Family Firms (family + firm)

Distribution by Scientific Domains


Selected Abstracts


Altruism and Agency in the Family Firm: Exploring the Role of Family, Kinship, and Ethnicity

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 6 2006
Neri Karra
This article examines the relationship between altruism and agency costs in family business through an in-depth case study of a family firm. We found that altruism reduced agency costs in the early stages of the business, but that agency problems increased as the venture became larger and more established. Moreover, we suggest that altruistic behavior need not be confined to family and close kin, but may extend through networks of distant kin and ethnic ties. We thus present a more complex view of the agency relationship in family business than is often portrayed in the existing literature. [source]


Trends and Directions in the Development of a Strategic Management Theory of the Family Firm

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 5 2005
James J. Chrisman
This article provides a review of important trends in the strategic management approach to studying family firms: convergence in definitions, accumulating evidence that family involvement may affect performance, and the emergence of agency theory and the resource-based view of the firm as the leading theoretical perspectives. We conclude by discussing directions for future research and other promising approaches to inform the inquiry concerning family business. [source]


The Phenomenon of Substantive Conflict in the Family Firm: A Cross-Generational Study

JOURNAL OF SMALL BUSINESS MANAGEMENT, Issue 1 2001
Peter S. Davis
This study investigates the influence that family members exert on the extent and frequency of substantive conflict within family firms across generations as a result of their familial relationship (distance) with the owner/manager of the firm and the positions these family members occupy in the family work group and social (non-work) group. Following Beckhard and Dyer (1983), the construct of substantive conflict was vested in four key issues pertinent to family firms: (1) ownership continuity or change; (2) executive leadership continuity or change; (3) power and asset distribution; and (4) management's vision for the role of the firm in society. The results establish a relationship between conflict in a family business and the composition of the family's work group, non-work (social) group, and the extensiveness of the family's social interactions. The relationships between conflict and family influence were found to be moderated by the generations (first, second, third, or later) among involved family businesses. [source]


Embeddedness Perspectives of Economic Action Within Family Firms

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 6 2009
Lloyd P. Steier
Family firms are embedded in social structures that differ substantially from those of nonfamily firms. While these social structures can be sources of strength, they can also lead to dysfunctional consequences. The four papers and three commentaries contained in this special issue on theories of family enterprise deal with the various positive and negative aspects of family involvement in a firm. The purpose of this introduction is to attempt to establish linkages between these papers and to provide further insights on their contributions to knowledge and the directions that future research might take to build upon them. [source]


Toward a Theoretical Basis for Understanding the Dynamics of Strategic Performance in Family Firms

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 6 2008
James J. Chrisman
An important distinction between family and nonfamily firms and among different types of family firms is the manner in which strategy is formulated and implemented. These differences in strategic behaviors can cause variations in firm performance. Understanding the nature of these differences and how the family form of organization drives them therefore contributes to the development of a strategic management theory of the family firm, a unifying theme of the series of special issues published in Entrepreneurship Theory and Practice to date. This article briefly reflects on the progress made in understanding the strategic differences of family firms in this ongoing series and discusses the contributions of the articles and commentaries contained in this fifth special issue on theories of family enterprise. [source]


Personalism, Particularism, and the Competitive Behaviors and Advantages of Family Firms: An Introduction

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 6 2006
James J. Chrisman
Fundamental assumptions of any theory of the family firm are that family firms will behave in ways that differ from nonfamily firms, and that the behaviors of family firms will also exhibit substantial variations. This special issue includes a set of articles and commentaries that study such differences. This introduction synthesizes these articles using the concepts of personalism and particularism. We argue that the set of articles contained in this special issue contributes to the literature by explaining how the ability and willingness of family firms to behave in an idiosyncratic fashion leads to advantages and disadvantages that distinguish between family and nonfamily firms and between different types of family firms. [source]


Commentary: A Framework for Managing the Familiness and Agency Advantages in Family Firms

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 6 2006
Timothy G. Habbershon
This article uses a family-influenced, international, new venture creation case as a platform for addressing the importance of context when exploring entrepreneurship in start-up and growth companies. I raise crucial issues about how agency relationships and costs are evaluated in family firms, arguing that the competitiveness implications of agency can only be fully assessed in light of the larger context considerations. I suggest that agency is best evaluated as inputs and outputs in a contextual ecosystem. I utilize a family business ecosystems model to show that family is a distinct context for entrepreneurship and that it generates an idiosyncratic bundle of resources and capabilities that provide a potential agency advantage in new venture creation. Since the case findings indicate that the agency inputs and outputs change over time, I conclude by placing the potential agency advantages and constraints into an organizational life cycle framework. The goal of the article is to further the discussion on how families find their advantage in the entrepreneurial process. [source]


Entrepreneurial Management and Governance in Family Firms: An Introduction

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 4 2004
Lloyd P. Steier
Many organizations, ranging from small entrepreneurial start-ups to large, multi-business and multi-national enterprises, exhibit a family dimension. Although there is much evidence that this familial dimension is pervasive in organizing economic activities, it remains understudied. The articles in this special issue further our understanding of family businesses and how they might be usefully managed and organized at operational and policy levels. They examine important topics,management succession, agency costs in family versus non-family firms, the effects of culture, and family elites in rent-seeking societies,and improve our understanding of the role of family in entrepreneurial wealth creation at both firm and societal levels. Importantly, these papers further our understanding of the contingencies and contexts wherein family based approaches to organizing enterprise might yield advantages or disadvantages. [source]


Do Family Firms Provide More or Less Voluntary Disclosure?

JOURNAL OF ACCOUNTING RESEARCH, Issue 3 2008
SHUPING CHEN
ABSTRACT We examine the voluntary disclosure practices of family firms. We find that, compared to nonfamily firms, family firms provide fewer earnings forecasts and conference calls, but more earnings warnings. Whereas the former is consistent with family owners having a longer investment horizon, better monitoring of management, and lower information asymmetry between owners and managers, the higher likelihood of earnings warnings is consistent with family owners having greater litigation and reputation cost concerns. We also document that family ownership dominates nonfamily insider ownership and concentrated institutional ownership in explaining the likelihood of voluntary disclosure. Using alternative proxies for the founding family's presence in the firm leads to similar results. [source]


Resource Configuration in Family Firms: Linking Resources, Strategic Planning and Technological Opportunities to Performance

JOURNAL OF MANAGEMENT STUDIES, Issue 1 2008
Kimberly A. Eddleston
abstract We apply the resource-based view of the firm to the study of family firms by investigating how a family specific resource (reciprocal altruism) and a firm specific resource (innovative capacity) contribute to family firm performance. We then examine how the impact of these resources is moderated by strategic planning and technological opportunities. Our findings suggest that family firms can benefit from emphasizing the positive aspects of kinship and from developing innovative capacities. As such, we demonstrate that not only do firm specific resources contribute to family firm performance, but also that family relationships can be a source of competitive advantage for a family firm. In addition, we found a heightened importance of reciprocal altruism in environments rich in technological opportunities, and that strategic planning is more important for those family firms that lack innovative capacities. [source]


Perceptions About the Extent of Succession Planning in Canadian Family Firms

CANADIAN JOURNAL OF ADMINISTRATIVE SCIENCES, Issue 3 2000
Pramodita Sharma
Despite exhortations about the importance of succession planning for the family firm, many believe that family firms continue to leave succession planning to chance. This study shows that family members have different opinions about whether their family firms engaged in succession planning. The incumbents believe that they did while the other family members, including the successors, believe that they did not. We also present results showing that two factors with which the family business succession literature is most concerned,an incumbent ready to step aside and the presence of a competent successor,may influence the extent to which the Canadian family firm engages in succession planning. Résumé Malgré les consignes concernant l'importance de plani-fier la succession d'une compagnie familiale, beaucoup d'entre nous croient que ces m4iCme famille different d'opinion a savoir si la compagnie s'est, oui ou non, engagée dans un processus de planification de la succession. Ceux et celles en place croient qu'ils l'ont fait quand les autres membres de lafamilee, incluant les suc-cesseurs, croient le contraire. Nous presentons aussi des donnees qui démontrent que les deuxfacteurs qui préoc-cupent la litérature dans le domaine,une personne en place prete a céder sa place et la presence d'un suc-cesseur compétent,peuvent influencer le degré d'engagement de la compagnie familiale canadienne au processus de planification de la succession. [source]


Embeddedness Perspectives of Economic Action Within Family Firms

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 6 2009
Lloyd P. Steier
Family firms are embedded in social structures that differ substantially from those of nonfamily firms. While these social structures can be sources of strength, they can also lead to dysfunctional consequences. The four papers and three commentaries contained in this special issue on theories of family enterprise deal with the various positive and negative aspects of family involvement in a firm. The purpose of this introduction is to attempt to establish linkages between these papers and to provide further insights on their contributions to knowledge and the directions that future research might take to build upon them. [source]


Sources and Consequences of Distinctive Familiness: An Introduction

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 3 2005
James J. Chrisman
Family firms are unique organizational forms as a result of the interactions between family members, the family, and the business. Distinctive familiness has been used as a notion to encompass these interactions and the consequent systemic synergies that could lead to competitive advantages. This introduction discusses the notion and reviews the papers and commentaries in this special issue within the context of their contributions to our understanding of the possible sources and consequences of distinctive familiness. [source]


Feuding Families: When Conflict Does a Family Firm Good

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 3 2004
Franz W. Kellermanns
Using the conflict theory lens and insights from the family business literature, we develop a theoretical model concerning the effects of task, process, and relationship conflict in family firms. Family firms are characterized by different control structures and generational involvement. Accordingly, we discuss the expected effect control concentration has on task, process, and relationship conflict, and propose that generational involvement affects the importance of task and process conflict to a family firm's performance. Furthermore, our model suggests that relationship conflict moderates the outcomes of task and process conflict. The degree of relationship conflict in family firms is in turn influenced by altruism, which characterizes interactions among family members. [source]


Agency Relations within the Family Business System: an exploratory approach

CORPORATE GOVERNANCE, Issue 3 2003
L.A.A. Van den Berghe
Researchers use various definitions to describe the family firm. The characteristics of family firms that are stressed in each of these definitions are somehow related to family control. All characteristics together reflect a spectrum of family firm types along one core dimension: family involvement in the firm. However, it is more helpful to distinguish among family firms by using their precise type. Each particular family firm type is characterised by a set of agency relations within and between the family system, ownership system and the business system. This paper is a first attempt to apply the insights from agency theory on a highly simplified (reference) family firm situation where the father is full owner and the daughter manager of the family firm. Agency theory establishes the foundation for the optimal contract conditions between father and daughter. While real life is often characterised by bounded rationality and incomplete information, future research should help identify the "optimal contract" be-tween the family/shareholders and management in various family firm types under these circumstances. [source]


Toward a Theoretical Basis for Understanding the Dynamics of Strategic Performance in Family Firms

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 6 2008
James J. Chrisman
An important distinction between family and nonfamily firms and among different types of family firms is the manner in which strategy is formulated and implemented. These differences in strategic behaviors can cause variations in firm performance. Understanding the nature of these differences and how the family form of organization drives them therefore contributes to the development of a strategic management theory of the family firm, a unifying theme of the series of special issues published in Entrepreneurship Theory and Practice to date. This article briefly reflects on the progress made in understanding the strategic differences of family firms in this ongoing series and discusses the contributions of the articles and commentaries contained in this fifth special issue on theories of family enterprise. [source]


Personalism, Particularism, and the Competitive Behaviors and Advantages of Family Firms: An Introduction

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 6 2006
James J. Chrisman
Fundamental assumptions of any theory of the family firm are that family firms will behave in ways that differ from nonfamily firms, and that the behaviors of family firms will also exhibit substantial variations. This special issue includes a set of articles and commentaries that study such differences. This introduction synthesizes these articles using the concepts of personalism and particularism. We argue that the set of articles contained in this special issue contributes to the literature by explaining how the ability and willingness of family firms to behave in an idiosyncratic fashion leads to advantages and disadvantages that distinguish between family and nonfamily firms and between different types of family firms. [source]


Altruism and Agency in the Family Firm: Exploring the Role of Family, Kinship, and Ethnicity

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 6 2006
Neri Karra
This article examines the relationship between altruism and agency costs in family business through an in-depth case study of a family firm. We found that altruism reduced agency costs in the early stages of the business, but that agency problems increased as the venture became larger and more established. Moreover, we suggest that altruistic behavior need not be confined to family and close kin, but may extend through networks of distant kin and ethnic ties. We thus present a more complex view of the agency relationship in family business than is often portrayed in the existing literature. [source]


Four Bases of Family Business Successor Commitment: Antecedents and Consequences

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 1 2005
Pramodita Sharma
Although successor commitment toward family business has been identified as a key desirable attribute, commitment has been treated as a unidimensional construct in family business research. Drawing on the organizational commitment literature, we propose four bases of successor commitment to family firm,affective (based on perceived desire), normative (based on perceived sense of obligation), calculative (based on perceived opportunity costs involved), and imperative (based on perceived need). A model of antecedents and expected behavioral outcomes of each of these bases of commitment is developed. Related propositions are presented, as are the contributions to the literature, research and practical implications. [source]


Resource Configuration in Family Firms: Linking Resources, Strategic Planning and Technological Opportunities to Performance

JOURNAL OF MANAGEMENT STUDIES, Issue 1 2008
Kimberly A. Eddleston
abstract We apply the resource-based view of the firm to the study of family firms by investigating how a family specific resource (reciprocal altruism) and a firm specific resource (innovative capacity) contribute to family firm performance. We then examine how the impact of these resources is moderated by strategic planning and technological opportunities. Our findings suggest that family firms can benefit from emphasizing the positive aspects of kinship and from developing innovative capacities. As such, we demonstrate that not only do firm specific resources contribute to family firm performance, but also that family relationships can be a source of competitive advantage for a family firm. In addition, we found a heightened importance of reciprocal altruism in environments rich in technological opportunities, and that strategic planning is more important for those family firms that lack innovative capacities. [source]


Ownership and Control in Closely-held Family-owned Firms: An Exploration of Strategic and Operational Control

BRITISH JOURNAL OF MANAGEMENT, Issue 1 2007
Lloyd C. Harris
Much of the existing research into the divorce of ownership and control either focuses on the propensity for the separation of decision functions or upon scrutinizing conceptions, gauges or the practicalities of organizational control in large corporations. Although far from equivocal, such research appears broadly to concur that where ownership is dispersed, de facto control is likely to be exerted by management and that where ownership is closely-held, de facto as well as legal control is exerted by owners. This study examines this assumption through exploring the nature of control in a closely-held family firm. In this regard, the focus of this study is not on consequences of divorced ownership and control but rather on exploring the contingencies where ownership and control diverge. This research reveals a case wherein a closely-held family firm is strategically and operationally controlled by its managers. Case research leads to the development of a range of insights regarding the owner/family and the management characteristics that contribute to this scenario. The paper concludes with a series of implications and conclusions. [source]


Perceptions About the Extent of Succession Planning in Canadian Family Firms

CANADIAN JOURNAL OF ADMINISTRATIVE SCIENCES, Issue 3 2000
Pramodita Sharma
Despite exhortations about the importance of succession planning for the family firm, many believe that family firms continue to leave succession planning to chance. This study shows that family members have different opinions about whether their family firms engaged in succession planning. The incumbents believe that they did while the other family members, including the successors, believe that they did not. We also present results showing that two factors with which the family business succession literature is most concerned,an incumbent ready to step aside and the presence of a competent successor,may influence the extent to which the Canadian family firm engages in succession planning. Résumé Malgré les consignes concernant l'importance de plani-fier la succession d'une compagnie familiale, beaucoup d'entre nous croient que ces m4iCme famille different d'opinion a savoir si la compagnie s'est, oui ou non, engagée dans un processus de planification de la succession. Ceux et celles en place croient qu'ils l'ont fait quand les autres membres de lafamilee, incluant les suc-cesseurs, croient le contraire. Nous presentons aussi des donnees qui démontrent que les deuxfacteurs qui préoc-cupent la litérature dans le domaine,une personne en place prete a céder sa place et la presence d'un suc-cesseur compétent,peuvent influencer le degré d'engagement de la compagnie familiale canadienne au processus de planification de la succession. [source]


Agency Relations within the Family Business System: an exploratory approach

CORPORATE GOVERNANCE, Issue 3 2003
L.A.A. Van den Berghe
Researchers use various definitions to describe the family firm. The characteristics of family firms that are stressed in each of these definitions are somehow related to family control. All characteristics together reflect a spectrum of family firm types along one core dimension: family involvement in the firm. However, it is more helpful to distinguish among family firms by using their precise type. Each particular family firm type is characterised by a set of agency relations within and between the family system, ownership system and the business system. This paper is a first attempt to apply the insights from agency theory on a highly simplified (reference) family firm situation where the father is full owner and the daughter manager of the family firm. Agency theory establishes the foundation for the optimal contract conditions between father and daughter. While real life is often characterised by bounded rationality and incomplete information, future research should help identify the "optimal contract" be-tween the family/shareholders and management in various family firm types under these circumstances. [source]


Toward a Theoretical Basis for Understanding the Dynamics of Strategic Performance in Family Firms

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 6 2008
James J. Chrisman
An important distinction between family and nonfamily firms and among different types of family firms is the manner in which strategy is formulated and implemented. These differences in strategic behaviors can cause variations in firm performance. Understanding the nature of these differences and how the family form of organization drives them therefore contributes to the development of a strategic management theory of the family firm, a unifying theme of the series of special issues published in Entrepreneurship Theory and Practice to date. This article briefly reflects on the progress made in understanding the strategic differences of family firms in this ongoing series and discusses the contributions of the articles and commentaries contained in this fifth special issue on theories of family enterprise. [source]


Toward a Theory of Familiness: A Social Capital Perspective

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 6 2008
Allison W. Pearson
In the search for ways in which the family firm context is unique to organizational science, the construct of "familiness" has been identified and defined as resources and capabilities that are unique to the family's involvement and interactions in the business. While identification and isolation of a construct unique to family firms is both groundbreaking and important for family firm research, it is also important that the development of the construct continues to be examined from complementing theoretical viewpoints. As such, we set out to review the development of the familiness construct and identify its dimensions. We also explore the nomological relationships of the construct based on a social capital theory perspective and offer a theory of familiness. [source]


Governing by Managing Identity Boundaries: The Case of Family Businesses

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 3 2008
Chamu Sundaramurthy
In this paper we illustrate how boundary theory can be a useful perspective to understand the dynamics of family businesses. We integrate insights from the family business literature with the work,family and identity boundary literatures to describe degrees of integration between the family and business identities in family firms and outline contingencies that influence this integration. We also develop the notion of "differential permeability" as a state of being both integrated and segmented on various aspects of identity and articulate costs and benefits to this state, as well as to high integration and high segmentation. Finally, we invoke the research on "boundary work" as a means of managing family business boundaries and conclude by outlining additional avenues of research that stem from using such a boundary theory lens. [source]


Personalism, Particularism, and the Competitive Behaviors and Advantages of Family Firms: An Introduction

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 6 2006
James J. Chrisman
Fundamental assumptions of any theory of the family firm are that family firms will behave in ways that differ from nonfamily firms, and that the behaviors of family firms will also exhibit substantial variations. This special issue includes a set of articles and commentaries that study such differences. This introduction synthesizes these articles using the concepts of personalism and particularism. We argue that the set of articles contained in this special issue contributes to the literature by explaining how the ability and willingness of family firms to behave in an idiosyncratic fashion leads to advantages and disadvantages that distinguish between family and nonfamily firms and between different types of family firms. [source]


Commentary: A Framework for Managing the Familiness and Agency Advantages in Family Firms

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 6 2006
Timothy G. Habbershon
This article uses a family-influenced, international, new venture creation case as a platform for addressing the importance of context when exploring entrepreneurship in start-up and growth companies. I raise crucial issues about how agency relationships and costs are evaluated in family firms, arguing that the competitiveness implications of agency can only be fully assessed in light of the larger context considerations. I suggest that agency is best evaluated as inputs and outputs in a contextual ecosystem. I utilize a family business ecosystems model to show that family is a distinct context for entrepreneurship and that it generates an idiosyncratic bundle of resources and capabilities that provide a potential agency advantage in new venture creation. Since the case findings indicate that the agency inputs and outputs change over time, I conclude by placing the potential agency advantages and constraints into an organizational life cycle framework. The goal of the article is to further the discussion on how families find their advantage in the entrepreneurial process. [source]


Trends and Directions in the Development of a Strategic Management Theory of the Family Firm

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 5 2005
James J. Chrisman
This article provides a review of important trends in the strategic management approach to studying family firms: convergence in definitions, accumulating evidence that family involvement may affect performance, and the emergence of agency theory and the resource-based view of the firm as the leading theoretical perspectives. We conclude by discussing directions for future research and other promising approaches to inform the inquiry concerning family business. [source]


Feuding Families: When Conflict Does a Family Firm Good

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 3 2004
Franz W. Kellermanns
Using the conflict theory lens and insights from the family business literature, we develop a theoretical model concerning the effects of task, process, and relationship conflict in family firms. Family firms are characterized by different control structures and generational involvement. Accordingly, we discuss the expected effect control concentration has on task, process, and relationship conflict, and propose that generational involvement affects the importance of task and process conflict to a family firm's performance. Furthermore, our model suggests that relationship conflict moderates the outcomes of task and process conflict. The degree of relationship conflict in family firms is in turn influenced by altruism, which characterizes interactions among family members. [source]