Competitive Strategy Based on Flexibility

2019 ◽  
pp. 129-148
Author(s):  
Marta Pérez-Pérez ◽  
María Concepción López-Fernández ◽  
Ana María Serrano-Bedia
Keyword(s):  
Family Involvement ◽  
Competitive Strategy ◽  
Family Firms ◽  
Implementation Process ◽  
Manufacturing Flexibility

This chapter is intended to analyze the extent to which businesses in Spain have adopted several flexibility-manufacturing practices. Specifically, this study explores firstly, sample-based differences in the results of comparative family firms versus nonfamily firms concerning practices for implementing manufacturing flexibility. Secondly, heterogeneity in this implementation process within different groups of family firms was explored. The gathered evidence suggests that the main differences with respect to practices for implementing manufacturing flexibility appear when specific characteristics surrounding family firms and related to the role of the CEO and family involvement in the management of the firm are considered.

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.

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 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 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.

scholarly journals Difficulties in Building Relationships with External Stakeholders: A Family-Firm Perspective

2018 ◽  
Vol 10 (12) ◽  
pp. 4557
Author(s):  
Joanna Sadkowska
Keyword(s):  
Project Management ◽  
Family Involvement ◽  
Success Factors ◽  
Family Firms ◽  
Management Practices ◽  
Eastern European ◽  
Building Relationships ◽  
Key Success Factors ◽  
External Stakeholders

Currently, there is a growing number of businesses which organize their operations in the form of projects. One of the key success factors in the area of project management is building successful relationships with project stakeholders. Using stakeholder theory perspective and looking through the lens of family involvement, the study addresses two research questions: 1. how do family firms perceive the difficulty in building relationships with external stakeholders compared to other project management difficulties; 2. does organizing work in the form of projects redefine the significance of family involvement in the difficulties of building relationships with external stakeholders. To answer these questions, 154 Polish family-owned enterprises, considered as representatives of Eastern European emerging economies, were surveyed. The results indicate that family involvement strongly influences the difficulties in building relationships with external stakeholders, but only in those companies which at the time of the survey were not managing projects. In the firms employing project management practices, only the factor related to increasing the number of employees had a facilitating effect on the studied phenomenon. On the contrary, in the case of family firms not managing projects, the growth in the number of employees increased the difficulty in building relationships with external stakeholders. The findings add to the research on the role of family involvement in building relationships with a firm’s external stakeholders.

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.

Retrenchment Strategies and Family Involvement: The Role of Survival Risk

2018 ◽  
Vol 32 (1) ◽  
pp. 58-75 ◽  
Author(s):  
Jose C. Casillas ◽  
Ana M. Moreno-Menéndez ◽  
José L. Barbero ◽  
Eric Clinton
Keyword(s):  
At Risk ◽  
Family Involvement ◽  
Empirical Data ◽  
Family Firms ◽  
Stock Exchange ◽  
Family Businesses ◽  
Board Members ◽  
Spanish Stock Exchange ◽  
Survival Risk

This article analyzes retrenchment strategies that family businesses adopt during periods of crisis. From a socioemotional wealth perspective, we propose that the influence of family board members and family CEOs on retrenchment depends on survival risk. We collected empirical data from companies on the Spanish Stock Exchange (2008-2012). Our findings reveal that family involvement intensifies retrenchment when performance is declining, and that retrenchment intensifies when survival is at risk. We also demonstrate that family firms are able to implement retrenchment measures when required to improve their performance.

The Role of Family Involvement on CEO Turnover: Evidence from Colombian Family Firms

2014 ◽  
Vol 23 (3) ◽  
pp. 266-284 ◽  
Author(s):  
Maximiliano González ◽  
Alexander Guzmán ◽  
Carlos Pombo ◽  
María-Andrea Trujillo
Keyword(s):  
Family Involvement ◽  
Family Firms ◽  
Ceo Turnover

scholarly journals Organizational Capabilities for Family Firm Sustainability: The Role of Knowledge Accumulation and Family Essence

2021 ◽  
Vol 13 (10) ◽  
pp. 5607
Author(s):  
Ismael Barros-Contreras ◽  
Jesús Manuel Palma-Ruiz ◽  
Angel Torres-Toukoumidis
Keyword(s):  
Family Involvement ◽  
Dynamic Capabilities ◽  
Family Firms ◽  
Family Firm ◽  
Organizational Capabilities ◽  
Knowledge Accumulation ◽  
External Knowledge ◽  
The Family ◽  
Research Gap

While prior studies recognize the importance of organizational capabilities for family firm sustainability, current research has still failed to empirically identify the role of different types of knowledge accumulation with regard to these organizational capabilities. Based on the dynamic capabilities theory, the main goal of this paper is to address this research gap and to explore the relationships between both internal and external knowledge accumulation, and ordinary organizational capabilities. This research also contributes to analyzing the complex effect of the family firm essence, influenced by both family involvement and generational involvement levels, as an antecedent of internal and external knowledge accumulation. Our analysis of 102 non-listed Spanish family firms shows that the family firm essence, which is influenced by the family involvement, strengthens only the internal knowledge accumulation but not the external one. Furthermore, our study also reveals that both internal and knowledge accumulation are positively related to ordinary capabilities.

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