scholarly journals On The Importance Of Family In Family Firms

2011 ◽  
Vol 6 (4) ◽  
Author(s):  
William B. Joyce
Keyword(s):  
Human Capital ◽  
Family Firms ◽  
Family Values

Family values may play an important role in shaping the organization of businesses and their efficiency. This paper first addresses the question of Why family firms? Family firms are discussed from the perspectives long-term, substitution, human capital, and politics. The paper then addresses family values and family firms discussing nepotism, legacy, and inheritance norms.

A Values-Based Explanation of the Resilience of Family Firms: Evidence from Tunisia After the 2011 Jasmine Revolution

2020 ◽  
Vol 28 (03) ◽  
pp. 223-261
Author(s):  
Amira Hammouda ◽  
Sami Basly
Keyword(s):  
Qualitative Research ◽  
Family Business ◽  
Family Firms ◽  
Family Values ◽  
Community Values ◽  
Business Values ◽  
Oriental Country ◽  
Unique Context ◽  
Tunisian Family

While the goals of long term sustainability and survival were thoroughly studied in family firms’ literature, to the best of our knowledge, rare studies had investigated the influence of values on the capacity of family firms to be resilient. In addition, this likely relationship is highly contingent on cultural and national contexts, as family values – on which family business values are dependent – are not the same across countries and World regions. These theoretical and empirical gaps motivated the present research which aims at investigating the probable influence of family firms’ values on the resilience of these firms in the unique context of Tunisia. This qualitative research is based on a body of discourse collected from nine managers belonging to five Tunisian family businesses. Our research allowed us to highlight some key family business values in a new underexplored setting that is an oriental country with a culture driven by Islamic and Arab values. More importantly, our analysis shows that family values underlie both community and business values. Finally, our results underscore the importance of business values, community values and family values in the resilience of the firms studied.

scholarly journals Unique Goals of Family Businesses and Their Absorption of Finance Instruments in the Financialization Era

Studia Humana ◽  
2021 ◽  
Vol 10 (2) ◽  
pp. 31-40
Author(s):  
Robert Zajkowski ◽  
Beata Żukowska
Keyword(s):  
Capital Accumulation ◽  
Private Equity ◽  
Family Firms ◽  
Family Values ◽  
Family Firm ◽  
Family Businesses ◽  
Term Survival ◽  
Public Company ◽  
Business Entities

Abstract Nowadays financialization seems to be an inherent and obvious phenomenon and it appears to have infected all industrialized economies. Within general phenomenon of financialization, three areas should be indicated: financialization as a system of capital accumulation, financialization of business entities and financialization of every day-life. In our paper we try to investigate family businesses that are unique due to the overlap of family and business subsystems in one entity. More specifically, we undertake to find out whether intertwining of family values with business objectives can influence the level of absorption of various finance instruments that are offered on nowadays financial market. Analysis revealed a few statistically significant relationships between perception of family firm objectives and absorption of basic and sophisticated finance instruments. It is the first to suggest, that family firms which are intrinsically-oriented, i.e. those more willing to keep independence or to keep long term survival, are less prone to absorb sophisticated finance instruments, e.g. private equity, venture capital, hybrid capital or they are less keen to become a public company. On the other hand, if a family firm is more oriented towards risk minimisation or keeping long term growth, then it is also more open for absorption of advanced finance instruments.

Knowledge Combination and the Potential Advantages of Family Firms in Searching for Opportunities

2011 ◽  
Vol 35 (6) ◽  
pp. 1179-1197 ◽  
Author(s):  
Pankaj C. Patel ◽  
James O. Fiet
Keyword(s):  
Human Capital ◽  
Family Firms ◽  
Family Relations ◽  
Knowledge Structures ◽  
Systematic Search ◽  
Economies Of Scope ◽  
Specific Knowledge ◽  
Knowledge Stocks ◽  
Over Time

This study examines differences in knowledge structures and combinative capabilities that provide family firms with distinct advantages over nonfamily firms in identifying opportunities. Drawing on constrained, systematic search, we explore how noneconomic goals and family relations enhance searching for opportunities. Unique human capital conditions create specific knowledge and economies of scope in knowledge combination. Differences in knowledge stocks, knowledge combination, and the long–term orientation of family firm managers explain differences in finding opportunities between family and nonfamily firms. Furthermore, we propose that family firms are more likely to improve their search routines over time. Fewer endgame scenarios in family firms allow the refinement of search routines.

The Reproduction Vector of the Russian Economy: 1999-2007

2008 ◽  
pp. 94-109 ◽  
Author(s):  
D. Sorokin
Keyword(s):  
Economic Policy ◽  
Human Capital ◽  
Growth Rates ◽  
Developed Countries ◽  
Gdp Per Capita ◽  
Real Sector ◽  
Russian Economy ◽  
Per Capita ◽  
The Developed Countries

The problem of the Russian economy’s growth rates is considered in the article in the context of Russia’s backwardness regarding GDP per capita in comparison with the developed countries. The author stresses the urgency of modernization of the real sector of the economy and the recovery of the country’s human capital. For reaching these goals short- or mid-term programs are not sufficient. Economic policy needs a long-term (15-20 years) strategy, otherwise Russia will be condemned to economic inertia and multiplying structural disproportions.

scholarly journals Are Family Firms More Levered? An Analysis of Family and Non-Family Firms

SAGE Open ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 215824402110223
Author(s):  
Jahanzaib Haider ◽  
Abdul Qayyum ◽  
Zalina Zainudin
Keyword(s):  
Family Firms ◽  
East Asian ◽  
Ordinary Least Squares ◽  
Maturity Structure ◽  
The Family ◽  
Asian Economies ◽  
The Board Of Directors ◽  
East Asian Economies ◽  
Combined Data

This study analyzes the leverage policies of the family and non-family firms of eight East Asian Economies (Hong Kong, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, and Taiwan) by using combined data of 690 family and non-family firms with 3,224 firm–years over the period 2006–2010. This study has used an ordinary least squares (OLS) regression for analyzing the data for the first question, while for the second question, logit regression has been used as the dependent variable (a binary variable). Prior research on family and non-family firms has revealed that family firms issue less (high) debt than non-family firms. Our analysis on a sample of East Asian Economies discloses that family firms have significantly different leverage levels than non-family firms, but their signs are not consistent. On the contrary, when the owner works as CEO/Chairman or member of the Board of Directors, then the family firms issue less debt than the non-family firms. Besides that, this study adds a new question that has not been addressed in the prior studies. The new question has focused on the speed of leverage adjustment. It is found that family firms and non-family firms regarding their debt maturity structure (short-term debt and long-term debt), the speed of leverage adjustments, and their decision to issue securities (i.e., debt vs. equity) are not significantly different. This study concluded that though family firms have a strong influence on each economy, but in South-East Asian countries, leverage policies of the family firms are not much different than that of non-family firms.

Family firm CEOs: human capital and career success

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maria Rita Blanco ◽  
Miguel Angel Sastre-Castillo ◽  
Maria Angeles Montoro-Sanchez
Keyword(s):  
Human Capital ◽  
Latin American ◽  
Quantitative Methods ◽  
Family Firms ◽  
Family Firm ◽  
American Family ◽  
Graduate Degree ◽  
Capital Theory ◽  
Content Type ◽  
The Way

PurposeThis article explores the influence of education and experience on the time to the top in family and non-family CEOs who work for Latin American family firms.Design/methodology/approachIn order to achieve these objectives, this study draws upon human capital theory as well as career and family firm literature. The careers of 129 CEOs of family firms who form part of the América Economía ranking were analyzed and quantitative methods were used.FindingsIn Latin American family firms, family CEOs reach the top faster than their non-family counterparts. In addition, the influence of human capital variables on the way to the top differs between the two groups. For family CEOs, obtaining a graduate degree delays the way to the top, while for non-family ones, it reduces the time to the top. As regards experience, for promoted family CEOs, the greater the percentage of the career spent in the organization they lead, the shorter the time to the top. No support was found for either the influence of having worked for just one firm or having had elite graduate education abroad, in multilatina CEOs.Practical implicationsIndividual career management suggestions for future CEOs as well as specific guidelines for talent managers are proposedOriginality/valueThis is the first study to explore the influence of human capital indicators on the time to the top in Latin American family firm CEOs.

A cost-effectiveness analysis of social transfers on human capital accumulation

2021 ◽  
Vol 52 (207) ◽  
Author(s):  
Andrés Mideros
Keyword(s):  
Human Capital ◽  
Cost Effectiveness ◽  
Capital Accumulation ◽  
Cost Effective ◽  
Cash Transfers ◽  
Human Capital Accumulation ◽  
Effectiveness Analysis ◽  
Long Term Effect ◽  
Social Transfers

The paper reports on an ex-ante evaluation of the long-term effect of the Ecuadorian social transfer programme called “Bono de Desarrollo Humano (BDH)” on human capital accumulation. A dynamic cohort microsimulation model is used to analyse for cost-effectiveness of different policy scenarios. Results show that cash transfers do promotehuman capital accumulation but with rather small effect. Transfers targeted at critical ages are the most cost-effective to promote human capital accumulation

Intellectual capital in family firms: human capital identification and measurement

2015 ◽  
Vol 16 (1) ◽  
pp. 199-223 ◽  
Author(s):  
Enrique Claver-Cortés ◽  
Patrocinio Carmen Zaragoza-Sáez ◽  
Hipólito Molina-Manchón ◽  
Mercedes Úbeda-García
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Family Firms ◽  
Balance Sheet ◽  
Research Approach ◽  
Competitive Advantages ◽  
Content Type ◽  
Starting Point ◽  
Practical Implications

Purpose – Based on the literature devoted to family firms and the intellectual capital-based view of the firm, the purpose of this paper is not only to identify the most important human capital intangibles owned by family firms but also to show a number of indicators that can help measure them. Design/methodology/approach – A qualitative case-study-based research approach was adopted taking as reference: 25 family firms belonging to different sectors; previous works existing in the literature; and the intellectus model. Findings – The present study identifies ten intangibles associated with the human capital of family firms and shows 60 indicators that can be used to measure them. It additionally provides empirical evidence and gives examples of these intangibles through the analysis of 25 international family firms. Research limitations/implications – The difficulty in collecting all the human capital intangibles of family firms; the problems associated with the creation of accurate indicators; and those specific to the research methodology adopted. Practical implications – Identifying the human capital intangibles of family firms and their indicators can help managers become aware of their importance, and this will consequently help them improve their management. This could be an interesting starting point to value these intangibles in the balance sheet as well as to draw comparisons between family and non-family organisations. Originality/value – The framework provided by family firms sheds light on several intangibles specific to these firms – precisely for their condition as “family” firms. Those intangibles – human capital intangibles being especially highlighted in this study – provide the basis for the achievement of competitive advantages.

HC and financial performance with two HRM strategies

2017 ◽  
Vol 66 (4) ◽  
pp. 459-478 ◽  
Author(s):  
Nopadol Rompho
Keyword(s):  
Human Capital ◽  
Regression Analysis ◽  
Financial Performance ◽  
Lead Time ◽  
Design Methodology ◽  
Strategy Choice ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to examine the relationship between levels of human capital and financial performance of firms that use two distinct human resource management (HRM) strategies. Design/methodology/approach A survey of 128 HRM managers was conducted to assess differences in human capital between firms using different HRM strategies. A multiple regression analysis was used to investigate the relationship between firms’ human capital and financial performance. Findings The results show that companies employing a make-organic strategy have a higher level of human capital than companies employing a buy-bureaucratic strategy. There was no relationship between the level of human capital and long term financial performance of firms with both make-organic and buy-bureaucratic strategies. Research limitations/implications This research contributes toward understanding the effect of HRM strategy and facilitates an optimal strategy choice depending on the organization. However, this study did not consider the lead time between changes in human capital and the effect on financial performance. Practical implications The research encourages firm managers to understand the value of human capital, preparing them for changes in the future. Originality/value This study is among the first to investigate the relationship between human capital and financial performance considering different HRM strategies.

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