Relational and Contractual Governance in Family Firms: Effects on Strategic Decision Making

2002 ◽  
Vol 15 (3) ◽  
pp. 205-222 ◽  
Author(s):  
Mikko Mustakallio ◽  
Erkko Autio ◽  
Shaker A. Zahra
Keyword(s):  
Decision Making ◽  
Social Control ◽  
Structural Equation ◽  
Family Firms ◽  
Strategic Decision ◽  
Equation Modeling ◽  
Strategic Decision Making ◽  
Formal Control ◽  
Governance Model ◽  
The Social

Governance of family firms differs from mainstream corporate governance in an important respect: Important owners, i.e., family members, may have multiple roles in the business. In this paper, we develop and test a model of family firm governance that incorporates both formal control and social control aspects of governance. Governance based on the formal control draws on agency theory, whereas the social control aspects draw on social theories of governance, addressing social capital embedded in relationships. Drawing on these theories, we examine the influence of different governance mechanisms on the quality of strategic decision making. The Family Business Governance Model is tested using survey data from 192 family firms in Finland. We use structural equation modeling in testing the empirical validity of the model. The empirical analysis largely supports our hypotheses on formal control and social control as well as their influences on the decision-making quality.

Corporate foresight and its effect on innovation, strategic decision making and organizational performance (case study: Iranian banking industry)

foresight ◽  
2017 ◽  
Vol 19 (6) ◽  
pp. 559-576
Author(s):  
Mahdi Joneidi Jafari ◽  
Seyed Akbar NiliPourTabataba’i
Keyword(s):  
Decision Making ◽  
Organizational Performance ◽  
Structural Equation ◽  
Banking Industry ◽  
Strategic Decision ◽  
Equation Modeling ◽  
Strategic Decision Making ◽  
Content Type ◽  
Corporate Foresight

Purpose This paper aims to examine the capability of corporate foresight in the organizations and its impacts on innovation, quality of managers’ strategic decision-making and organizational performance in the banking industry of Iran. Design/methodology/approach In the first part, upon introducing corporate foresight from the two process and content perspectives, influential elements in this construct are discussed. Then, corporate foresight’s relationship with innovation and strategic decision-making is examined and its effect on organizational performance is analyzed within a structural model. Using interview and questionnaire, the data research were collected from the banking industry of Iran including 30 banks (state-commercial banks, specialist-state banks, interest-free loan funds and private banks). Through descriptive, inferential statistical analyses and structural equation modeling using SPSS and Smart PLS software, reliability of the measurement model with 576 samples was confirmed. Findings The results show that the corporate foresight playing three roles of initiator, strategist, and opponent affects the innovation. Moreover, the research results suggest that using the data from the foresight and identifying the weak signals, we can reduce the uncertainty and issue prior warnings in order to enhance the quality of manager’s strategic decision making and promote the organizational performance. Originality/value This paper is one of the articles from the sources of the doctoral thesis of Futures Studies as “The relationship between knowledge absorption capacity, corporate foresight and its effect on the performance of the banking industry in Iran”.

Strategic decision-making in family firms: an explorative study

2018 ◽  
Vol 12 (5/6) ◽  
pp. 655
Author(s):  
Andreas Kallmuenzer ◽  
Wolfgang Hora ◽  
Mike Peters
Keyword(s):  
Decision Making ◽  
Family Firms ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Explorative Study

In the Horns of the Dilemma: Socioemotional Wealth, Financial Wealth, and Acquisitions in Family Firms

2015 ◽  
Vol 44 (4) ◽  
pp. 1369-1397 ◽  
Author(s):  
Luis R. Gomez-Mejia ◽  
Pankaj C. Patel ◽  
Thomas M. Zellweger
Keyword(s):  
Decision Making ◽  
Family Firms ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Socioemotional Wealth ◽  
Family Control ◽  
Financial Wealth ◽  
Empirical Results ◽  
Problem Framing ◽  
Firm Owners

We posit that family firms often face a dilemma in their strategic decision making: whether to maintain current socioemotional wealth or pursue prospective financial wealth. Applying such a mixed gamble perspective to acquisitions, family owners assess potential acquisitions with regard to their impact on both wealth dimensions. In line with this reasoning, our results show that family control implies a general reluctance to acquire and, when an acquisition happens, a preference for related targets. Because financial and socioemotional viewpoints lead to largely incompatible predictions about the occurrence and relatedness of acquisitions, family firm owners use their firm’s vulnerability as a signal. Increased vulnerability leads to a heightened propensity to prioritize financial over socioemotional wealth problem framing, which is reflected in the acquisition of unrelated targets. Empirical results are supportive of these predictions.

The Psychological Foundations of Management in Family Firms: Values, Biases, and Heuristics

2021 ◽  
pp. 089448652098563
Author(s):  
Pasquale Massimo Picone ◽  
Alfredo De Massis ◽  
Yi Tang ◽  
Ronald F. Piccolo
Keyword(s):  
Decision Making ◽  
Conceptual Framework ◽  
Family Business ◽  
Research Agenda ◽  
Family Firms ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Future Research ◽  
Future Research Agenda ◽  
Biases And Heuristics

Considering the heterogeneity of family firm behaviors as reflecting the values, biases, and heuristics of individuals, we discuss the implications of the psychological foundations of management in family firms. We develop a conceptual framework for investigating how the values, biases, and heuristics of family and nonfamily members affect strategic decision-making and the outcomes of family firms. To advance the field, we put forward some relevant questions and offer a future research agenda at the intersection of the psychological foundations of management and family business.

A model for examining the effects of communication on innovation performance: emphasis on the intermediary role of strategic decision-making speed

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fariborz Rahimnia ◽  
Homa Molavi
Keyword(s):  
Decision Making ◽  
Data Analysis ◽  
Innovation Performance ◽  
Strategic Decision ◽  
Equation Modeling ◽  
Strategic Decision Making ◽  
Decision Making Process ◽  
Content Type ◽  
Intermediary Role

PurposeIn recent years, rapid changes in the economic situation and high levels of competition have increased the need for innovation in order to gain success. In such circumstances, organizational strategists are considered as critical in determining the success or failure of organizations. Using innovation in various aspects of organizational operations is the most important factor to achieve sustainable competitive advantages in industry. As a result, analyzing the effective factors involved in promoting the efficiency of innovative activities in the organization and ways of achieving it are of utmost importance. Thus, this paper examines the relationship between communication and innovation performance with respect to the intermediary role of strategic decision-making process speed.Design/methodology/approachThe present study has used quantitative methodology and questionnaire to collect data from 450 managers and members who are involved in the decision-making process in 150 companies operating in the food-industry sector. Data analysis was done by using structural equation modeling and AMOS software.FindingsThe results of the data analysis suggest that communication and strategic decision-making speed possess a significant positive impact on innovation performance. Also, strategic decision-making speed has sufficiently played the intermediary role between communication and innovation performance.Originality/valueThis survey specifies the effects of communication on the success of making fast strategic decision and innovation performance which aid Iranian food companies to tackle one of the managerial challenges: postponing strategic decisions due to lack of efficient communication to get information. In addition, to the best of the authors' knowledge, this essay is a first in Iran.

scholarly journals The impact of artificial intelligence analytics in enhancing digital marketing: the role of open big data and AI analytics competencies

2021 ◽  
Author(s):  
Tahereh Saheb ◽  
Bahareh Amini
Keyword(s):  
Artificial Intelligence ◽  
Big Data ◽  
Structural Equation ◽  
Strategic Decision ◽  
Digital Marketing ◽  
Equation Modeling ◽  
Strategic Decision Making ◽  
Knowledge Based ◽  
The Impact

Abstract Purpose: The goal of digital marketing is to enhance strategic decision making to discover competitive and consumer behavior, and to provide early warnings of risks and opportunities. In the age of digitalization, digital marketing may be influenced with the use of cognitive technologies and also open sources of big data. The aim of this paper is to understand the impact of artificial intelligence analytics on digital marketing and the role of open big data and AI analytics competencies in this relationship.Design: A structural equation modeling of the 227 questionnaire was carried out. Findings: Our analysis shows that open big data has a significant impact on digital marketing, and AI analytical competencies moderate the impact of open big data on digital marketing. Value: Theoretically, this study extends the literature on knowledge-based view and AI analytics in digital marketing. Practically, this study broadens understandings regarding the perquisites of digital marketing through the use of cognitive technologies and open big data

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