How does the speed of institutional change affect the allocation of entrepreneurship in family firms

2017 ◽  
Vol 8 (4) ◽  
pp. 447-474
Author(s):  
Jun Ma ◽  
Xuan He ◽  
Lina Zhu ◽  
Xinchun Li ◽  
Ye Liu
Keyword(s):  
Institutional Change ◽  
Large Scale ◽  
Family Firms ◽  
Negative Relationship ◽  
Practical Significance ◽  
Chinese Family ◽  
Total Recovery ◽  
Content Type ◽  
Family Enterprises ◽  
Productive Activities

Purpose This paper, from the perspective of based view of dynamic system, aims to take the family enterprise as a sample to articulate how the speed of institutional change affects the entrepreneur’s spirit collocation of family enterprises and investigate the moderating effects of the scale of enterprises as well. Design/methodology/approach This paper uses survey database from Chinese research of private enterprise group in 2010 with the ninth national large-scale private entrepreneurs, and the legal source of data comes from research center for Chinese family firm of Sun Yat-Sen University. A total of 4,900 questionnaires are issued, 4,614 are recovered and the total recovery rate is 94.16 per cent. In this paper, STATA12.0 is used for data processing and basic regression testing. To overcome the possible existence of the different variance problem, the authors use the feasible generalized least squares to estimate the model. Findings The speed of institutional change will lead to the reduction of unproductive activities and the increase of productive activities in the area where the speed of institutional change is slow. Meanwhile, the scale of enterprise can reverse the negative relationship between the speed of institutional change and unproductive activities. The speed of institutional change will lead to the reduction of unproductive activities and the increase of productive activities in the area where the speed of institutional change is fast. Meanwhile, the scale of enterprises can reverse the positive relationship between the speed of institutional change and the unproductive activities. Originality/value It can be concluded that because of the difference of the regional market, a positive U-type reflects the relationship between the speed of institutional change and the entrepreneur’s allocation of entrepreneurship in family firms, whereas the scale of enterprises plays a key role of nonlinear regulation. This research has a certain theoretical value and practical significance on the understanding of how family firms make strategic decisions in response to institutional change and it can further enrich the research results of entrepreneurship allocation theory and institutional change theory.

Governance conflict in Chinese family firms

2018 ◽  
Vol 29 (4) ◽  
pp. 446-469 ◽  
Author(s):  
Fan Yu ◽  
Pingtian Wang ◽  
Yun Bai ◽  
Dandan Li
Keyword(s):  
Firm Performance ◽  
Capital Investment ◽  
Family Firms ◽  
Least Square ◽  
Chinese Family ◽  
Promotion Effect ◽  
Content Type ◽  
Section Data ◽  
Family Enterprises ◽  
Family Based

Purpose According to the real environment of China, the authors collect micro data about Chinese family firms (FFs) to explain why some Chinese FFs still tend to introduce external managers though they have to face governance conflict between family-based managers and external managers. Design/methodology/approach This study analyzes the effect of governance conflict between family-based managers and external managers on firm performance by using ordinary least square test, which is also used to test which factor has influence on governance conflict’s profit promotion effect. Findings This study finds that governance conflict significantly improves firm performance (profit promotion effect). The governance conflict caused by the introduction of external managers in Chinese FFs can significantly improve a firm’s performance by raising its management efficiency and capital investment. Research limitations/implications The governance conflict of the family business needs to be further refined in following research. Besides, this study is only based on the empirical study of cross-section data. Originality/value Different from the existing related research is mainly based on the sample data of listed family enterprises, the China employer-employee matched survey data includes a large number of small and medium-sized FFs, and has obtained the actual situation of how many of the middle and senior managers are external not family members.

Coping mechanisms of Philippine tourism and hospitality family businesses during the COVID-19 pandemic: a non-parametric approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Andrea Santiago ◽  
Fernando Martin Roxas ◽  
John Paolo Rivera ◽  
Eylla Laire Gutierrez
Keyword(s):  
Rural Areas ◽  
Family Firms ◽  
The Philippines ◽  
Academic Community ◽  
Family Businesses ◽  
Content Type ◽  
Family Enterprises ◽  
Tourism And Hospitality ◽  
The Impact ◽  
Non Parametric

PurposeFamily businesses (FB), mostly small-sized, dominate the tourism and hospitality industry (THI), especially in the rural areas. While many would have been used to the impact of demand seasonality, it is unknown how these businesses would have survived through the restrictions imposed to contain the coronavirus disease 2019 (COVID-19) pandemic as compared to non-family business (NFB) counterparts. This study aims to determine if there were differences on how family and non-family enterprises in the THI coped with government restrictions.Design/methodology/approachBy subjecting the survey data from tourism enterprises to non-parametric techniques, the authors establish empirical evidence on similarities and differences of coping strategies adopted by FBs and NFBs; their required support from government and their perceptions of a post-pandemic THI.FindingsThe analysis revealed that family-owned tourism and hospitality businesses in the Philippines tended to collaborate with other businesses to manage the impact of the pandemic restrictions. Since they hired more seasonal workers prior to the restrictions, they tended to avoid hiring workers during the restricted period. NFBs, on the other hand, that were generally larger in size and more professionally managed with more regular employees, tended to streamline operations for greater efficiency.Research limitations/implicationsThe study relied on survey results distributed and collected online. There is an innate bias against those firms that did not have access to the survey links.Practical implicationsThe comparative study suggests that interventions to assist firms in the THI should consider the differences in firm ownership as “one size does not fit all.”Social implicationsThe study provides evidence about how environmental factors impact the operations of family firms. Thus, it provides valuable insights for both the academic community and industry practitioners.Originality/valueThis is the first study in the Philippines that was able to capture response of family and non-family firms in the THI during the COVID-19 lockdown.

Family meals and identity in urban China

2015 ◽  
Vol 32 (7) ◽  
pp. 505-519 ◽  
Author(s):  
Hongyan Yu ◽  
Ann Veeck ◽  
Fang (Grace) Yu
Keyword(s):  
Large Scale ◽  
Dynamic Environment ◽  
Urban China ◽  
Family Meals ◽  
Chinese Family ◽  
Family Identity ◽  
Household Expenditures ◽  
Family Structures ◽  
Chinese Cities ◽  
Content Type

Purpose – This study aims to, with family structures in urban China becoming increasingly diverse, examine how and to what extent the characteristics of everyday family meals relate to the establishment and strengthening of a collective sense of the Chinese family. Integrating ritual and family identity theories developed through studies conducted in the West, the research explores the relationship between family identity and the major dimensions that characterize ritualistic practices through an examination of family dinners in a non-Western context. Design/methodology/approach – The mixed-method approach combines a qualitative phase (focus groups and interviews) with a large-scale survey of households (n = 1,319) in four Chinese cities. Findings – The results find a positive relationship between family identity and commitment to family meals, as well as continuity promoted through family meals, at a 99 per cent confidence level. Research limitations/implications – One important research limitation is that the sample was limited to four cities. In addition, it is difficult for quantitative measures to capture the richness of emotionally and symbolically laden constructs, such as communication, commitment, continuity and family identity. Practical implications – The results provide insights into the meanings of family meals in China. With over one-third of household expenditures spent on food in Chinese cities, the formulation of brand positions and promotions can be informed through a greater understanding of the influence of family dynamics on food consumption. Social implications – The findings indicate that, within China’s dynamic environment of changing family values, strengthening the ritualistic characteristics of everyday family activities, such as family meals, can lead to an increase in a collective sense of family. Originality/value – The study demonstrates under what conditions, within this rapidly changing socioeconomic environment, the family dinner provides stability and a sense of unity for Chinese families. In China, a trend toward individualization is accompanied by a deep-seeded sense of obligation toward family that exerts an important influence on meal composition and patterns.

Successful bottom-up faculty collaboration during institutional change

2015 ◽  
Vol 7 (2) ◽  
pp. 308-330 ◽  
Author(s):  
Hsuying C. Ward ◽  
Ming-Tsan P. Lu ◽  
Brendan H. O'Connor ◽  
Terry Overton
Keyword(s):  
Institutional Change ◽  
Teaching And Learning ◽  
Large Scale ◽  
Institutional Transformation ◽  
Bottom Up ◽  
Content Type ◽  
Faculty Collaboration ◽  
Teaching And Learning Environment ◽  
Starting Point

Purpose – The purpose of this paper is to outline findings from practitioner research with a university faculty learning community (FLC) that organized itself to effect bottom-up change. The study explores beliefs about the efficacy of collaboration among members of the FLC and serves as a best case of grassroots faculty collaboration during a period of institutional change. Design/methodology/approach – This is a case study using semi-structured interviews with FLC members and document review of short-term learning data from students who participated in workshops offered by the FLC. Findings – Creative faculty responses to challenges posed by large-scale institutional transformation improved the teaching and learning environment for faculty and students. This case study highlights four characteristics that were crucial to the success of this FLC and which could provide a helpful starting point for faculty collaboration at other institutions. Research limitations/implications – This is a preliminary, self-reflective study with a small number of participants working at a unique institution. Findings are presented not as strictly generalizable truths about faculty collaboration in higher education, but as “lessons learned” that may be valuable to other faculty seeking to take a more proactive role in contexts of institutional change. Practical implications – This case study highlights four characteristics that were crucial to the success of this FLC and which could provide a helpful starting point for faculty collaboration at other institutions. Social implications – This study illustrates how bottom-up, faculty-led collaboration can address institutional problems in a university setting. Creative faculty responses to challenges posed by large-scale institutional transformation can improve the teaching and learning environment for faculty and students. Originality/value – This study documents one FLC’s innovative responses to institutional challenges and shifts the conversation about university-based teaching and learning away from bureaucratic mandates related to faculty interactions and productivity and toward faculty’s organic responses to changing institutional conditions.

The effect of internal controls on financial reporting quality in Iranian family firms

2019 ◽  
Vol 9 (3) ◽  
pp. 254-270 ◽  
Author(s):  
Mahmoud Lari Dashtbayaz ◽  
Mahdi Salehi ◽  
Toktam Safdel
Keyword(s):  
Financial Reporting ◽  
Family Firms ◽  
Negative Relationship ◽  
Reporting Quality ◽  
Internal Controls ◽  
Financial Reporting Quality ◽  
Content Type ◽  
Listed Firms ◽  
Significant Negative Relationship

PurposeThe purpose of this paper is to investigate the relationship between internal controls weakness and financial reporting quality and the effect of family ownership on the mentioned relationship in Iranian listed firms.Design/methodology/approachIn this way, the authors included the number of 139 firms from 2013 to 2017, of which 28 were family firms. The hypotheses are analyzed based on panel data and means comparison.FindingsThe results illustrated that weakness in internal controls has a significant negative relationship with financial reporting quality. In other words, internal controls weakness decreases the quality of financial reporting quality. Moreover, the results showed that being familial does not affect the aforementioned relationship.Originality/valueConsequently, there is no suitable criteria to distinguish family firms and there is a need to take them into serious consideration because very few studies have been conducted focusing on this issue in Iran, as it is considered an argumentative subject to be discussed in the Iranian market.

Family firm versus non-family firm: the role of resource orchestration in fast-growing high-tech SMEs

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Torbjörn Ljungkvist ◽  
Börje Boers ◽  
Jim Andersén
Keyword(s):  
Large Scale ◽  
Firm Growth ◽  
Family Firms ◽  
Family Firm ◽  
Comparative Case Study ◽  
High Tech ◽  
Content Type ◽  
Resource Orchestration ◽  
Paradoxical Growth

PurposeThis paper strives to understand the role of resource orchestration (RO) in the rapid growth of high-tech small and medium-sized enterprises (SMEs).Design/methodology/approachBased on a comparative case study, RO is compared between a high-tech family firm and a high-tech non-family firm. To capture the complexity of RO, this study applies a longitudinal approach using a large volume of archival and interview data gathered over ten years.FindingsThe configuration of family-firm paradoxical growth-oriented RO emphasizes RO based on collectivism and responsibility, although relying on large-scale conforming normative control. In contrast, the configuration of non-family-firm growth-oriented RO emphasizes administrative-based delegation and management-supported value creation.Originality/valueBy suggesting ownership-based RO configurations, this study provides insights into how ownership types, i.e. family firms and non-family firms, affect RO in firms operating in complex and dynamic environments. These configurations explain how and why RO is arranged in a growth context.

Will conjugal relationship affect the corporate innovation? – Empirical evidence from a-share listed family business in China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yupeng Xu ◽  
Bo Cheng ◽  
Fei Pan
Keyword(s):  
Empirical Evidence ◽  
Family Business ◽  
Family Firms ◽  
Listed Companies ◽  
Content Type ◽  
Positive Effects ◽  
Family Enterprises ◽  
Enterprise Innovation ◽  
The Impact ◽  
A Share

Purpose Few studies have focused on the impact of conjugal control and non-conjugal control on the innovation capability of family firms. In the context of the relative lack of research on the relationship between family firm heterogeneity and innovation ability, this study aims to focus on the differentiated impact of husband–wife-controlled family listed companies and non-husband–wife-controlled family listed companies on their innovation capabilities, which provides empirical evidence with more Chinese institutional and cultural characteristics for the development of corporate organizational management and innovation theories. Design/methodology/approach Taking all A-share listed family firms from 2007 to 2016 as the research sample, this paper examines the influence of spousal control on firm innovation level by empirical research method. Findings The empirical results show that compared with non-spousal-controlled family enterprises, spousal-controlled family enterprises have significant positive effects on the level of enterprise innovation. Further studies suggest that joint management of spousal-controlled family enterprises improves the level of innovation. Authority difference of the couple will weaken the innovation capacity. However, the wife’s professional skills can promote the innovation level. Originality/value Focusing on the characteristics of family internal structure and embedding marriage relationship in the enterprise organization, this paper investigates the influence of different characteristics of husband and wife and cooperation mode on enterprise innovation, and the conclusion enriches the theory of family business and family science, as well as provides important information reference for the stakeholder groups in the capital market.

The role of founder reign in explaining family firms' R&D investment: evidence from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xi Zhong ◽  
Tiebo Song ◽  
Liuyang Ren
Keyword(s):  
Family Firms ◽  
Negative Impact ◽  
Analytical Framework ◽  
Chinese Family ◽  
Firm Innovation ◽  
Content Type ◽  
Strategic Actions ◽  
Impact On Family ◽  
The Impact ◽  
D Investment

PurposeBased on the socioemotional wealth theory, this study aims to empirically investigate how founder reign, that is a founder serving as a cheif executive officer (CEO) or chairman, influences family firms' research and development (R&D) investment in emerging economies (e.g. China).Design/methodology/approachThis study empirically tested the hypotheses based on a sample of listed Chinese family companies from 2008 to 2018.FindingsFounder reign has a negative impact on family firms' R&D investment. Particularly, the negative impact of the founder serving as chairman on family firms' R&D investment is larger than the negative impact of the founder serving as CEO on family firms' R&D investment. Founder's military experience weakens the negative impact of founder reign on family firms' R&D investment, but founder's executive master of business administration (E)MBA experience has no moderating effect on this relationship.Originality/valueFirst, the authors contribute to the family firm innovation literature by providing an alternative but complementary explanation of why family firms have relatively low R&D investment levels. This research shows that founder reign is a key reason for family firms in China eschewing R&D investment. Second, by incorporating the founder serving as CEO and the founder serving as chairman into the analytical framework, and then examining their impact on family firms' R&D investment, our research helps us to fully understand the impact of founder reign on firm strategic actions. Third, we contribute to the “founder reign-firm strategic actions” framework by revealing how founders' human capital profoundly affects the relationship between founder reign and family firms' R&D investment.

Are family firms good neighbours? A spatial analysis of Italian technology-intensive firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stefano Amato ◽  
Valentina Pieroni ◽  
Nicola Lattanzi ◽  
Giampaolo Vitali
Keyword(s):  
Family Firms ◽  
Secondary Data ◽  
Spatial Proximity ◽  
Future Research ◽  
Family Status ◽  
Cross Sectional ◽  
Productivity Spillovers ◽  
Content Type ◽  
Family Enterprises

PurposeA burgeoning body of evidence points out the importance of spatial proximity in influencing firm efficiency besides internal characteristics. Nevertheless, the family status of the firm has been traditionally overlooked in that debate. Therefore, this study aims to investigate productivity spillovers stemming from the geographical closeness to innovators and family firms.Design/methodology/approachUsing secondary data on Italian technology-intensive manufacturing firms, the paper exploits spatial econometric models to estimate productivity spillovers across firms.FindingsAs regards the presence of spatial dependence, this study reveals that a firm's level of efficiency and productivity is influenced by that of nearby firms. Specifically, three main results emerge. First, spatial proximity to innovators is beneficial for the productivity of neighbouring firms. Second, closeness to family firms is a source of negative externalities for spatially proximate firms. However, and this is the third result, the adverse effect vanishes when the nearby family firms are also innovators.Research limitations/implicationsAs the study relies on cross-sectional data, future research should explore productivity spillovers in a longitudinal setting. Additionally, the channels through which productivity spillovers occur should be measured.Practical implicationsThe study highlights the importance of co-location for public policy initiatives to strengthen the competitiveness of firms and, indirectly, that of localities and regions. Moreover, the findings show the crucial role of innovation in mitigating the productivity gap between family and non-family firms.Social implicationsNotwithstanding the advent of the digital era, spatial proximity and localized social relationships are still a relevant factor affecting firms' performance.Originality/valueBy exploring the role of family firms in influencing the advantages of geographical proximity, this study contributes to the growing efforts to explore family enterprises across spatial settings.

Linking psychological ownership to employee extra-role behaviours in small overseas Chinese family businesses

2015 ◽  
Vol 7 (2) ◽  
pp. 129-147 ◽  
Author(s):  
Michael Mustafa ◽  
Hazel Melanie Ramos ◽  
Thomas Wing Yan Man
Keyword(s):  
Family Firms ◽  
Two Dimensions ◽  
Family Businesses ◽  
Psychological Ownership ◽  
Business Success ◽  
Chinese Family ◽  
Overseas Chinese ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to examine the impact of psychological ownership (both job and organisational based) on extra-role behaviours among family and non-family employees in small overseas Chinese family businesses. Design/methodology/approach – Empirical evidence was drawn from a survey of 80 family owners/managers and non-family employees from 40 small overseas Chinese family businesses from the transport industry in Malaysia. All proposed hypothesis were tested using hierarchical moderated regression analyses. Findings – Job-based psychological ownership was found to significantly predict both types of extra-role behaviours. Organisational-based psychological ownership, however, was only a significant predictor of voice extra-role behaviour. Interestingly enough, no significant moderating effects on the relationships between the two dimensions of psychological ownership and two types of extra-role behaviour were found. Originality/value – Having a dedicated workforce of both family and non-family employees who are willing to display extra-role behaviours may be considered as an essential component of business success and long-term continuity for many family firms around the world. This particular paper represents one of the few empirical efforts to examine the extra-role behaviours of employees in family firms from emerging economies.

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