Exploring the Role of Agile Operant Resources in the Facilitation of Strategic Orientation: The Case of Family-owned Businesses in Pakistan

2021 ◽  
pp. 097215092110534
Author(s):  
Mehreen Waheed Butt ◽  
Abdul Rashid Kausar ◽  
Yasir Rashid
Keyword(s):  
Significant Role ◽  
Family Firms ◽  
Business Owners ◽  
Strategic Orientation ◽  
Research Approach ◽  
Business World ◽  
Sustainable Performance ◽  
The Family ◽  
Operant Resources

Purpose: No one can deny the pertinent role of resources in each era. Over time, its usefulness enhances, which facilitates firm sustainability in today’s volatile business world. To the best of the author’s knowledge, no study has been done specifically in the context of Family-Owned Businesses (FOBs) in Pakistan regarding the owner’s ability to possess agile operant resources. The purpose of this study is to explore the hidden agile operant resources of the family business owners which facilitate FOBs in strategic orientation. Design/Methodology/Approach: This study resides in a relativistic school of thought based on the interpretive paradigm. It is used as an exemplar of the nature of research. Purposive sampling is used for data collection. Interviews were conducted through open-ended questionnaires and observation of family owners. This study is based on the abductive research approach, which along with Gioia methodology, has been used to develop broader themes for discussion. Findings: This research article provides sound conceptual insights on the strategic orientation of family firms through the pertinent role of learning and observational resources, agile entrepreneurial phronesis and agile sensing skills. The authors proposed a conceptual model for shedding light on the pertinent role of agile operant resource supports to facilitate the strategic orientation of FOBs. Practical implications: This study proposes a framework for FOBs operating in Pakistan by providing novel insights for establishing sustainable firm performance by indicating the pertinence of agile operant resources. FOBs may adopt these agile operant resources to ensure firm strategic orientation in today’s dynamic business world. It also opens new avenues of innovation and growth for FOBs by determining the primitive, significant role of individual FOB owners operant resources. This study can apply to all FOBs. Originality value: In this research, the authors have discussed the iterative themes interactions and their significant role in the context of family firms to understand how learning and observational resources, agile sensing skills and agile entrepreneurial phronesis strengthen firm strategic orientation that drives firm sustainable performance in today’s competitive business world. As Pakistan, like other Asian countries, is considered fertile land for family businesses, such studies can enrich insights through surfacing the FOB owner-possessed resources-based framework and how it supports catering to effective strategic orientation.

scholarly journals Private equity investors and family firms: The role of exit intentions and conflicts

2018 ◽  
Vol 15 ◽  
pp. 44-58 ◽  
Author(s):  
Felix Thiele ◽  
Sven Busse ◽  
Stefan Prigge
Keyword(s):  
Financial Markets ◽  
Private Equity ◽  
Family Firms ◽  
Conflicts Of Interest ◽  
Research Approach ◽  
Structured Interviews ◽  
The Family ◽  
Decision Alternative ◽  
Case Based

This study examines private equity minority investors’ exit from family firms and its consequences for owner families. The authors theoretically discuss potential conflicts that might influence the exit decision, alternative exit routes, and the intentions of the family owners to exit the business along with the private equity investors. Subsequently, the theoretical insights were tested empirically using a case-based research approach. Four private equity firms provided data on 14 cases of completed minority private equity investments from Germany. Semi-structured interviews with investment managers offered further information regarding the analysed cases. Empirical findings reveal that conflicts of interest over the exit of private equity minority investors only rarely arise. Moreover, differences between planned and applied exit routes are mainly caused by changes in the economic situation of the company and/or in the conditions of financial markets and are related to changes in family owners’ exit intentions.

Emotional intelligence in family firms

2014 ◽  
Vol 4 (1) ◽  
pp. 4-23 ◽  
Author(s):  
Gonzalo Gómez Betancourt ◽  
Isabel C. Botero ◽  
Jose Bernardo Betancourt Ramirez ◽  
Maria Piedad López Vergara
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Members ◽  
Family Firm ◽  
Business Owners ◽  
Interpersonal Dynamics ◽  
Content Type ◽  
The Family

Purpose – Although researchers have highlighted the importance of relational and family factors for the sustainability of a family firm, there is not much empirical research exploring how emotions and the management of emotions play a role in the interpersonal dynamics of family business owners. The purpose of this paper is to explore how the way family members manage their emotions affects the interpersonal dynamics in the family, business, and ownership subsystems of a family firm. Design/methodology/approach – The paper presents an in-depth case study from a family firm in Colombia-South America. Findings – The results indicate that the capability that family members have to manage their emotions influences the interpersonal dynamics that take place in the family firm at the individual and group level. In this case, the paper found that although emotional intelligence (EI) affected interpersonal relationships in a firm, this effect was based on the individual's willingness to use their EI capabilities, previous history between people, and the goals individuals have within each subsystem in a family firm. The paper also found that interpersonal dynamics, in turn, influence how family members work together. Research limitations/implications – Because this study uses an in-depth case study, the intention of the paper is to provide an initial picture of how EI can play a role in the interpersonal interactions between family business owners. The authors hope that this study can be used as a building block to enhance the understanding of the role of EI in family firms. Practical implications – EI represents an individual's capability to perceive, understand, manage, and regulate self and other's emotions. For family firms, this means that family business owners can use this capability to determine how to enact their roles in the family firm and how to interact with other to ensure harmony in their relationships. Originality/value – This paper builds on previous work on emotions in family firms to explore the role of EI in family firms, and provides an empirical exploration of the role of management of emotions in family firms.

Making gender visible in family business: past and present

2012 ◽  
Vol 13 (1) ◽  
Author(s):  
Paloma Fernández Pérez ◽  
Eleanor Hamilton
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Business Leadership ◽  
Legal Rules ◽  
Developed Economies ◽  
The Family ◽  
Interdisciplinary Synthesis ◽  
Complex Forms ◽  
Rules Of The Game

This  study  contributes  to  developing  our understanding of gender and family business. It draws on studies from the business history and management literatures and provides an interdisciplinary synthesis. It illuminates the role of women and their participation in the entrepreneurial practices of the family and the business. Leadership is introduced as a concept to examine the roles of women and men in family firms, arguing that concepts used  by  historians or economists like ownership and management have served to make women ‘invisible’, at least in western developed economies in which owners and managers have been historically due to legal rules  of  the  game  men,  and  minoritarily women. Finally, it explores gender relations and  the  notion  that  leadership  in  family business  may  take  complex  forms  crafte within constantly changing relationships.

“We are a family firm”

2018 ◽  
Vol 8 (1) ◽  
pp. 2-21 ◽  
Author(s):  
Claudia Binz Astrachan ◽  
Isabel C. Botero
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Firm ◽  
Business Owners ◽  
Public Companies ◽  
Content Type ◽  
Brand Building ◽  
Depth Interview ◽  
The Family ◽  
Family Associations

Purpose Evidence suggests that some stakeholders perceive family firms as more trustworthy, responsible, and customer-oriented than public companies. To capitalize on these positive perceptions, owning families can use references about their family nature in their organizational branding and marketing efforts. However, not all family firms actively communicate their family business brand. With this in mind, the purpose of this paper is to investigate why family firms decide to promote their “family business brand” in their communication efforts toward different stakeholders. Design/methodology/approach Data for this study were collected using an in-depth interview approach from 11 Swiss and German family business owners. Interviews were transcribed and coded to identify different themes that help explain the different motives and constraints that drive their decisions to promote the “family business brand.” Findings The analyses indicate that promoting family associations in branding efforts is driven by both identity-related (i.e. pride, identification) and outcome-related (e.g. reputational advantages) motives. However, there are several constraints that may negatively affect the promotion of the family business brand in corporate communication efforts. Originality/value This paper is one of the first to explore why family businesses decide to communicate their “family business brand.” Building on the findings, the authors present a conceptual framework identifying the antecedents and possible consequences of promoting a family firm brand. This framework can help researchers and practitioners better understand how the family business nature of the brand can influence decisions about the company’s branding and marketing practices.

The role of Muslim women in managing the family during crisis: corona pandemic as a model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Haifa F. Fawaris
Keyword(s):  
Significant Role ◽  
Design Methodology ◽  
Analytical Approach ◽  
Muslim Women ◽  
Muslim Woman ◽  
Content Type ◽  
Study Results ◽  
The Family ◽  
Mental Characteristics

Purpose This study aims to clarify the role of Muslim women in managing their families during the corona pandemic crisis. To achieve this aim, the researcher applied the descriptive and analytical approach. Design/methodology/approach The Muslim women have had a prominent position consistent with the physical, psychological and mental characteristics that Allah has created them. This status is shown by: affirming their rights in all areas of life; affirming everything that preserved the dignity of women before Islam; and correcting all the conditions that detracted their dignity before the advent of Islam and making them responsible in public Islamic life on the level of: preserving Islam, spreading the Islamic call and achieving the civilization advancement of the Muslim nation. Findings The study resulted in many significant results. The most important one of the study results was that, in the context of woman rights and responsibilities she had assumed in Islam, the Muslim woman had a prominent position in Islam. In addition, the mother in the Muslim family had a significant role as a leader, who is capable of managing the family in corona crisis and supporting family members in all aspects such as faith, intellectual endeavors, psychological, social and health, so that they are real leaders. Originality/value The study recommends carrying out educational studies that identify and show the role of institutions other than the family in managing emergency crises.

Family Firms and the Choice Between Wholly Owned Subsidiaries and Joint Ventures: A Transaction Costs Perspective

2018 ◽  
Vol 44 (2) ◽  
pp. 211-232 ◽  
Author(s):  
Maria Cristina Sestu ◽  
Antonio Majocchi
Keyword(s):  
Transaction Costs ◽  
Family Involvement ◽  
Family Firms ◽  
Joint Venture ◽  
Entry Modes ◽  
Family Control ◽  
The Family ◽  
Wholly Owned Subsidiary ◽  
Transaction Costs Economics

We examine the effects of family control on entry mode choice by integrating Transaction Costs Economics with the family business literature. Using a dataset of 951 foreign investments, we investigate the role of family involvement on entry modes. After controlling for endogeneity, we find that if both the investing and the local firm are family firms, forming a joint venture is preferred, while if only the investing firm is a family firm, a wholly owned subsidiary is more likely. Results show that family control has an important impact on entry modes, an hypothesis that has not yet been fully explored.

scholarly journals Family Involvement in the Firm and Exports in the Family SME: Is the Manager’s International Orientation Influential?

2015 ◽  
Vol 7 (3) ◽  
pp. 69-99 ◽  
Author(s):  
Sami Basly
Keyword(s):  
Family Involvement ◽  
Family Firms ◽  
Positive Influence ◽  
International Orientation ◽  
The Family ◽  
Sample Data ◽  
Family Smes ◽  
Family Involvement In Management ◽  
The Relationship

AbstractDoes the family involvement affect exports in the family firm? The literature seems to support this view even if the direction and magnitude of this impact remains controversial. Drawing on the perspectives of agency [Chrisman et al. 2004; Schulze et al. 2001] and stewardship as applied to family firms [Davis, Schoorman and Donaldson 1997] and also on socio-emotional wealth perspective [Gómez-Mejía et al. 2007], this study seeks to contribute to this debate by studying the influence of family involvement on the SME exports intensity. To reconcile the divergent views, our research attempts to assess the role of the manager’s international orientation as a variable moderating the relationship between family involvement and exports in SMEs. Based on a hypothetical-deductive approach, the study uses a sample data of 125 family SMEs obtained through a questionnaire. The results show that even if the positive influence of the manager’s international orientation is corroborated, its moderating role seems to be limited to only one facet of the construct of family involvement i.e. involvement in management. Moreover, owning-family involvement in management seems to negatively influence exports while some results argue for a positive effect of the family involvement in ownership on exports.

In the Founder's Shadow: Conflict in the Family Firm

1999 ◽  
Vol 12 (4) ◽  
pp. 311-323 ◽  
Author(s):  
Peter S. Davis ◽  
Paula D. Harveston
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Telephone Survey ◽  
Business Owners ◽  
Next Generation ◽  
Independent Variables ◽  
The Family ◽  
Nonlinear Trends ◽  
Using Data ◽  
Two Independent Variables

This paper examines the extent to which conflict across generations of family firms is due to the effects of two independent variables—generation and generational shadow. The presence of a generational shadow was indicated by whether either or both of the parents continued to influence the company once the next generation assumed control. Hypotheses predicted nonlinear trends in conflict and interactions between generation and generational shadow. Using data from a national telephone survey of over 1,000 family business owners, the results of an ANOVA test confirmed that the presence of generational shadow, in particular, that of the founder, increases organizational conflict.

The Early Entrepreneurial Stage in Finnish Family and Nonfamily Firms

2000 ◽  
Vol 13 (1) ◽  
pp. 41-53 ◽  
Author(s):  
Hannu Littunen ◽  
Kimmo Hyrsky
Keyword(s):  
Family Business ◽  
Manufacturing Industry ◽  
Family Firms ◽  
Well Being ◽  
Business Owners ◽  
Strategic Choices ◽  
Business Services ◽  
Start Up ◽  
The Family ◽  
Unrealistic Expectations

This study examined factors influencing the survival and success of 200 Finnish family and nonfamily firms in the metal-based manufacturing industry and business services over the first three years of their operation. The features that this study reviewed include owner-manager personality attributes, entrepreneurial competence, and motives for the start-up. Strategic choices of the firms were also examined. The study found that family firms were better equipped to survive beyond the early entrepreneurial stage than were nonfamily businesses. The entrepreneurial abilities and resources of the family business owners enabled them to operate relatively successfully in the nearby market, often with one unique product. The family firms were more conscious of survival and family well-being than profitability or market position. A higher mortality rate was discovered among the nonfamily firms. Failed firms were often established with unrealistic expectations, and their performance deteriorated rapidly after their early success.

The auditor as consigliere in family firm

2017 ◽  
Vol 7 (1) ◽  
pp. 2-20 ◽  
Author(s):  
Sven-Olof Yrjö Collin ◽  
Jenny Ahlberg ◽  
Karin Berg ◽  
Pernilla Broberg ◽  
Amelie Karlsson
Keyword(s):  
Design Methodology ◽  
Family Firms ◽  
Response Rate ◽  
Family Firm ◽  
Social Implications ◽  
Content Type ◽  
The Family ◽  
Professional Independence ◽  
Practical Implications

Purpose The purpose of this paper is to develop and test a concept of auditor as consigliere in family firms, that captures additional functions to monitoring, those of advice, mediating, and conveying. Design/methodology/approach The concept is tested through a survey conducted on 309 Swedish auditors. Findings The data indicate that the consigliere role is generally not emphasized, indicating that auditors primarily perform the monitoring role of the audit. However, the authors do find indications of the auditor performing the consigliere role, through performing the advisory and mediating functions and, to a smaller degree, the conveying function. Research limitations/implications The survey is limited in response rate and in separating governance situations from consigliere functions. Practical implications With reservation for professional independence, the auditor as consigliere could be part of the governance of the family firm, but should be trained for this activity. Social implications Regulators should pay attention to the consigliere role when, for example, stipulating compulsory rotation of auditors. Originality/value The paper shows that the auditor is more than a monitor in family firms. The consigliere role, even if not at all dominating, has to be considered, at least in family firms.

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