scholarly journals The Relationship between Family Power and Board Communication Quality in Turkish Public Family Firms

2020 ◽  
Author(s):  
Özgür Atılgan
Keyword(s):  
Family Firms ◽  
Communication Quality ◽  
The Relationship

Family Firms, Social Responsibility, and Non-Family Member Employees Identification

Think India ◽  
2013 ◽  
Vol 16 (3) ◽  
pp. 10-19
Author(s):  
Ang Bao
Keyword(s):  
Resource Allocation ◽  
Social Responsibility ◽  
Family Member ◽  
Program Implementation ◽  
Social Identity Theory ◽  
Family Firms ◽  
The Family ◽  
Corporate Social ◽  
The Relationship ◽  
Csr Engagement

The objective of this paper is to find the relationship between family firms’ CSR engagement and their non-family member employees’ organisational identification. Drawing upon the existing literature on social identity theory, corporate social responsibility and family firms, the author proposes that family firms engage actively in CSR programs in a balanced manner to increase non-family member employees’ organisational identification. The findings of the research suggest that by developing and implementing balanced CSR programs, and actively getting engaged in CSR activities, family firms may help their non-family member employees better identify themselves with the firms. The article points out that due to unbalanced CSR resource allocation, family firms face the problem of inefficient CSR program implementation, and are suggested to switch alternatively to an improved scheme. Family firms may be advised to take corresponding steps to select right employees, communicate better with non-family member employees, use resources better and handle firms’ succession problems efficiently. The paper extends employees’ identification and CSR research into the family firm research domain and points out some drawbacks in family firms’ CSR resource allocation while formerly were seldom noticed.

Birth mode of family firms, family entering time and R&D investment: evidence from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Zulfiqar ◽  
Shihua Chen ◽  
Muhammad Usman Yousaf
Keyword(s):  
Agency Theory ◽  
Family Firms ◽  
Family Firm ◽  
Research Database ◽  
Content Type ◽  
Firm Birth ◽  
The Relationship ◽  
D Investment ◽  
Moderating Role

PurposeOn the basis of behavioural agency theory and resource-based view, this study investigates the influence of family firm birth mode (i.e. indirect-established or direct-established), family entering time on R&D investment and the moderating role of the family entering time on the relationship between birth mode and R&D investment.Design/methodology/approachThe authors collected 2,990 firm-year observations from family firms listed on A-share in China from 2008 to 2016 in the China Stock Market and Accounting Research database. They used pooled regression for data analysis and Tobit regression for robustness checks.FindingsIndirect-established family firms show more inclined behaviour towards R&D investment than direct-established counterparts. Family entering time positively affects the R&D investment of family firms. Moreover, family entering time plays a significant moderating role in the relationship between family firm birth mode (i.e. indirect-established or direct-established) and R&D investment.Originality/valueTo the best of the authors’ knowledge, this work is a pioneering study that introduced the concept of family firm birth mode (i.e. indirect-established or direct-established) and family entering time. This work is novel because it differentiated family firms according to their birth modes, an approach which is a contribution to the existing literature of family firms. Moreover, the investigation of the moderating role of family entering time has also produced notable results that help understand the impact of family entering time on different types of family firms. The interpretation of outcomes according to behavioural agency theory also produced useful insights for future researchers as well as for policymakers.

scholarly journals Family Female Executives and Firm Financial Performance

2018 ◽  
Vol 10 (11) ◽  
pp. 4163 ◽  
Author(s):  
Pilar Giraldez-Puig ◽  
Emma Berenguer
Keyword(s):  
Family Firms ◽  
Generalized Method Of Moments ◽  
Female Executives ◽  
Return On Assets ◽  
Executive Women ◽  
Family Ties ◽  
Firm Financial Performance ◽  
Final Sample ◽  
Relationship Of ◽  
The Relationship

The aim of this paper is to analyze the relationship of family executive women with firm performance in family firms. We have obtained a final sample of 269 family and non-family firms (comprising 3073 firm/year observations) from the Spanish High Council of Chamber (SHCC) website, while data were collected from System for Analysis of Iberian Balances database (SABI) for the period 2000 to 2011. Applying a generalized method of moments (GMM) panel data methodology, we observe a positive effect on the return on assets (ROA) depending on the existence of family ties of executive women. Several implications for the career development of women in family firms arise from our results.

scholarly journals Impact of Loan Accessibility on Working Capital Management and Profitability: Comparative Study of Family Versus Non-Family Firms

2020 ◽  
Vol V (I) ◽  
pp. 220-230
Author(s):  
Kanwal Iqbal Khan ◽  
Adeel Nasir ◽  
Aniqa Arslan
Keyword(s):  
Comparative Analysis ◽  
Family Firms ◽  
Investment Decisions ◽  
Sustainable Growth ◽  
Capital Management ◽  
Working Capital ◽  
Financial Cost ◽  
Working Capital Management ◽  
Capital Rationing ◽  
The Relationship

This study is conducted to identify the direction of the relationship between working capital management (WCM) and firm performance of the non-financial sector of Pakistan from 2009 till 2018. This has also looked at the effect of restricted access to loan on the WCM- Profitability relationship. The findings confirmed that restricted loan accessibility impacts the WCM-Profitability relationship. The comparative analysis demonstrated that financially constrained firms are mostly non-family firms that are new, growing, smaller in size, face high risk, maintain high liquidity and tangibility ratios than non-constrained firms. Further, the working capital levels of financially constraint firms is lower because of high operating expenses and greater capital rationing. Managers and scholars may use these findings for the administration of their working capital policies in order to avoid the financial cost and create more opportunities for financial accessibility which is further beneficial for making informed investment decisions, yielding higher profits that contribute towards sustainable growth.

scholarly journals Hierarchical Dyadic Congruence in Family Firms: The Interplay of Supervisor and Supervisee Socioemotional Wealth Importance and Familial Status

2018 ◽  
Vol 43 (2) ◽  
pp. 322-329 ◽  
Author(s):  
Giovanna Campopiano ◽  
Emanuela Rondi
Keyword(s):  
Social Exchange ◽  
Family Business ◽  
Theoretical Basis ◽  
Family Firms ◽  
Socioemotional Wealth ◽  
Organization Behavior ◽  
Fine Grained ◽  
The Family ◽  
And Performance ◽  
The Relationship

We extend McLarty, Vardaman, and Barnett’s analysis of how family firm supervisor attributes, in terms of familial status and socioemotional wealth importance, affect supervisee performance by considering the supervisee attributes. We further integrate the concept of restricted and generalized social exchange to provide a theoretical basis for how hierarchical dyadic (in)congruence moderates the relationship between supervisee commitment and performance. By providing a more fine-grained conceptualization, we contribute to the family business literature at its organization behavior interface.

Socioemotional wealth and human resource policies: effects on family firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Juan David Peláez-León ◽  
Gregorio Sánchez-Marín
Keyword(s):  
High Risk ◽  
Financial Performance ◽  
Human Resource ◽  
Family Firms ◽  
Equation Modeling ◽  
Positive Contribution ◽  
Socioemotional Wealth ◽  
Content Type ◽  
Firm Financial Performance ◽  
The Relationship

PurposeThis study analyses whether human resource management (HRM), through the use of four sets of high-performance work policies (HPWPs) (i.e. selection, training, motivation and opportunity policies), mediates the relationship between socioemotional wealth (SEW)—defined as a unique set of nonfinancial family goals—and firm financial performance when family firms face a high-risk context.Design/methodology/approachHypotheses were statistically tested using a structural equation modeling (SEM) methodology with a cross-sectional sample of 196 medium-sized and private family firms in a high-risk context in Spain.FindingsThe results indicate that the relationship between SEW and financial performance in family firms is fully mediated by the use of HPWPs, especially by training and motivation HR policies. The importance given to preserving SEW influences the use of four sets of HPWPs when family firms show clear evidence of being confronted by a financial decline (i.e. a high-risk context). However, to improve their financial results to avoid the firm's failure and thus the loss of their SEW, only those HR policies that focus on training and motivation made a significant and positive contribution to the firm financial performance.Originality/valueThis study contributes to the literature on family firms and HRM by adopting an alternative theoretical framework to understand how the importance of nonfinancial family goals may affect employee structures and management policies, thereby improving financial performance in family firms.

Family ownership and cooperative R&D: the moderating effect of political ties

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Feng Dong ◽  
Xiao Wang ◽  
Jiawen Chen
Keyword(s):  
Family Firms ◽  
Family Ownership ◽  
Content Type ◽  
Political Ties ◽  
Wealth Concentration ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role ◽  
Ability And Willingness

Purpose This study aims to investigate the impact of family ownership on cooperative research and development (R&D). Drawing on the ability and willingness paradox framework in family business research, the authors suggest that family ownership influences cooperative R&D via two opposing mechanisms: power concentration and wealth concentration. It also deepens the current understanding of the boundary conditions of informal institutions for the impact of family ownership on cooperative R&D by investigating the moderating role of political ties. Design/methodology/approach The authors analyze a panel of 610 Chinese manufacturing family firms and 2,127 firm-year observations from 2009 to 2017. Fixed effects regression analysis is used to test the hypotheses, with the two-stage Heckman model to address sample selection bias. Findings The research findings indicate that family ownership has an inverted U-shaped relationship with cooperative R&D and political ties moderate the relationship in such a way that the inverted U-shaped relationship will be steeper in firms with more political ties than in firms with fewer political ties. Practical implications Family ownership influences firms’ cooperative R&D through the positive effect of power concentration and the negative effect of wealth concentration. Family owners should, therefore, take advantage of concentrated power, for instance, by adapting quickly and committing sufficient resources to cooperative R&D opportunities, while controlling path-dependent relationship development caused by concentrated family wealth. The effect of political ties on the relationship between family ownership and cooperative R&D is found to be a double-edged sword. Originality/value This study extends the ability and willingness paradox framework and provides novel insights into cooperative R&D in family businesses by integrating power concentration and wealth concentration associated with family ownership. Moreover, this study provides a contingency perspective and introduces the moderating role of political ties in shaping cooperative R&D in family firms.

The family’s effect on knowledge sharing in family firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Isabel C. Botero ◽  
Ascensión Barroso Martínez ◽  
Galván Sanguino ◽  
Juliana Binhote
Keyword(s):  
Knowledge Sharing ◽  
Family Firms ◽  
Family System ◽  
Intergenerational Relationships ◽  
Family Characteristics ◽  
Content Type ◽  
The Family ◽  
Survey Responses ◽  
Family Leadership ◽  
The Relationship

Purpose The purpose of this study was to understand how the family system plays a role in knowledge sharing (KS) within family firms. The authors argue that the family’s influence can occur through two routes. An external route in which the family affects the culture of the organization and through an internal route in which family leadership within the firm affects the practices and behaviors within the business. Design/methodology/approach Data for this project came from the survey responses of 93 Spanish family firms. Findings The findings expand previous understanding about KS in family firms by outlining the two routes through which the family can have positive effect on KS within family firms. Results show that family system characteristics (i.e. next-generation commitment, family trust and intergenerational relationships) affect KS through their impact on the participative culture of a family firm. Additionally, when a family has been in control of the business for more generations, they place higher importance on family legacy and continuity, which is likely to strengthen the relationship between participative culture and KS in family firms. Originality/value Given the important role that the family system plays within the family business, this paper explored how family characteristics can influence KS in family firms. The authors contribute to the literature by highlighting the importance that the owning family can have in creating an environment that can facilitate KS in family firms.

The Moderating Effect of Family Management on R&D Productivity in Privately Held Firms

2019 ◽  
pp. 309-338 ◽  
Author(s):  
María J. Martínez-Romero ◽  
Rubén Martínez-Alonso ◽  
M. Pilar Casado-Belmonte ◽  
Alfonso A. Rojo-Ramírez
Keyword(s):  
Family Firms ◽  
Innovation Management ◽  
Manufacturing Firms ◽  
Moderating Effect ◽  
Family Management ◽  
Strengthening Effect ◽  
Longitudinal Sample ◽  
General Terms ◽  
The Relationship ◽  
Privately Held

The aim of this chapter is to analyze the moderating effect of family management on the relationship between R&D inputs and R&D outcomes, that is, R&D productivity. Using a longitudinal sample of 337 Spanish privately held manufacturing firms, the results show that in general terms, although family managed firms invest less in R&D than their non-family managed counterparts, they reinforce the conversion of R&D inputs into R&D outcomes. Moreover, the findings reveal that the strengthening effect of family management on R&D productivity is contingent upon the level of R&D expenditures. Thus, this chapter contributes to shedding some light into the debate regarding innovation management in privately held family firms.

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