Structural, Psychological, and Socioemotional Factors That Determine Innovation Decisions in Family Firms

2020 ◽  
pp. 179-200
Author(s):  
Jessica Mendoza Moheno ◽  
Martín Aubert Hernández Calzada ◽  
Blanca Cecilia Salazar Hernández
Keyword(s):  
Qualitative Study ◽  
Family Firms ◽  
Innovation Process ◽  
Young Generation ◽  
Business Firm ◽  
Socioemotional Wealth ◽  
Two Generations ◽  
Fiber Dimensions

This chapter explores the structural, psychological, and socioemotional factors in innovation in a funeral home in Mexico and analyzes the firm's stage in the innovation process. This qualitative study examines socioemotional wealth through the FIBER dimensions and the stage in the innovation process through the Readiness for Innovation in Family Firms (RIFF) framework. The findings suggest that socioemotional wealth has not allowed the implementation of governmental bodies. The existence of two generations in management has allowed the firm to take advantage of the knowledge and experience of the old generation and the skills of the young generation to continue innovating in products, processes, and services. The firm has the willingness and ability to adopt innovation, although SEW's accumulated endowment has limited long-term innovations as the expansion of the business to other states. This chapter addresses the Arriaga Group case study, a well-known family business firm in Hidalgo, Mexico.

scholarly journals Innovation Motives in Family Firms: A Transgenerational View

2018 ◽  
Vol 44 (2) ◽  
pp. 256-287 ◽  
Author(s):  
Vanessa Diaz-Moriana ◽  
Eric Clinton ◽  
Nadine Kammerlander ◽  
G. T. Lumpkin ◽  
Justin B. Craig
Keyword(s):  
Family Firms ◽  
Fine Grained ◽  
Study Approach ◽  
Data Collection Process ◽  
Semistructured Interviews ◽  
Multigenerational Family ◽  
Multiple Case ◽  
Innovation Patterns

Drawing on the transgenerational entrepreneurship perspective, we employ a multiple case study approach to investigate why multigenerational family firms innovate. The data collection process drew upon five in-depth cases comprising 42 semistructured interviews, 25 participant observations, and several thousand pages of historical data dating from 1916 to 2017. We find patterns on how the firms’ long-term view—embracing both the past and the future—influences the innovation motives of these firms. Specifically, we identify three innovation patterns: conserving, persisting and legacy-building. We introduce a set of propositions and a framework linking long-term orientation dimensions to innovation motives and innovation outcomes. Our research thus contributes to a more fine-grained understanding of innovation behavior in family firms.

The Effect of Transgenerational Control Intention on Family-Firm Performance: It Depends Who Pursues It

2017 ◽  
Vol 43 (3) ◽  
pp. 629-646 ◽  
Author(s):  
Christian Hoffmann ◽  
Peter Jaskiewicz ◽  
Torsten Wulf ◽  
James G. Combs
Keyword(s):  
Firm Performance ◽  
Family Firms ◽  
Empirical Investigation ◽  
Cognitive Biases ◽  
Family Firm ◽  
Socioemotional Wealth ◽  
German Family

Transgenerational control intention (TCI) is a pivotal characteristic of many family firms. Yet, it remains unclear whether TCI benefits family-firm performance by instilling a long-term view, or hurts performance by fueling harmful socioemotional wealth (SEW) goals. We posit that it depends who pursues it. When faced with TCI, family managers are known to suffer from cognitive biases that, we submit, do not similarly apply to nonfamily managers. Thus, only family managers harm performance when pursuing TCI. An empirical investigation of 107 private German family firms supports our theory; the effect of TCI on firm performance depends on who pursues it.

“SEW” What Do We Know and Where Do We Go? A Review of Socioemotional Wealth and a Way Forward

2020 ◽  
Vol 33 (4) ◽  
pp. 424-445
Author(s):  
R. Gabrielle Swab ◽  
Chelsea Sherlock ◽  
Erik Markin ◽  
Clay Dibrell
Keyword(s):  
Systematic Review ◽  
Family Business ◽  
Family Firms ◽  
Necessary Condition ◽  
Socioemotional Wealth ◽  
Specific Research ◽  
Research Themes ◽  
Fiber Dimensions

This analysis provides a review of family business literature concerning the application of socioemotional wealth (SEW) and its extension through the FIBER framework. Specifically, we answer Brigham and Payne’s call by assessing the multidimensionality of the SEW construct, the interrelatedness of the dimensions, and its specificity to family firms. We contribute to the literature by conducting a systematic review of the SEW literature and examining the applications of the FIBER dimensions, noting the evolution of specific research themes. Last, using necessary condition analysis, we provide four conceptual inferences regarding the assumptions of SEW to provide a way forward.

scholarly journals Contested takeovers of family firms and socioemotional wealth: a case study

2017 ◽  
Vol 12 (4) ◽  
pp. 447-463 ◽  
Author(s):  
Kevin Campbell ◽  
Magdalena Jerzemowska
Keyword(s):  
Family Firms ◽  
Stock Exchange ◽  
Supervisory Board ◽  
Socioemotional Wealth ◽  
Content Type ◽  
Warsaw Stock Exchange ◽  
Gains And Losses ◽  
Takeover Bids

Purpose The purpose of this paper is to provide an understanding of the importance of socioemotional wealth (SEW) to family firms in Poland viewed through the lens of the events surrounding the first hostile takeover bid of the post-communist era on the Warsaw Stock Exchange when the clothing company Vistula & Wólczanka (V&W) made an unsolicited, leveraged bid for the family-controlled jewelry company W. Kruk. Design/methodology/approach The 2008 takeover and its aftermath are described in the context of the corporate governance and legal environment in Poland. The case study events demonstrate the connection between firm behavior and SEW theory. Findings After the acquisition of W. Kruk by V&W, the Kruk family purchased stock in the newly named Vistula Group and gained influence over the supervisory board in concert with a business ally, eventually wresting back control of the company in the style of a Pac-Man “defense.” The case study illustrates the importance of SEW in family firm takeovers. Research limitations/implications The case study design has limitations for generalizability. Nevertheless the research highlights the important role of SEW preservation in understanding the market for corporate control of listed family firms in Poland. Practical implications Understanding the reaction by family firms to takeover bids requires recognition that there is a tradeoff between financial and SEW considerations, not just financial gains and losses. Originality/value The case study demonstrates the importance of SEW to family firms and suggests that the balance of power in takeovers on the Polish stock market rests with incumbent management.

Sustainable Development in Family Firms

2022 ◽  
pp. 565-582
Author(s):  
Angela Dettori ◽  
Michela Floris ◽  
Cinzia Dessì
Keyword(s):  
Sustainable Development ◽  
Family Firms ◽  
Single Case ◽  
Natural Environments ◽  
Term Survival ◽  
Positive Effects ◽  
Firm Success ◽  
Sustainability Challenges

This chapter outlines the relevance of sustainable development as a key for family firm success and its ability to guarantee long-term survival and spread positive effects in social, economic, and natural environments. By particularly analyzing a single case study of a Sardinian family business, this work explores the intertwined relationships among sustainability, owner innovativeness, and firm success. Moreover, the importance of family businesses and the scarcity of the study conducted to date have suggested a focus on how these companies tackle sustainability challenges.

Il ruolo dei network per le imprese familiari: uno studio preliminare sulle attrazioni nell'area rurale del Sussex, Inghilterra

2009 ◽  
pp. 133-151
Author(s):  
Antonella Capriello ◽  
Ian D. Rotherham
Keyword(s):  
Problem Solving ◽  
Empirical Evidence ◽  
Family Business ◽  
Information Dissemination ◽  
Innovation Process ◽  
Tourism Research ◽  
Common Goals ◽  
Visitor Attractions

- This paper analyses the relationships between family business and networking processes with a case study of visitor attractions in rural Sussex in England. Following a review of key literature on relevant aspects of entrepreneurial and tourism research related to networking activity, a focused study was undertaken to address formal and informal relationships. The results of cross comparison reveal that the presence of common goals between the network members is important in any long-term adherence to a network. The empirical evidence indicates that family businesses adopt a different networking strategy in relation to expected entrepreneurial problem-solving processes. A model is proposed in which networking process is explained in relation with information dissemination and knowledge diffusion, destination governance, and innovation process.

The Development of Successors From Followers to Leaders in Small Family Firms

2009 ◽  
Vol 22 (2) ◽  
pp. 109-124 ◽  
Author(s):  
John James Cater ◽  
Robert T. Justis
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Qualitative Interviews ◽  
Future Research ◽  
Study Approach ◽  
Small Family ◽  
Top Managers ◽  
Parent Child Relationships

The purpose of this exploratory study was to better understand the development of successors in the small family business, including their approach to the leadership of the firm. It examined variables (and their relationships) that help to explain family business successor leadership. A case study approach was followed, using grounded theory analysis of qualitative interviews of the top managers of six family businesses. It provided six propositions for future research—namely, concerning positive parent—child relationships, acquiring knowledge, long-term orientation, cooperation, successor roles, and risk orientation.

scholarly journals Generational Socioemotional Wealth and Debt Maturity: Evidence from Private Family Firms of GIPSI Countries

2021 ◽  
Vol 13 (12) ◽  
pp. 67
Author(s):  
Oscar Domenichelli ◽  
Giulia Bettin
Keyword(s):  
Sovereign Debt ◽  
Family Firms ◽  
Conflicts Of Interest ◽  
Debt Crisis ◽  
Debt Maturity ◽  
Socioemotional Wealth ◽  
Debt Maturity Structure ◽  
Maturity Structure ◽  
Generation Family

In this paper we investigate the relationship between generational socioemotional wealth (SEW) and debt maturity structure in private family firms of GIPSI countries for the period 2010-2018. This appears to be quite an important issue to study, given that SEW is a peculiar aspect of family firms and its impact on the debt maturity structure, still relatively unexplored, is likely to change according to the generation running the family business. We show that the importance attached to SEW decreases when moving from the firms’ founder to the subsequent generations, with a negative effect on the amount of long-term debt. The forward-looking orientation of first-generation family firms favours long-term credit by banks in order to expand a healthy business which can be inherited by future generations. These businesses are hence perceived as less risky and more value-creating by external creditors, compared to later-generation family firms. Alternatively, SEW preservation is often less of a target in later-generation family firms, because some descendants consider the firm simply as a source of extra finance and conflicts of interest often arise between multiple generations or different family branches entering the business. Short-term debt may then be employed as a signaling effect of the quality of the firm. At the same time, borrowing long-term capital may become difficult if lenders question the creditworthiness of these businesses. This issue emerged dramatically during the sovereign debt crisis, when a significant contraction of credit to firms was observed throughout the GIPSI countries.

Total quality management as driver for internationalization: a case study of a small family firm

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Michela Floris ◽  
Michela Marongiu ◽  
Cinzia Dessi ◽  
Angela Dettori
Keyword(s):  
Family Firms ◽  
Single Case ◽  
International Markets ◽  
Total Quality ◽  
Content Type ◽  
Small Family ◽  
Strategic Resources ◽  
Internationalization Strategies

PurposeThis study investigates the relationship between Total Quality Management (TQM) and internationalization in small family firms, focusing on the role that the dimensions of TQM may have as strategic resources to implement successful internationalization strategies.Design/methodology/approachBuilding on the Resource-Based View (RBV), the study is based on a single case study, and data were gathered through in-depth interviews with the family owner-manager.FindingsFindings show that small family businesses that aim to operate in international markets have to invest constant attention toward TQM by developing strategies able to achieve excellence. More in detail, for small and medium family firms, TQM represents a driver to internationalize. Therefore, family-owned managers sustain that internationalization success depends on the increasing attention exhibited toward the following dimensions of quality, specifically on three main pillars: relationships, professionalization and long-term vision, which appear to be strategic resources in international markets. An interpretive model is proposed with a set of propositions.Research limitations/implicationsScholarly implications are threefold. First, findings contribute to the RBV theory by introducing the long-term vision as a strategic resource able to activate a loop between TQM and internationalization success. Second, results contribute to TQM literature, highlighting that it represents a driver to internationalize, and following a long-term perspective, its enhancement is stimulated by internationalization. Third, findings contribute to family business studies, underlining the relevance done of owners on professionalization as a strategic resource to ensure excellence and obtain success in overseas markets. The main drawback refers to the fact that results stemmed from one single case study. Further studies could deepen the analysis on multiple cases.Practical implicationsThe proposed case study represents a best practice and can stimulate other entrepreneurs and consultants to invest in TQM to thrive internationalization strategies.Originality/valueThe current study, elucidating that TQM is the driver to stimulate family business internationalization, proposes an interpretive model to study TQM and internationalization in small and medium family firms.

Sustainable Development in Family Firms

2020 ◽  
pp. 230-252
Author(s):  
Angela Dettori ◽  
Michela Floris ◽  
Cinzia Dessì
Keyword(s):  
Sustainable Development ◽  
Family Firms ◽  
Single Case ◽  
Natural Environments ◽  
Term Survival ◽  
Positive Effects ◽  
Firm Success ◽  
Sustainability Challenges

This chapter outlines the relevance of sustainable development as a key for family firm success and its ability to guarantee long-term survival and spread positive effects in social, economic, and natural environments. By particularly analyzing a single case study of a Sardinian family business, this work explores the intertwined relationships among sustainability, owner innovativeness, and firm success. Moreover, the importance of family businesses and the scarcity of the study conducted to date have suggested a focus on how these companies tackle sustainability challenges.

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