An Archival Approach to Measuring Family Influence

2016 ◽  
Vol 30 (1) ◽  
pp. 19-36 ◽  
Author(s):  
Aaron H. Anglin ◽  
Shane W. Reid ◽  
Jeremy C. Short ◽  
Miles A. Zachary ◽  
Matthew W. Rutherford
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Organizational Identity ◽  
Random Coefficients ◽  
Data Sources ◽  
Family Influence ◽  
Archival Data ◽  
Business Research ◽  
Key Factors ◽  
Organizational Identities

Drawing from a framework highlighting how family influence is reflected in organizational identity, we present archival and content analytic adaptations for three key factors signifying alignment between family and organizational identities: family visibility, transgenerational sustainability, and family self-enhancement. We validate these measures using archival data sources, “About Us” pages, and shareholder letters from S&P 500 firms. Random coefficients modeling indicates our measures are largely shaped by temporal and firm, followed by industry, differences. Our work paves the way for further investigation exploring the relationships between family involvement and organizational identity while simultaneously addressing lingering methodological challenges in family business research.

Advancing the Field of Family Business Research: Further Testing the Measurement Properties of the F-PEC

2009 ◽  
Vol 23 (1) ◽  
pp. 76-88 ◽  
Author(s):  
Daniel T. Holt ◽  
Matthew W. Rutherford ◽  
Donald F. Kuratko
Keyword(s):  
Family Business ◽  
Convergent Validity ◽  
Initial Level ◽  
Factor Model ◽  
Family Influence ◽  
Measurement Properties ◽  
Business Research ◽  
Validity And Reliability ◽  
Scale Data ◽  
Three Factor

The field of family business research is advanced by further examining the validity and reliability of Klein, Astrachan, and Smyrnios’s Family Influence on Power, Experience, and Culture Scale. Data from 831 family businesses are analyzed to assess the measure’s construct validity using exploratory and confirmatory techniques. The hypothesized three-factor model emerged to include culture, power, and experience. Extending the previous effort, the measure’s convergent validity was tested by assessing differences between the measure’s scores and the desires of the senior generation and the commitment of the next generation. Results support an initial level of convergent validity.

Examining the Link between “Familiness” and Performance: Can the F–PEC Untangle the Family Business Theory Jungle?

2008 ◽  
Vol 32 (6) ◽  
pp. 1089-1109 ◽  
Author(s):  
Matthew W. Rutherford ◽  
Donald F. Kuratko ◽  
Daniel T. Holt
Keyword(s):  
Capital Structure ◽  
Family Business ◽  
Family Influence ◽  
Business Research ◽  
Empirical Examination ◽  
Perceived Performance ◽  
Current State ◽  
The Family ◽  
And Performance ◽  
The Relationship

Family business research appears to be caught in a “jungle” of competing theories in regards to familiness and performance. This study provides a further empirical examination into that relationship. We employ a family influence scale (the familiness–power, experience, and culture scale [F–PEC]) presented by Klein, Astrachan, and Smyrnios in an attempt to assess the relationship between familiness and performance in 831 family businesses. The resulting regression analysis adds to the current state of the literature by demonstrating significant and interesting results. Specifically, familiness showed associations with revenue, capital structure, growth, and perceived performance; however, the relationships were both positive and negative, thus casting doubt upon the F–PEC as a vehicle for untangling the jungle. We conclude with discussion and implications.

scholarly journals Familiness and socioemotional wealth in Spanish family firms: An empirical examination

2017 ◽  
Vol 7 (1-2) ◽  
Author(s):  
Ismael Barros ◽  
Juan Hernangómez ◽  
Natalia Martin-Cruz
Keyword(s):  
Organizational Effectiveness ◽  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
Family Influence ◽  
Socioemotional Wealth ◽  
Empirical Examination ◽  
The Family ◽  
Spanish Family ◽  
The Impact

The socioemotional wealth (SEW) related to emotional endowments accumulated in the business by the family, is one of the most important features that differentiate the family firms of other organizations. However, there are few studies developed in the context of the antecedents and consequences of the building and use of SEW in the family business. Therefore, this study, using a sample of Spanish family firms that are non-publicly traded, explains how family influence affects the building and use of SEW and, thus, the organizational effectiveness of the family firm. The results indicate mixed results regarding the impact of the family involvement on the essence. Those suggest a positive relationship between building and use of SEW and organizational effectiveness of the family business.

Managing Boundaries Through Identity Work

2013 ◽  
Vol 26 (4) ◽  
pp. 333-355 ◽  
Author(s):  
Joshua R. Knapp ◽  
Brett R. Smith ◽  
Glen E. Kreiner ◽  
Chamu Sundaramurthy ◽  
Sidney L. Barton
Keyword(s):  
Family Business ◽  
Identity Theory ◽  
Identity Work ◽  
Family Businesses ◽  
Qualitative Approach ◽  
Boundary Theory ◽  
Boundary Management ◽  
Business Research ◽  
Organizational Identities

Drawing on boundary and identity theories, we examine how individuals manage boundaries in family businesses. Using an inductive, qualitative approach based on interviews of 44 individuals in four family businesses, we find organizational members use 13 identity work tactics, collectively labeled social boundary management, to create and manage boundaries for both individual and organizational identities. We illustrate how individuals use identity work tactics to integrate and segment themselves and others between the domains of family and business. Our findings have implications for family business research, boundary theory, and identity theory.

Research on Technological Innovation in Family Firms

2012 ◽  
Vol 26 (1) ◽  
pp. 10-31 ◽  
Author(s):  
Alfredo De Massis ◽  
Federico Frattini ◽  
Ulrich Lichtenthaler
Keyword(s):  
New Product Development ◽  
Technological Innovation ◽  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
New Product ◽  
Future Research ◽  
Moderating Effects ◽  
Business Research ◽  
Promising Area

The purpose of this article is to review and systematize prior work on technological innovation in family firms and to open up an agenda to guide future research into this promising area. The study shows that family involvement has direct effects on innovation inputs (e.g., R&D expenditures), activities (e.g., leadership in new product development projects), and outputs (e.g., number of new products), as well as moderating effects on the relationships between these steps of technological innovation. The article uses theories applied in family business research (e.g., agency theory) to discuss opportunities for extending technological innovation frameworks by considering family involvement.

The effects of goals attainment on CEO-owner satisfaction and the role of family involvement

2019 ◽  
Vol 10 (2) ◽  
pp. 116-127
Author(s):  
Ondřej Machek ◽  
Jiří Hnilica
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Firm Value ◽  
Family Firms ◽  
Hierarchical Regression ◽  
Content Type ◽  
Business Goals ◽  
Growth Increase ◽  
The Family ◽  
Owner Satisfaction

Purpose The purpose of this paper is to examine how the satisfaction with economic and non-economic goals achievement is related to the overall satisfaction with the business of the CEO-owner, and whether family involvement moderates this relationship. Design/methodology/approach Based on a survey among 323 CEO-owners of family and non-family businesses operating in the Czech Republic, the authors employ the OLS hierarchical regression analysis and test the moderating effects of family involvement on the relationship between the satisfaction with different goals attainment and the overall satisfaction with the business. Findings The main finding is that family and non-family CEO-owner’s satisfaction does not differ significantly when economic goals (profit maximisation, sales growth, increase in market share or firm value) and firm-oriented non-economic goals (satisfaction of employees, corporate reputation) are being achieved; both classes of goals increase the overall satisfaction with the firm and the family involvement does not strengthen this relationship. However, when it comes to external non-economic goals related to the society or environment, there is a significant and positive moderating effect of family involvement. Originality/value The study contributes to the family business literature. First, to date, most of the studies focused on family business goals have been qualitative, thus not allowing for generalisation of findings. Second, there is a lack of evidence on the ways in which family firms integrate their financial and non-financial goals. Third, the authors contribute to the literature on the determinants of personal satisfaction with the business for CEOs, which has been the focus on a relatively scarce number of studies.

scholarly journals The Determinants of Tax Aggressiveness in Family Firms: An Investigation of Italian Private Family Firms

2021 ◽  
Vol 13 (14) ◽  
pp. 7654
Author(s):  
Giulia Flamini ◽  
Paola Vola ◽  
Lucrezia Songini ◽  
Luca Gnan
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
Tax Planning ◽  
Agency Conflicts ◽  
Managerial Control ◽  
Public Companies ◽  
Tax Aggressiveness ◽  
Research Findings ◽  
Antecedents And Consequences

A recent stream of research has focused on tax aggressiveness, the downward management of taxable income through tax planning activities, and has analyzed its antecedents and consequences, mainly on public companies. Only very few studies, however, have been carried out in the context of private family business and have investigated whether some family firms are more tax aggressive than others, considering some specific features of family firms, such as their distinctive agency conflicts and socioemotional wealth. In this paper, we investigate the antecedents of tax aggressiveness in a sample of private Italian family firms. Our research findings show that tax aggressiveness is positively associated with ownership concentration, the presence of independent members in the board, and the adoption of reporting mechanisms. Instead, we found a negative relation between tax aggressiveness and the use of both strategic planning and a combination of managerial control systems (both planning and reporting mechanisms). We did not find any relation between family CEO and tax aggressiveness. In summary, overall, our findings show that family involvement in ownership, an independent board. and managerialization (the use of managerial mechanisms) are relevant antecedents of tax aggressiveness in private family businesses.

Professional Management in Family Businesses: Toward an Extended Understanding

2008 ◽  
Vol 21 (1) ◽  
pp. 51-69 ◽  
Author(s):  
Annika Hall ◽  
Mattias Nordqvist
Keyword(s):  
Cultural Competence ◽  
Family Business ◽  
Cultural Theory ◽  
Business Management ◽  
Family Businesses ◽  
Business Research ◽  
Dominant Meaning ◽  
Case Research ◽  
Professional Management ◽  
Family Membership

Our purpose is to challenge the dominant meaning of professional management in family business research and to suggest an extended understanding of the concept. Based on a review of selected literature on professional management and with insights from cultural theory and symbolic interactionism, we draw on interpretive case research to argue that professional family business management rests on two competencies, formal and cultural, of which only the former is explicitly recognized in current family business literature. We elaborate on the meanings and implications of cultural competence and argue that without it a CEO of a family business is likely to work less effectively, no matter how good the formal qualifications and irrespective of family membership.

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