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 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.

Dancing With Giants: Acquisition and Survival of the Family Firm

2006 ◽  
Vol 19 (4) ◽  
pp. 289-300 ◽  
Author(s):  
Adam Steen ◽  
Lawrence S. Welch
Keyword(s):  
Mergers And Acquisitions ◽  
Family Involvement ◽  
Family Members ◽  
Family Firm ◽  
Wine Industry ◽  
Family Perspective ◽  
The Family

In this article, we examine the responses of family companies to the emerging environment of mergers and acquisitions, specifically within the international wine industry. At issue is the question of how the family perspective influences responses of a family firm to the prospect of merger or takeover. We examine the issue through a case study of the takeover of an Australian wine producer and family firm, Peter Lehmann Wines. The case study demonstrates ways in which the family perspective is critical in driving responses, for example, in the strength and forms of opposition to one of the potential acquirers in the case, indicating just how important the preservation of a family legacy was to key family members. However, the case also illustrates how in a takeover fight the dynamics of the takeover process itself become important in determining outcomes. In addition, the case demonstrates that family involvement and influence can be maintained in spite of takeover.

scholarly journals Principal-Principal Conflicts and Socioemotional Wealth in Family Firms

2017 ◽  
Vol 9 (10) ◽  
pp. 128 ◽  
Author(s):  
Jason See Toh Seong Kuan ◽  
Chin Fei Goh ◽  
Owee Kowang Tan ◽  
Norliza Mohd Salleh
Keyword(s):  
Corporate Governance ◽  
Family Firms ◽  
Family Firm ◽  
The Public ◽  
The Family ◽  
Different Types ◽  
Governance Practice ◽  
Corporate Governance Practice ◽  
The Relationship

Corporate governance is the concern of all the parties throughout the world regarding their viability in order to ensure the sustainability of the firm. As the family firms are listed in the public exchange, there are different kind of the investors in the corporation produce the resolution that are opposing to each other. Moreover, the large capital that is injected by the institutional investor complicates the role played in the corporation that shapes the culture and philanthropy. The phenomenon leads to the complex relationship in one corporation due to the different types of interest. Board composition and board independence are stretched by numerous scholars regarding the core importance in the corporation. Executive compensation is another area of corporate governance that is widely discussed by the scholars regarding the relationship with the long-term firm performance. Therefore, this review paper will focus on the application of the Principal-principal Conflicts theory and Socio-Emotional Wealth theory to narrate the whole scenario of the governance practice in the family firm. Throughout the paper, current rigorous practice of the family firms will be deeply investigated to cover the deep insights of the current phenomenon. The meticulous review of this paper is able to synthesize the significance of these theories towards the general governance setting in the family firms. Eventually, the working paradigm of the family firm can be clearly justified with the rationale that is justified. At the end of the review, the two main theories are concluded to be equally essential to illustrate the corporate governance practice in family firms across the globe.

scholarly journals The Temporal Evolution of Proactiveness in Family Firms

2013 ◽  
Vol 27 (1) ◽  
pp. 35-50 ◽  
Author(s):  
Alfredo De Massis ◽  
Francesco Chirico ◽  
Josip Kotlar ◽  
Lucia Naldi
Keyword(s):  
Family Firms ◽  
Temporal Evolution ◽  
Family Members ◽  
Firm Age ◽  
Managerial Control ◽  
Contingency Perspective ◽  
The Family ◽  
The Relationship ◽  
Moderating Role

We extend prior work on proactiveness in family firms by examining the relationship between firm age and proactiveness. Specifically, we propose an S-shaped effect of aging of family firms on proactiveness. Additionally, we provide a contingency perspective by considering the moderating role of the dispersion of managerial control among family members. Using a sample of Swiss family firms, we find that proactiveness first declines, then increases, and finally decreases again as the family firm ages, and that this relationship is steeper when the managerial control is dispersed among multiple family members.

Entrepreneurship and Family Business: Exploring the Connections

1994 ◽  
Vol 19 (1) ◽  
pp. 71-83 ◽  
Author(s):  
W. Gibb Dyer ◽  
Wendy Handler
Keyword(s):  
Family Involvement ◽  
Family Members ◽  
New Venture ◽  
Early Experiences ◽  
Start Up ◽  
The Family ◽  
Management Succession ◽  
Research Questions ◽  
The Relationship ◽  
Entrepreneurial Dynamics

This article explores how the family Influences an entrepreneur's career. There are various points In time where family and entrepreneurial dynamics intersect. These Include: (1) early experiences In the entrepreneur's family of origin; (2) family Involvement and support of early start-up activities; (3) employment of family members In the new venture; and (4) involvement of family members In ownership and management succession. The article explores each of these four areas and suggests research questions that need to be explored to develop a better understanding of the relationship between entrepreneurs and their families.

scholarly journals Earning quality in listed firms: How much an active family governance is desirable?

2012 ◽  
Vol 10 (1) ◽  
pp. 681-691 ◽  
Author(s):  
Riccardo Tiscini ◽  
Francesca di Donato
Keyword(s):  
Family Involvement ◽  
Family Firms ◽  
Earnings Quality ◽  
Listed Firms ◽  
Family Governance ◽  
The Family ◽  
Governance Practices ◽  
Earning Quality ◽  
Italian Context ◽  
The Relationship

The study investigates the relationship between family involvement in the governance of Italian listed companies and earnings quality (EQ). Family firms set incentives to extract private benefits (‘entrenchment’ effect), but, they also contribute to higher alignment between owners and managers (‘alignment’ effect). The literature shows mixed results about the relationship between EQ and family firms. We argue that family involvement in the governance affects EQ. The empirical evidence shows that in the Italian context, there is higher EQ in case of higher family involvement in the board, but only if the CEO is not belonging to the controlling family. On the contrary, in case of a family CEO, the higher family involvement in the board increases his entrenchment, reducing EQ. The results are valuable because we find that EQ in family firms is affected both by family ownership and by the attitude of the family toward governance practices.

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.

Innovation and internationalization in family SMEs: analyzing the role of family involvement

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mikel Alayo ◽  
Txomin Iturralde ◽  
Amaia Maseda
Keyword(s):  
Family Involvement ◽  
Structural Equation ◽  
Family Firms ◽  
Equation Modeling ◽  
Strategic Decisions ◽  
Content Type ◽  
Innovation Activities ◽  
Family Smes ◽  
New Evidence ◽  
The Relationship

PurposeThe aim of this paper is to provide new evidence on the ability of family small- and medium-sized enterprises (SMEs) to develop ambidextrous innovations and their influence on the internationalization processes, showing how this relationship varies due to family involvement.Design/methodology/approachThe analysis is based on a sample of 186 Spanish family SMEs. Data were analyzed using structural equation modeling.FindingsThe results indicate that family SMEs' innovation activities are a stimulus for their internationalization process, and show the importance of family involvement in this relationship. Specifically, the findings suggest that family-specific characteristics such as the generation in charge of the business and the level of family involvement in the top management team (TMT) shape the relationship between innovation and internationalization.Practical implicationsFamily SMEs need to focus on exploratory and exploitative innovations to obtain a competitive advantage in foreign markets, and thus, increase their internationalization level. Furthermore, the study contributes to a better understanding of the consequences of family involvement, increasing our knowledge of family firms' idiosyncratic behaviors in strategic activities. The study suggests that in order to improve the effect of innovation on internationalization, family owners should consider involving new generations and non-family managers within the decision-making structures.Originality/valueTo date, research on innovation-internationalization link in family SMEs has been fragmented and has not obtained conclusive results. This study provides new evidence on the relationship between these two important strategies. Furthermore, it contributes to the understanding of the influence of the family in shaping strategic decisions.

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.

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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