Promoting organizational diversity and preserving socioemotional wealth: can family businesses balance the two?

PurposeA key characteristic for a family firm, preservation of socioemotional wealth, may appear to be at conflict with the concept of organizational diversity. The authors investigate how organizational diversity, captured through heterogeneity in ownership structure, diversity in the senior management team, interfaces with the concept of the socioemotional wealth of family businesses in an emerging economy, when these firms pursue inorganic growth strategies.Design/methodology/approachDrawing on the concepts of socioemotional wealth, behavioral agency theory and bifurcation bias, the authors develop perspectives on how ownership structure, family influence in executive management and institutional shareholding influence a family firm's internationalization strategies captured through propensity to pursue cross-border M&A – an activity that may threaten the preservation of socioemotional wealth. The authors also explore the role of business group affiliation, another organizational diversity construct, and contingent parameters like past financial performance and export intensity in this study. The authors take pooled data over 15 years, involving 346 large firms from India, which are family-controlled, to carry out the study.FindingsThe authors’ empirical analysis shows that family stake in the company and family members' presence in the executive team negatively influence the propensity to pursue cross-border M&A activities. A firm's affiliation to a business group moderates these negative relationships. On the other hand, the presence of institutional shareholders, positive past financial performance and export intensity positively influence cross-border M&A propensity.Originality/valueThe results establish that family businesses' attempts to preserve socioemotional wealth may come at the cost of promoting organizational diversity.

ФОРМУВАННЯ ІНТЕГРОВАНИХ БІЗНЕС-ГРУП В УКРАЇНІ ЯК ФОРМА ПРОЯВУ НОВИХ ІНСТИТУЦІЙНИХ СТРУКТУР

The article seeks to address contemporary challenges in developing integrated business structures associated with the need to upgrade and innovate most important industries, provide industrial restructuring, and reduce technological backwardness and attain high-tech manufacturing growth. An emphasis is put on the critical significance of modernization in gaining a competitive edge of the national economy that will enhance Ukraine’s positions in a modern globalized world. This study employs a wide range of various research tools, in particular, methods of analysis, synthesis, generalization and comparison – to determine the nature, economic content, structural elements and drivers affecting the process of integrated business structure development in Ukraine; structural and functional analysis – to identify relevant institutional structures; as well as integrated assessment techniques – to explore international best practice in building integrated business units. Given the current trends and the specifics, it is argued that company development within a business group model spurs continuous improvement and innovation to meet market digitalization demands. The findings reveal the key aspects in developing integrated business groups as a new type of institutional structures in Ukraine. The study also focuses on the goals of their further development to implement transformational changes along with considering a number of factors affecting the nature of enterprise reorganizations and restructuring in the frameworks of their integration into business groups. Within the scope of this research, integrated business groups are viewed as a driving force in boosting Ukraine's economic development. The study suggests that the government industrial and antitrust policies should actively promote integrated business group models, including the international ones, as long as corporate and national interests are reconciled. It is reported that integrated business groups account for 15% of the total industrial output, respectively, integrated business groups are mesoeconomic entities representing a new type of a social institution that attempts to forecast supply and demand in a particular world market segment and implements its predictive outcomes through big innovations.

Effect of buyer dependency of subcontracting SMEs on R&D investment

PurposeThis study aims to focus on the subcontracting relationship between small and medium-sized enterprises (SMEs) and business group buyers and analyze the effect of the level of buyer dependency on R&D intensity. The primary prediction is that buyer dependency and R&D intensity have a non-linear relationship, showing an inverted U-shaped relationship. Furthermore, the moderating effect of founder CEOs and internationalization is explored.Design/methodology/approachA sample of 546 firm-level survey responses were collected from Korean subcontracting SMEs provided by the Ministry of SMEs and Startups and the Korea Venture Business Association.FindingsA lower level of dependency on business group buyers promotes R&D investment, while excessive dependence reduces R&D investment. Moreover, founder CEOs and internationalization decrease the effect of buyer dependency on R&D investment, implying that both firm characteristics are associated with a long-term focus and promote R&D investment.Research limitations/implicationsThis research contributes to the literature on the special form of the buyer–supplier relationship, that is, subcontracting. Subcontracting has a contradictory effect on R&D investment based on large group buyer dependency, and this relationship is moderated by the founder CEO and internationalization.Practical implicationsThis study provides insights to managers and practitioners governing SME subcontracting by showing that the level of buyer dependency is better managed in promoting innovation, and the long-term perspective allows SMEs to be less affected by buyer dependency.Originality/valueThis study extends the literature by focusing on the non-linear relationship between buyer dependency and R&D intensity of subcontracting SMEs. This approach addresses the contradicting results suggested by prior supply chain management literature and suggests that the level of buyer dependency should be considered when analyzing the subcontracting relationship.

The empowerment of the Karunia Mandiri Joint Business Group in increasing production and sales

Karunia Mandiri Joint Business Group (KUBE) is located in Pakeron Hamlet, Sumberarum Village, Tempuran District, Magelang Regency which produces traditional Magelang food, namely cassava emplek. The problems faced by KUBE are less than optimal marketing and the use of manual production tools. The purpose of the community service is to improve the quality of KUBE human resources in managing its business, which includes marketing, financial management, and production so as to increase production and sales. The method is to provide training and mentoring. The result of this service is more optimal marketing with the appearance of new products through rebranding and packaging as well as the use of digital marketing. Then, the production process is better with appropriate technology for molding dough and applying hygiene standards. In addition, financial management is more organized with simple bookkeeping and accounting so that selling prices can be competitive and profits can be identified.

Marketing Efficiency of The “Emping melinjo” in Farmer Women Groups in Batang Region, Central Java

This study aims to examine the marketing efficiency of processed melinjo in women's farmer groups with data collected in Batang Regency, Central Java. Emping melinjo has contributed to providing additional work for mothers as a side business. The method used in this research is a survey of KWT Tani Rejo. Melinjo emping producer data was collected by purposive (deliberate) and traders' samples were done by snowball sampling and respondents were taken by census on all members of KWT Tani Rejo. The data obtained were analyzed descriptively and calculated using margin analysis and farmer share. The results show that the first channel of emping melinjo marketing is the most efficient than the second and third channels. Producers accept higher prices and do not bear marketing costs, because they sell directly to consumers. Meanwhile, marketing efficiency on channels 2 and 3 is greater than 30%. Margins on channels 2 and 3 reached 40% and 16% respectively. Marketing actors include producers, collectors, wholesalers, agents, and retailers. The involvement of women in this business group is due to limited costs and access to market information.

PELATIHAN KELOMPOK USAHA INDUSTRI KERAJINAN BAMBU RUKUN MAKMUR DI DESA PANCA TUNGGAL KECAMATAN SUNGAI LILIN KABUPATEN MUSI BANYU ASIN PROVINSI SUMATERA SELATAN

ABSTRAKPengabdian kepada Masyarakat dengan tema Pelatihan Kelompok Usaha Industri Kerajinan Bambu Rukun Makmur ini dilaksanakan di Desa Panca Tunggal Kecamatan Sungai Lilin Kabupaten Musi Banyu Asin. Kegiatan ini berlangsung selama dua hari, yaitu dari tanggal 1-2 November 2021. Adapun tujuan kegiatan ini adalah memberikan keterampilan dasar bagi pemula dalam membuat kerajinan bambu, memberikan pengetahuan tentang pemakaian alat-alat mesin dan manual, memberikan pengetahuan tentang pengembangan desain produk bagi pengrajin yang sudah melewati tahap pemula. Metode kegiatan pelatihan ini menggunakan metode ceramah dalam bentuk penyampaian materi teori, praktik, dan evaluasi. Adapun hasil pelatihan selama kegiatan ini yakni pengetahuan secara teoritik dan praktek. Secara teori peserta mendapatkan pengetahuan tentang industri kerajinan dan tahap-tahap pengembangan desain. Secara praktek kegiatan ini menghasilkan produk kreasi lampu hias dari bahan bambu dan stand handphone yang dilengkapi dengan tempat pena. Pelatihan ini memberikan peningkatan dan pengembangan dari jenis produk, yang mana sebelumnya mitra hanya menghasilkan produk seperti miniatur kapal. Kegiatan ini sangat efektif dalam meningkatkan keterampilan mitra, yang mana mitra dapat mempraktikkan secara langsung dalam pembuatan produk kerajinan bambu. Kata kunci: industri; kerajinan; bambu; panca tunggal. ABSTRACTCommunity Service with the theme of the Rukun Makmur Bamboo Craft Industry Business Group Training was held in Panca Tunggal Village, Sungai Lilin District, Musi Banyu Asin Regency. This activity lasts for two days, from November 1-2, 2021. The purpose of this activity is to provide basic skills for beginners in making bamboo crafts, provide knowledge about the use of machine tools and manuals, provide knowledge about product design development for craftsmen who have passed the beginner stage. The method of this training activity uses the lecture method in the form of delivering theoretical, practical, and evaluation material. The results of the training during this activity are theoretical and practical knowledge. In theory, participants gain knowledge about the craft industry and the stages of design development. Practically, this activity produces decorative lighting products from bamboo and a mobile phone stand equipped with a pen holder. This training provides improvement and development of product types, where previously partners only produced products such as miniature ships. This activity is very effective in improving the skills of partners, which partners can practice directly in the manufacture of bamboo handicraft products. Keywords: industry; craft; bamboo; panca tunggal.

Pemberdayaan Manajemen Kelompok Usaha Pengolah Abon Ikan Tuna Desa Gajaherjo, Kabupaten Malang

Gajahrejo Village is one of the partner villages located on the southern coast of Malang Regency. The business of processing fish into shredded fish in Gajahrejo village was initiated in early 2017, and until now, it is still a home industry managed by PKK women in Gajahrejo Village by forming a Joint Business Group (KUB). Each group consists of 3-5 people who work together in the production and packaging processes. So far, shredded products are only produced if there is an order. This is due to the lack of information related to good business management, the lack of human resources who have the skills to make shredded with a distinctive taste, packaging techniques that are still conventional, management systems that are still very simple, and also the absence of a promotion and marketing system-selling the right product. With these various problems, the solutions that were carried out were counseling related to correct fish processing, conducting training and mentoring on a good and correct business management system at KUB Gajahrejo village, and making a simple patent for the recipe for shredded fish that had been made. The resulting products have been marketed around the coastal tourist sites of South Malang.

Menstimulasi Para Ibu Anggota Kelompok Pengajian Menjadi Startup

Becoming a startup for mothers who are members of the recitation group is an effort to increase family income. However, if we don't have the courage to start a business, all of our wishes will just become a dream that won't come true. This service activity aims to stimulate courage and change the mindset of the women of the Raudhatul Jannah recitation group, Koto Rendah Village, Siulak District, Kerinci Jambi Regency to develop her potential from being a housewife who has daily gardening activities, becoming a startup by synergizing with her group members. Through the counseling and discussion method, how to start a startup business, determinants of startup success, the role of technology in business and opening access to online-based sales are given to them. The result achieved is the formation of a Joint Business Group (KUBE) which consists of similar business groups and collaborates in running businesses in groups.