scholarly journals How Does Family Involvement Affect Environmental Innovation? A Socioemotional Wealth Perspective

2021 ◽  
Vol 13 (23) ◽  
pp. 13114
Author(s):  
Joohee Han ◽  
Juil Lee ◽  
Sang-Joon Kim
Keyword(s):  
Family Involvement ◽  
Environmental Performance ◽  
Boards Of Directors ◽  
Family Firms ◽  
Technological Development ◽  
Environmental Issues ◽  
Environmental Innovation ◽  
Socioemotional Wealth ◽  
Public Firms ◽  
Positive Effect

The purpose of this study was to examine how family involvement affects the environmental innovation of firms. While prior studies have shown that family involvement can enhance environmental performance, these environmental performances have been portrayed as firm activities to prevent environmental issues, such as air pollution, CO2 emissions, etc. We maintain that environmental performance should be more proactive and enable firms to transform their activities more fundamentally towards environmental protection. In this sense, we consider environmental innovation, i.e., technological development to address environmental issues, as a proactive measure enacting firm activities to address environmental issues. Furthermore, we determine whether and how family involvement can motivate firms to develop technologies for environmental performance. To illuminate this relation, we utilized a socioemotional wealth perspective, which provides useful insights into how family-controlled firms behave differently in comparison to non-family firms. Building on this socioemotional wealth approach, we suggest that family involvement helps firms engage in environmental innovation. In this study, we also explore how the positive link between family involvement and environmental innovation is dependent on family interlocks—the circumstance wherein a firm’s family directors are affiliated with the boards of directors of other firms. Specifically, we suggest that an increase in a firm’s family interlocks would strengthen the positive relationship between family involvement and environmental innovation. To test our ideas, we used a sample of 623 US public firms ranging from 1996 to 2010, which yielded 5047 firm-year observations. We find that family involvement facilitates the environmental innovation of firms. We also find that family interlocks intensify the positive effect of family involvement on environmental innovation. Finally, we discuss the theoretical and empirical implications of our results.

The Enigma of the Family Successor–Firm Performance Relationship: A Methodological Reflection and Reconciliation Attempt

2019 ◽  
Vol 43 (3) ◽  
pp. 437-474 ◽  
Author(s):  
Jan-Philipp Ahrens ◽  
Andrea Calabrò ◽  
Jolien Huybrechts ◽  
Michael Woywode
Keyword(s):  
Firm Performance ◽  
Family Member ◽  
Family Involvement ◽  
Family Firms ◽  
Empirical Studies ◽  
Ceo Succession ◽  
The Family ◽  
The Individual ◽  
Positive Effect ◽  
Methodological Reflection

Empirical studies examining firm performance following CEO succession in family firms predominantly document inferior performance of family successors. This evidence is at odds with general theoretical literature that attests a positive effect of family involvement inside the firm. To explore this enigma, we theoretically and empirically disentangle the influence of the CEO attribute family member (i.e., the CEO is affiliated to the family) on post-succession firm performance, from other, distinct CEO attributes (e.g., CEO-related human capital). Our analysis on the individual CEO level shows that after respective controls, the family member attribute is significantly positively related to post-succession firm performance.

The Effect of Organizational Characteristics on the Appointment of Nonfamily Managers in Private Family Firms

2014 ◽  
Vol 28 (2) ◽  
pp. 104-122 ◽  
Author(s):  
Pieter Vandekerkhof ◽  
Tensie Steijvers ◽  
Walter Hendriks ◽  
Wim Voordeckers
Keyword(s):  
Firm Size ◽  
Family Firms ◽  
Organizational Characteristics ◽  
Socioemotional Wealth ◽  
Firm Innovativeness ◽  
Firm Internationalization ◽  
Positive Effect ◽  
Moderating Role

This article examines the effect of organizational characteristics (firm innovativeness, firm internationalization, firm size) on the appointment of nonfamily managers in private family firms while taking into account the moderating role of socioemotional wealth (SEW). While these organizational characteristics increase the need for expertise, family firms cope with a limited pool of family managers. Therefore, new creative knowledge from nonfamily managers is needed. However, results from a sample of 145 Belgian family firms indicate that the positive effect of organizational characteristics on the integration of nonfamily managers decreases when family-related objectives reflected by SEW become more important for the firm.

scholarly journals Familiness and socioemotional wealth in Spanish family firms: An empirical examination

2017 ◽  
Vol 7 (1-2) ◽  
Author(s):  
Ismael Barros ◽  
Juan Hernangómez ◽  
Natalia Martin-Cruz
Keyword(s):  
Organizational Effectiveness ◽  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
Family Influence ◽  
Socioemotional Wealth ◽  
Empirical Examination ◽  
The Family ◽  
Spanish Family ◽  
The Impact

The socioemotional wealth (SEW) related to emotional endowments accumulated in the business by the family, is one of the most important features that differentiate the family firms of other organizations. However, there are few studies developed in the context of the antecedents and consequences of the building and use of SEW in the family business. Therefore, this study, using a sample of Spanish family firms that are non-publicly traded, explains how family influence affects the building and use of SEW and, thus, the organizational effectiveness of the family firm. The results indicate mixed results regarding the impact of the family involvement on the essence. Those suggest a positive relationship between building and use of SEW and organizational effectiveness of the family business.

scholarly journals Family Business Internationalization in Paradox: Effects of Socioemotional Wealth and Entrepreneurial Spirit

2021 ◽  
Vol 12 ◽  
Author(s):  
Chenfei Jin ◽  
Bao Wu ◽  
Yingjie Hu
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Foreign Investment ◽  
Negative Relationship ◽  
Family Businesses ◽  
Socioemotional Wealth ◽  
Small Family ◽  
Entrepreneurial Spirit ◽  
Negative Effect ◽  
Positive Effect

This study investigates the internationalization (i. e., foreign investment) of small family businesses by classifying the effects of external socioemotional wealth (family reputation) vs. internal socioemotional wealth (family involvement). The study involved 2,704 small family businesses in China, and the results support the hypothesis that family reputation has a positive effect on internationalization, while family involvement has a negative effect on internationalization. Moreover, entrepreneurial spirit reinforces the positive effect of family reputation on internationalization and enhances the negative relationship between family involvement and internationalization. This study contributes by examining the effect of entrepreneurial spirit as a potential balancing factor for the paradoxical influence of internal vs. external socioemotional wealth.

scholarly journals The impact of family ownership and under-aspiration performance on a firm’s capital structure

2021 ◽  
Vol 18 (3) ◽  
pp. 183-193
Author(s):  
Kieu Minh Nguyen ◽  
Tu Minh Vu
Keyword(s):  
Capital Structure ◽  
Financial Management ◽  
Family Firms ◽  
Family Ownership ◽  
Public Firms ◽  
The Impact ◽  
Positive Effect ◽  
Unique Dataset ◽  
The Capital Structure

Research on the capital structure of family firms has flourished in recent years, but the impact of performance aspiration and family ownership together on capital structure remains inadequately investigated. Therefore, the purpose of this study is to explore the impact of family ownership and under-aspiration performance and their interaction on capital structure. Panel data estimations were applied with a unique dataset of 3.857 observations from 387 public firms in Vietnam from 2010 to 2020 (134 family firms and 253 non-family firms). The results reveal that family ownership and under-aspiration performance each has a positive effect on capital structure. However, under-aspiration performance negatively moderates the positive effect of family ownership on capital structure. These findings contribute to a stream of studies on the capital structure of family firms by exploring the role of under-aspiration performance, as well as provide important implications for shareholders, managers and debtors in financial management.

Socioemotional Wealth and Its Effect on Family Firm Performance

2020 ◽  
pp. 201-227 ◽  
Author(s):  
Juili Milind Ballal ◽  
Varadraj Bapat
Keyword(s):  
Firm Performance ◽  
Internal Consistency ◽  
Family Firms ◽  
Family Firm ◽  
Future Research ◽  
Significant Positive Effect ◽  
Strategic Choices ◽  
Socioemotional Wealth ◽  
The World ◽  
Positive Effect

Family firm is the oldest and the most prevalent type of business entity in the world. A unique feature that sets apart a family business from its non-family counterparts is the Socioemotional Wealth (SEW). Preservation of SEW among family firms is of paramount importance. Various strategic choices including need for innovation and internationalization are influenced by SEW. Studies also show that a family firm's SEW plays an influential role in the firm performance. The This chapter outlines the different scales used to measure SEW, checks the reliability and internal consistency of the existing REI scale in Indian context, investigates the heterogeneity of family firms and understands the effect of different SEW dimensions on firm performance. The findings reveal that SEW has a significant positive effect on firm performance. Contributions of the study and scope for future research are also discussed.

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.

scholarly journals Exporting family firms in Spain: The role of women

2016 ◽  
Vol 13 (4) ◽  
pp. 362-380
Author(s):  
Pilar Giraldez ◽  
Emma Berenguer Cárceles
Keyword(s):  
Boards Of Directors ◽  
Family Firms ◽  
Vital Role ◽  
Strategic Decision ◽  
Executive Management ◽  
Export Activity ◽  
Family Smes ◽  
Executive Managers ◽  
Positive Effect

In this study we have focused on the export activity of family firms, to see if women in governance positions have a positive effect on it. In order to clarify these effects, we have divided such positions in three different roles: ownership, boards of directors and the executive management. Data were collected from System for Analysis of Iberian Balances database (SABI) and the Spanish High Council of Chamber (SHCC) website to build a sample of Small and Medium Sized Spanish firms with some exporting activity between years 2000 and 2011. Our results suggest that female executive managers are less risk-averse and more growth-oriented than female owners and directors. Also, family firms show a worse export activity behaviour related to the number of countries and to the exported volumes than family firms. Since family SMEs play an vital role in both, the national and international economies, this study draws attention to the importance of the presence of women in government bodies in search of other markets, as internationalization is a key strategic decision for them

Family Businesses and Digital Entrepreneurship Adoption: A Conceptual Model

2020 ◽  
Vol 29 (2) ◽  
pp. 326-364
Author(s):  
Sami Basly ◽  
Amira Hammouda
Keyword(s):  
Conceptual Model ◽  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
Family Businesses ◽  
Socioemotional Wealth ◽  
Primary Appraisal ◽  
The Family ◽  
The World ◽  
Digital Entrepreneurship

Despite the prevalence of family businesses around the world, research on their contribution to the digital economy is still needed. A primary appraisal of the characteristics of the family business and the features of digital entrepreneurship suggests that the two phenomena are conflicting. Indeed, the most common descriptions of family businesses convey the idea that they favour stability to change and slow evolutions to upheavals and disruptions. This article attempts to answer the question: How could family businesses embrace the values and overcome the hindrances to digital entrepreneurship? To this end, this article suggests a conceptual model of digital entrepreneurship adoption in family firms. Based on the socioemotional wealth logic, we first describe the main variables influencing digital entrepreneurship adoption and then analyse the moderating influence of family involvement in the firm on the relationships between these variables and digital entrepreneurship adoption. Theoretical contributions and practical insights are presented.

The effects of goals attainment on CEO-owner satisfaction and the role of family involvement

2019 ◽  
Vol 10 (2) ◽  
pp. 116-127
Author(s):  
Ondřej Machek ◽  
Jiří Hnilica
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Firm Value ◽  
Family Firms ◽  
Hierarchical Regression ◽  
Content Type ◽  
Business Goals ◽  
Growth Increase ◽  
The Family ◽  
Owner Satisfaction

Purpose The purpose of this paper is to examine how the satisfaction with economic and non-economic goals achievement is related to the overall satisfaction with the business of the CEO-owner, and whether family involvement moderates this relationship. Design/methodology/approach Based on a survey among 323 CEO-owners of family and non-family businesses operating in the Czech Republic, the authors employ the OLS hierarchical regression analysis and test the moderating effects of family involvement on the relationship between the satisfaction with different goals attainment and the overall satisfaction with the business. Findings The main finding is that family and non-family CEO-owner’s satisfaction does not differ significantly when economic goals (profit maximisation, sales growth, increase in market share or firm value) and firm-oriented non-economic goals (satisfaction of employees, corporate reputation) are being achieved; both classes of goals increase the overall satisfaction with the firm and the family involvement does not strengthen this relationship. However, when it comes to external non-economic goals related to the society or environment, there is a significant and positive moderating effect of family involvement. Originality/value The study contributes to the family business literature. First, to date, most of the studies focused on family business goals have been qualitative, thus not allowing for generalisation of findings. Second, there is a lack of evidence on the ways in which family firms integrate their financial and non-financial goals. Third, the authors contribute to the literature on the determinants of personal satisfaction with the business for CEOs, which has been the focus on a relatively scarce number of studies.

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