Drivers of Proactive Environmental Strategy in Family Firms

2011 ◽  
Vol 21 (2) ◽  
pp. 309-334 ◽  
Author(s):  
Pramodita Sharma ◽  
Sanjay Sharma
Keyword(s):  
Family Involvement ◽  
Family Firms ◽  
Behavioral Control ◽  
Research Field ◽  
Perceived Behavioral Control ◽  
Environmental Strategy ◽  
Family Control ◽  
Proactive Environmental Strategy ◽  
And Performance ◽  
Dominant Coalition

ABSTRACT:Globally, family firms are the dominant organizational form. Family involvement in business and unique family dynamics impacts organizational strategy and performance. However, family control of business has rarely been adopted as a discriminating variable in the organizations and the natural environment (ONE) research field. Drawing on the theory of planned behavior we develop a conceptual framework of the drivers of proactive environmental strategy (PES) in family firms. We argue that family involvement in business influences the attitudes, subjective norms, and perceived behavioral control of a firm’s dominant coalition. Together these factors determine the extent of the dominant coalition’s intentions to undertake PES. Further, family firms with lower levels of relationship conflict within the controlling family will be more successful in translating the dominant coalition’s intentions to allocate resources for the pursuit of PES. Research implications of the theory are discussed.

Broadening the evidence for the Theory of Planned Behavior: predicting heavy episodic drinking in Argentinean female and male youth

2017 ◽  
Vol 17 (2) ◽  
pp. 159-167 ◽  
Author(s):  
Raquel I Peltzer ◽  
Karina Conde ◽  
Maria Ayelen Biscarra ◽  
Aldana Lichtenberger ◽  
Mariana Cremonte
Keyword(s):  
Theory Of Planned Behavior ◽  
Social Norms ◽  
Planned Behavior ◽  
Perceived Control ◽  
Behavioral Control ◽  
Heavy Episodic Drinking ◽  
Perceived Behavioral Control ◽  
Male Youth ◽  
Prevention Interventions ◽  
And Performance

Introduction: Although the Theory of Planned Behavior has successfully been applied to explain heavy episodic drinking, recent reviews have identified gaps in the literature. Among them the role of gender, scarce research from non English speaking countries (and thus, other drinking contexts) and lastly, contradictory results regarding the measures used to evaluate social norms and perceived behavioral control. Objective: We aim to broaden the evidence for the Theory of Planned Behavior by evaluating the capacity of the model to predict heavy episodic drinking in Argentinean female and male youth. Methods: In this study a psychometrically sound measure is used and which evaluates both dimensions of social norms and perceived control. We measured Theory of Planned Behavior variables and last month heavy episodic drinking at two-time frames. Multiple linear and logistic regressions were performed. Results: Attitude was the main predictor of heavy episodic drinking intention; there were gender differences, among women perceived behavioral control and subjective norm were also predictors of heavy episodic drinking intentions. The intention was the main predictor of heavy episodic drinking for both genders, while perceived behavioral control was also a predictor among women. Conclusions: Theory of Planned Behavior allows us to better understand the motivational variables related to heavy episodic drinking intention and performance, and thus, to design appropriate prevention interventions.

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.

Underlying Beliefs Associated With College Student Consumption of Energy Beverages

2017 ◽  
Vol 40 (1) ◽  
pp. 5-19 ◽  
Author(s):  
Janet Thorlton ◽  
William B. Collins
Keyword(s):  
Behavioral Control ◽  
Cross Sectional Study ◽  
Subjective Norms ◽  
Perceived Behavioral Control ◽  
Sectional Study ◽  
Cross Sectional ◽  
Dependent Variables ◽  
Consumption Practices ◽  
Components Analysis ◽  
And Performance

College students are heavy consumers of energy beverages, yet further study is needed to better understand determinants of use. The purpose of this cross-sectional study ( N = 283) was to identify beliefs explaining unsafe consumption practices. A principal components analysis revealed three eigenvalues >1 explaining approximately 55% of the variance (health and appearance, performance and fatigue, and recreation and alcohol). Multiple regression analysis explained 75% of the variance for intent to consume. Standardized beta for attitude and subjective norms was p < .001; perceived behavioral control was p < .05. MANOVA was used to determine the effect of gender on eight dependent variables (Wilks’s lambda = 3.78, p < .001). Attitudes and subjective norms influenced the intent to consume energy beverages, particularly in males. Students viewed energy beverages as useful for managing health and appearance and performance and fatigue, and as a way to enhance recreation and alcohol consumption.

Financial Decision Making in Family Firms

2014 ◽  
Vol 27 (4) ◽  
pp. 307-327 ◽  
Author(s):  
Christian Koropp ◽  
Franz W. Kellermanns ◽  
Dietmar Grichnik ◽  
Laura Stanley
Keyword(s):  
Behavioral Intentions ◽  
Structural Equation ◽  
Family Firms ◽  
Behavioral Control ◽  
Behavioral Approach ◽  
Equation Modeling ◽  
Future Research ◽  
Perceived Behavioral Control ◽  
External Equity ◽  
Family Norms

Adapting the theory of planned behavior to the area of financial choices in family firms, we argue that these choices in family firms are largely affected by family norms, attitude, perceived behavioral control, and behavioral intentions. A time-lagged sample, estimated via structural equation modeling of 118 German family firms, supports a behavioral approach to the study of financing decisions. Specifically, we show that family norms and attitude toward external debt and external equity affect behavioral intention to use the respective financing choices, which in turn affects financing behavior. Perceived behavioral control, however, was shown to negatively affect behavioral intentions to use external equity and was positively related to the use of internal funds. Implications of these capital structure decisions and ideas for future research are discussed.

scholarly journals Influence of Government Support on Proactive Environmental Strategies in Family Firms

2021 ◽  
Vol 13 (24) ◽  
pp. 13973
Author(s):  
Sonia Benito-Hernández ◽  
Cristina López-Cózar-Navarro ◽  
Tiziana Priede-Bergamini
Keyword(s):  
Family Firms ◽  
Binary Logistic Regression ◽  
Local Area ◽  
Government Support ◽  
Limited Attention ◽  
Environmental Strategy ◽  
Proactive Environmental Strategy ◽  
Environmental Strategies ◽  
The Government ◽  
Negative Impacts

Scholars have dedicated significant efforts to understanding the factors that influence the environmental strategy of a firm, in order to mitigate the negative impacts on the ecosystem. Learning more about the factors that encourage environmental behavior allows managers and policy makers to improve action and advance correctly in this direction. Despite this academic interest, the literature regarding family business has undertaken limited attention over the issue. Hence, our paper aims to advance in this line of research, by empirically examining the relationship between government support in family firms and their investment in environmental protection. Specifically, we intend to analyze whether the family nature, and the government financial support, influence their environmental strategy. The empirical analysis is developed with a sample of 1802 manufacturing firms in Spain, using a binary logistic regression to evaluate the existence of dependency relationships between the analyzed variables. The results show this dependency, confirming family nature and government support as significant factors for a proactive environmental strategy, funding the idea that family character positively affects environmental performance in line with the socio-emotional wealth approach, and these differences are greater if the company operates mainly in a local area. Likewise, family firms that receive state direct and indirect funding, invest more in environmental issues to mitigate negative external impacts. The practical implications of the results obtained are especially useful for managers of family businesses as well as for central governments and local institutions as a matter of reflection. To reduce administrative processes and costs for family firms in terms of direct and indirect support is of great importance, as an inadequate process may become a barrier to develop environmental strategies.

Examining the Relation Between Ethical Focus and Financial Performance in Family Firms: An Exploratory Study

2010 ◽  
Vol 23 (4) ◽  
pp. 310-326 ◽  
Author(s):  
Ernest H. O'Boyle ◽  
Matthew W. Rutherford ◽  
Jeffrey M. Pollack
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Family Involvement ◽  
Family Business ◽  
Exploratory Study ◽  
Family Firms ◽  
Research Area ◽  
Future Research ◽  
Business Studies ◽  
And Performance

Empirically, the confluence of family involvement, ethics, and performance is a sparse research area. The authors explore a rich theoretical framework relating family involvement, ethical focus, and firm performance and empirically test a mediated model using a sample of 526 family businesses. The results illustrated that a firm’s ethical focus mediated the relation between family involvement and financial performance. Specifically, data supported the relation between family involvement and a firm’s ethical focus. And increased ethical focus predicted increased financial performance. The authors discuss the implications of these findings and offer potential areas for future research in family business studies.

Does family involvement foster IPO value? Empirical analysis on Italian stock market

2015 ◽  
Vol 53 (5) ◽  
pp. 1125-1154 ◽  
Author(s):  
Alessandro Cirillo ◽  
Mauro Romano ◽  
Otello Ardovino
Keyword(s):  
Initial Public Offering ◽  
Family Involvement ◽  
Family Firms ◽  
Current Knowledge ◽  
Family Firm ◽  
Data Set ◽  
Content Type ◽  
Family Control ◽  
Long Run ◽  
Italian Context

Purpose – The purpose of this paper is to shed light on the relationship between family involvement and Initial Public Offering (IPO) value in the Italian context. Design/methodology/approach – Based on a unique hand-collected data set, the authors test the hypotheses on companies that went public between 2000 and 2011, making inference on 113 firms using OLS hierarchical regressions. The authors quantify the IPO value from an outside investors’ perspective with two measures to proxy for IPO value in the short-term and apply robustness checks for long-run performance. In a stewardship framework, the authors examine demographic variables including family firm status, family involvement in managerial positions and family generations. Findings – The results suggest that family firm status positively influences IPO value, that greater family involvement corresponds to higher IPO value and lastly, that the beneficial effect of family control is mainly attributable to the first generation. The results are robust to alternative specifications of each phenomenon. Research limitations/implications – As a single-country study, the results refer exclusively to the Italian context and thus the evidence provided may not automatically be generalized to IPOs of comparable equity markets. Originality/value – This study expands current knowledge by showing how investors “price” family ownership in an IPO; furthermore the authors assess how certain characteristics of family firms affect the IPOs (e.g. family involvement and intergenerational).

scholarly journals Do family firms pay less for external funding?

2021 ◽  
pp. 031289622110182
Author(s):  
Muhammad Jahangir Ali ◽  
Seema Miglani ◽  
Man Dang ◽  
Premkanth Puwanenthiren ◽  
Mazur Mieszko
Keyword(s):  
Family Involvement ◽  
Family Firms ◽  
Jel Classification ◽  
Family Control ◽  
Listed Firms ◽  
Family Enterprises ◽  
The Cost ◽  
And Control ◽  
The Impact

We examine the impact of family control on the cost of raising external funds by family enterprises. Using a sample of Australian publicly listed firms, we find a significantly negative relation between cost of newly raised capital and family control. Moreover, we show that this relationship varies with the quality of corporate governance and the quality of firm’s information environment. Furthermore, we conduct several robustness checks and consistently find that our main results remain unchanged. Overall, our evidence suggests that family firms have easier access to external financing fostered by family involvement in the ownership and control. JEL Classification: G31; G32; M41; M42

The Antecedents and Performance Consequences of Proactive Environmental Strategy: A Meta-analytic Review of National Contingency

2015 ◽  
Vol 11 (3) ◽  
pp. 521-557 ◽  
Author(s):  
Yi Liu ◽  
Jingzhou Guo ◽  
Nan Chi
Keyword(s):  
Economic Performance ◽  
Environmental Performance ◽  
Meta Analysis ◽  
Future Research ◽  
Environmental Strategy ◽  
Western Countries ◽  
Proactive Environmental Strategy ◽  
Analytic Review ◽  
And Performance ◽  
Comprehensive Framework

ABSTRACTIn this article we provide a comprehensive framework to explain, in China and in Western countries, how three antecedents – regulations, stakeholder norms, and managerial mindsets – differently affect proactive environmental strategies (PES) and subsequently influence firm performance. A meta-analysis of 68 studies involving 71 samples supports our hypotheses. In Western countries, top managerial mindsets have the strongest effect and regulations have the weakest effect on PES. In China, regulations, stakeholder norms, and managerial mindsets have similar effects on PES. For Western firms, the PES has stronger effects on environmental performance than on economic performance and the effect on environmental performance is stronger than that in Chinese firms. For firms in China, the PES has equally positively affects on environmental and economic performance, but the effect on economic performance is stronger than that of Western firms. Implications for future research are discussed.

scholarly journals Diversified, integrated and cross-border acquisitions and firm performance: A comparison of family and non-family Italian listed firms

2018 ◽  
Vol 16 (1) ◽  
pp. 72-86 ◽  
Author(s):  
Fabio La Rosa ◽  
Francesca Bernini ◽  
Giovanna Mariani
Keyword(s):  
Family Involvement ◽  
Family Firms ◽  
Global Financial Crisis ◽  
Target Selection ◽  
Family Ownership ◽  
Listed Firms ◽  
And Performance ◽  
The Global Financial Crisis ◽  
External Growth

In family firms, the principal-agent relationship and the steward role of family managers are determinants for external growth and acquisition target selection. In fact, some acquisitions are better for the family’s need for risk reduction and company preservation. We aim to verify if family involvement in ownership and management influences firms’ acquisition propensity, type of strategy, and post-deal performance. We develop an empirical analysis for a sample of 141 Italian listed companies during 2005–2011, which includes the global financial crisis. Our results reveal that Italian listed family firms have lower acquisition propensity than non-family firms because of family involvement in ownership and executive committees. Especially, diversifying strategies are less pursued by family firms, and this is corroborated when family ownership increases. However, while family firms do not differ from non-family firms on post-acquisition performance, a moderating role of family firms and family ownership does exist for diversified acquisitions and performance.

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