Entrepreneurial Risk Taking in Family Firms

2005 ◽  
Vol 18 (1) ◽  
pp. 23-40 ◽  
Author(s):  
Shaker A. Zahra
Keyword(s):  
Technological Innovation ◽  
Risk Taking ◽  
Opposite Effect ◽  
Family Firms ◽  
Family Ownership ◽  
Broad Definition ◽  
Economic Progress ◽  
Definition Of ◽  
Entrepreneurial Activities ◽  
Over Time

Family firms are widely recognized as a major source of technological innovation and economic progress. Yet, over time, some family firms become conservative and unwilling to take the risks associated with entrepreneurial activities. Adopting a broad definition of entrepreneurial risk taking, this study uses agency theory to highlight key correlates of risk taking among 209 U.S. manufacturing family firms. The results show that family ownership and involvement promote entrepreneurship, whereas the long tenures of CEO founders have the opposite effect. These results urge managers to capitalize on the skills and talents of their family members in promoting entrepreneurship and selective venturing into new market arenas.

Technological Innovation in Family Firms

2020 ◽  
pp. 168-190
Author(s):  
Mario Ossorio
Keyword(s):  
Technological Innovation ◽  
Family Firms ◽  
Innovation Management ◽  
Innovation Process ◽  
Family Ownership ◽  
The Third ◽  
The Family ◽  
Innovation Output ◽  
Innovation Strategies ◽  
External Actors

This chapter illustrates the main issues with respect to innovation process within family firms. In the first part, it describes the main theories underlying the innovation process of family firms (agency theory, altruism, portfolio theory, stewardship theory, socioemotional wealth perspective). In the second part, it exposes the R&D underinvestment problem in large companies with a focus on the effect of the family ownership on the R&D investments. In the third part, it describes the effect of family ownership on the innovation output with a focus on the kind of innovation (radical vs. incremental). In the fourth section, studies exploring the innovation strategies of family firms (prospectors, analysers, defenders, reactors) are examined. In the fifth section, it sheds light on the innovation management process of family firms. In this part, it explores the issues of internal innovation process (functional vs. cross-functional structure) and of the partnerships with external actors aimed to generate innovation.

Entrepreneurial Orientation, Risk Taking, and Performance in Family Firms

2007 ◽  
Vol 20 (1) ◽  
pp. 33-47 ◽  
Author(s):  
Lucia Naldi ◽  
Mattias Nordqvist ◽  
Karin Sjöberg ◽  
Johan Wiklund
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Family Firms ◽  
Distinct Dimension ◽  
And Performance ◽  
Entrepreneurial Activities ◽  
Practical Implications

This article focuses on risk taking as one important dimension of entrepreneurial orientation and its impact in family firms. Drawing on a sample of Swedish SMEs, we find that risk taking is a distinct dimension of entrepreneurial orientation in family firms and that it is positively associated with proactiveness and innovation. We also find that even if family firms do take risks while engaged in entrepreneurial activities, they take risk to a lesser extent than nonfamily firms. Moreover, and most importantly for our understanding of entrepreneurial orientation in family firms, we find that risk taking in family firms is negatively related to performance. Both theoretical and practical implications of our findings are provided.

scholarly journals THE IMPACT OF TECHNOLOGICAL INNOVATIONS ON THE COMPETITIVENESS OF THE TELEMATIC COMPANIES

2020 ◽  
Vol 12 (0) ◽  
pp. 1-11
Author(s):  
Elena Dadelytė ◽  
Alma Mačiulytė-Šniukienė
Keyword(s):  
Technological Innovation ◽  
Transport Sector ◽  
Technological Innovations ◽  
Monitoring And Control ◽  
The Public ◽  
Correlation And Regression Analysis ◽  
Economic Progress ◽  
Definition Of ◽  
And Control ◽  
The Impact

Innovation is an important driver of economic progress, benefiting consumers, business and the economy as whole. However, innovation companies face high risks because innovation requires a lot of resources, and it is difficult to predict a payback period in advance. This is common for all types of innovation, but especially to technological innovation. One of the least researched technological innovations is telematics, innovative transport monitoring and control technology solutions. Those are widely applied in logistics, car-sharing platforms and the public transport sector. These innovations help to achieve the goals of the companies that buy and install them, but question what impact they have on the competitiveness of the companies that create these innovations remains a matter of debate. To fill this gap, the purpose of this article is to determine the impact of technological innovation on the competitiveness of telematics companies. In pursuit of this goal, the concepts of technological innovation and competitiveness are revealed. The definition of telematics innovation and its significance for the competitiveness of enterprises was also formed. The empirical part discusses the telematics market, provides the analysis of the main competitiveness indicators of 8 telematics companies and their changes, as well as the analysis of the research and development (R&D) costs and the impact of innovations on competitiveness. Applied research methods: a critical analysis of scientific literature, generalization, systematization of data, computation, and comparison of relative indicator, data dispersion indicator, and dynamics indicator, correlation, and regression analysis. The research reveals that creation and development innovation are related to competitiveness of telematics companies. However, excessive investment into innovation no longer generates positive return.

Evidence-Based Instruction Is Not Enough

2011 ◽  
Vol 47 (2) ◽  
pp. 67-74 ◽  
Author(s):  
Moira Konrad ◽  
Shawnna Helf ◽  
Laurice M. Joseph
Keyword(s):  
Instructional Methods ◽  
Achievement Gaps ◽  
Evidence Based ◽  
Instructional Time ◽  
Instructional Efficiency ◽  
Broad Definition ◽  
Based Instruction ◽  
Definition Of ◽  
Over Time ◽  
Closing Achievement Gaps

Even evidence-based instructional methods may not be sufficient for closing achievement gaps. If teachers are not maximizing instructional time, achievement gaps are likely to widen over time; therefore, instruction need not only be effective but efficient as well. The purposes of this article are to (a) provide practitioners with a broad definition of instructional efficiency and (b) describe several considerations for increasing efficiency in the classroom. Suggestions are made for planning, delivering, and evaluating instruction.

Family Firms and Entrepreneurial Orientation in Publicly Traded Firms

2009 ◽  
Vol 22 (1) ◽  
pp. 9-24 ◽  
Author(s):  
Jeremy C. Short ◽  
G. Tyge Payne ◽  
Keith H. Brigham ◽  
G.T. Lumpkin ◽  
J. Christian Broberg
Keyword(s):  
Content Analysis ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Family Firms ◽  
Family Firm ◽  
Firm Characteristics ◽  
Publicly Traded ◽  
Competitive Aggressiveness ◽  
Publicly Traded Firms ◽  
Entrepreneurial Activities

There is considerable disagreement about whether family firm characteristics hinder or support entrepreneurial activities. This article highlights the existence of an entrepreneurial orientation in family firms, and it examines differences between family and nonfamily firms on the entrepreneurial orientation dimensions of autonomy, competitive aggressiveness, innovativeness, proactiveness, and risk taking, using content analysis of shareholder letters from S&P 500 firms. As such, family firms exhibit language consistent with an entrepreneurial orientation for all dimensions but use less language than that of nonfamily firms in relation to autonomy, proactiveness, and risk taking.

Examining entrepreneurial orientation’s dimensions – performance relationship in Saudi family businesses

2018 ◽  
Vol 8 (2) ◽  
pp. 126-145 ◽  
Author(s):  
Wassim J. Aloulou
Keyword(s):  
Family Involvement ◽  
Risk Taking ◽  
Family Firms ◽  
Family Firm ◽  
Survey Study ◽  
Content Type ◽  
Saudi Family ◽  
Family Involvement In Management ◽  
Entrepreneurial Activities ◽  
The Relationship

Purpose The purpose of this paper is to contribute to family firm and entrepreneurship literature by providing an examination of how family involvement in management (FIM) moderates the relationship between entrepreneurial orientation (EO)’s dimensions and family firm performance (FFP). Design/methodology/approach Through a survey study, the research was developed using a sample of 175 family firms in Saudi Arabia to test the proposed hypotheses using hierarchical linear regression. Findings The findings revealed a strong positive and significant linkage of proactiveness and FIM with FFP, but, no significant relationship between innovativeness and risk-taking with FFP. However, when FIM contingencies were hypothesized, a new significant influence from the interaction between risk-taking and FIM on FFP was found. Research limitations/implications The main limitation lies in the fact that it is not possible to claim generalization of findings to family firms in other emerging or transitional countries as the research is focused on Saudi family firms. Theoretical and practical implications are discussed in order to produce new knowledge on EO of family firms and to help these firms not consider FIM as an impediment to the development of resources and capabilities necessary to the promotion of entrepreneurial activities within their operations. Originality/value There is a contribution to the literature on EO by showing that EO construct and its dimensions have great generality within family firms in a transitional context.

Entrepreneurial Risk Taking in Family Firms: The Wellspring of the Regenerative Capability

2018 ◽  
Vol 31 (2) ◽  
pp. 216-226 ◽  
Author(s):  
Shaker A. Zahra
Keyword(s):  
Risk Taking ◽  
Family Firms ◽  
International Perspective ◽  
Methodological Choices ◽  
The Past ◽  
Multilevel Perspective ◽  
Improve Theory ◽  
Antecedents And Consequences ◽  
Definition Of

Research on entrepreneurial risk taking by family firms has grown rapidly over the past decade. In this article, I revisit my earlier study’s objectives and contributions and analyze the key changes that have taken place in the literature since its publication. My analyses highlight the ever-broadening definition of entrepreneurship and entrepreneurial risk taking by family firms and the explosive growth of research on their antecedents and consequences, increasingly adopting an international perspective. I offer suggestions to improve theory building and methodological choices while adopting a multilevel perspective that enables the recognition of microfoundations and temporal issues. This research can clarify the role of entrepreneurship as the source of family firms’ regenerative capability.

scholarly journals A Socioecological Developmental Systems Approach for the Study of Human Resilience

2021 ◽  
pp. 335-358
Author(s):  
Ingrid Schoon
Keyword(s):  
Systems Approach ◽  
Contextual Influences ◽  
Developmental Systems ◽  
Broad Definition ◽  
Key Concepts ◽  
Individual Functioning ◽  
Multi Level ◽  
Definition Of ◽  
Over Time ◽  
Relational Process

This chapter introduces a socioecological developmental systems approach for the study of human resilience, conceptualizing the multiple contextual influences (ranging from the micro-to the macro context and including the ecosystem), and their interactions with individual functioning over time. It is argued that resilience is a multi-level, dynamic and relational process where individual and context mutually constitute each other through processes of co-regulation. The chapter gives a broad definition of key concepts, such as risk and adaptation, and describes developmental and resilience processes using examples from research on the transition from dependent childhood to independent adulthood.

The Distinction between [P] and [S]

2017 ◽  
Author(s):  
Galen Strawson
Keyword(s):  
Personal Identity ◽  
Radical Change ◽  
Legal Responsibility ◽  
The Difference ◽  
Definition Of ◽  
Over Time

This chapter examines the difference between John Locke's definition of a person [P], considered as a kind of thing, and his definition of a subject of experience of a certain sophisticated sort [S]. It first discusses the equation [P] = [S], where [S] is assumed to be a continuing thing that is able to survive radical change of substantial realization, as well as Locke's position about consciousness in relation to [P]'s identity or existence over time as [S]. It argues that Locke is not guilty of circularity because he is not proposing consciousness as the determinant of [S]'s identity over time, but only of [S]'s moral and legal responsibility over time. Finally, it suggests that the terms “Person” and “Personal identity” pull apart, in Locke's scheme of things, but in a perfectly coherent way.

Corporate Social Responsibility and Earnings Management: The Moderating Role of Family Ownership

2019 ◽  
Vol 12 (1) ◽  
Author(s):  
Asif Saeed ◽  
Aijaz Mustafa Hashmi ◽  
Attiya Yasmin Javid
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Family Firms ◽  
Negative Impact ◽  
Stock Exchange ◽  
Least Square ◽  
Family Ownership ◽  
Corporate Social ◽  
The Impact

This study aims to explore the impact of family ownership on the relationship among corporate social responsibility (CSR) and earning management (EM) in Pakistan. Data is collected from nonfinancial listed firms on Pakistan Stock Exchange (PSE) for the period 2009-2017. Our results of pooled ordinary least square regression indicate that CSR has significant negative impact on EM. Furthermore, results also indicate that association between CSR and EM is moderated by family ownership. Family firms which perform CSR activities are less involved in EM as compare to nonfamily firms perform CSR activities. This variation in behavior of EM in family and non-family firms can possibly be explained by socioemotional wealth theory. Keywords: Corporate Social Responsibility, Earnings Management, Family Ownership

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