A Business Owner's Perspective on Outside Boards

1988 ◽  
Vol 1 (3) ◽  
pp. 231-237 ◽  
Author(s):  
Clayton L. Mathile
Keyword(s):  
Family Business ◽  
Family Firm ◽  
Outside Directors ◽  
Business Executives

Experience in selecting and working with outside directors is not yet common among family business executives. This firsthand account from the president of a family firm describes how he chose his board and how he works with his directors.

“We are a family firm”

2018 ◽  
Vol 8 (1) ◽  
pp. 2-21 ◽  
Author(s):  
Claudia Binz Astrachan ◽  
Isabel C. Botero
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Firm ◽  
Business Owners ◽  
Public Companies ◽  
Content Type ◽  
Brand Building ◽  
Depth Interview ◽  
The Family ◽  
Family Associations

Purpose Evidence suggests that some stakeholders perceive family firms as more trustworthy, responsible, and customer-oriented than public companies. To capitalize on these positive perceptions, owning families can use references about their family nature in their organizational branding and marketing efforts. However, not all family firms actively communicate their family business brand. With this in mind, the purpose of this paper is to investigate why family firms decide to promote their “family business brand” in their communication efforts toward different stakeholders. Design/methodology/approach Data for this study were collected using an in-depth interview approach from 11 Swiss and German family business owners. Interviews were transcribed and coded to identify different themes that help explain the different motives and constraints that drive their decisions to promote the “family business brand.” Findings The analyses indicate that promoting family associations in branding efforts is driven by both identity-related (i.e. pride, identification) and outcome-related (e.g. reputational advantages) motives. However, there are several constraints that may negatively affect the promotion of the family business brand in corporate communication efforts. Originality/value This paper is one of the first to explore why family businesses decide to communicate their “family business brand.” Building on the findings, the authors present a conceptual framework identifying the antecedents and possible consequences of promoting a family firm brand. This framework can help researchers and practitioners better understand how the family business nature of the brand can influence decisions about the company’s branding and marketing practices.

scholarly journals Family business, director compensation and board efficacy: the case of Taiwan

2013 ◽  
Vol 11 (1) ◽  
pp. 81-91
Author(s):  
Tsun-Jui Hsieh ◽  
Yu-Ju Chen
Keyword(s):  
Firm Performance ◽  
Family Business ◽  
Positive Impact ◽  
Specific Pattern ◽  
Chinese Family ◽  
Outside Directors ◽  
Director Compensation ◽  
Outside Director ◽  
The Impact

This paper investigates the impact of outside directors on firm performance during legal transitions and examines how the roles of family business and director compensation influence board efficacy. By using Taiwanese listed companies as our sample, the empirical results show that outside directors who are appointed by legal mandate have less positive impacts on firm performance than outside directors appointed voluntarily. Family business weakens the positive impact of outside director on firm performance. The evidence further suggests that director compensation contributes to firm performance, particularly when outside directors are voluntarily appointed. The findings provide western managers with an understanding of how the typical Chinese family business affects board independence. We also demonstrate and incorporate the cultural and the ownership characteristics into the analysis to present a country-specific pattern that should be informative for foreign investors who are concerned about the quality of corporate governance in East Asia.

scholarly journals Research on the influencing factors of family firm innovation

2021 ◽  
Vol 235 ◽  
pp. 02017
Author(s):  
Yingrui Liu
Keyword(s):  
Influencing Factors ◽  
Family Involvement ◽  
Family Business ◽  
External Environment ◽  
Family Firm ◽  
Economic Activities ◽  
Firm Innovation ◽  
Strategic Focus ◽  
The Stability ◽  
Innovation Behavior

Family business plays an important role in the world’s economic activities, and has made great contributions to the stability and development of the economy of various countries. Innovation is an important but inexplicable part of the strategic focus of family business. Based on the existing literature, this paper discusses the factors that influence the innovation behavior of enterprises from the perspective of family involvement and external environment.

Does family involvement matter post IPO? Adding value through advertising in family firms

2018 ◽  
Vol 8 (3) ◽  
pp. 218-234 ◽  
Author(s):  
Atanas Nik Nikolov ◽  
Yuan Wen
Keyword(s):  
Firm Performance ◽  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
Family Firm ◽  
Family Businesses ◽  
Publicly Traded ◽  
Content Type ◽  
The Public ◽  
The Family

PurposeThis paper brings together research on advertising, family business, and the resource-based view (RBV) of the firm to examine performance differences between publicly traded US family vs non-family firms. The purpose of this paper is to understand the heterogeneity of family vs non-family firm advertising after such firms become publicly traded.Design/methodology/approachThe authors draw on the RBV of the firm, as well as on extensive empirical literature in family business and advertising research to empirically examine the differences between family and non-family firms in terms of performance.FindingsUsing panel data from over 2,000 companies across ten years, this research demonstrates that family businesses have higher advertising intensity than competitors, and achieve higher performance returns on their advertising investments, relative to non-family competitors. The results suggest that the “familiness” of public family firms is an intangible resource that, when combined with their advertising investments, affords family businesses a relative advantage compared to non-family businesses.Research limitations/implicationsFamily involvement in publicly traded firms may contribute toward a richer resource endowment and result in creating synergistic effects between firm “familiness” and the public status of the firm. The paper contributes toward the RBV of the firm and the advertising literature. Limitations include the lack of qualitative data to ground the findings and potential moderating effects.Practical implicationsUnderstanding how family firms’ advertising spending influences their consequent performance provides new information to family firms’ owners and management, as well as investors. The authors suggest that the “familiness” of public family firms may provide a significant advantage over their non-family-owned competitors.Social implicationsThe implications for society include that the family firm as an organizational form does not need to be relegated to a second-class citizen status in the business world: indeed, combining family firms’ characteristics within a publicly traded platform may provide firm performance benefits which benefit the founding family and other stakeholders.Originality/valueThis study contributes by highlighting the important influence of family involvement on advertising investment in the public family firm, a topic which has received limited attention. Second, it also integrates public ownership in family firms with the family involvement–advertising–firm performance relationship. As such, it uncovers a new pathway through which the family effect is leveraged to increase firm performance. Third, this study also contributes to the advertising and resource building literatures by identifying advertising as an additional resource which magnifies the impact of the bundle of resources available to the public family firm. Fourth, the use of an extensive panel data set allows for a more complex empirical investigation of the inherently dynamic relationships in the data and thus provides a contribution to the empirical stream of research in family business.

Faktor-Faktor yang Merefleksikan Family Business Brand dalam Perspektif Generasi Penerus Perusahaan Keluarga Pada Family Business Community Universitas Ciputra

2021 ◽  
Vol 3 (1) ◽  
pp. 22-46
Author(s):  
Annisa Aisyah Fayola ◽  
Metta Padmalia ◽  
Junko Alessandro Effendy
Keyword(s):  
Structural Equation Modeling ◽  
Family Business ◽  
Structural Equation ◽  
Family Firm ◽  
Partial Least Square ◽  
Least Square ◽  
Business Community ◽  
Equation Modeling ◽  
Firm Reputation ◽  
Probability Sampling

Penelitian ini dilakukan untuk mengetahui faktor-faktor yang dapat merefleksikan family business brand dalam perspektif generasi penerus perusahaan keluarga. Pengumpulan data penelitian disebarkan sebanyak 135 responden pada generasi penerus perusahaan keluarga yang tergabung dalam family business community Universitas Ciputra angkatan tujuh, delapan, dan sembilan yang mayoritas sudah pernah terlibat dalam perusahaan keluarga, Pengambilan sampel dilakukan dengan metode teknik pengambilan sampel non-probability sampling dan metode sampling purposive sampling. Metode analisis data yang digunakan adalah Partial Least Square Structural Equation Modeling (SEM PLS) dengan bantuan program smartPLS 3.0. Hasil analisis pada penelitian ini menunjukkan bahwa Family Business Brand dapat terefleksikan oleh faktor Family Firm Identity, Family Firm Image, dan Family Firm Reputation. Faktor Family Firm Identity terdiri dari pengaruh keluarga, nilai tujuan keluarga, tempat asal perusahaan, nama bisnis/ perusahaan keluarga, dan tumpang tindih nilai bisnis keluarga. Faktor Family Firm Image terdiri dari penggambaran perjanjian keluarga, saluran atau channel yang digunakan, perilaku anggota yang mencerminkan nilai-nilai, dan sejarah pengorbanan bisnis keluarga. Faktor Family Firm Reputation terdiri dari visi kepemimpinan perusahaan, lingkungan tempat kerja, dan kinerja keuangan perusahaan. Hasil olah data menunjukkan faktor yang merefleksikan Family Business Brand dalam perspektif generasi penerus jika diurutkan dari yang tertinggi yaitu faktor family firm identity, faktor family firm image, dan faktor family firm reputation. Kata kunci: Family Business Brand, Family Firm Identity, Family Firm Image, Family Firm Reputation, Generasi Penerus, Perusahaan Keluarga      

Learning by interactions with outside directors in family business boards: a dynamic perspective

2021 ◽  
Vol 2021 (1) ◽  
pp. 15340
Author(s):  
Céline Barredy ◽  
Maria Jose Parada ◽  
Paula Maria Infantes Sanchez ◽  
Julien Batac
Keyword(s):  
Family Business ◽  
Outside Directors ◽  
Dynamic Perspective

Die Krisenfestigkeit der Unternehmerfamilie – Haniel, Stumm und der «doppelte» Strukturwandel

2018 ◽  
Vol 63 (2) ◽  
pp. 185-219
Author(s):  
Thomas Urban
Keyword(s):  
Structural Change ◽  
Family Business ◽  
Family Policy ◽  
Early Stage ◽  
Belief System ◽  
Family Firm ◽  
Family Factors ◽  
The Family ◽  
Business Structure ◽  
Intra Family

AbstractThe resilience of business families in times of crisis. Haniel, Stumm and the «double» structural change.In order to promote the longevity of their family firm, business families must be able to cope successfully with external and internal stressors. Their resilience in times of crisis derives from a combination of organizational, individual and family factors. Based on these assumptions, the article examines the way in which two German business families, Haniel and Stumm, have dealt with the «double» structural change that they faced between the 1950s and 70s. The Haniel family succeeded in recognizing the necessary separation from their coal and steel heritage at an early stage. Moreover their leading representatives were able to adapt the family policy to the grown and recently reunited shareholder community. In contrast, the Stumm family lacked ideas for a sustainable renewal of its crisis-prone family business structure. In addition and paradoxically, their spokesman did not find a voice in his vain attempts to fight against the intra-family estrangement that weakened the «belief system» of the family. These contrasting examples show that the resilience of business families must be seen as a historically shaped resource that is heavily influenced by non-economic psychological abilities and accomplishments.

The 3D IFB SWOT Analysis as a Strategic Tool to Develop Entrepreneurial Plans for Family Businesses

2020 ◽  
pp. 363-389
Author(s):  
Luz Leyda Vega-Rosado
Keyword(s):  
Family Business ◽  
Swot Analysis ◽  
Three Dimensional ◽  
Family Firm ◽  
Second Phase ◽  
The Third ◽  
Third Phase ◽  
The Family ◽  
Generational Groups ◽  
The Individual

This chapter provides a framework that family business members can use to strategically and entrepreneurially evaluate themselves before they prepare the final strategic plan of the family firm. The tool consists of four phases. The first phase is the Strengths-Weaknesses-Opportunities-Threats (SWOT) analysis of the Individuals that are members of the family business. The second phase is the SWOT analysis of the Family's generational groups. Each generation in the family business will work in groups according to their year of birth. The third phase is the SWOT analysis of the Business. The fourth and most important phase is the integration called 3D IFB SWOT Analysis. It is 3D because it is three-dimensional, integrating the Individual, the Family's generations, and the Business.

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