Putting the Family Into Family Business Research

2009 ◽  
Vol 22 (3) ◽  
pp. 216-219 ◽  
Author(s):  
W. Gibb Dyer ◽  
W. Justin Dyer
Keyword(s):  
Family Business ◽  
Business Performance ◽  
Family Businesses ◽  
Business Research ◽  
The Family

Much of the recent research on family businesses has focused on how the family affects business performance. This commentary suggests that researchers should also consider how certain variables affect both the business and the family. Suggestions for how to do such research are presented.

Ethnicity Effects on the Family Business Entrepreneurial Process

2009 ◽  
Vol 22 (3) ◽  
pp. 293-296 ◽  
Author(s):  
Ira C. Harris
Keyword(s):  
Family Business ◽  
Business Performance ◽  
Group Identity ◽  
Family Businesses ◽  
Ethnic Background ◽  
Preferential Treatment ◽  
Entrepreneurial Process ◽  
The Family

This commentary adopts a cross-disciplinary framework to discuss possible influences of both family and ethnicity on business performance in the marketplace. Both family and ethnicity are viewed as “upstream factors” that may help a business gain a favorable identity with potential stakeholders. Family businesses that have an ethnic background in common with customers, employees, and suppliers may receive preferential treatment. Communities may patronize a business simply because of an associated group identity. Thus, ethnic collectivism may alter some assumptions about family businesses and how they compete.

scholarly journals Investigating value-laden leadership styles among family business owners

2016 ◽  
Vol 47 (4) ◽  
pp. 35-46 ◽  
Author(s):  
E. Venter ◽  
S. M. Farrington
Keyword(s):  
Leadership Styles ◽  
Leadership Style ◽  
Family Business ◽  
Business Performance ◽  
Business Owners ◽  
Primary Objective ◽  
Family Businesses ◽  
Participative Leadership ◽  
Significant Relationships ◽  
The Family

Given the need for a different approach to leadership, as well as the need for further investigation on leadership among family businesses, this study investigates several value-laden leadership styles among family businesses. More specifically the primary objective is to establish the levels of Servant, Ethical, Authentic, and Participative leadership displayed by family business owners and the influence thereof on the Perceived business performance of the family business. A survey was undertaken and 266 usable questionnaires were returned from 133 family business owners and 133 from family business employees. The data analysis involved calculating descriptive statistics and undertaking t-tests. Multiple regression analysis (MRA) was done to test the hypothesised relationships. Although the MRA analysis revealed no statistically significant relationships between the leadership styles investigated and Perceived business performance, the vast majority of respondents agreed that the styles investigated were displayed by the family business owners. For both sample groups Ethical leadership returned the highest mean score, followed by Servant and Participative leadership. The importance of these value-laden leadership styles to family businesses is thus highlighted, contradicting the literature that family businesses owners are often autocratic in their leadership style. In addition, increased clarity on the effectiveness of these value-laden leadership styles within the context of family business is provided.

Direct and indirect effect of entrepreneurial orientation, family involvement and gender on family business performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Erny Rachmawati ◽  
Suliyanto ◽  
Agus Suroso
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Family Businesses ◽  
Future Research ◽  
Content Type ◽  
The Family ◽  
The Relationship

PurposeThis study aims to determine the direct effect of entrepreneurial orientation on family business performance. This study also discusses the role of family involvement as a mediating variable and the role of gender as a moderating variable in the relationship between entrepreneurial orientation and family business performance.Design/methodology/approachA total of 328 hotels in Yogyakarta, Indonesia, were selected as samples by the convenience sampling method. Primary data is collected through structured questionnaires that are delivered by themselves to key people in the hotel such as owners, directors and key staff (HRD, financial, relationship). Hypotheses are tested by structural equation modeling procedures using AMOS 22.0. Sobel test is used to determine the indirect effect of the mediation variable.FindingsThe results showed that entrepreneurial orientation had no significant effect on family business performance. Family involvement acts as a full mediation in the relationship between entrepreneurial orientation and family business performance. Gender acts as a moderating variable that can strengthen the relationship between entrepreneurial orientation and family business performance. The results showed support for previous research.Research limitations/implicationsThe results of the study cannot conclude the national family business because it adopts convenience sampling and the sampling area is limited in Yogyakarta. Future research can use a larger sample. This study only researches hotels managed by family businesses, so it is not feasible to conclude for family businesses in general. Future research may choose to use several types of family businesses so that more varied results can be obtained. Future research could also compare hotels managed by family businesses with non-family businesses. The results also found that in addition to gender roles, respondent heterogeneity was an important component in the study of social identity. Therefore, research examining the influence of different cultures on the relationship between entrepreneurial orientation and family business performance should be an extraordinary topic for future study. Other results from this study also indicate that there is a role for religion in improving hotel performance. Future research is needed to further explore Islamic business modeling for family businesses.Practical implicationsThis finding has significant implications that can help family businesses in developing strategies that are suitable for business management. Entrepreneurial orientation occupies a strategic position in developing sustainable competitive advantage in the family business of the tourism sector especially the hotel business in Yogyakarta for the better. Besides, the results of the study also showed that entrepreneurial orientation had no significant effect on performance. This relationship becomes significant when combined with active family involvement. This finding also shows that entrepreneurial orientation has the potential to have a more beneficial effect because of the active involvement of the family in helping with business management, alleviating business-related problems, and having a significant influence when the family also acts as management.Social implicationsResearch findings indicate the role of gender in strengthening the relationship between entrepreneurial orientation and family business performance. This provides a good position for women in the social environment to show achievement. To place women on the side of gender equality and justice in the family business in Indonesia. By opening wider access for Indonesian women in the realm of business management, expanding women's participation in a family business, increasing the role of control for women, and increasing women's knowledge and skills to increase the benefits in managing family businesses so that they have sustainable resilience in the face of global competition.Originality/valueThe results of this study provide a new model in providing an overview of the direct and indirect roles (mediating and moderating) in the assessment of family business performance. This study uses three variables which are important in performance appraisal, namely entrepreneurial orientation (independent variable), family involvement (mediating variable) and gender (moderating variable). Where research that combines these four variables, directly and indirectly, has never been done before.

Revisiting the Study of Family Businesses: Methodological Challenges, Dilemmas, and Alternative Approaches

1998 ◽  
Vol 11 (3) ◽  
pp. 239-252 ◽  
Author(s):  
Mary Winter ◽  
Margaret A. Fitzgerald ◽  
Ramona K. Z. Heck ◽  
George W. Haynes ◽  
Sharon M. Danes
Keyword(s):  
Empirical Evidence ◽  
Family Business ◽  
Methodological Approach ◽  
Family Businesses ◽  
Business Research ◽  
Internal Dynamics ◽  
Methodological Challenges ◽  
The Family ◽  
Alternative Approaches ◽  
Social Units

Family businesses are vital but understudied economic and social units. Previous family business research is limited relative to its definitions, sampling, and resulting empirical evidence. This paper presents an alternative methodological approach to the study of family businesses with the potential for allowing multiperspective and detailed analyses of the nature and internal dynamics of both the family and the business and the interaction between the two.

Succession planning and family business performance in SMEs

2017 ◽  
Vol 36 (3) ◽  
pp. 330-347 ◽  
Author(s):  
Mozhdeh Mokhber ◽  
Tan Gi Gi ◽  
Siti Zaleha Abdul Rasid ◽  
Amin Vakilbashi ◽  
Noraiza Mohd Zamil ◽  
...  
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Business Performance ◽  
Positive Impact ◽  
Family Businesses ◽  
Related Factors ◽  
Content Type ◽  
The Family ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the impact of preparation level of heirs and the relationship between family and business members on the performance of family business in small- and medium-sized enterprises (SMEs) in Malaysia. Design/methodology/approach A quantitative research design involving the use of a survey questionnaire was implemented to investigate the influences of succession planning factors on the performance of family business in SMEs. The survey was conducted on 50 family business successors in Malaysian SMEs. Findings The result showed that the two studied factors – preparation level of heirs and the relationship between family and business members – have a positive impact on the performance of family business. Research limitations/implications The research concentrated on the performance of family business in SMEs in Malaysia’s southern region. The generalization therefore must be made very cautiously to the overall Malaysian SMEs. Practical implications The findings help family businesses to better understand the importance of the preparation level of heirs and the relationship between family and business members on business performance. This study shows the importance of key factors influencing succession planning so that the successor to the family business can bring the family firm to the next stage of success. Originality/value This study serves as a reference or guide for the management of family businesses to better understand the important factors for effective succession planning. It considers the best possible preparation and family-related factors affecting the end results of business, particularly in Malaysian SMEs.

scholarly journals Entrepreneurship Orientation as Antecedent of Family Business Performance

2020 ◽  
Vol 9 (1) ◽  
pp. 1-8
Author(s):  
Daniel Kurniawan
Keyword(s):  
Literature Review ◽  
Family Business ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
The Other ◽  
Business Research ◽  
Interesting Issue ◽  
Purposive Sampling ◽  
The Family ◽  
Sample Technique

Abstract The performance of a family business has become an interesting issue on the family business research. On the other hand, how to achieve that goal is still arguable. Based on literature review, entrepreneurship orientation is one of the key predictors for family business performance. This study took sample of 201 medium family company in Surabaya. Purposive sampling is selected as sample technique. The findings of this study imply entrepreneurship orientation significantly positive correlate to family business performance. Keywords: entrepreneurial orientation, family business performance, family business

scholarly journals Transgenerational innovation capability in family firms

2020 ◽  
Vol 27 (1) ◽  
pp. 1-25
Author(s):  
Felipe Hernandez-Perlines ◽  
Domingo Ribeiro-Soriano ◽  
Maria Rodríguez-García
Keyword(s):  
Measurement Invariance ◽  
Family Business ◽  
Business Performance ◽  
Family Businesses ◽  
Innovation Capability ◽  
Content Type ◽  
The Family ◽  
Generation Family ◽  
Composite Models ◽  
Innovation Capacity

PurposeBased on the theory of dynamic capabilities, the purpose of this study is to examine how generation influences the effect of innovation capability on family business performance. To achieve this purpose, a moderation model is tested using the generational level as the moderating variable.Design/methodology/approachThis study used a sample of 106 family businesses CEOs who were surveyed by mail using the Limesurvey 2.5 platform. The results obtained were analyzed using the second-generation partial least squares (PLS) structural equation model. The MICOM (Measurement Invariance of Composite Models) approach was used to analyze the moderating effect.FindingsThis research sheds lights on the innovation capacity to influence the family businesses performance, and on the generational level moderating this effect. As a result, the influence of the innovation capacity in second generation family businesses performance is higher than in the first generation.Research limitations/implicationsThis study reveals the influence that the generational level has on the effect of innovation capacity on the family business performance. A greater dispersion of ownership, more participatory decision-making, and greater CEOs commitment to leadership in second- and later-generation family businesses, are the main key drivers of this result.Originality/valueIn comparison to previous studies, this research provides insights into the moderating effect of the generational level on the influence of innovation capacity on the family businesses performance through the MICOM approach (Measurement Invariance of Composite Models).

Examining employment relationship activities in family business research

2016 ◽  
Vol 6 (3) ◽  
pp. 210-224 ◽  
Author(s):  
Holly Ferraro ◽  
Jennifer Marrone
Keyword(s):  
Family Business ◽  
Family Members ◽  
Family Businesses ◽  
Theory And Practice ◽  
Employment Relationship ◽  
Future Research ◽  
Business Research ◽  
Content Type ◽  
The Family ◽  
Advance Theory

Purpose The purpose of this paper is to examine the family business literature on human resource management (HRM) activities within family-owned businesses to advance theory and practice. Design/methodology/approach This paper is a review of research on the formation, adaptation, and termination of the employment relationship within family businesses. Findings Important areas for future research are revealed. For example, little research investigates how family members are recruited, socialized, or how exit decisions are made. In contrast, significant attention has been given to role transitions during succession. Research limitations/implications The paper focuses on managing employment relationships (e.g. recruitment, selection, etc.) within family businesses. The research revealed HRM activities within family businesses are often informal so aspects of the employment relationship may not be fully captured by extant research. Practical implications This review provides specific HRM suggestions for practitioners to consider. For example, this review highlights that training inside the family business can be as effective as training outside the family business. Originality/value This review is novel in applying an established HRM framework to family business research and focuses on HRM activities of family members as opposed to non-family employees. The paper offers considerations for families bringing next generation members into their businesses and preparing offspring to run them successfully.

scholarly journals Governance in Hungarian family businesses

2019 ◽  
Vol 3 (1) ◽  
pp. 7
Author(s):  
Attila Wieszt
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Business Performance ◽  
Large Scale ◽  
Geographical Location ◽  
Family Businesses ◽  
Computer Assisted ◽  
Governance System ◽  
The Family ◽  
Governance Practices

Aim: A large-scale, exploratory survey had been conducted on the whole population of family businesses in Hungary in 2017/18 concentrating on the heterogeneity of the family business population. This paper presents the findings of this survey focusing only on the governance practices of the Hungarian family businesses.Design / Research methods: Two questionnaires were asked from a sample of Hungarian family businesses in the form of a computer-assisted phone interview. This sample is based on probability sampling of a larger database representative to the Hungarian population of business organization in terms of annual revenue, geographical location and industry. Questions were formulated considering models of family involvement, socio-emotional wealth, succession, governance, and professionalization.Conclusions/findings: Hungarian family businesses succeed in involving a growing number of family members into the company which also positively relates to the business performance of the firms. The developmental patterns of their governance practices reflect their increasing level of professionalization.However, they can hardly involve external, non-family professionals into the Top Management Team, which may be crucial especially for the further growth of medium-sized firms. Their family governance concentrates rather on operatively bridging family and company, and not on planning the maintenance of long-term family control.Originality/value of the article: The paper delivers both informations on the heterogeneity of the Hungarian family businesses from a governance-related point of view, and show direct, practical implications regarding the family business governance system. Its results can be of interest both for family business owners, researchers, and consultants.

Measuring family business performance: research trends and suggestions

2018 ◽  
Vol 8 (2) ◽  
pp. 146-168 ◽  
Author(s):  
Ralph I. Williams Jr
Keyword(s):  
Performance Measurement ◽  
Family Business ◽  
Performance Studies ◽  
Business Performance ◽  
Research Field ◽  
Business Research ◽  
Content Type ◽  
Business Studies ◽  
The Family ◽  
Performance Research

Purpose Business performance measurement is vital to expanding knowledge of how various strategies and behaviors affect organization outcomes. Given the recent growth of the family business research field, it is appropriate to assess how researchers measure family business performance, seeking to provide thoughts related to how to improve family business performance measurement in research. The paper aims to discuss these issues. Design/methodology/approach This study applies a systematic approach to review 338 family business performance studies published in peer-reviewed journals from 1980 through 2015. Findings Observations are presented from this exhaustive review, including the expansion of the family business research field, types of journals publishing family business studies, research topics, types of measures utilized, and others. In addition, potential gaps are identified and possible solutions are presented. Originality/value It appears no review of family business performance measurement in research is available. Observations from this review may assist researchers in measuring a vital metric, family business performance.

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