A Typology of Family Firms: An Investigation of Entrepreneurial Orientation and Performance

2019 ◽  
Vol 32 (2) ◽  
pp. 174-194 ◽  
Author(s):  
Laura J. Stanley ◽  
Remedios Hernández-Linares ◽  
María Concepción López-Fernández ◽  
Franz W. Kellermanns
Keyword(s):  
Life Cycle ◽  
Entrepreneurial Orientation ◽  
Latent Profile Analysis ◽  
Family Firms ◽  
Firm Heterogeneity ◽  
Profile Analysis ◽  
Family Firm ◽  
Family Influence ◽  
Firm Life Cycle ◽  
And Performance

Drawing on family firm heterogeneity research, we develop a typology of family firms using differences in family influence and firm life cycle. We offer hypotheses regarding the relationships between the different firm types and two important outcomes: Entrepreneurial orientation (EO) and performance. Applying latent profile analysis to a sample of 684 Spanish and Portuguese family firms using variables related to family influence (i.e., ownership, family CEO) and firm life cycle (i.e., generational management, size, and presence of board of directors), we find four family firm types, which differentially affect EO and performance. Implications of our findings for EO, family firm performance, and the development of family firm typologies are discussed.

The Moderating Effect of Family Firm Status on the Entrepreneurial Orientation-Performance Relationship

2019 ◽  
pp. 102-132
Author(s):  
Remedios Hernández-Linares ◽  
María Concepción López-Fernández ◽  
Laura Victoria Fielden Burns
Keyword(s):  
Firm Performance ◽  
Entrepreneurial Orientation ◽  
Family Firms ◽  
Small And Medium Enterprises ◽  
Positive Association ◽  
Chief Executive ◽  
Family Firm ◽  
Moderating Effect ◽  
And Performance ◽  
The Relationship

Although management literature mostly reports a positive association between entrepreneurial orientation and firm performance, it also recognizes that different business contexts may prompt different manifestations of entrepreneurial orientation. Considering that family firms constitute the backbone of most economies across the globe, and based on arguments from socioemotional wealth perspective, this research aims to examine the moderating effect of being a family firm on the relationship between entrepreneurial orientation and firm performance. The empirical study is based on primary information obtained from the chief-executive-offices of 402 small and medium-enterprises (SMEs) from Portugal, a country located in southwestern Europe, and one that has been scantly investigated by the literature in the confluence between entrepreneurial orientation and family firms. Results show that the family firm status weakens the relationship between entrepreneurial orientation and performance in the Portuguese SMEs.

Latent Profile Analysis

2016 ◽  
Vol 30 (1) ◽  
pp. 84-102 ◽  
Author(s):  
Laura Stanley ◽  
Franz W. Kellermanns ◽  
Thomas M. Zellweger
Keyword(s):  
Latent Profile Analysis ◽  
Family Firms ◽  
Profile Analysis ◽  
Qualitative Comparative Analysis ◽  
Family Firm ◽  
Firm Characteristics ◽  
Dependent Variables ◽  
Methodological Approaches ◽  
Insight Into ◽  
Latent Profile

We demonstrate how latent profile analysis (LPA) can be applied to generate profiles (i.e., homogenous subgroups) in a sample of family firms. In doing so, we highlight how LPA can provide additional insight into family firm phenomena when used in conjunction with other methodological approaches (i.e., regression). We compare LPA with other techniques (i.e., cluster analysis and qualitative comparative analysis) and show LPA’s superior ability to capture complex patterns of important family firm characteristics. We demonstrate how profiles can be linked to differences in dependent variables, providing family firm scholars with a tool to assess heterogeneity and its consequences among family firms.

Family Firm Values Explaining Family Firm Heterogeneity

2019 ◽  
Vol 32 (2) ◽  
pp. 195-215 ◽  
Author(s):  
Sabine B. Rau ◽  
Viktoria Schneider-Siebke ◽  
Christina Günther
Keyword(s):  
Family Firms ◽  
Firm Behavior ◽  
Firm Heterogeneity ◽  
Family Firm ◽  
Future Research

Family firm heterogeneity results in reduced predictability of firm behavior as well as inconsistent results regarding research on family firm behavior. We argue that family firm heterogeneity is based, among other factors, on values heterogeneity. In order to lay the ground for future research, we develop a taxonomy of family firms based on values. Using values theory, we identify six value categories, resulting in five family firm types with five distinct value profiles. Second, we posit family firm values profiles are distinct to the group of family firms as nonfamily firms do not display similar value profiles.

Unmasking the Social Ghost in the Machine: How the Need to Belong and Family Business Potency Affect Family Firm Performance

2020 ◽  
Vol 33 (4) ◽  
pp. 351-371
Author(s):  
Nastaran Simarasl ◽  
David S. Jiang ◽  
Franz W. Kellermanns ◽  
Bart J. Debicki
Keyword(s):  
Firm Performance ◽  
Family Business ◽  
Family Cohesion ◽  
Family Firms ◽  
Firm Heterogeneity ◽  
Psychological Research ◽  
Family Firm ◽  
Future Research ◽  
Need To Belong ◽  
The Social

Research often assumes that a controlling family’s social bonds contributes to superior firm performance. However, there is little theory to address these relationships and findings are often mixed. Here, we integrate resource-based and need-to-belong theories to address these issues, introducing family business potency as a key mediating variable between family cohesion, participative strategy processes, and firm performance in 109 family firms. Altogether, our study answers ongoing theoretical calls for more need-based psychological research in family firms, introduces family business potency to the literature, and contributes to research on family firm heterogeneity. Implications for future research and practice are also discussed.

Entrepreneurial orientation in family firms: the moderating role of technological intensity and performance

2014 ◽  
Vol 12 (1) ◽  
pp. 27-45 ◽  
Author(s):  
Lucía Garcés-Galdeano ◽  
Martín Larraza-Kintana ◽  
Carmen García-Olaverri ◽  
Marianna Makri
Keyword(s):  
Entrepreneurial Orientation ◽  
Family Firms ◽  
And Performance ◽  
Technological Intensity ◽  
Moderating Role

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.

Singapore Primary Students’ Pursuit of Multiple Achievement Goals: A Latent Profile Analysis

2016 ◽  
Vol 38 (2) ◽  
pp. 220-237 ◽  
Author(s):  
Hoi Kwan Ning
Keyword(s):  
Learning Strategies ◽  
Latent Profile Analysis ◽  
Profile Analysis ◽  
School Context ◽  
Achievement Goal ◽  
Primary Students ◽  
Multiple Goals ◽  
And Performance ◽  
Mastery Avoidance ◽  
Latent Profile

Based on measures of approach and avoidance mastery and performance goals delineated in the 2 × 2 achievement goal framework, this study utilized a person-centered approach to examine Singapore primary students’ ( N = 819) multiple goals pursuit in the general school context. Latent profile analysis identified six types of students with distinct patterns of achievement goal motivation: high goal-oriented (strong multiple goals), average goal-oriented (moderate multiple goals), low goal-oriented (weak multiple goals), performance and approach-oriented (high mastery- and performance-approach, high performance-avoidance, low mastery-avoidance), approach-oriented (high mastery- and performance-approach, low mastery- and performance-avoidance), and mastery-oriented (moderate mastery-approach and mastery-avoidance, low performance-approach and performance-avoidance). Significant profile differences were detected in various measures of deep and surface learning strategies, metacognitive strategies, and mathematics test performance. The high goal-oriented profile appeared to be the most adaptive in relation to these learning outcomes, followed by the performance and approach-oriented, the mastery-oriented, and the approach-oriented profiles.

An empirical study about knowledge transfer, entrepreneurial orientation and performance in family firms

2016 ◽  
Vol 10 (5) ◽  
pp. 534 ◽  
Author(s):  
Ascensión Barroso Martínez ◽  
Ramón Sanguino Galván ◽  
Tomás M. Bañegil Palacios
Keyword(s):  
Knowledge Transfer ◽  
Empirical Study ◽  
Entrepreneurial Orientation ◽  
Family Firms ◽  
And Performance
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