research attempts to examine the perceptions of Islamic bankers about the importance of transparency and public disclosure in the understanding of the bank's risk profile. It covers 23 Islamic banks located in the MENA region using self-administered questionnaire. Findings – The results show that there are differences in the level of risk perception across funding modes. Also Islamic banks use extensively the traditional tools in mitigating risk. Practical implications – The paper discusses and analyses the current practices employed in the risk management of Islamic banks. It identifies the tools and methods used in managing credit risk, market risk, liquidity risk and operational risk by Islamic banks. Originality/value – This study aims to extend the existing literature in two ways. First, this paper contributes to the dearth of studies on examination of tools practiced in the risk management by Islamic banks located in the MENA region. Next, this work integrates the methods used in the management of liquidity risk that have not been studied earlier.

What affects the export entrepreneurship of SMEs?

2020 ◽  
Vol 30 (2) ◽  
pp. 265-278
Author(s):  
Channappa Santhosh
Keyword(s):  
Conceptual Framework ◽  
Design Methodology ◽  
Social Ties ◽  
Small And Medium Enterprises ◽  
International Market ◽  
Engineering Industry ◽  
Content Type ◽  
Medium Enterprises ◽  
Practical Implications

Purpose The purpose of this paper is to analyse the different drivers’ and its impact on the export entrepreneurship (EE) of small and medium enterprises (SMEs). Design/methodology/approach The proposed conceptual framework has been tested through analysis of a sample of 102 internationalized (exports) SMEs of the Engineering industry in the Bangalore district, Karnataka, India. Findings Results reveal that firms with younger entrepreneurs who have industry-specific experience and different social ties are able to achieve higher performance. Practical implications Overall, results facilitate understanding of the importance of entrepreneurial capabilities to successfully formulate and strategize their international efforts to achieve better performance in the international market. Originality/value The study enhances the importance of understanding the role of different drivers on EE in the context of an emerging economy where studies are limited and largely unexplored till date.

Implementing corporate sustainability

2014 ◽  
Vol 5 (4) ◽  
pp. 378-404 ◽  
Author(s):  
Sarah Elena Windolph ◽  
Stefan Schaltegger ◽  
Christian Herzig
Keyword(s):  
Design Methodology ◽  
Corporate Sustainability ◽  
Positive Influence ◽  
Institutional Factors ◽  
Management Tools ◽  
Sustainability Management ◽  
Content Type ◽  
Practical Implications ◽  
Corporate Practice

Purpose – The purpose of this paper is to conduct an empirical analysis among large German companies to enhance the understanding of whether and which institutional factors influence the application of sustainability management tools. Stepping from corporate sustainability visions to implementation requires the application of management tools. A multitude of sustainability management tools have been proposed in literature. Research on their application in corporate practice is, however, scarce. Design/methodology/approach – Based on a survey of large German companies and publicly available data, this paper tests the influence of corporate sustainability networks, indices, standards and the awareness of sustainability management tools on their application in corporate practice. Findings – A particularly strong positive relation exists between awareness and application of sustainability management tools. Standards are also found to have a positive influence, while the influence of networks and indices is less strong. Our findings suggest that the application of sustainability management tools can be fostered through the promotion and increasing awareness of tools. Research limitations/implications – The analysis is based on a survey of large German companies. Factors of institutional isomorphism are tested. Further research is needed for small- and medium-sized enterprises (SMEs) and the influence of further aspects such as competitive and psychological factors. Practical implications – The findings of this paper suggest that the application of sustainability management tools can be fostered particularly well through increasing awareness and the active promotion of tools. Networks, indices and standard help increase awareness. Originality/value – The analysis unveils the role of institutional factors influencing the application sustainability management tools in corporate practice.

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