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.

scholarly journals The Speed of the Internationalisation Process and the Institutional Networks of Family SMEs in the DOC Rioja Wine Industry

2020 ◽  
Vol 9 (1) ◽  
pp. 43-50
Author(s):  
Marta Fernández Olmos ◽  
Giulio Malorgio
Keyword(s):  
Family Involvement ◽  
Family Firms ◽  
Family Members ◽  
Wine Industry ◽  
Strategic Decision ◽  
Top Managers ◽  
The Family ◽  
Family Smes ◽  
The Relationship

Institutional networking is a key element in businesses’ internationalisation processes and is an important strategy for promoting the long-term growth and survivability of family SMEs in the DOC Rioja wine industry. We hold that the proportion of family members in the TMT plays an important role in strategic decision-making and helps to explain the speed of their internationalisation process. This paper contributes to the scant research on the influence of family involvement in the TMT by analysing the moderating effects of two diversities on the relationship between institutional networking and the speed of internationalisation: the family TMT ratio and generational involvement. Using a broad sample of 77 family wineries in DOC Rioja, the results obtained indicate that institutional networking plays a significant role in explaining the speed of internationalisation in family firms and that this relationship is weaker when a larger proportion of family members serve as top managers. The empirical results also have interesting implications for the managers of family firms as it may help them to identify the effective composition of TMTs to be considered when deciding on the process of internationalisation.

scholarly journals Heterogeneity in Family Firms

2021 ◽  
Vol 10 (1) ◽  
pp. 26-54
Author(s):  
Tomás Guillén Gorbe ◽  
Alejandro Escribá-Esteve
Keyword(s):  
Family Involvement ◽  
Strategic Behavior ◽  
Family Firms ◽  
Family Businesses ◽  
Ownership Structures ◽  
Business Results ◽  
The Family ◽  
Family Involvement In Management ◽  
The Relationship ◽  
Strategic Outcomes

This research explores in greater depth the importance of considering the heterogeneity between family businesses so as to better understand the differences in their strategic behavior, performance and business results. With this, we attempt to contribute to the theories on the relationship between corporate governance and strategic management in the field of family business research. Our study identifies the different configurations that may be adopted in the ownership structures and the management and governance bodies of family firms, analyzing how these configurations are related to the firm’s strategic outcomes. Using a sample of 111 family firms, we perform a cluster analysis that allows us to determine distinct types of family businesses based on a set of dimensions regarding the characteristics of their governance bodies, both in business and in the family, as well as their ownership structure and degree of family involvement in management tasks. We then link the different types found with the profiles of managers, the repertoire of strategies used by these companies, and the differences in obtaining results in recent years.

scholarly journals Entrepreneurial orientation and product innovation. The moderating role of family involvement in management.

2019 ◽  
Vol 9 (2) ◽  
pp. 128-145 ◽  
Author(s):  
Taras Fredyna ◽  
Daniel Ruiz Palomo ◽  
Julio Dieguez Soto
Keyword(s):  
Family Involvement ◽  
Entrepreneurial Orientation ◽  
Product Innovation ◽  
Family Firms ◽  
Radical Innovation ◽  
Moderating Effect ◽  
Incremental Innovation ◽  
Family Involvement In Management ◽  
The Relationship

In this current research it has been examined, firstly, the Entrepreneurial orientation in relation with Product innovation, Incremental innovation and Radical innovation, and, secondly, the moderating effect of Family involvement in the management of companies in the relationship between Entrepreneurial orientation and Product innovation, Incremental innovation and Radical innovation. Using a sample of 634 Spanish family firms, the results found conclude that the Entrepreneurial orientation has a positive effect on Product innovation, Incremental innovation and Radical innovation, and moreover, they reveal that the Family involvement in the management of companies has a moderating effect on these relations, witnessing that family firms with higher scale of Family involvement in the management of the companies reduces the effect of Entrepreneurial orientation on Product innovation, Incremental innovation and finally, Radical innovation.

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.

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.

scholarly journals Family Involvement in Management and Product Innovation: The Mediating Role of R&D Strategies

2019 ◽  
Vol 11 (7) ◽  
pp. 2162 ◽  
Author(s):  
Julio Diéguez-Soto ◽  
María J. Martínez-Romero
Keyword(s):  
Family Involvement ◽  
Product Innovation ◽  
Family Firms ◽  
Panel Data Analysis ◽  
Investment Strategy ◽  
Family Management ◽  
Mediating Role ◽  
Product Innovations ◽  
Family Involvement In Management

Following calls to capture family firms’ innovative behavior and to specifically clarify how family firms manage product innovations to achieve sustainable economic development, this study empirically investigates the mediating role of Research & Development (R&D) strategies (i.e., intramural R&D investments, extramural R&D investments, and the combination of both intramural and extramural R&D investments) in the relationship between family involvement in the management and likelihood of obtaining product innovations. Carrying out a panel data analysis that is based on 7264 observations of Spanish manufacturing firms throughout the 2000–2015 period, our results suggest a negative effect of the level of family management on the likelihood of introducing product innovations. Moreover, we found that intramural R&D investments and the investment strategy consisting of both intramural and extramural R&D mediated the family involvement in management-likelihood of obtaining product innovations relationship. Our findings contribute important insights to the comprehension of which determinants instigate product innovation in family managed firms.

scholarly journals The Dynamic Model of Intellectual Capital Creation in Family Business: The Dynamic Capabilities Perspective

2021 ◽  
Vol 4 (2) ◽  
Author(s):  
Tung-Shan Liao ◽  
Thi Thuy Dung Pham ◽  
Juin-Cherng Lu
Keyword(s):  
Competitive Advantage ◽  
Family Involvement ◽  
Family Business ◽  
Intellectual Capital ◽  
Dynamic Capabilities ◽  
Family Firms ◽  
Knowledge Accumulation ◽  
The Subject ◽  
The Relationship

The paper's purpose is to examine the role of knowledge and learning as a dynamic capability that leads to competitive advantage in family firms. It further conceptually develops a model showing the relationship between intellectual capital, firm performance, and dynamic capabilities in family firms. Using past case studies related to the subject, this study highlights the importance of knowledge accumulation, integration, codification, and the preservation of socioemotional wealth as dynamic capabilities that allow a family firm to sense and seize business opportunities that transform the business to a competitive advantage. Findings from the case applications reveal that family businesses benefit from the accumulation of knowledge through expertise, skills, and employment of non-family members and having family involvement as strategic important assets that lead to increased value in family firms’ performance.

The role of cooperation agreements in the internationalization of Spanish winery and olive oil family firms

2019 ◽  
Vol 31 (4) ◽  
pp. 555-577 ◽  
Author(s):  
Valeriano Sanchez-Famoso ◽  
Myriam Cano-Rubio ◽  
Guadalupe Fuentes-Lombardo
Keyword(s):  
Olive Oil ◽  
Family Involvement ◽  
Family Firms ◽  
International Strategy ◽  
Content Type ◽  
Oil Companies ◽  
Mediating Role ◽  
High Level ◽  
The Relationship

Purpose This study aims to identify the mediating role of cooperation agreements in the relationship between family involvement in international firms and their level of international commitment. Design/methodology/approach The study focuses on Spanish international wine and olive oil companies that have varying levels of family involvement. The final sample consists of 263 companies. SmartPLS was used to perform the analysis. Findings A higher level of family involvement in business implies greater difficulties with cooperation agreements. Additionally, family involvement is negatively associated with the firm’s level of international commitment, and the perceived difficulties of cooperation agreements mediate this relationship. Practical implications This study is of interest to business managers with different levels of family involvement. The study clarifies their perceptions of cooperation agreements and international business commitment. Managers of firms with a high level of family involvement should emphasize the multiple benefits of cooperation agreements for international strategy performance rather than the drawbacks of cooperation. Additionally, through cooperation, companies can learn about destination markets, which may help them to focus their resources effectively in those markets. Originality/value This study contributes to the literature on the internationalization strategies of family businesses. This study is the first to address the mediating role of cooperation agreements in the relationship between family involvement and international commitment.

scholarly journals A Comprehensive Model of Consumers’ Perceptions, Attitudes and Behavioral Intention toward Organic Tea: Evidence from an Emerging Economy

2020 ◽  
Vol 12 (16) ◽  
pp. 6619
Author(s):  
Xiangzhi Bu ◽  
Hoang Viet Nguyen ◽  
Tsung Piao Chou ◽  
Chia-Pin Chen
Keyword(s):  
Purchase Intention ◽  
Structural Equation ◽  
Positive Influence ◽  
Mediating Effect ◽  
Mediating Role ◽  
Sample Data ◽  
Organic Tea ◽  
The Relationship ◽  
Analyze Data

This study investigates factors that predict consumers’ perceptions of healthiness of organic tea. Furthermore, this study also examines the relationship between perceived healthiness and purchase intention with the mediating role of consumers’ attitudes toward organic tea. Because China has been the largest producer and the largest market of the global tea market, this study collects sample data from consumers at different tea stores in China. Using structural equation modelling to analyze data, results indicate that product quality, consumer service, in-store experience, store prestige, and store innovativeness are important predictors of consumers’ perceptions of healthiness of organic tea. Furthermore, results show that perceived healthiness has a positive influence on purchase intention toward organic tea. Consumers’ attitudes toward organic tea also has a positive mediating effect into this relationship.

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