Journal of Family Business Management

Muigai, Sarah Watiri; Mungai, Edward; Velamuri, S. Ramakrishna

2022 Journal of Family Business Management

doi: 10.1108/jfbm-09-2021-0100

The purpose of the paper is to examine the effects of perceived parental entrepreneurial rewards, or PPERs (i.e. the offspring's perception of the degree of parental success in entrepreneurship), on the corporate venturing (CV) mode of entrepreneurial entry and the interaction effects of family business involvement (FBI) and formal employment on the association between PPER and CV by the next-generation family members.Design/methodology/approachA survey was administered to a sample of 738 small business owners in Kenya; of which, 440 small business owners were selected because they grew up in a family business context. A probit model was used to examine the main and interaction effects.FindingsPPERs significantly influenced CV. FBI improves the positive relationship whereas formal employment reduces the effects of PPER on CV.Practical implicationsFamilies in business need to improve conversations with their children to include discussions concerning the intrinsic and extrinsic rewards of running a family business, which may shape not only the entrepreneurial entry path of their offspring but also the willingness to establish businesses that may grow and lead to continuity of the family business of origin.Originality/valueThe study investigates the effect of being embedded in a business family in shaping the CV mode of entrepreneurial entry by the next-generation family members who may not, on the one hand, find independent own founding an attractive option and for whom, on the other hand, the succession mode of entry may not be an option.

Bizri, Rima M.

2022 Journal of Family Business Management

doi: 10.1108/jfbm-09-2021-0108

What makes family influence so influential in the family firm? Time and again, research studies point to family influence as a factor that significantly impacts decision-making in the family business, thus highlighting the need to investigate the variables which cause family influence to be so powerful. The purpose of this study is to explore the construct of family influence in the family firm, under an integrative lens that combines insights from Institutional Theory and the Resource-Based View.Design/methodology/approachThe quantitative approach was used using a 35-item survey measuring 6 constructs, where data collection yielded a total of 206 completed surveys included in the data analysis. Data were analyzed using SmartPLS (3.0) and results were appropriately reported.FindingsThe findings of this study propose that the two theoretical perspectives can be useful in explaining how various factors are able to intensify family influence on strategic family firm decisions like internationalization. Specifically, the lack of resources, government support, managerial knowledge and capability in foreign markets represent serious barriers that render the family firm more reliant on and subjected to family influence. Similarly, informal institutions like the fear of failure in foreign markets and uncertainty avoidance often make the family firm more dependent on, and accepting of, family influence.Originality/valueThe path analysis undertaken in this study has empirically depicted how resource-related and institution-based forces can together augment the effects of “family influence,” making it a more powerful and prohibitive factor in the internationalization decision, thus offering an insightful interpretation of these results and valuable practical and theoretical implications.

Floris, Michela; Marongiu, Michela; Dessi, Cinzia; Dettori, Angela

2022 Journal of Family Business Management

doi: 10.1108/jfbm-07-2021-0077

This 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.

Saidat, Zaid; Alrababa'a, Abdel Razzaq; Seaman, Claire

2022 Journal of Family Business Management

doi: 10.1108/jfbm-11-2021-0140

Family ownership is very common for Jordanian businesses, leading to a high level of involvement of family members in company management. There continues to be intense discussion on the pros and cons of family ownership, particularly as it focuses corporate control within a small family group. The purpose of this paper is to examine the performance of family- and non-family-owned banks that appear on the Amman Stock Exchange over the 2016 to 2020 period.Design/methodology/approachThe research on Jordanian domestic banks is based on data from the annual reports of banks listed on their websites which offers comprehensive data on finances, ownership and the board. Family-owned and non-family banks were analysed using multiple regression technique to identify any variations in their performance.FindingsUsing a sample of 16 domestic banks with 75 bank-year observations over the 2016 to 2020 period, the study supports other research in finding that family ownership is negatively related to bank performance. This is true for accounting-based and market-based performance measures, including return on assets (ROA), return on equity (ROE) and Tobin's Q test results. Additionally, analysis identifies greater negative consequences for performance within family-owned banks by board of directors.Originality/valueThis paper extends previous research on family businesses by investigating the impact of family ownership on the financial performance in the Jordanian bank sector. This research determined that devaluation is a consequence of higher levels of ownership concentration for domestic banks in Jordan.

Das, Arindam

2022 Journal of Family Business Management

doi: 10.1108/jfbm-06-2021-0060

A 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.

Kinias, Ioannis; Kampouris, Ilias; Polyzos, Stathis

2022 Journal of Family Business Management

doi: 10.1108/jfbm-08-2021-0094

It is widely accepted that coauthorship and collaboration promotes intellectual partnerships and improves the quality of publications. This paper examines the relationship between collaboration, productivity and publications in the field of family business.Design/methodology/approachThe authors identify the most prolific authors, affiliations and countries and focus on the evolution of research in the field of family business. In doing so, the authors employ social network analysis to discover the structure of the networks and the ways in which authors, institutions and countries interact.FindingsThe empirical results show that collaboration is positively related to productivity, and there is significant evidence that the shaped networks exhibit small-world characteristics, a condition in which collaboration within authors becomes integrated in conjunction with time.Practical implicationsThe findings highlight the mechanics of collaborative research production and can be useful to understand the importance of collaboration patterns to be followed in the field of family business.Originality/valueThe contributions are as follows: (a) application of social network analysis to model the coauthorship patterns among individuals, institutions and countries in family business; (b) distinguishing the most degree-central authors in the social network of collaborating academics; (c) investigation of the academic collaborations in family business that have the characteristics of a small-world social network and (d) suggesting a unique connection, through published keywords, between the research priorities of the most central or prolific authors with the research trends in the family business literature. The authors demonstrate that authors' collaboration becomes integrated in conjunction with time.

Razzak, Mohammad Rezaur; Khan, Golam Mostafa; AlAbri, Salem

2022 Journal of Family Business Management

doi: 10.1108/jfbm-11-2020-0103

This study investigates the influence of inclusion of nonfamily employees in family firms on their intellectual, social and affective engagement at the workplace. Furthermore, the framework proposed in the study considers the possible moderating influence of procedural justice in the above relationships.Design/methodology/approachA conceptual framework is developed with the support of the self-determination theory (SDT) and the social exchange theory. The study tests a set of hypotheses using survey data from 654 nonfamily employees working in private family firms in Malaysia.FindingsThe results reveal that inclusion has a positive and significant relationship with intellectual, social and affective engagement. While procedural justice moderates the association between inclusion and intellectual and affective engagement, it does not moderate the relationship between inclusion and social engagement.Research limitations/implicationsThe outcome of this study presents a nuanced understanding on how perceptions of inclusion of nonfamily employees by the dominant work group (DWG) (i.e. employees related to the firm owners) lead to positive firm-centric behavior among nonfamily employees.Practical implicationsThe study provides clues to family firm managers for creating a work environment where nonfamily employees perceive a sense of belongingness while their uniqueness is appreciated in order to be more engaged at the workplace.Social implicationsLittle is known about how diversity created within family firms by inclusion of nonfamily employees impacts organizations. The outcome of this study may reinforce the positive effects of inclusiveness in any social context.Originality/valueDiversity researchers have studied the influence of inclusion in areas related to sociology and psychology. However, there appears to be a dearth of studies in terms of how nonfamily employees would behave in family firms when they perceive a sense of inclusion in an organization dominated by employees who are related to the owners of the firm. Hence, this study appears to shed new light on how inclusion of nonfamily employees in family firms influences their behavior.

Cunha, Miguel Pina e; Soares Leitão, Maria João; Clegg, Stewart; Hernández-Linares, Remedios; Moasa, Horia; Randerson, Kathleen; Rego, Arménio

2022 Journal of Family Business Management

doi: 10.1108/jfbm-11-2020-0104

The purpose of the study is to explore inductively the unique paradoxical tensions central to family business (FB) and to analyze how FB's members face these tensions and their implications in the personal and professional realms.Design/methodology/approachA multiple-case study with 11 parent–offspring dyads from Portuguese FBs was conducted putting the focus on the micro-level interactions.FindingsThe slopes of roles and relationality in FBs produces three persistent sets of tensions around cognition, emotion and action. These tensions exist in a paradoxical state, containing potentiality for synergy or trade-off.Originality/valueOur study is the first to empirically demonstrate that paradoxical tensions between parent and offspring are interrelated, by emphasizing the uniqueness of FB as a paradoxical setting and offering insights to negotiating of these singular paradoxes.

Cicek, Akif; Kelleci, Rüveyda; Vandekerkhof, Pieter

2022 Journal of Family Business Management

doi: 10.1108/jfbm-11-2020-0110

Family governance mechanisms serve to govern and strengthen relations between the family and the business, as well as the relationships between the members of the business family itself. However, despite agreement on the importance of adopting family governance structures, explicit research on the determinants of family governance mechanisms is currently missing. Therefore, the purpose of this study is to uncover the determinants of family meetings. In order to do so, the social systems theory is used to unravel several determining factors of this crucial form of family governance mechanisms in private family firms.Design/methodology/approachThe authors perform a qualitative study by conducting semi-structured interviews in eight Belgian private family firms in order to discover the antecedents of the implementation of family meetings. The authors use a pattern-matching technique as an analytical strategy.FindingsThe findings of the study highlight the importance of “soft,” relational, qualitative issues as antecedents of family meetings as opposed to previous research on family governance, which predominantly focused on “hard,” quantitative measures (e.g. family ownership). The findings of the study also provide novel insights into the origins of the family component (i.e. family meetings) of family business governance.Originality/valueWhile the current literature has only focused on describing the different types of family governance and their positive consequences for the family firm, the authors take a step back to explain why family meetings, as a form of family governance, are adopted in the first place. Second, the authors demonstrate the instrumentality of the social systems theory in understanding the family's needs that necessitate the implementation of family governance mechanisms.

Rodrigues, Margarida; Franco, Mário

2022 Journal of Family Business Management

doi: 10.1108/jfbm-12-2020-0116

The change in couples' personal ambitions concerning their careers, how they look after their family and how they deal with the work–family balance has revolutionized their position in the business world, specifically in family businesses. When couples embark on a joint business, the authors have copreneurial couples or copreneurs, the concept having existed for decades. This study provides mapping and a broad, holistic bibliometric analysis of copreneurs.Design/methodology/approachThe study presented here followed the literature review for scientific mapping of the topic under discussion.FindingsThe results obtained show that the vast literature on copreneurs refers to other social sciences rather than business and management. Furthermore, final refining of the initial research made indicates that the literature in these areas is still minimal, justifying the need for this study. Also shown is the need to continue to study copreneurs, as fundamental economic actors in the business sector.Practical implicationsOne of the study's main contributions lies in building a theoretical framework to explore empirically the success or failure of this business typology. The topics identified in this analysis highlighted copreneurial teams, copreneurial business and copreneurs' success factors.Originality/valueThe review presented here is wide-ranging and holistic, showing there is a shortage of research on the link between family business and copreneurs, whose conceptual difference lies in the construct of business succession since most researchers have studied psychological aspects, these couples' marital relationships and the factors contributing to conflict between work and domestic responsibilities.