Entrepreneurial orientation and sustainability initiatives in family firms

2018 ◽  
Vol 9 (2) ◽  
pp. 160-178 ◽  
Author(s):  
Drake Mullens
Keyword(s):  
Entrepreneurial Orientation ◽  
Family Firms ◽  
Socially Responsible ◽  
Content Type ◽  
High Performing ◽  
Top Managers ◽  
Generation Family ◽  
Southwestern Usa ◽  
Sustainability Initiatives ◽  
The Relationship

Purpose This paper aims to examine the relationship between family firm generation, performance and entrepreneurial orientation (EO) in investments in sustainability initiatives. The objective of this research is to establish EO as an important antecedent of investments in sustainability initiatives, assess EO’s interaction with firm performance and establish that later-generation family firms are more environmentally and socially responsible. Design/methodology/approach Data were collected in-person from 151 top managers in automobile and motorcycle dealerships in the southwestern USA. Regression analysis was utilized to analyze the hypothesized relationships. Findings EO is significantly and positively related to investments in sustainability initiatives. That relationship is dependent on the performance of the firm. At low levels of EO, high-performing firms invest significantly more in sustainability initiatives. However, at high levels of EO, low-performing firms invest slightly more in sustainability initiatives. The generation of the family business is moderately related to sustainability investments, with later-generation family firms investing more. Originality/value The findings herein bridge the gap between the entrepreneurship and sustainability literature by establishing EO as an important antecedent of corporate responsibility. Further, the results indicate that firm mechanisms such as EO are more important than the performance of the firm or slack resources available.

A Configurational Approach of the Relationship Between Entrepreneurial Orientation and Growth of Family Firms

2009 ◽  
Vol 23 (1) ◽  
pp. 27-44 ◽  
Author(s):  
Jose C. Casillas ◽  
Ana M. Moreno ◽  
Jose L. Barbero
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Family Firms ◽  
Internal Variable ◽  
Configurational Approach ◽  
Generation Family ◽  
Spanish Family ◽  
Positive Sense ◽  
The Relationship ◽  
Environmental Hostility

The present research aims to improve scholars’ understanding of the relationship between entrepreneurial orientation (EO) and the growth of family firms in two areas. The authors propose that the EO—growth relationship is contingent on different contextual variables—environmental dynamism and environmental hostility—and an internal variable—generational involvement. Also, they consider EO to be a composite construct integrated from and related to different independent dimensions. Using information from 317 Spanish family firms, results show that (a) EO positively influences growth only in second-generation family businesses, (b) the moderating influence of the generational involvement is related to the risk-taking dimension, and (c) dynamism and hostility of the environment, respectively, moderate the relationship between EO and growth in a positive sense.

Birth mode of family firms, family entering time and R&D investment: evidence from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Zulfiqar ◽  
Shihua Chen ◽  
Muhammad Usman Yousaf
Keyword(s):  
Agency Theory ◽  
Family Firms ◽  
Family Firm ◽  
Research Database ◽  
Content Type ◽  
Firm Birth ◽  
The Relationship ◽  
D Investment ◽  
Moderating Role

PurposeOn the basis of behavioural agency theory and resource-based view, this study investigates the influence of family firm birth mode (i.e. indirect-established or direct-established), family entering time on R&D investment and the moderating role of the family entering time on the relationship between birth mode and R&D investment.Design/methodology/approachThe authors collected 2,990 firm-year observations from family firms listed on A-share in China from 2008 to 2016 in the China Stock Market and Accounting Research database. They used pooled regression for data analysis and Tobit regression for robustness checks.FindingsIndirect-established family firms show more inclined behaviour towards R&D investment than direct-established counterparts. Family entering time positively affects the R&D investment of family firms. Moreover, family entering time plays a significant moderating role in the relationship between family firm birth mode (i.e. indirect-established or direct-established) and R&D investment.Originality/valueTo the best of the authors’ knowledge, this work is a pioneering study that introduced the concept of family firm birth mode (i.e. indirect-established or direct-established) and family entering time. This work is novel because it differentiated family firms according to their birth modes, an approach which is a contribution to the existing literature of family firms. Moreover, the investigation of the moderating role of family entering time has also produced notable results that help understand the impact of family entering time on different types of family firms. The interpretation of outcomes according to behavioural agency theory also produced useful insights for future researchers as well as for policymakers.

Strategic orientations, firm performance and the moderating effect of absorptive capacity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manuel-Alejandro Ibarra-Cisneros ◽  
María del Rosario Demuner-Flores ◽  
Felipe Hernández-Perlines
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Manufacturing Firms ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Orientations ◽  
The Relationship

PurposeThe purpose of this article is to study the moderating effect of absorptive capacity, defined as the set of organizational routines and processes through which companies acquire, assimilate, transform and exploit knowledge to produce a dynamic organizational capacity (Zahra and George, 2002), in three strategic orientations: market orientation; technology orientation and entrepreneurial orientation and their positive relationship in the performance of the medium and large Mexican manufacturing firms. Likewise, it is determined whether these three combined SOs influence firm performance.Design/methodology/approachThe data was collected from 171 medium and large-sized Mexican manufacturing firms. The proposed hypotheses are tested using partial least square structural equation modeling (PLS-SEM).FindingsDespite the importance of knowledge for the development of firms, the results indicate that the moderating effect of absorptive capacity is only present in the relationship between entrepreneurial orientation and firm performance. That is, firms cannot take advantage of knowledge simultaneously between the three strategic orientations. For their part, market orientation and entrepreneurial orientation exert a positive influence on firm performance.Practical implicationsThe main practical implication for the manufacturing industry is that they must develop mechanisms to detect what kind of knowledge affects each strategic orientation, in this way it can make the absorptive capacity influence the relationships between SO and FP.Originality/valueThe main contribution consists of studying the moderating effect of the absorptive capacity on the relationship between three strategic orientations and firm performance, and not concentrating solely on the simultaneous use of these strategies as is commonly done.

Entrepreneurial orientation, knowledge management, dynamic capabilities towards e-commerce adoption of SMEs in Indonesia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Dharma Tuah Putra Nasution ◽  
Ahmad Rafiki ◽  
Adelina Lubis ◽  
Yossie Rossanty
Keyword(s):  
Knowledge Management ◽  
Risk Taking ◽  
Significant Relationship ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Quantitative Methodology ◽  
Cross Sectional Survey ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this study is to examine the dimensions of entrepreneurial orientation (EO), knowledge management process (KMP) and dynamic capability (DC) toward the adoption of electronic commerce (e-commerce) of small and medium enterprises (SMEs) in North Sumatera. Design/methodology/approach This study used a quantitative methodology using Smart PLS of structural equation model. A survey is done by distributing the questionnaires to the respondents (owner-managers) of SMEs across sectors. Using a convenient sampling technique, 131 respondents were selected. Using a cross-sectional survey design, 11 hypotheses were tested. Findings It is found that both innovativeness and proactiveness of EO have a significant relationship with e-commerce adoption (EA), while the risk-taking of EO is found as insignificant. Both risk-taking and proactiveness of EO are significantly related to KMP, but innovation of EO is found to be insignificant. Moreover, KMP significantly mediates the relationship between risk-taking and proactiveness of EO and EA, while KMP insignificantly mediates the relationship between innovativeness of EO and EA. Finally, it is found that DC has a significant relationship in EA. Originality/value By using the resource based-theory, the study on the decision of EA by SMEs is conducted which focuses on a number of internal and external factors influencing the adoption decision. This differs from other studies using theories of the technological, organizational and environmental, theory of acceptance and use of technology, theory of planned behavior, theory of reasoned action and others which emphasized on the implementation and usage of EA.

Effect of links deformation on motion precision of parallel manipulator based on flexible dynamics

2017 ◽  
Vol 44 (6) ◽  
pp. 776-787 ◽  
Author(s):  
Chunxia Zhu ◽  
Jay Katupitiya ◽  
Jing Wang
Keyword(s):  
Parallel Manipulator ◽  
High Speed ◽  
Beam Theory ◽  
Parallel Manipulators ◽  
Dynamic Responses ◽  
Axial Deformation ◽  
Content Type ◽  
High Performing ◽  
Coupling Equations ◽  
The Relationship

Purpose Manipulator motion accuracy is a fundamental requirement for precision manufacturing equipment. Light weight manipulators in high speed motions are vulnerable to deformations. The purpose of this work is to analyze the effect of link deformation on the motion precision of parallel manipulators. Design/methodology/approach The flexible dynamics model of the links is first established by applying the Euler–Bernoulli beam theory and the assumed modal method. The rigid-flexible coupling equations of the parallel mechanism are further derived by using the Lagrange multiplier approach. The elastic energy resulting from spiral motion and link deformations are computed and analyzed. Motion errors of the 3-link torque-prismatic-torque parallel manipulator are then evaluated based on its inverse kinematics. The validation experiments are also conducted to verify the numerical results. Findings The lateral deformation and axial deformation are largest at the middle of the driven links. The axial deformation at the middle of the driven link is approximately one-tenth of the transversal deformation. However, the elastic potential energy of the transversal deformation is much smaller than the elastic force generated from axial deformation. Practical implications Knowledge on the relationship between link deformation and motion precision is useful in the design of parallel manipulators for high performing dynamic responses. Originality/value This work establishes the relationship between motion precision and the amount of link deformation in parallel manipulators.

Socioemotional wealth and human resource policies: effects on family firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Juan David Peláez-León ◽  
Gregorio Sánchez-Marín
Keyword(s):  
High Risk ◽  
Financial Performance ◽  
Human Resource ◽  
Family Firms ◽  
Equation Modeling ◽  
Positive Contribution ◽  
Socioemotional Wealth ◽  
Content Type ◽  
Firm Financial Performance ◽  
The Relationship

PurposeThis study analyses whether human resource management (HRM), through the use of four sets of high-performance work policies (HPWPs) (i.e. selection, training, motivation and opportunity policies), mediates the relationship between socioemotional wealth (SEW)—defined as a unique set of nonfinancial family goals—and firm financial performance when family firms face a high-risk context.Design/methodology/approachHypotheses were statistically tested using a structural equation modeling (SEM) methodology with a cross-sectional sample of 196 medium-sized and private family firms in a high-risk context in Spain.FindingsThe results indicate that the relationship between SEW and financial performance in family firms is fully mediated by the use of HPWPs, especially by training and motivation HR policies. The importance given to preserving SEW influences the use of four sets of HPWPs when family firms show clear evidence of being confronted by a financial decline (i.e. a high-risk context). However, to improve their financial results to avoid the firm's failure and thus the loss of their SEW, only those HR policies that focus on training and motivation made a significant and positive contribution to the firm financial performance.Originality/valueThis study contributes to the literature on family firms and HRM by adopting an alternative theoretical framework to understand how the importance of nonfinancial family goals may affect employee structures and management policies, thereby improving financial performance in family firms.

Family ownership and cooperative R&D: the moderating effect of political ties

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Feng Dong ◽  
Xiao Wang ◽  
Jiawen Chen
Keyword(s):  
Family Firms ◽  
Family Ownership ◽  
Content Type ◽  
Political Ties ◽  
Wealth Concentration ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role ◽  
Ability And Willingness

Purpose This study aims to investigate the impact of family ownership on cooperative research and development (R&D). Drawing on the ability and willingness paradox framework in family business research, the authors suggest that family ownership influences cooperative R&D via two opposing mechanisms: power concentration and wealth concentration. It also deepens the current understanding of the boundary conditions of informal institutions for the impact of family ownership on cooperative R&D by investigating the moderating role of political ties. Design/methodology/approach The authors analyze a panel of 610 Chinese manufacturing family firms and 2,127 firm-year observations from 2009 to 2017. Fixed effects regression analysis is used to test the hypotheses, with the two-stage Heckman model to address sample selection bias. Findings The research findings indicate that family ownership has an inverted U-shaped relationship with cooperative R&D and political ties moderate the relationship in such a way that the inverted U-shaped relationship will be steeper in firms with more political ties than in firms with fewer political ties. Practical implications Family ownership influences firms’ cooperative R&D through the positive effect of power concentration and the negative effect of wealth concentration. Family owners should, therefore, take advantage of concentrated power, for instance, by adapting quickly and committing sufficient resources to cooperative R&D opportunities, while controlling path-dependent relationship development caused by concentrated family wealth. The effect of political ties on the relationship between family ownership and cooperative R&D is found to be a double-edged sword. Originality/value This study extends the ability and willingness paradox framework and provides novel insights into cooperative R&D in family businesses by integrating power concentration and wealth concentration associated with family ownership. Moreover, this study provides a contingency perspective and introduces the moderating role of political ties in shaping cooperative R&D in family firms.

The family’s effect on knowledge sharing in family firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Isabel C. Botero ◽  
Ascensión Barroso Martínez ◽  
Galván Sanguino ◽  
Juliana Binhote
Keyword(s):  
Knowledge Sharing ◽  
Family Firms ◽  
Family System ◽  
Intergenerational Relationships ◽  
Family Characteristics ◽  
Content Type ◽  
The Family ◽  
Survey Responses ◽  
Family Leadership ◽  
The Relationship

Purpose The purpose of this study was to understand how the family system plays a role in knowledge sharing (KS) within family firms. The authors argue that the family’s influence can occur through two routes. An external route in which the family affects the culture of the organization and through an internal route in which family leadership within the firm affects the practices and behaviors within the business. Design/methodology/approach Data for this project came from the survey responses of 93 Spanish family firms. Findings The findings expand previous understanding about KS in family firms by outlining the two routes through which the family can have positive effect on KS within family firms. Results show that family system characteristics (i.e. next-generation commitment, family trust and intergenerational relationships) affect KS through their impact on the participative culture of a family firm. Additionally, when a family has been in control of the business for more generations, they place higher importance on family legacy and continuity, which is likely to strengthen the relationship between participative culture and KS in family firms. Originality/value Given the important role that the family system plays within the family business, this paper explored how family characteristics can influence KS in family firms. The authors contribute to the literature by highlighting the importance that the owning family can have in creating an environment that can facilitate KS in family firms.

Do women on corporate boardrooms influence remuneration patterns and socially responsible practices? Malaysian evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sitara Karim
Keyword(s):  
Generalized Method Of Moments ◽  
Gender Diversity ◽  
Executive Directors ◽  
Women Directors ◽  
Socially Responsible ◽  
Content Type ◽  
Upper Echelons Theory ◽  
Board Gender Diversity ◽  
The Relationship ◽  
Practical Implications

PurposeThe prime objective of this study is to investigate the moderating influence of executive and independent female directors on the relationship between remuneration packages (CEO and executive director) and socially responsible practices (marketplace, environment, community, workplace and money spent on CSR) of 483 Malaysian listed firms during 2006–2017.Design/methodology/approachThe dynamic estimator, namely, system generalized method of moments (GMM) given by Blundell and Bond (1998) has been employed on the dataset to control dynamic endogeneity, unobserved heterogeneity and simultaneity problems.FindingsFindings indicate that there is a significant relationship between remuneration patterns of CEOs and executive directors and socially responsible activities. In the same way, executive board gender diversity significantly, whereas independent board gender diversity insignificantly moderates the remuneration and CSR nexus.Practical implicationsThis study is particularly significant for regulatory bodies of Malaysia, e.g. Securities Commission Malaysia, Bursa Malaysia, policy makers, investors and managers. For academia, this study fetches support from agency theory, stakeholder theory and upper echelons theory and presents integrated theoretical approach to be considered for future research.Originality/valueThis paper is unique in providing empirical evidence on the moderating effect of both executive and independent women directors on the relationship between remuneration patterns of CEOs and executive directors and independent CSR activities for the first time. Moreover, this study has sourced several theoretical and practical implications. And, the study employs dynamic estimator for precise and concrete results.

Incubator networks and new venture performance: the roles of entrepreneurial orientation and environmental dynamism

2020 ◽  
Vol 27 (5) ◽  
pp. 727-747
Author(s):  
Wenqing Wu ◽  
Hongxin Wang ◽  
Fu-Sheng Tsai
Keyword(s):  
Entrepreneurial Orientation ◽  
New Ventures ◽  
Mediating Effect ◽  
New Venture ◽  
Environmental Dynamism ◽  
Content Type ◽  
Venture Performance ◽  
The Relationship ◽  
Moderating Role ◽  
New Venture Performance

PurposeThis study analyses the relationship between the networks of business incubators (BIs) and new venture performance. It proposes an integrated model for identifying the influence of BIs' internal and external networks on new venture performance through the entrepreneurial orientation (EO) and environmental dynamism.Design/methodology/approachThe study uses multiple regression analysis on a sample of 205 new ventures in Chinese BIs.FindingsBoth the internal and external networks of BIs positively affect new venture performance and EO has a mediating effect in this relationship. Environmental dynamism plays a positive moderating role in the relationship between BIs' internal and external networks and EO.Practical implicationsBased on the results of this study, incubator managers should focus on creating internal and external networks and leveraging network embeddedness to influence new venture performance. Further, new ventures should focus on strengthening their EO and fully consider the impact of environmental dynamism on EO implementation.Originality/valueTo address the research gaps in understanding how BI networks can support new venture growth, this study integrates BIs' internal and external networks and explores their impacts on new venture performance using co-production theory and the resource-based view. It thus opens the black box on how BI's networks affect performance from the EO perspective. Moreover, this study fully clarifies chain relationships by identifying and analysing the moderating role of environmental dynamism.

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