Family Business Members Research Articles

How family businesses transfer their values across generation: a conceptual framework

Purpose Recognising the value of sustaining virtuous values in family business across generations, this paper aims to provide a conceptual framework and propose a mediated-moderated mechanism through which family members’ traits, such as family size and parenting style, influence the extent to which family business’s virtuous values transfer across generations. Design/methodology/approach The paper is based on systematic literature that was conducted using specific keyword searches in the business source databases of Emerald, ProQuest, ScienceDirect, EBSCOhost and SpringerLink. Findings This paper leads to a conceptual framework proposing a mediating relationship between family members’ traits and the transfer of virtuous values to the next generation. Further, two parallel mediators are proposed, moderated by traits of family members’ offspring, such as the age gap and gender of offspring. Research limitations/implications This paper proposes a conceptual framework focusing on transferring virtuous values across generations in the family business. It investigates family members’ traits, such as the size of the family and parenting style, to comprehend the family members’ traits and the transfer of virtuous values relationship. Practical implications The proposed conceptual framework should form the basis of interventions adopted by family business members to enhance the transfer to virtuous values across generations by positively impacting their moral self-efficacy and affective commitment to virtuous values. Originality/value Prior research on family businesses has primarily explored transgenerational succession. However, sustaining virtuous values across generations is equally important to retain a business’s legacy. Very limited scholarly attention has focused on these virtuous values in family business.

Life satisfaction of family business members: The role of socioemotional wealth goals and psychological functioning

ABSTRACT Family businesses offer affective benefits to family business owners and family members employed at their family’s businesses. However, little is known about whether the pursuit of “Socioemotional Wealth” (hereafter “SEW”) goals in family businesses relates to the psychological functioning and life satisfaction of family business owners/members. Utilizing a self-determination theory perspective, this study examines whether the pursuit of SEW goals is associated with life satisfaction of family business owners/members through intrinsic psychological needs fulfillment and positive psychological functioning in terms of purpose in life, personal growth, mastery, positive relations, and autonomy. Following a quantitative methodology, survey data was collected from 175 family business owners/family members employed in their family’s business in the United States. Results of PLS-SEM show that SEW goals have a significant positive association with subjective well-being and that psychological functioning fully mediates this relationship. This study adds to our understanding of mental health of family business owners/members and individual-level outcomes of SEW.

EFFECT OF SOCIAL CAPITAL, FAMILY BUSINESS INNOVATION, AND DYNAMIC CAPABILITIES ON THE ORGANIZATIONAL AGILITY OF FAMILY BUSINESS

The research is conducted to determine the effect of Social Capital (X1), Family Business Innovation (X2), and Dynamic capabilities (X3) on Organizational Agility (Y). The research is conducted using the quantitative method, applying the 5-Likert scale questionnaires to 180 Respondents who are family business members, by utilizing the purposive sampling method. This research utilizes multiple linear regression analysis to analyze the factors that provide significant effects on organizational agility. All three factors (Social Capital, Family Business Innovation and Dynamic capabilities) are reliable and valid according to the SPSS result after further calculation The result of the research presents the positive relationship and the significant impact that Social Capital, Family Business Innovation, and Dynamic Capabilities have on Organizational Agility in Family Businesses.

Goal setting for family firm owners: An agency-stewardship perspective

Goal setting for family firms is a vital activity since the performance of businesses is measured against their goals. Using prior research on goal-setting in the context of family firms, this narrative literature review paper aims to bring forth, the importance of goal-setting specific to family business owners who straddle family and business. A review of family-business literature indicates that using the three-circle model comprising family, business, and ownership as the base theory, goal setting in family firms has been examined from the perspective of whether they are economic or non-economic and whether they are family-oriented or business-oriented. Both these approaches to family business goal setting are based on the ideology that the unique feature of family businesses is that they aim to satisfy two groups of stakeholders — family members and business members. While family and business perspectives are captured in these two approaches, goal setting from an owner’s perspective has been largely ignored. Rooted in the concept of corporate responsibility, the agency-stewardship framework is emerging as an alternative perspective for family businesses and hence is proposed as a useful dominant logic framework for decisions on goal setting. This conceptual paper based on a narrative literature review aims to present the agency-stewardship framework as a relevant and important lens in the two most important decision contexts of family businesses, i.e., governance and succession. The paper exemplifies how the agency-stewardship continuum can be used for goal setting to nurture next-generation family business leaders and manage family business operations through goal setting in governance policies and succession processes.

Revolutionizing family businesses with artificial intelligence: a perspective article

PurposeThis perspective article addresses the essential need to comprehend what artificial intelligence (AI) entails and how it can revolutionize the family business sector.Design/methodology/approachThis article presents a literature review and the authors' perspectives to unravel the potential benefits of AI in family businesses.FindingsIt is crucial to understand what AI is and its various types before the authors can discern which AI tools can be beneficial or tailored to family businesses. A promising area for future research is the use of Theory of Mind AI, which can help minimize conflicts of interest among family business members and assist in clear decision-making and succession planning. However, integrating AI brings about ethical implications, such as data privacy concerns, the need for transparency in AI decision-making and the necessity to ensure fair AI practices. These are all critical issues that the future research will need to tackle.Originality/valueThis article emphasizes the potential of AI to be customized and incorporated to tackle the distinct dynamics, obstacles and opportunities prevalent in family-owned businesses. It also proposes future research areas that could enhance the application of AI in such enterprises.

The impact of parental emotional support on the succession intentions of next-generation family business members

ABSTRACT Drawing on social cognitive theory, this study investigates the influence of family business owners as parents on the succession intentions of their children. Measures of parental emotional support, entrepreneurial self-efficacy, and affective commitment are applied to predict succession intentions. We test our research model on an international sample of 21,525 sons and daughters of family business owners. The results suggest that parental emotional support positively influences succession intentions and is mediated by two cognitive factors: entrepreneurial self-efficacy and affective commitment to the family business. The results also suggest interaction effects of gender and birth order on succession intentions. This study offers important theoretical and practical insights into the aspirations of next-generation members of family businesses.

Bringing context to the foreground: Explaining the early-stage career development of next-generation family business members

This study employs an interpretive grounded theory approach to explore how family contexts shape the early-stage career development of next-generation family business members (next-gens) in succession and non-succession careers. Career theories suggest that early-stage career development is an outcome of individual–context interaction. However, the current literature on careers in a family business offers limited insights into the enabling and constraining contexts within the family, such as the family social system, marriage, traditions, and cultural environment. In line with the systems theory framework of career development, our findings demonstrate that individual and family contextual interactions not only shape the careers of next-gens but also drive variations in succession and non-succession careers. Our study contributes to the literature by constructing an early-stage career development model that helps to explain the importance of marriage and family traditions in the early-stage career development of next-gen family business members.

Family social capital as a mediator between socioemotional wealth and entrepreneurial orientation: evidence from Mexican SMEs

ObjetivoAs relações e conexões das famílias envolvidas nos negócios, ou capital social familiar, têm efeitos positivos e negativos nas empresas familiares. Este artigo investiga o papel mediador das relações sociais dos membros da empresa familiar entre a riqueza socioemocional e a orientação empreendedora das empresas.Desenho/metodologia/abordagemFoi aplicado um inquérito realizado nas quatro principais cidades do México. A amostra foi constituída por 360 PME. A estrutura de pesquisa e a hipótese deste estudo foram testadas usando análise de regressão e a técnica de Modelagem de Equações Estruturais (SEM).ResultadosNosso estudo conclui que a riqueza socioemocional não apenas influencia fortemente a orientação empreendedora das empresas familiares, mas que esse fator também é mediado pela capacidade dessas famílias de desenvolver seu capital social.Originalidade/ValorEste trabalho contribui para a literatura acadêmica sobre empreendedorismo e capital social. Como mediador entre a riqueza socioemocional e a orientação empreendedora, o capital relacional familiar tem recebido pouca pesquisa. Nossos resultados revelam implicações significativas para a gestão de rede e estratégias de capital relacional para PMEs.

Longevity through emotional intelligence: a relationship marketing approach in family businesses

PurposeThis study aims to explore how emotional intelligence (EI) in members of family businesses can enhance the relationships with the stakeholders and whether adopting a relationship marketing approach could extend a family businesses' longevity, the businesses' success through generations.Design/methodology/approachA mixed-method approach was adopted, and two studies (quantitative followed by qualitative) were conducted in Mexico on small to medium-sized enterprises. This study considers the perspective of owners and employers of family businesses.FindingsThe study provides important insights into the relationship between EI and relationship marketing. Enhancing EI in family members whilst conducting a relationship marketing approach, both internal and external, will result in better performance. Family businesses can alleviate conflicts inherent to family emotions whilst building and maintaining strong relationships with customers and suppliers that can secure the long-term success of the organisation by enhancing EI.Originality/valueConsidering the majority of the literature is focussed on highly developed economies such as the USA, the UK and major developing economies such as China and India, this mixed-method study offers Mexico as a novel setting that has become an important procurement hub in light of the recent global developments and international relationship policies.

The role of values in enhancing longevity among indigenous black South African family businesses

Background: Values play a fundamental role in the longevity of family businesses. However, not fully understanding these roles threatens their long-term survival. Given their potentially large numbers and subsequent ability to reduce unemployment and poverty, it is critical that black-owned South African businesses achieve entrepreneurial success. While much research exists on family business values in a Western and European context, research on family business values in an indigenous black South African (IBSA) context is nonexistent.Aim: The aim of this research is to determine the role that family business values play in enhancing the longevity of IBSA family businesses.Setting: The study focused on IBSA family businesses that are independently owned and managed by one or more IBSAs and which are located in various major cities of South Africa.Methods: A qualitative methodological approach following a multiple–case study design was adopted. Semistructured interviews were conducted with several key participants using a combination of face-to-face, telephone and online interviews. The six steps of reflexive thematic analysis were used to analyse the data.Results: Four themes describe the role of family business values in enhancing longevity among the IBSA family businesses. Family business values were found to guide the behaviour of family business members, build the identity of the business-owning families and their businesses and build a sense of community in both the family and the family business. The continuity and success of their family businesses were also attributed to these underlying family business values.Conclusion: Family business founders and/or current leaders should articulate the value set they uphold and use it as a resource to build the identity of both their families and family businesses while moderating the behaviours of family business members.Contribution: The study responds to several research calls to investigate family businesses in African cultural settings and provides practical guidance to scholars, entrepreneurs and practitioners on how family businesses can use values as strategic resources to enhance business longevity and success.

Relations of and between Family Business and Private Enterprise

In this paper, I draw from economic and organizational sociology to study a psychosocial dimension of modern entrepreneurial dynamics. Namely, I employ a mixed-methods approach to the study of family business members in the U.S and their corresponding economic attitudes about private enterprise as a superlative solution to economic problems. I incorporate quantitative cross tabulation analyses of multivariate relationships derived from data provided by the 2021 General Social Survey (GSS), as well as original qualitative interview data collected from family business members. Based on my findings, I argue role involvement in family business has a significant bearing towards generally positive views of private enterprise ideology. However, the relationship between family business involvement and belief in private enterprise is specified along lines of social class. I further argue how private enterprise belief is differentially associated with the lower and upper class of family business members, an important finding given the systematic impact family businesses can have on the economic fabric of American society.

When the display of emotion is not enough: An emotion boundary management perspective on the quality of strategic decisions

In this study, we take an interest in how family business members create their emotion rules and emotion boundaries in and between the two spheres of business and family and how they manage these. We show that this management of emotion boundaries affects the quality of strategic decisions. We conclude that family members create emotion rules and emotion boundaries based on the meanings and understandings of time, space, and/or the relationships that are embedded within the family business emotion-framing rules. Depending on their concern for their own interests and goals, family goals and/or family business goals, they engage in emotional displays that lead to emotional balance, dissonance, or stamina. We reveal how emotional displays affect the decision outcome quality. We therefore contribute to the literature on the role of emotion boundary management in strategic management by evaluating a specific context where the spheres of family and business overlap with more complexity than in a typical case.

Motivating Next-generation Family Business Members to Act Entrepreneurially: a Role Identity Perspective

Motivating Next-generation Family Business Members to Act Entrepreneurially: a Role Identity Perspective

The Role of Mindfulness in Business Administration (B.A.) University Students' Career Prospects and Concerns about the Future.

In a challenging work environment, entrepreneurship orientation (hereafter, EO) can be an important asset for university students. In this study, we investigated the EO and concerns about the future of B.A. students, focusing on the role of mindfulness levels. A total of 204 students, including those coming from family businesses (hereafter, FB), were asked about their intention of creating their own business and future concerns with an ad hoc questionnaire, and about their mindfulness levels with the Mindful Attention Awareness Scale. The results showed no differences in concerns about the future between those students coming from a family business and those who did not. However, in that group of students who were uncertain about starting a business career, a negative association between mindfulness and future concerns was found. This paper sheds light on the relationship between mindfulness and concerns about the future in Business Administration (hereafter, B.A.) students, concluding that, in the face of uncertainty, higher levels of mindfulness help to reduce concerns about the future. Finally, we indicate the relevance of this study for entrepreneurs, family business members, policymakers and B.A. Faculties and Business schools.

A Governance Approach of Emotion in Family Business: Towards a Multi-level Integrated Framework and Research Agenda

AbstractWhile emotion in family business is beginning to garner closer attention among researchers, the nexus of emotion management and governance has received little attention to date. In this essay, we reflect on and extend the Special Issue contributions by integrating the emotion management literature with the family business and governance literatures. We suggest a governance approach of emotion through a multilevel integrated framework. We introduce “emotion governance” as an overarching set of informal and formal mechanisms that are rooted and developed in the embedded family business contexts. We argue that emotion governance influences the explicit emotion management strategies of family business members at different stages:ex-ante(incentive alignment), during the process (education and support), andex-post(monitoring). It thereby contributes to ensure their accountability in line with family business continuity. Considering the heterogeneity of family businesses, we capture nuances in our framework across family business archetypes through a series of propositions. We chart an agenda for future research to advance the development of a theory of family business governance inclusive of emotion.

Mindfulness and Next-Generation Members of Family Firms: A Source for Sustainability

Family businesses are considered complex organizations where emotional and management challenges need to be faced. This is even more difficult when time of succession arrives and the new members are expected to engage with the business. In this study, a total of 204 university students were asked about their present and future situation regarding the family business. Mindfulness levels were also evaluated using the Mindful Attention Awareness Scale. There were no significant mindfulness level differences between students who pertained to a family business and those who did not. In the first group, however, those students who were sure about their future in the family business, and had more motivation about it, obtained higher scores on the mindfulness scale as well as being more satisfied with their social relationships. It could be concluded that certainty and motivation about their future in a family business of young family business members correlates with higher mindfulness levels and social well-being.

Cognition, emotion and action: persistent sources of parent–offspring paradoxes in the family business

Purpose 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.

SUSTAINABILITY OF FAMILY BUSINESS: MILLENNIALS INTENTION TO STAY IN THE FAMILY BUSINESS AS THE RESULT OF STEWARDSHIP CLIMATE, MEDIATED BY SUCCESSOR’S TRUST AND SOCIOEMOTIONAL WEALTH

This research studies the influence of stewardship on the intention to stay in the family business. Successor’s trust and socioemotional wealth are also studied as mediator. The population in this research is Millennials that work in a family business and have prepared as a successor. Samples were taken purposively from family business members of KADIN East Java (Chamber of Commerce). The sample collected was 221. Data were analyzed with Andrew Hayes PROCESS model 4. The result shows that stewardship has a significant positive effect on the successor’s trust, socioemotional wealth, and intention to stay. Successor’s trust and socioemotional wealth have a significant positive effect on the intention to stay. Successor’s trust and socioemotional wealth have a mediating effect on the relationship between stewardship and intention to stay. The findings contribute to the succession strategy in the family business, especially to make Millennials’ successors willing to stay in the family business. The suggestion for future research is to test the effect on different cohorts as Generation Z or different family cultures.

Family businesses in North Macedonia: evidence on the second generation motivation and entrepreneurial mindset

PurposeThe purpose of this paper is to portray the motivation, willingness and entrepreneurial mindset of second generation in family businesses in North Macedonia.Design/methodology/approachFor purposes of this study, 25 interviews were conducted, where 14 interviews were conducted by phone, six face to face and five interviews in a written form. The process of data collection lasts 15 days. From the sample, 21 were Albanians and four were Macedonians, with this mix of ethnicities the authors had a chance to see different opinions for the same questions.FindingsThe authors found that most of second-generation members were happy and motivated for being part of their family business, except three participants those were imposed to their family business. Also, most of them possess entrepreneurial mindset, motivation, innovative ideas and risk-taker attributes.Research limitations/implicationsIn this research were included only few cities of North Macedonia and the number of the sample is limited, due to the COVID-19 situation. Another limitation is that the study is done only with two nationalities.Originality/valueThere are a very few papers that treat family businesses in North Macedonia, and this is the only one that treats motivation, willingness and entrepreneurial mindset of second-generation members of family businesses in this country and the region.

Encouraging Family Business Members to Go the Extra Mile

Encouraging Family Business Members to Go the Extra Mile