The Cognitive Legitimacy of the Family Business Field

2011 ◽  
Vol 24 (4) ◽  
pp. 322-342 ◽  
Author(s):  
María José Pérez Rodríguez ◽  
Rodrigo Basco
Keyword(s):  
Family Business ◽  
Business Performance ◽  
External Support ◽  
Regional Economies ◽  
New Approach ◽  
The Family ◽  
One Step ◽  
Practical Implications ◽  
Cognitive Legitimacy

This article analyzes cognitive legitimacy in family business field and makes three main contributions to the literature: First, the authors move the debate claiming legitimacy for the field one step forward and offer a new approach to explain how the field has attained its current course of development. Second, the authors’ analysis goes beyond external support in the consideration of legitimacy and develops a methodological process for the study of cognitive legitimacy. Finally, the study has practical implications for researchers and society, as increasing the knowledge available to describe, explain, and predict phenomena can improve family business performance and develop regional economies.

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.

Influence of the Management of the Innovation in the Business Performance of the Family Business: Application to the Printing Sector in Colombia

2018 ◽  
pp. 349-359 ◽  
Author(s):  
Mercedes Gaitán-Angulo ◽  
Amelec Viloria ◽  
Jenny-Paola Lis-Gutiérrez ◽  
Dionicio Neira ◽  
Enrrique López ◽  
...  
Keyword(s):  
Family Business ◽  
Business Performance ◽  
Business Application ◽  
The Family

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.

Cultural values and their implications to family business succession

2019 ◽  
Vol 10 (4) ◽  
pp. 281-292 ◽  
Author(s):  
Grisna Anggadwita ◽  
Werda Bagus Profityo ◽  
Dini Turipanam Alamanda ◽  
Anggraeni Permatasari
Keyword(s):  
Cultural Values ◽  
Family Business ◽  
Family Businesses ◽  
Chinese Family ◽  
Content Type ◽  
The Family ◽  
Succession Process ◽  
Business Succession ◽  
Family Business Succession ◽  
Practical Implications

Purpose The family business is one of the business entities that contribute to the economy of a country. Succession in the family business occupies a strategic position, especially in maintaining the company’s sustainability. The Chinese family business has unique characteristics in maintaining and growing its business with the cultural values that underlie how their business. The purpose of this paper is to discuss the cultural values of Chinese ethnic and their implications in the succession process in small family businesses in Bandung, Indonesia. Design/methodology/approach This research uses a qualitative method with the in-depth interview method as a data collection technique. The sampling technique uses purposive sampling, while to test the validity of research data using a triangulation technique. A total of four small Chinese-owned family businesses participated as informants in this study. The study will identify the stage of succession process in the Chinese family business. Findings There are several stages identified in the succession planning of small Chinese-owned family business in Bandung which include succession antecedents, succession activities and desired outcomes. The results showed that small Chinese-owned family business in Bandung has not applied the rules and procedures in the succession process. Most of the Chinese family business in this research still holds Confucianism culture; they prioritize boys as business successors, who have a greater responsibility rather than successor with other gender. Practical implications Several implications are discussed. One of them is the Chinese family business holding cultural values in the process of family business succession. Originality/value This research is expected to provide theoretical and practical implications for academics and family companies with similar cases.

scholarly journals Family and Cultural Capital. The perspective of familiness

2014 ◽  
Vol 4 (2) ◽  
Author(s):  
Pilar Ortiz García ◽  
Ángel Olaz Capitán ◽  
Juan Monreal Martínez
Keyword(s):  
Cultural Capital ◽  
Corporate Culture ◽  
Family Business ◽  
Business Strategy ◽  
Business Performance ◽  
Family Capital ◽  
The Family ◽  
Key Factor ◽  
Definition Of ◽  
Cultural Components

The influence of the family on a business, its commitment to the company and the values it conveys form a capital capable of influencing the global development of a business. This research analyzes family capital and in particular its cultural components as a resource influencing the direction of the company. Corporate culture as a guiding philosophy for family business strategy is a key factor in its success. In short, the cultural capital of a family business is a capacity for empowerment. The sharing of values and an agreed definition of the business mission and its beliefs exert an element of cohesion among its human resources giving competitive advantage. The issue is to understand how business performance is influenced. 

Determinants of Initial Satisfaction with the Succession Process in Family Firms: A Conceptual Model

2001 ◽  
Vol 25 (3) ◽  
pp. 17-36 ◽  
Author(s):  
Pramodita Sharma ◽  
James J. Chrisman ◽  
Amy L. Pablo ◽  
Jess H. Chua
Keyword(s):  
Conceptual Model ◽  
Family Business ◽  
Family Firms ◽  
Test Model ◽  
Leadership Succession ◽  
Economic Theories ◽  
The Core ◽  
The Family ◽  
Succession Process ◽  
Practical Implications

Leadership succession continues to form the core of the family business literature. Numerous studies have suggested factors that influence family members' initial satisfaction with the succession process, but this body of work is highly fragmented and lacks a unifying framework. In this paper, we draw on stakeholder theory and other organizational, behavioral, and economic theories to develop a conceptual model that integrates the findings from the literature. The research and practical implications of this integrative, ready-to-test, model are discussed.

Applying an organizational effectiveness approach to measure family business performance

2019 ◽  
Vol 9 (3) ◽  
pp. 349-374 ◽  
Author(s):  
Ralph I. Williams Jr ◽  
Torsten Pieper ◽  
Franz Kellermanns ◽  
Joe Astrachan
Keyword(s):  
Organizational Effectiveness ◽  
Family Business ◽  
Structural Equation ◽  
Business Performance ◽  
Measurement Scale ◽  
Equation Modeling ◽  
Entire Family ◽  
Content Type ◽  
Business Goals ◽  
The Family

Purpose Current approaches to measuring family business performance have limitations: failing to acknowledge the entire family business holistically, and lacking recognition of the idiosyncratic nature of family business goals. By applying organizational effectiveness and the achievement of desired organizational outcomes, the purpose of this paper is to develop a scale to measure performance based on a family business’ idiosyncratic goals. Design/methodology/approach This study applies mixed methods, including qualitative research, two surveys and structural equation modeling. Findings The authors develop a scale employing 21 items, representing six goal dimensions, to measure the family business performance. Originality/value The family business performance measurement scale from this study responds to multiple calls for a scale gauging family business performance in a manner including both financial and non-financial outcomes.

scholarly journals Divorce in the family business: unfolding the legal problems by learning from practice

2016 ◽  
Vol 6 (1) ◽  
Author(s):  
Kajsa Haag ◽  
Lars-Göran Sund
Keyword(s):  
Family Business ◽  
Design Methodology ◽  
Family Law ◽  
Business Context ◽  
Legal Perspective ◽  
The Family ◽  
Critical Issues ◽  
Marital Property ◽  
The Impact ◽  
Practical Implications

Purpose Our purpose is to explore the case of divorce in family business from a legal perspective and highlight the problems of applying family law in the family business context. Design/methodology/approach We rely on legal analysis and interviews with estate distribution executors to discuss problems with the legal rules and how they are practiced. Findings Our findings show that the law is ill fitted to the situation where there is a family business included in the division of marital property. In divorce, family law dictates the division of marital property and the family business is reduced to an asset to be divided like any other. Critical issues are identified and elaborated. Research limitations/implications Divorce and other disruptions to the family system should be considered in family business consultancy among other threats to the business. The legal perspective on divorce in the family business offered here primarily concerns ownership issues. The impact of divorce on management is equally in need of exploration, which is our suggestion for further studies. Practical implications Our paper illuminates in which ways the business is hampered from divorcing owners and discuss critical issues with applying family law in a family business context. Originality/value New light is shed on the practical problems of interpreting family law in a family business context advancing our understanding of family aspects in family business management.

scholarly journals The impact of eu support resources on business success of family-owned businesses

10.5219/1167 ◽  
2019 ◽  
Vol 13 (1) ◽  
pp. 846-853 ◽  
Author(s):  
Dániel Halasi ◽  
Pavol Schwarcz ◽  
Ladislav Mura ◽  
Oľga Roháčiková
Keyword(s):  
European Union ◽  
Family Business ◽  
Quantitative Methods ◽  
Slovak Republic ◽  
External Support ◽  
Business Success ◽  
The European Union ◽  
Family Enterprises ◽  
The Family ◽  
The Impact

Nowadays, we live in an accelerated, complex, globalized world, where expectations are high for everyone. The child of today has to train a lot to be successful. The enlargement of the European Union and the expansion of the Schengen zone opened gates to society and economy that were not dreamed before by the countries of Central and Easter Europe. Many businesses were able to develop and grow, and they could achieve the goals they set until the end of the ´90s. The situation has changed since the turn of the millennium. The global markets, the easily accessible products and services, the convenience of the World Wide Web, the growing competition, the multinational companies and foreign chains, the high consumer expectations and the requirements and standards of EU have resulted the end of many businesses. The aim of the paper was to evaluate the impact of European Union support funds on the business of family enterprises in the southern districts of the Slovak Republic. The research material was obtained from primary sources. Data were subject of deeper analysis by statistical methods. Subsequently hypotheses were  formulated  and verified by use quantitative methods. According to results, in a group of businesses not supported by EU programs more than half of the respondents could not develop in the last 3 years, they had negative results. It can be stated that if external support and consultancy are present in family business life, the younger generation will find the family business more dynamic, innovative and attractive and therefore they will continue to run the family business.

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