Transgenerational entrepreneurial family firms and formal institutions: exploring the impact of entrepreneurial orientation on family firm performance in different formal institutional settings

2019 ◽  
pp. 232-258
Author(s):  
Daniela Giménez Jimenez ◽  
Andrea Calabrò
Keyword(s):  
Firm Performance ◽  
Entrepreneurial Orientation ◽  
Family Firms ◽  
Family Firm ◽  
Formal Institutions ◽  
Institutional Settings ◽  
The Impact

Exploring the family effect on firm performance

2015 ◽  
Vol 21 (6) ◽  
pp. 898-917 ◽  
Author(s):  
Yosra Mani ◽  
Lassaad Lakhal
Keyword(s):  
Social Capital ◽  
Firm Performance ◽  
Family Firms ◽  
Family Firm ◽  
Social Capital Theory ◽  
Three Dimensions ◽  
Capital Theory ◽  
Cognitive Dimension ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to investigate how internal social capital – as a part of the familiness resources– affects family firm performance. The social capital theory states that internal social capital within family businesses is composed of three dimensions: the structural dimension, the relational dimension, and the cognitive dimension. The aim of the paper is to study the relationship between each dimension of internal social capital and family firm performance. Design/methodology/approach – The paper employs an empirical investigation which is based on a sample of 114 Tunisian family firms. Findings – Results demonstrate that the structural and relational dimensions are positively associated with financial and non-financial family firm’s performance. However, the cognitive dimension has a significant positive effect on financial performance but not on non-financial family firm performance. Originality/value – The proposed model aims to test the direct effect of internal social capital dimensions on financial and non-financial family firm’s performance. Besides, there is a lack of empirical evidence aiming at understanding the impact of structural, cognitive and relational social capital on the performance of family firms.

Audit committee effectiveness and family firms: impact on performance

2019 ◽  
Vol 58 (6) ◽  
pp. 1021-1034
Author(s):  
Jihad Al-Okaily ◽  
Salma Naueihed
Keyword(s):  
Firm Performance ◽  
Fixed Effects ◽  
Audit Committee ◽  
Family Firms ◽  
Family Firm ◽  
Fixed Effects Model ◽  
Minority Shareholders ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to empirically examine the relationship between audit committee characteristics and firm performance, and whether family ownership and involvement moderate the latter relationship. Design/methodology/approach Following Anderson and Reeb (2003), this paper estimates a two-way fixed effects model. A sub-sample analysis is used by first examining the impact of audit committee effectiveness on firm performance only in non-family firms and then only in family firms. A fully interacted model was also analyzed in the robustness tests. Findings This paper finds that the audit committee characteristics of size, expertise and meeting frequency are positively and significantly related to non-family firm performance, while insignificantly related to family firm performance. Research limitations/implications The evidence reported in this paper may be of use for regulators and policy makers pondering corporate governance reforms, as well as for investors, managers and minority shareholders concerned with firm performance and valuation. Originality/value To the best of the authors’ knowledge, this is the first study of its kind to examine the moderating effect of family control and involvement on the relationship between firm performance and audit committee effectiveness in terms of size, expertise and meeting frequency.

Audit Characteristics, Gender Diversity and Firm Performance: Evidence from a Developing Economy

2021 ◽  
Vol 14 (1) ◽  
pp. 48-70
Author(s):  
Mohammad Rajon Meah ◽  
Kanon Kumar Sen ◽  
Md. Hossain Ali
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Audit Committee ◽  
Significant Contribution ◽  
Family Firms ◽  
Negative Impact ◽  
Interaction Analysis ◽  
Gender Diversity ◽  
Family Firm ◽  
The Impact

This study aims to explore the impact of audit characteristics and gender diversity on firm performance across family and non-family firms in Bangladesh. Using data of 61 non-family and 48 family firms from 2013 to 2019, this study applies system generalised method of moments approach to carry out regression analysis. Next, the consistency of results is detected by a full sample interaction analysis. In case of non-family firm, this study documents that Big4 audit firms (Big4) and female directors on board (FDR) have significant positive impact on firm performance. Conversely, audit meeting frequency (AMF) contributes negatively to the firm performance. Unfortunately, audit committee size (ACS) and audit committee independence (ACI) have no significant contribution on firm performance. In case of family firms, this study finds that ACS and ACI have significant negative impact on firm performance. Besides, Big4, AMF and FDR have no significant contribution on firm performance. It reflects that corporate governance mechanisms in family firm are not working well and even to some extent detrimental to the firm performance. It, ultimately, demands for reforms in corporate governance framework and incorporating new dimensions for family firms.

The Moderating Effect of Family Firm Status on the Entrepreneurial Orientation-Performance Relationship

2019 ◽  
pp. 102-132
Author(s):  
Remedios Hernández-Linares ◽  
María Concepción López-Fernández ◽  
Laura Victoria Fielden Burns
Keyword(s):  
Firm Performance ◽  
Entrepreneurial Orientation ◽  
Family Firms ◽  
Small And Medium Enterprises ◽  
Positive Association ◽  
Chief Executive ◽  
Family Firm ◽  
Moderating Effect ◽  
And Performance ◽  
The Relationship

Although management literature mostly reports a positive association between entrepreneurial orientation and firm performance, it also recognizes that different business contexts may prompt different manifestations of entrepreneurial orientation. Considering that family firms constitute the backbone of most economies across the globe, and based on arguments from socioemotional wealth perspective, this research aims to examine the moderating effect of being a family firm on the relationship between entrepreneurial orientation and firm performance. The empirical study is based on primary information obtained from the chief-executive-offices of 402 small and medium-enterprises (SMEs) from Portugal, a country located in southwestern Europe, and one that has been scantly investigated by the literature in the confluence between entrepreneurial orientation and family firms. Results show that the family firm status weakens the relationship between entrepreneurial orientation and performance in the Portuguese SMEs.

Internationalization and family firm performance

2020 ◽  
Vol 27 (1) ◽  
pp. 1-25
Author(s):  
Bart J. Debicki ◽  
Chao Miao ◽  
Shanshan Qian
Keyword(s):  
Firm Performance ◽  
Family Firms ◽  
Meta Analysis ◽  
Family Firm ◽  
Future Research ◽  
Content Type ◽  
Potential Impact ◽  
The Impact ◽  
Positive Effect

Purpose The purpose of this paper is to evaluate the effect of internationalization on performance in family firms, as well as the potential impact of moderators on this relationship. Design/methodology/approach This paper is a meta-analysis of the impact of internationalization on performance in family firms, as well as the role of several moderators shaping this relationship, based on 29 studies. Findings The findings indicate a significant positive effect of internationalization on family firm performance. This relationship was stronger in family firms with lower family ownership. Several methodological moderators were significant, such as the means of measuring performance and internationalization. The results also point to several cultural moderators, such as individualism, masculinity, low uncertainty avoidance and short-term orientation, which positively influence the main effect. Originality/value The authors provide discussions of the results, their practical and theoretical implications, as well as avenues for future research.

The nature of entrepreneurial orientation strength: the impact of shared values on firm performance

2021 ◽  
pp. 1-21
Author(s):  
Laurence G. Weinzimmer ◽  
Eric J. Michel ◽  
Jennifer Robin
Keyword(s):  
Firm Performance ◽  
Entrepreneurial Orientation ◽  
Convergent Validity ◽  
Field Studies ◽  
Theory And Practice ◽  
Interactive Effects ◽  
Revenue Growth ◽  
Entrepreneurship Theory ◽  
The Impact ◽  
Strong Culture

Abstract Drawing on Wales, Monsen, and McKelvie's (2011, Entrepreneurship Theory and Practice, 35(5), 895–923) model of entrepreneurial orientation pervasiveness and the strong culture hypothesis (Denison, 1984, Organization Dynamics, 13, 4–22), this study investigates how entrepreneurial orientation (EO) strength, defined as the level of agreement in the shared perceptions of EO, serves as a boundary condition of the EO–firm performance relationship. Four field studies provide evidence for a valid and reliable 10-item multidimensional measure of entrepreneurial orientation, the EO-10, which in turn, may be used to assess EO strength. We establish content and construct validity of the EO-10 (study 1; n = 447 employees), criterion-related validity with revenue growth and sales growth (study 2; n = 412 employees in 43 profit centers), and convergent validity with Covin and Slevin's (1989, Strategic Management Journal, 10, 75–87) 9-item measure (study 3; n = 291 employees). Finally, in study 4 (n = 853 employees nested in 22 organizations), we demonstrate the interactive effects of EO and EO strength on profit growth and revenue growth. In sum, this study provides conceptual and empirical evidence for the importance of EO strength as a moderator of the EO–firm performance relationship.

Should Fast-Food Franchisees Pursue Entrepreneurial Orientation?

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Ehsan Asgharian ◽  
Misagh Tasavori ◽  
Jim Andersén
Keyword(s):  
Firm Performance ◽  
Significant Role ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Fast Food ◽  
Business Systems ◽  
Unidimensional Construct ◽  
Different Dimensions ◽  
Competitive Aggressiveness ◽  
The Impact

Abstract Although it is widely accepted that entrepreneurial orientation (EO) improves firm performance, scholars have advised that particular attention should be paid to the context. In this research, we investigate a less explored context of franchising where business systems and procedures are usually dictated to franchisees by franchisors. Therefore, whether a franchisor should allow franchisees to pursue EO (innovativeness, proactiveness, risk-taking, competitive aggressiveness, and autonomy) is not clear. In the context of franchising, the majority of prior studies have mainly focused on the employment of EO as a unidimensional construct and at the franchisor level. In this research, we take a bottom-up perspective and evaluate the impact of different dimensions of EO on franchisees’ performance. Our analysis of a multi-group of 183 restaurant franchisees located in Sweden and Iran reveals that only the pursuit of proactiveness and competitive aggressiveness improves a franchisee’s performance and other dimensions do not play a significant role in improving performance in this context.

The impact of a crisis on entrepreneurial orientation of family firms: The role of organisational decline and generational change

2021 ◽  
pp. 026624262110366
Author(s):  
Ana M Moreno-Menéndez ◽  
Unai Arzubiaga ◽  
Vanessa Díaz-Moriana ◽  
José C Casillas
Keyword(s):  
Entrepreneurial Orientation ◽  
Family Firms ◽  
Theory And Practice ◽  
Stability And Convergence ◽  
Generational Change ◽  
Entrepreneurial Behaviour ◽  
Temporal Aspects ◽  
Alternative Hypotheses ◽  
The Impact

This article critically analyses entrepreneurial orientation (EO) in family firms after a major crisis, to investigate how firms with equal initial levels of EO reach different levels over time. Based on two alternative hypotheses (stability and convergence), we analysed whether the EO of family firms remains intact, strengthens, or weakens after a crisis. Based on an examination of a database of 151 family firms collected in 2004 and 2017, our findings reveal that compared to firms with higher pre-crisis EO levels, those with lower levels saw a larger increase post crisis. Furthermore, unlike the latter group, the former was able to maintain high pre-crisis levels even after the crisis. In addition, we also we found this relationship between pre-crisis and post-crisis EO levels to be influenced by two key periodic discontinuities, namely, organisational decline and generational change contingencies. These findings advance our understanding of temporal aspects of EO and heterogeneous entrepreneurial behaviour among family firms with significant implications for both theory and practice.

Does family involvement matter post IPO? Adding value through advertising in family firms

2018 ◽  
Vol 8 (3) ◽  
pp. 218-234 ◽  
Author(s):  
Atanas Nik Nikolov ◽  
Yuan Wen
Keyword(s):  
Firm Performance ◽  
Family Involvement ◽  
Family Business ◽  
Family Firms ◽  
Family Firm ◽  
Family Businesses ◽  
Publicly Traded ◽  
Content Type ◽  
The Public ◽  
The Family

PurposeThis paper brings together research on advertising, family business, and the resource-based view (RBV) of the firm to examine performance differences between publicly traded US family vs non-family firms. The purpose of this paper is to understand the heterogeneity of family vs non-family firm advertising after such firms become publicly traded.Design/methodology/approachThe authors draw on the RBV of the firm, as well as on extensive empirical literature in family business and advertising research to empirically examine the differences between family and non-family firms in terms of performance.FindingsUsing panel data from over 2,000 companies across ten years, this research demonstrates that family businesses have higher advertising intensity than competitors, and achieve higher performance returns on their advertising investments, relative to non-family competitors. The results suggest that the “familiness” of public family firms is an intangible resource that, when combined with their advertising investments, affords family businesses a relative advantage compared to non-family businesses.Research limitations/implicationsFamily involvement in publicly traded firms may contribute toward a richer resource endowment and result in creating synergistic effects between firm “familiness” and the public status of the firm. The paper contributes toward the RBV of the firm and the advertising literature. Limitations include the lack of qualitative data to ground the findings and potential moderating effects.Practical implicationsUnderstanding how family firms’ advertising spending influences their consequent performance provides new information to family firms’ owners and management, as well as investors. The authors suggest that the “familiness” of public family firms may provide a significant advantage over their non-family-owned competitors.Social implicationsThe implications for society include that the family firm as an organizational form does not need to be relegated to a second-class citizen status in the business world: indeed, combining family firms’ characteristics within a publicly traded platform may provide firm performance benefits which benefit the founding family and other stakeholders.Originality/valueThis study contributes by highlighting the important influence of family involvement on advertising investment in the public family firm, a topic which has received limited attention. Second, it also integrates public ownership in family firms with the family involvement–advertising–firm performance relationship. As such, it uncovers a new pathway through which the family effect is leveraged to increase firm performance. Third, this study also contributes to the advertising and resource building literatures by identifying advertising as an additional resource which magnifies the impact of the bundle of resources available to the public family firm. Fourth, the use of an extensive panel data set allows for a more complex empirical investigation of the inherently dynamic relationships in the data and thus provides a contribution to the empirical stream of research in family business.

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