The impact of a crisis on entrepreneurial orientation of family firms: The role of organisational decline and generational change

2021 ◽  
pp. 026624262110366
Author(s):  
Ana M Moreno-Menéndez ◽  
Unai Arzubiaga ◽  
Vanessa Díaz-Moriana ◽  
José C Casillas
Keyword(s):  
Entrepreneurial Orientation ◽  
Family Firms ◽  
Theory And Practice ◽  
Stability And Convergence ◽  
Generational Change ◽  
Entrepreneurial Behaviour ◽  
Temporal Aspects ◽  
Alternative Hypotheses ◽  
The Impact

This article critically analyses entrepreneurial orientation (EO) in family firms after a major crisis, to investigate how firms with equal initial levels of EO reach different levels over time. Based on two alternative hypotheses (stability and convergence), we analysed whether the EO of family firms remains intact, strengthens, or weakens after a crisis. Based on an examination of a database of 151 family firms collected in 2004 and 2017, our findings reveal that compared to firms with higher pre-crisis EO levels, those with lower levels saw a larger increase post crisis. Furthermore, unlike the latter group, the former was able to maintain high pre-crisis levels even after the crisis. In addition, we also we found this relationship between pre-crisis and post-crisis EO levels to be influenced by two key periodic discontinuities, namely, organisational decline and generational change contingencies. These findings advance our understanding of temporal aspects of EO and heterogeneous entrepreneurial behaviour among family firms with significant implications for both theory and practice.

scholarly journals My Forty Years in Studying and Helping Family Businesses

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Gibb Dyer
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Businesses ◽  
Theory And Practice ◽  
The Past ◽  
Family Capital ◽  
The Family ◽  
The Impact

This article will describe the trends in the field of family business over the past forty years in terms of theory and practice. Topics such as succession, consulting with family businesses, the effectiveness of family firms, the role of socio-emotional wealth in family firms, heterogeneity in family businesses, and the impact of family capital on the business and the family will be discussed.

The nature of entrepreneurial orientation strength: the impact of shared values on firm performance

2021 ◽  
pp. 1-21
Author(s):  
Laurence G. Weinzimmer ◽  
Eric J. Michel ◽  
Jennifer Robin
Keyword(s):  
Firm Performance ◽  
Entrepreneurial Orientation ◽  
Convergent Validity ◽  
Field Studies ◽  
Theory And Practice ◽  
Interactive Effects ◽  
Revenue Growth ◽  
Entrepreneurship Theory ◽  
The Impact ◽  
Strong Culture

Abstract Drawing on Wales, Monsen, and McKelvie's (2011, Entrepreneurship Theory and Practice, 35(5), 895–923) model of entrepreneurial orientation pervasiveness and the strong culture hypothesis (Denison, 1984, Organization Dynamics, 13, 4–22), this study investigates how entrepreneurial orientation (EO) strength, defined as the level of agreement in the shared perceptions of EO, serves as a boundary condition of the EO–firm performance relationship. Four field studies provide evidence for a valid and reliable 10-item multidimensional measure of entrepreneurial orientation, the EO-10, which in turn, may be used to assess EO strength. We establish content and construct validity of the EO-10 (study 1; n = 447 employees), criterion-related validity with revenue growth and sales growth (study 2; n = 412 employees in 43 profit centers), and convergent validity with Covin and Slevin's (1989, Strategic Management Journal, 10, 75–87) 9-item measure (study 3; n = 291 employees). Finally, in study 4 (n = 853 employees nested in 22 organizations), we demonstrate the interactive effects of EO and EO strength on profit growth and revenue growth. In sum, this study provides conceptual and empirical evidence for the importance of EO strength as a moderator of the EO–firm performance relationship.

The Impact of Entrepreneurial Orientation Success Factors To Muslim SME Success

2021 ◽  
Vol 12 (3) ◽  
pp. 2493-2504
Author(s):  
NadratunNafisah Abdul Wahab Et.al
Keyword(s):  
Entrepreneurial Orientation ◽  
Random Sampling ◽  
Success Factors ◽  
Simple Random Sampling ◽  
Theory And Practice ◽  
The Impact

This study presentsa research of the multidimensional entrepreneurial orientation (innovation, risk and proactive) in relation to the Muslim SME success. Thus far, past literatures shown that limited study of Muslim SME success. This study was conducted in the form of survey, with data being gathered from 122 firms (operating above 3 years) selected through simple random sampling from 2286 Muslim SME in Malaysia. The results show that innovation and proactivefactors have relationshipsto SME Muslim success. The results shed new light on the theory and practice. This finding contributes to RBV theory and to the field of Islamic entrepreneurship focusing on Muslim SME success.

scholarly journals Entrepreneurial Intentions of Pakistani Students: The Role of Entrepreneurial Education, Creativity Disposition, Invention Passion & Passion for Founding

2018 ◽  
Vol 10 (3) ◽  
pp. 76 ◽  
Author(s):  
Temoor Anjum ◽  
Sara Ravan Ramzani ◽  
Muhammad Farrukh ◽  
Valliappan Raju ◽  
Nida Nazar ◽  
...  
Keyword(s):  
University Students ◽  
Partial Least Square ◽  
Theory And Practice ◽  
Least Square ◽  
Entrepreneurial Intentions ◽  
Equation Modeling ◽  
Entrepreneurial Education ◽  
Entrepreneurial Passion ◽  
The Impact

The purpose of this study was to investigate the impact of entrepreneurial education on entrepreneurial intentions of the university students, moreover, a mediating role of  Entrepreneurial Passion, Perceived Creativity Disposition and Entrepreneurial Passion was also assessed. Data were collected from 595 university students; Partial least square technique was used with the help of SmartPLS software. Results of partial least square structural equation modeling showed that all the hypothesized direct and indirect relationship were supported. Possible implications for theory and practice are discussed in detailed.

Female directors and CSR disclosure in Bangladesh: the role of family affiliation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pallab Kumar Biswas ◽  
Helen Roberts ◽  
Rosalind Heather Whiting
Keyword(s):  
Family Firms ◽  
Emerging Market ◽  
Annual Reports ◽  
Content Type ◽  
Female Directors ◽  
Csr Disclosure ◽  
Female Director ◽  
Corporate Social ◽  
The Impact

Purpose This paper aims to investigate the impact of female director affiliations to governing families on corporate social responsibility (CSR) disclosures in the context of Bangladeshi firms. Design/methodology/approach This study uses a quantitative empirical research method grounded in Socioemotional Wealth (SEW) theory. Data was sourced from Bangladeshi publicly listed non-financial sector companies’ annual reports and stock exchange trading and publication reports and consists of 2,637 firm-year observations from 1996 to 2011. Pooled multivariate regression models are used to test the association between corporate social and environmental disclosure and female directors, and the family affiliation (or not) of those directors. Findings The findings provide strong evidence that female directors who are affiliated to the governing family, founders and other board members reduce CSR disclosure in family firms; unaffiliated female board directors enhance CSR disclosure, and this effect is significant in both family and non-family firms. Research limitations/implications Definitions of family firms and affiliated directors may lead to over-generalization in the results. Originality/value The study highlights variation in the nature of female board appointments in emerging market family-controlled firms. The findings bring attention to the role of affiliated female director appointments in family ownership structures and speak directly to family business owners, advisors and policy makers about the importance of unaffiliated female directors as catalysts of improved CSR disclosure in family and non-family firms.

Family ownership and cooperative R&D: the moderating effect of political ties

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Feng Dong ◽  
Xiao Wang ◽  
Jiawen Chen
Keyword(s):  
Family Firms ◽  
Family Ownership ◽  
Content Type ◽  
Political Ties ◽  
Wealth Concentration ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role ◽  
Ability And Willingness

Purpose This study aims to investigate the impact of family ownership on cooperative research and development (R&D). Drawing on the ability and willingness paradox framework in family business research, the authors suggest that family ownership influences cooperative R&D via two opposing mechanisms: power concentration and wealth concentration. It also deepens the current understanding of the boundary conditions of informal institutions for the impact of family ownership on cooperative R&D by investigating the moderating role of political ties. Design/methodology/approach The authors analyze a panel of 610 Chinese manufacturing family firms and 2,127 firm-year observations from 2009 to 2017. Fixed effects regression analysis is used to test the hypotheses, with the two-stage Heckman model to address sample selection bias. Findings The research findings indicate that family ownership has an inverted U-shaped relationship with cooperative R&D and political ties moderate the relationship in such a way that the inverted U-shaped relationship will be steeper in firms with more political ties than in firms with fewer political ties. Practical implications Family ownership influences firms’ cooperative R&D through the positive effect of power concentration and the negative effect of wealth concentration. Family owners should, therefore, take advantage of concentrated power, for instance, by adapting quickly and committing sufficient resources to cooperative R&D opportunities, while controlling path-dependent relationship development caused by concentrated family wealth. The effect of political ties on the relationship between family ownership and cooperative R&D is found to be a double-edged sword. Originality/value This study extends the ability and willingness paradox framework and provides novel insights into cooperative R&D in family businesses by integrating power concentration and wealth concentration associated with family ownership. Moreover, this study provides a contingency perspective and introduces the moderating role of political ties in shaping cooperative R&D in family firms.

Affective and Emotional Determinants of Entrepreneurial Orientation Within Family Firms

2019 ◽  
pp. 157-181
Author(s):  
Remedios Hernández-Linares ◽  
María Concepción López-Fernández ◽  
María José Naranjo-Sánchez ◽  
Laura Victoria Fielden
Keyword(s):  
Entrepreneurial Orientation ◽  
Affective Commitment ◽  
Family Firms ◽  
Socioemotional Wealth ◽  
Business Context ◽  
Emotional Factors ◽  
Strategic Behaviors ◽  
Scant Attention ◽  
Entrepreneurial Activities ◽  
The Impact

As a predominant form of business organization, family firms have attracted increasing attention by scholars, and especially by those researching entrepreneurial orientation with the aim of better understanding of entrepreneurial activities pursued by enterprises. However, the literature on the confluence of entrepreneurial orientation and family firms has paid scant attention to the influence of affective and emotional factors. To cover this research gap, the authors analyze the impact of affective commitment and concern for socioemotional wealth preservation on entrepreneurial orientation. To do so, they performed an empirical study using the data collected from 342 small and mid-sized family firms from Portugal, a country where family firms are under-researched even though they make up the backbone of the economy. Results show that both affective commitment and socioemotional wealth positively impact entrepreneurial orientation, pointing to the need to further research the relationships between such factors and strategic behaviors in the family business context.

scholarly journals Building Customer Loyalty in Intercultural Service Encounters: The Role of Service Employees’ Cultural Intelligence

2019 ◽  
Vol 27 (2) ◽  
pp. 56-75 ◽  
Author(s):  
Nicholas G. Paparoidamis ◽  
Huong Thi Thanh Tran ◽  
Constantinos N. Leonidou
Keyword(s):  
Service Quality ◽  
Customer Loyalty ◽  
Cultural Intelligence ◽  
Emerging Market ◽  
Theory And Practice ◽  
Service Encounters ◽  
Research Attention ◽  
Service Employees ◽  
The Impact

Intercultural service encounters, in which customers and service employees from different cultures interact, are becoming more common in the market. Despite the importance of such encounters for international marketers, limited research attention has been directed to this area. Drawing on social exchange theory, this study examines how frontline employees’ cultural intelligence (CQ) influences customer loyalty outcomes of service quality perceptions. Specifically, the authors propose that the three components of CQ—cognitive, emotional/motivational, and physical—have differential moderating effects on the perceived service quality (PSQ)–customer loyalty link and that these effects vary across two national markets. Data collected with a multirespondent (i.e., frontline service employees and customers) cross-cultural research design indicate that cognitive CQ negatively mitigates the impact of PSQ on customer loyalty in an emerging-market context while emotional/motivational CQ has a positive moderating effect in a mature-market setting. When service employees have high physical CQ, the positive role of PSQ in creating and maintaining customer loyalty is strengthened in both markets. The authors discuss these implications for theory and practice.

scholarly journals Evaluating the impact of a defender role-play intervention on adolescent’s defender intentions and responses towards name-calling

2019 ◽  
Vol 41 (2) ◽  
pp. 154-169
Author(s):  
Nicola Abbott ◽  
Lindsey Cameron ◽  
Jayne Thompson
Keyword(s):  
Self Efficacy ◽  
Peer Interaction ◽  
Role Play ◽  
Theory And Practice ◽  
Play Intervention ◽  
Peer Victimisation ◽  
The Impact

Researchers and anti-bullying organisations have increasingly turned their attention to the role of bystanders in tackling bullying and peer victimisation (e.g. name-calling). The objective of this study was to develop and assess the impact of a role-play programme designed to strengthen adolescent’s defending behaviour to name-calling. This was measured in two contexts: defending intentions in an outgroup name-calling scenario and cyber-defender behaviour in a scripted online peer interaction. Participants ( N = 121, Mage = 12.90 years) were randomly assigned to either a role-play condition or a control condition. Results showed that defender intentions in an outgroup name-calling scenario were higher in the role-play condition, compared to the control; in addition, cyber-defender behaviour was more likely and quicker in the role-play condition, compared to the control. Defender self-efficacy was found to be significantly higher in the role-play condition, and mediated the effect of the role-play programme on defender intentions. Findings also revealed that defender intentions were positively correlated with cyber-defender behaviour, highlighting a link between intentions and behaviour. Implications for theory and practice are discussed.

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