Commentary: Exploiting and Exploring New Opportunities over Life Cycle Stages of Family Firms

Family firms vary with regards to success achieved in terms of opportunity creation and exploitation over time. Elaborating on this variation, this commentary argues that firms that simultaneously engage in multiple levels of innovation—incremental, progressive, and radical—are likely to enjoy sustainable performance advantages across generations. Toward this end, a strategic split of innovation responsibilities between family and nonfamily professionals is likely to be useful, contingent on the firm's life cycle and size. In terms of entrepreneurial expertise, a combination of causal and effectual thinking is necessary to ensure exploitation of already discovered or created opportunities and exploration of new ones.

Download Full-text

The Open Innovation Model of Coaching Interaction in Organisations for Sustainable Performance within the Life Cycle

Sustainability ◽

10.3390/su10103516 ◽

2018 ◽

Vol 10 (10) ◽

pp. 3516 ◽

Cited By ~ 4

Author(s):

Angelina Roša (Rosha) ◽

Natalja Lace

Keyword(s):

Life Cycle ◽

Open Innovation ◽

Growth And Development ◽

Driving Forces ◽

Life Cycle Stage ◽

Sustainable Growth ◽

Business World ◽

Sustainable Performance ◽

Life Cycle Stages ◽

Innovation Model

Organizations need innovation to be competitive and sustainable on their marketplace. Sustainable performance is an important precondition for growth and development. In spite of a body of literature, non-financial factors of sustainable performance remain an open issue. Coaching has gained considerable attention in the business world for its impact on sustainable performance. The current research investigates the use of coaching interaction to facilitate organizational sustainable growth and development in the context of Miller and Friesen’s five stage life-cycle model. The expert opinion survey is chosen as a central method of research. The questionnaire is developed on the literature review that is focused on the drivers for sustainable development throughout the life cycle, and the features of coaching that accelerate these driving forces. Fifteen experts took part in the survey conducted from November 2017 to January 2018. The results are estimated by considering the competence coefficient for each expert. The findings led to creation of an open innovation model, which displays relationships between the appropriate coaching forms and types and the organizational life cycle stages. The developed model enables choosing the optimal way of coaching delivery at any life cycle stage. This model is particularly valuable for the coaching support programs.

Download Full-text

The dividend signaling hypothesis and the corporate life cycle

Managerial Finance ◽

10.1108/mf-10-2019-0512 ◽

2020 ◽

Vol 46 (12) ◽

pp. 1569-1587

Author(s):

Narcisa Meza ◽

Anibal Báez ◽

Javier Rodriguez ◽

Wilfredo Toledo

Keyword(s):

Life Cycle ◽

Growth Stages ◽

Content Type ◽

Future Earnings ◽

Life Cycle Stages ◽

Dividend Signaling ◽

Corporate Life Cycle ◽

Firm’S Life Cycle ◽

Signaling Hypothesis ◽

The Relationship

PurposeThis paper aims to examine the relationship between the dividend signaling hypothesis and a firm's life cycle.Design/methodology/approachThe authors use Dickinson's (2011) methodology to develop a proxy for the firm's stages in its life cycle and to examine the relationship between dividends and future earnings following a nonlinear setting.FindingsUsing a sample of US firms during the 2000–2014 period, the authors find that the signaling hypothesis can be dependent on firm-specific characteristics, such as life cycle stages. The authors report that the relationship between dividend changes and subsequent earnings changes is different for different life stages. They also find that changes in the amount of the dividend provide some information about future earnings, especially during the early (introductory and growth) stages. These results are consistent with the use of earnings or return on assets as the dependent variables in models of earnings expectations.Originality/valueThe authors believe that this is the first time that the dividend signaling hypothesis has been linked to the life cycle of the firm.

Download Full-text

Firm’s Life Cycle Spurs the Dividend Payments: A Fallacy or an Actuality?

Paradigm ◽

10.1177/0971890719835630 ◽

2019 ◽

Vol 23 (1) ◽

pp. 36-52

Author(s):

Jasminder Kaur

Keyword(s):

Life Cycle ◽

Predictive Power ◽

Maturity Stage ◽

Sample Period ◽

Dividend Payment ◽

Independent Variables ◽

Decline Phase ◽

Dividend Payments ◽

Life Cycle Stages ◽

Firm’S Life Cycle

The study aims at testing the predictive power of life cycle proxies during the five life cycle stages in performing the accurate prognosis of dividend decisions of Indian companies. S&P BSE 500 companies have been selected for the study, and the sample period of 11 years commencing from 1 January 2005 to 31 December 2015 is taken. Life cycle of the firm is classified into five stages—introduction, growth, maturity, shake-out and decline phase. Cash flow patterns form the premise of such classification. All the four independent variables—size of company, proportion of cumulative retained profits as of total equity, total equity to total asset ratio and return on total assets (ROA)—turn out to be significant contributors in professing the occurrence of dividend payment event at the maturity stage of the firms’ life cycle.

Download Full-text

Corporate life cycle and cash holding decisions: A South African study

Investment Management and Financial Innovations ◽

10.21511/imfi.17(4).2020.10 ◽

2020 ◽

Vol 17 (4) ◽

pp. 102-110

Author(s):

Trust Chireka

Keyword(s):

Life Cycle ◽

South African ◽

Firm Size ◽

Cash Holdings ◽

Cash Holding ◽

Resource Based View ◽

Life Cycle Stages ◽

Corporate Life Cycle ◽

Firm’S Life Cycle ◽

Corporate Cash Holdings

The resource-based view theory suggests that as firms’ resource bases differ along the corporate life cycle, even corporate policies such as cash holdings vary along the life cycle. This study seeks to understand the effect of firm’s life cycle on corporate cash holding behavior. Previous literature has sought to investigate the firm and institutional determinants of corporate cash holdings. Using the resource-based view theory, this study investigates whether corporate life cycle can be another determinant of corporate cash holdings. A panel data analysis of a sample of 112 Johannesburg Stock Exchange (JSE) listed firms from 2011 to 2018 is utilized to determine if firm’s life cycle does influence cash holding behavior. Dickinson’s cash flow analysis is used to proxy life cycle stages and control other known determinants of corporate cash holdings such as firm size, leverage, profitability, dividend payments, and growth opportunities. Contrary to other studies, this study finds no significant relationship between life cycle stages and corporate cash holdings, suggesting that corporate cash holdings for South African firms are driven by other factors other than life cycle resource allocations. However, it is found that prior year cash balances, firm size, and profitability have significant positive relationships with cash holdings. It is also found that liquid asset substitutes, leverage, and investment opportunities exert a significant and negative influence on corporate cash holdings.

Download Full-text

The environmental impact of prefabricated renovation systems: a worthy alternative to on-site renovation?

IOP Conference Series Earth and Environmental Science ◽

10.1088/1755-1315/855/1/012007 ◽

2021 ◽

Vol 855 (1) ◽

pp. 012007

Author(s):

Y Decorte ◽

S De Meyer ◽

M Steeman

Keyword(s):

Life Cycle ◽

Environmental Impact ◽

Sandwich Panel ◽

Composite System ◽

Life Stage ◽

Reference Systems ◽

Timber Frame ◽

Life Cycle Stages ◽

The Impact ◽

Over Time

Abstract The conventional renovation practices, which are mainly characterized by time-consuming manual on-site techniques, partly contribute to the low renovation rate. Accordingly, a faster and more efficient approach is necessary. The implementation of prefabricated systems could offer a possible solution. These systems are increasingly being studied, but little is known about their environmental impact. Hence, this study investigates the environmental impact by means of Life Cycle Assessment (LCA) of two prefabricated façade renovation systems being a timber frame and a sandwich panel; and compares it to a well-known on-site technique, External Thermal Insulation Composite System (ETICS). First, reference designs are assembled. Subsequently, the impact of different life cycle stages is determined in order to clearly indicate differences between on-site and prefabricated systems. More specifically, the production, transport, replacement and end-of-life stage are assessed. In the end, the environmental impact is examined over time combining all stages. The results show that the prefabricated systems are not yet a worthy ecological opponent to ETICS. As of the production stage, the environmental impact appears to be higher. Optimising the reference systems through an extensive redesign could lead to more competitive or even favourable results in terms of environmental impact.

Download Full-text

Firm Life Cycle and Investment Inefficiency

Journal of Accounting and Strategic Finance ◽

10.33005/jasf.v3i2.86 ◽

2020 ◽

Vol 3 (2) ◽

pp. 169-184

Author(s):

Amelia Graciosa ◽

Gracia Gracia ◽

Rita Juliana

Keyword(s):

Life Cycle ◽

Cash Flow ◽

Stock Exchange ◽

Life Cycles ◽

Free Cash Flow ◽

Maturity Stage ◽

Investment Performance ◽

Life Cycle Stages ◽

The Government ◽

Firm’S Life Cycle

This paper investigates whether the firm's life cycle stages carry out free cash flow efficiently or not before their investment performance. We utilize cash flow patterns to classify firms into five several life cycles stages. Our data consists of non-financial firms listed in Indonesia Stock Exchange from 2008-2018. We find evidence that Indonesian firms in the introduction, growth, and shakeout stage are underinvesting. This paper also shows that firms in decline stage are overinvested. The characteristic of the mature firm includes that firms with high cash flow will tend to overinvest. However, contrasting with mature firms' common characteristics, our results show that Indonesian firms in maturity stage tend to underinvest. The results also imply that the government should acknowledge the existence of Indonesian firms' investment inefficiency problem. Overall, this paper contributes to the literature by providing empirical evidence on Indonesia's investment inefficiency phenomena. It is suggested that further research may select a different method in calculating growth opportunities and may also study private firms since it tends to have higher financial constraints.

Download Full-text

Capital Structure Decision and Firm’s Life Cycle-A Study on Non-Financial Sector of Pakistan

NICE Research Journal ◽

10.51239/nrjss.v0i0.38 ◽

2016 ◽

pp. 1-18

Author(s):

Sonia Zafar Et al.,

Keyword(s):

Life Cycle ◽

Capital Structure ◽

Emerging Economies ◽

Stock Exchange ◽

Practical Implication ◽

Financial Sector ◽

Policy Makers ◽

Leverage Ratio ◽

Life Cycle Stages ◽

Firm’S Life Cycle

The basic aim of this study is to distinguish the ratio of capital structure at different life cycle stages of a firm. Literature is rich in discussing the determinants of capital structure and its influence on the performance of a firm. However; the association of capital structure decision with respect to the life cycle stages is less investigated especially in the emerging economies. Therefore, in order to investigate the choice of leverage ratio during a firm’s life cycle, 107 firms from the non-financial sector of Pakistan Stock Exchange for the period of ten years i.e. 2004- 2013 are selected. A deterministic approach is used to classify the life cycle stages as presented by Miller and Friesmen (1984). Panel data methodology is used to analyze the capital structure decision with respect to firm’s life cycle. The results indicate that the leverage of a firm has a significant relation with the age of the firm, especially for the older firms. It will have a practical implication for the policy makers to focus on the easy availability of finance at younger stages of a firm as they feel financial constraints during their early life cycle.

Download Full-text