Now showing 1 - 10 of 79
  • Publication
    Latent Profile Analysis: Understanding Family Firm Profiles
    (Sage, 2017)
    Stanley, Laura
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    Kellermanns, Franz
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    We demonstrate how Latent Profile Analysis (LPA) can be applied to generate profiles (i.e., homogenous subgroups) in a sample of family firms. In doing so, we highlight how LPA can provide additional insight into family firm phenomena when used in conjunction with other methodological approaches (i.e. regression). We compare LPA to other techniques (i.e., cluster analysis and qualitative comparative analysis) and show LPA’s superior ability to capture complex patterns of important family firm characteristics. We demonstrate how profiles can be linked to differences in dependent variables, providing family firm scholars with a tool to assess heterogeneity and its consequences among family firms.
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    Scopus© Citations 149
  • Publication
    When do family firms have an advantage in transitioning economies? Toward a dynamic institution-based view
    (Wiley, 2014-07-09)
    Banalieva, Elitsa
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    Eddleston, Kimberley H.
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    We advance a dynamic institution-based view of the firm that extends the theory's current focus on scope of pro-market reforms (degree of market liberalization in a given year) to consider how speed of reforms (rate of market liberalization achieved over time) affects the performance of firms from transitioning economies. Utilizing a sample of public firms from Chinese provinces with varying reform speeds, we find that while scope of reforms positively impacts firm performance, speed of reforms detracts from firm performance. We further find that while family firms have an advantage in gradually reforming provinces, non-family firms have an advantage in rapidly reforming provinces. Thus, we extend the institution-based view across time (speed of reforms) and firms (family vs. non-family firms).
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    Scopus© Citations 161
  • Publication
    The Determinants of Family Owner Manager's Affective Organizational Commitment
    (Wiley-Blackwell, 2013-07)
    Memili, Esra
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    Fang, Hanqing Chevy
    Affective organizational commitment is an important predictor of the willingness to contribute to organizational goals and is of particular relevance to family firms, as these firms often rely on long-term involvement of family members through transgenerational succession. Drawing on organizational commitment and ownership attachment theories, we probe the influence of family firm dynamics (i.e. family harmony and relationship conflict) on work-family conflict and family owner-managers' ownership attachment, which in turn impact affective organizational commitment. Based on a study of 326 family firms, we introduce ownership attachment as an important antecedent to affective organizational commitment. We find that ownership attachment is positively affected by both family harmony and work-family conflict, whereby work-family conflict is influenced by relationship conflict. We also find that work-family conflict affects ownership attachment.
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    Scopus© Citations 37
  • Publication
    Intangible resources and Performance in Family Firms: The moderating Role of Familiness
    (P & R Publications, 2008-06)
    Naldi, Lucia
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    Nordqvist, Mattias
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    For family firms, the resource-based view (RBV) stresses the relevance of intangible resources emerging in the unique interaction between the family and the firm, and captured through the notion of familiness. In addition to the possession of intangible resources- e.g. knowledge-based and reputational resources- the value of resources is dependent upon their use. Managers' involvement in strategy making is thus likely to moderate the relationship between the existence of intangible resources and performance. After hypothesizing about the positive relationship between knowledge-based resources and performance, and between reputational resources and performance in family firms, we differentiate between family involvement in continuous strategy making, and disruptive strategy making to capture the moderating role of familiness. [http://digitalknowledge.babson.edu/fer/vol28/iss14/10 ]
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  • Publication
    Ownership matters! The benefits of appointing the predecessor CEO as board chair in family firm
    How does the appointment of a predecessor CEO as board chair (i.e., predecessor retention) affect post-succession firm performance? Agency theory suggests that firms with predecessor retention underperform compared to firms with other board chairs. We propose a stakeholder perspective rooted in incomplete contracting theory to highlight positive performance effects of predecessor retention. Stakeholders with firm-specific investments are concerned about being held up by new CEOs, which leads to negative stakeholder reactions upon CEO successions and post-succession performance declines. Because predecessor CEOs hold more firm-specific resources than other board chairs, they are well positioned to monitor and advise on stakeholder problems and mitigate performance declines after CEO successions. We identify family firms as a context in which the gains from mitigating negative stakeholder reactions outweigh the agency costs tied to predecessor retention. Probing a sample of CEO successions in the S&P 1500, we find that in family firms, predecessor retention leads to performance advantages over other board chairs, whereas the opposite holds true for nonfamily firms. We show that within the group of family firms, the performance advantages from predecessor retention increase in three contexts in which negative stakeholder reactions are pronounced: in outside CEO successions, in departures of long-tenured CEOs, and in firms with low complexity. Substantiating negative stakeholder reactions as the core mechanism, we show that predecessor retention decreases negative stakeholder reactions after CEO successions in family firms but not in nonfamily firms. Our study makes important contributions to the board chair and CEO succession literatures.
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    The Impact Of Changing Age And Gender Norms On Entrepreneurship: A Cohort Study
    Social norms regarding age- and gender-appropriate behaviors exert a strong influence on how entrepreneurs organize their lives. We examine the implications of socio-historical changes in age and gender norms for entrepreneurship by elucidating how the typical life stage at the time of entrepreneurial entry has shifted across socio-historical cohorts of entrepreneurs, as well as how the performance consequences of being married or having children at the time of entrepreneurial entry have changed over time. Based on cohort analyses of US self-employment data from the 1979 and 1997 cohorts of the National Longitudinal Survey of Youth, we find that individuals today are less likely to be married and to have children when they enter entrepreneurship compared to entrepreneurs in the past. In addition, gender differences in the effect of being married and having children on entrepreneurial performance have decreased over time.
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  • Publication
    Succession processes in family firms: A new perspective
    Succession is the most prominent topic in family business research and the succession path that a family chooses will likely impact the future performance of the business. Yet surprisingly little is known about succession paths⸻the sequence, pace, and rhythm with which management, board, and ownership is transitioned from one generation to the next. Using an inductive, theory-building approach based on sequence analysis and evidence from succession paths in 142 public family firms in the US, we address this gap. Our study reveals nine distinct succession paths with five distinct sequences of how management, board, and ownership transitions are structured over time. These sequences not only vary in their pace and rhythm, but also in their performance consequences. Specifically, we find that family firms with fast-paced succession paths and those with slow-paced, rhythmic succession paths outperform those with irregular rhythms. Further, early-ownership transitions benefit firm performance. Establishing succession paths as a meaningful new concept in family business research, this study not only advances our understanding of the succession phenomenon but also extends our theoretical insights into temporal processes in family firm successions.