Family Firm Heterogeneity: A Definition, Common Themes, Scholarly Progress, and Directions Forward

2021 ◽  
pp. 089448652110083
Author(s):  
Joshua J. Daspit ◽  
James J. Chrisman ◽  
Triss Ashton ◽  
Nicholas Evangelopoulos
Keyword(s):  
Latent Semantic Analysis ◽  
Family Firms ◽  
Semantic Analysis ◽  
Firm Heterogeneity ◽  
Family Firm ◽  
Definition Of ◽  
Made In

While progress has been made in recent years to understand the differences among family firms, insights remain fragmented due, in part, to an incomplete understanding of heterogeneity and the scope of differences that exist among family firms. Given this, we offer a definition of and review the literature on family firm heterogeneity. A latent semantic analysis of 781 articles from 33 journals identified nine common themes of family firm heterogeneity. For each theme, we review scholarly progress made and highlight differences among family firms. Additionally, we offer directions for advancing the study of family firm heterogeneity.

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.

scholarly journals The Role of Innovation in Small and Medium-Sized Family Firms: A Literature Review

2021 ◽  
Vol 9 (5) ◽  
pp. 102-120
Author(s):  
Ondrej Zizlavsky ◽  
Nikola Janickova
Keyword(s):  
Czech Republic ◽  
Firm Growth ◽  
Family Firms ◽  
Family Firm ◽  
Future Research ◽  
Value Drivers ◽  
The Czech Republic ◽  
Definition Of ◽  
The Relationship

This article builds on existing family business research conducted worldwide and embeds the research results in the Czech context to portray the Czech Republic as a critically important context for extending our knowledge on important family firms’ topics. In this article, we present a systematic review and integration of 69 articles published in peer-reviewed journals by Elsevier, Emerald, Wiley and others from 2015 to 2021 in order to answer two research questions: what is the role of innovation in SME family firms and what drives the innovation in family firms? Specifically, the content of the article discusses the new definition of family firm in the Czech Republic; the relationship between innovation and family firm growth; and some contextual factors that might affect the innovations in the Czech SME family firms: ability and willingness paradox, socioemotional wealth, and familiness. The insights of this review are used to develop suggestions for future research in setting the value of family firm where innovation can play an essential role as one of the core value drivers.

Family firm heterogeneity on CSR approach: A socio-emotional (SEW) perspective

2021 ◽  
pp. 234094442110638
Author(s):  
Julio Diéguez-Soto ◽  
Marta Campos-Valenzuela ◽  
Ángela M. Callejón-Gil ◽  
Ignacio Aldeanueva-Fernández
Keyword(s):  
Family Firms ◽  
Firm Heterogeneity ◽  
Family Firm ◽  
Study Data ◽  
Jel Classification ◽  
Negative Valence ◽  
Ethics Research ◽  
Interpretative Approach ◽  
Corporate Social

How family firms adopt a certain corporate social responsibility (CSR) approach remains a relatively unexplored matter in family firm and firm ethics research. Hence, we study how and why the CSR approach (broad vs. narrow; benefits vs. costs) differs within family firms, addressing the influence of the socio-emotional wealth (SEW) dimensions, individually or combined. We used empirical evidence gathered through 13 case studies of firms from the Andalusia region and we used the interpretative approach of the grounded theory based on case study data. Results of our analyses lead to propose that family firms with a higher identification and more positive than negative valence with regard to emotional attachment and family enrichment dimensions will be more likely to exhibit a broad approach of CSR. Likewise, those family firms adopting CSR actions with stakeholders due to instrumental use of image and reputation dimension will more probably display a benefits approach. JEL CLASSIFICATION: L26; M14

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.

Your Old Men Shall Dream Dreams, Your Young Men Shall See Visions: Toward a Theory of Family Firm Innovation with Help from the Brubeck Family

2001 ◽  
Vol 14 (4) ◽  
pp. 335-351 ◽  
Author(s):  
Reginald A. Litz ◽  
Robert F. Kleysen
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Firm ◽  
Firm Innovation ◽  
Fine Grained ◽  
Family Enterprise ◽  
Depth Study ◽  
Definition Of ◽  
Old Men ◽  
Future Work

Despite significant advances, a conspicuous gap remains in family business research concerning the practice of innovation in family firms. After reviewing innovation and family business literature, we offer coarse- and fine-grained conceptualizations of intergenerational innovation in the family enterprise. Given the fine-grained distinctions inherent in our resulting definition of family firm innovation, we move on to an in-depth study of one family involved in the innovative activity of jazz improvisation. After offering our analysis of the core dynamics apparent in this family's interactions, we conclude this paper with a research agenda for future work on family firm innovation.

scholarly journals Family Firm Heterogeneity and Tax Avoidance: The Role of the Founder

2019 ◽  
Vol 32 (3) ◽  
pp. 296-317 ◽  
Author(s):  
Alexander Brune ◽  
Martin Thomsen ◽  
Christoph Watrin
Keyword(s):  
Family Business ◽  
Loss Aversion ◽  
Family Firms ◽  
Firm Heterogeneity ◽  
Tax Avoidance ◽  
Family Firm ◽  
One Dimension ◽  
Direct Influence ◽  
Business Research

Family business research suggests that the population of family firms cannot be regarded as a homogenous group. Therefore, with respect to tax avoidance, we analyze the role of the founder as one dimension of family firm heterogeneity. Specifically, we consider socioemotional wealth loss aversion and find that founders may affect the level of tax avoidance not only when they have direct influence (i.e., serving as CEO) but also when they possess solely indirect influence (i.e., having substantial ownership or a seat on the board). Overall, our results suggest that founders remain attached to their firms despite giving up executive positions.

scholarly journals National Determinants of Family Firm Development? Family Firms in Britain, Spain, and Italy in the Nineteenth and Twentieth Centuries

2003 ◽  
Vol 4 (1) ◽  
pp. 28-64 ◽  
Author(s):  
Andrea Colli ◽  
Paloma Fernández Pérez ◽  
Mary B. Rose
Keyword(s):  
Twentieth Century ◽  
Recent Work ◽  
Family Business ◽  
Family Firms ◽  
Family Firm ◽  
Cultural Framework ◽  
The Family ◽  
Nineteenth And Twentieth Centuries ◽  
Similarities And Differences ◽  
Definition Of

We provide here a complement to recent work on family business, which has demonstrated the need to go beyond the generic definition of the family firm to place personal capitalism in an appropriate institutional, historical, and cultural framework. By focusing on the nineteenth‐ and twentieth‐century experiences in Britain, Spain, and Italy, we challenge the notion that in the nineteenth and twentieth centuries there was anything so simple as a Mediterranean model for family business. Rather, we demonstrate the need to consider family businesses in national and regional contexts if we are to understand their various capabilities and characteristics. We use similarities and differences in the experiences and responses of families and firms in the three countries to support this claim.

Payout differences between family and nonfamily listed firms: a socioemotional wealth perspective

2016 ◽  
Vol 6 (1) ◽  
Author(s):  
Manon Deslandes ◽  
Anne Fortin ◽  
Suzanne Landry
Keyword(s):  
Design Methodology ◽  
Family Firms ◽  
Family Firm ◽  
Future Research ◽  
Share Repurchases ◽  
Probit Regression ◽  
Socioemotional Wealth ◽  
Listed Firms ◽  
Definition Of ◽  
The Relationship

Purpose The objective of this study is to explain family firm payout decisions based on socioemotional wealth (SEW) considerations. Design/methodology/approach A sample of publicly listed Canadian companies is examined for the period from 2003 to 2008. Distinguishing family firms from nonfamily firms, a Probit regression is used to analyze the likelihood of making a payout. For payout firms, regressions are used to analyze the relationship between payout level (dividends and share repurchases) and payout mix and family firms. Findings Results indicate that family firms are more likely to make a payout than nonfamily firms. Among payout firms, the level of payout among payout firms is lower for family firms than for nonfamily firms and their portion of payout in the form of dividends is higher. Lone founder family firms have a lower likelihood of making payouts than other family firms. However, among payout firms, they pay out more than other family firms and have a smaller percentage of their total payout in dividends than other family firms. Research limitations/implications Results are impacted by the definition of what constitutes a family firm. Family ownership was used as a proxy for the underlying SEW considerations. Future research could involve interviews with family firm representatives to investigate the relative importance of SEW considerations in their payout decisions. Originality/value In providing an alternative theoretical framing of family firms’ payout policies, the study suggests that payout differences between family and nonfamily firms may be driven in part by SEW considerations.

Understanding Family Firm Profitability Heterogeneity

2020 ◽  
pp. 305-329 ◽  
Author(s):  
María J. Martínez-Romero ◽  
Rubén Martínez-Alonso ◽  
Alfonso A. Rojo-Ramírez ◽  
Julio Diéguez-Soto
Keyword(s):  
Family Involvement ◽  
Family Firms ◽  
Firm Heterogeneity ◽  
Family Firm ◽  
Research Field ◽  
The Family ◽  
Firm Profitability ◽  
Strategic Element ◽  
Family Involvement In Management ◽  
Positive Effect

Understanding family firm heterogeneity has become a topic of critical importance among academics and practitioners in the family business research field. This chapter aims to provide new insights into this theme by examining the differences in profitability within the pool of family firms. Furthermore, this chapter introduces an exceptional strategic element, namely innovative effort, to analyse when and to what extent the deployed innovative effort influences the family involvement in management-firm profitability relationship. Using a panel dataset on 3,164 observations of Spanish private manufacturing firms over the 2000–2015 period, the findings reveal significant differences in the profitability of family firms depending on the degree of family involvement in the firm's management. The findings also show that innovative effort reinforces the positive effect that family involvement in management exerts on firm profitability.

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