Family Business Performance Research Articles

Family business exposure and succession intention: the role of entrepreneurial self-efficacy and business performance

Understanding the next generation’s aspirations to inherit their parents’ business is critically important for securing intrafamily succession and longevity of the family business. Using a large dataset of 42,863 university students from 48 countries, we examine how the entrepreneurial self-efficacy (ESE) of youth moderates the relationship between family business exposure and succession intention. Our results indicate that a greater ESE enhances the influence of family business exposure on succession intention, while the effect of ESE is further moderated by family business performance, implying that this effect is greater in more (rather than less) successful family firms. By underscoring the role of both young individuals’ early engagement in the business and family business success, this study provides valuable implications for family firm leaders and the next generation that may assist in the design of more comprehensive policies for encouraging succession within the family.

PROMOTING HANDICRAFT FAMILY BUSINESS THROUGH DIGITAL MARKETING TOWARDS SUSTAINABLE PERFORMANCE

The study aims to determine the dimensions of the adoption intention of digital marketing in handicraft family businesses towards business performance, as well as technological innovation applications in the family business for sustainable development. This study examines the theoretical insights and designs a conceptual framework based on previous studies of handicraft family businesses. In so doing, 290 survey data were collected from handicraft business owners and tourists by using face-to-face interviews through a structured questionnaire with 82.85% valid response rate. Moreover, structural equation modeling (SEM) was used to analyze data and find out the causal relationship among the constructs and hypothesis testing. As per the results of the study, among the 6 hypotheses paths all were supported along wit h 24 relationship path coefficients were noteworthy. The result shows that perceived ease of use, perceived risk, perceived usefulness, social norms, perceived behavioral control, and attitude radically influence to the adoption of digital marketing in han dicraft family businesses. The results of this study will assist the research scholars through theory and theoretical foundation for family business owners in understanding and comprehending the role of digital marketing in sustainable family business performance. Similarly, the legacy of family businesses in handicrafts or small businesses can be maintained and empowered through digital marketing to boost the economy. The study is the foremost one in discovering a sustainable business strategy through the success factors of digital marketing adoption in family businesses.

Performance of Family Businesses in the Specific Conditions of CEE Countries: The Case of the Czech Republic

Performance of Family Businesses in the Specific Conditions of CEE Countries: The Case of the Czech Republic

OPPORTUNITIES FOR INTEGRATION OF DIGITAL BUSINESS MODELS IN INTERGENERATIONAL BUSINESSES

In today‘s hyper-­digitalised world, continuity and collaboration between digital and traditional business models becomes a necessary and even mandatory condition for achieving competitiveness and success. This key emphasis also applies to intergenerational business initiatives, which have the potential to bring together the knowledge, experience and creativity of different generations in a win-win way for all stakeholders. The main objective of the present research is to analyse the benefits of integrating digital business models in the context of intergenerational entrepreneurial initiatives. In order to achieve the goal formulated in this way, fundamental definitions and characteristics of the concept of „digital business model“ have been derived, supported by the existing theoretical knowledge and practical experience of the authors of the report. In addition, basic types of business models developed primarily in a digital environment have been identified, and current examples from the field of digital entrepreneurship have been synthesised. The scope of the research includes the results of a survey conducted in 2023 at the University of Ruse „Angel Kanchev“ (Bulgaria), covering 581 students. This aspect of the study aims to illuminate students‘ readiness to engage in intergenerational entrepreneurial initiatives. The discussion is enriched with reduced potential opportunities for the capacity of digital business models to improve the performance of individual family business ventures innovatively. In this way, by combining traditional with digital, it is possible to construct a solid and integrated intergenerational entrepreneurial chain capable of preserving and building on existing values and experiences in a positive way.

Investigating the Link among Corruption, Corporate Governance and Corporate Performance in Family Businesses: A Future Research Agenda

Family businesses have distinct characteristics that differentiate them from other firms. Researchers must meticulously analyze issues, with a specific focus on the interplay of family business dynamics, considering this factor. The main objective of this research was to provide insight into the adverse effects of family companies, particularly how the power dynamics inside these organizations might enable corruption or fraud and how corporate governance can help in mitigating these phenomena. Specifically, family businesses can be investigated by considering unique characteristics such as ownership and control, generational dynamics, and corporate governance. To address the study topic, a bibliometric analysis was conducted using the R statistical programming language and the bibliometric tools Biblioshiny and VOSviewer. Data were obtained from the Scopus database and examined in documents. The lack of unbiased external evaluation, the ineffectiveness of internal audits, disputes between different generations, the dominance of family members, and the narrow extent of governance all contribute to the exacerbation of tensions that promote corruption inside family firms. Moreover, the findings indicate that CEO duality correlates with the occurrence of corruption and fraudulent activities, such as manipulating profits. Furthermore, the findings suggest a correlation between the qualities of the board and instances of corruption and bribery inside family firms. These factors also increase the probability of financial statement fraud.

The perceived effect of digital transformation and resultant empowerment on job performance of employees in the fitness family business

PurposeThe impact of technological transformations in all sectors is undeniably significant, especially in fitness family business. The aim is to examine the digital transformation perceptions of fitness centre employees and the effects of perceived empowerment on their job performance in family business in Turkey.Design/methodology/approachThe sample was 334 fitness centre employees. Four variables were evaluated (digital transformation, meaning competence, self-determination and job performance), and PLS-SEM was used.FindingsThe digital transformation process in the fitness sector can be considered as an important factor in terms of creating new business ventures. Our results showed that digital transformation perceived by family business employees had a significantly influence on the meaning competence of the employees. Also, the meaning competence of employees was a mediator between the digital transformation and job performance.Practical implicationsManagers of family businesses must take into account that an appropriate digital transformation of their products and/or services has an impact on the meaning competence of their employees. Thus, through increased competence in employee performance, the digitization of family business fitness will lead to higher employee performance and productivity.Originality/valueThis study innovates by linking digital transformation as a factor influencing the coach's own motivation and self-perceived competence in the use of technology to their job performance.

Exploring Cultural Conservatism in Moroccan Family Businesses: Implications for Strategic Behaviors and Organizational Dynamics

This paper explores the cultural conservatism of family businesses in Morocco and its implications for strategic and organizational behaviours. Drawing on the Gioia methodology, qualitative data were collected from twelve Moroccan family businesses representing diverse industries, sizes, generations, and locations. The findings reveal that cultural conservatism in Moroccan family businesses is characterized by a collective culture that promotes solidarity, internal coordination, and blurred boundaries between family and work. A culture of conformity is prevalent, leading to increased stability of relationships and a shared vision and values within family businesses. In addition, the culture of conservation emphasizes the protection of identity, preservation of tradition, and continuity of family control. These cultural characteristics shape the strategic decisions and behaviors of family businesses, contributing to their unique competitive advantage. This paper highlights the importance of balancing tradition with adaptation in achieving sustainable performance in family businesses. The findings offer valuable insights for practitioners and scholars interested in understanding the impact of cultural conservatism on family businesses in the Moroccan context. Further research is recommended to validate the findings quantitatively and explore the role of other stakeholders in family businesses.

DYNAMIC CAPABILITIES AND PERFORMANCE OF FAMILY BUSINESSES IN EMERGING ECONOMIES

Dynamic capabilities analyze the sources and methods of better performance and wealth creation and capture by firms operating in environments of rapid technological changes. Based on this, The objective of this research was to analyze the relationship between absorptive, adaptive, and innovation capabilities on financial and non-financial performance of family businesses was analyzed in the context of emerging economies, a relationship that has not been analyzed in this context. Through the application of structural equation modeling in a sample of 235 family businesses of agricultural supplies and machinery, located in the G46 and G47 categories of the International Standard Industrial Classification – ISIC, the results allowed us to identify that absorptive capability has a positive influence on financial performance, while innovation capability has a positive influence on no-financial performance. No evidence was found that other capabilities were related to the performance of the organizations analyzed. In addition, it was shown that the size of the companies does not generate any moderating effect in the relationship between these variables. This study contributes to dynamic capabilities theory by exploring how absorptive and innovative capabilities influence financial and non-financial performance in a specific and underexplored context: family businesses in emerging economies. Furthermore, the importance of developing and enhancing absorptive and innovation capabilities is highlighted. This could lead to the implementation of training programs, investment in R&D, and adoption of knowledge management practices.

Analisis Faktor-Faktor Yang Mempengaruhi Suksesi Keberhasilan Bisnis Keluarga

Family businesses are controlled by family members through blood ties or marriage and reflect characteristics such as family commitment, learning environment, reliability, spiritual strength, and dual leadership. Sustainability in family businesses is considered a core goal of business, but challenges arise from internal conflicts, generational differences, and adaptation to non-traditional methods. Heritage values and family traditions play an important role in in decision making. Factors such as inheritance for generations, risk management, and organizational culture also affect family business identity and performance. A literature review discusses preparation, family relationships, and planning as important factors in family business succession.

Sustainable Development of Chinese Family Businesses: Exploring the Role of Succession Planning in Maintaining Organizational Sustainability from the Perspective of Socioemotional Wealth

Identifying the factors affecting organizational sustainability is a crucial topic in the field of social science and business research. Especially in family businesses, the most crucial issue is how to maintain corporate sustainability across generations. In this regard, succession planning plays a key role in maintaining the sustainable development of family businesses. From the perspective of socioemotional wealth, this study discusses the motivations and consequences of intrafamily succession by measuring the impact of the internal determining factors of succession planning on family business performance. Based on a sample of 281 Chinese family firms, this study uncovers the relationship between succession planning and organizational performance. The core findings of this study include succession planning is positively related to organizational performance in the matter of the successor’s training; succession planning has a positive effect on organizational performance in terms of the successor’s self-preparation; and succession planning is positively correlated with organizational performance in the aspect of the relationship between the successor and business. By illustrating that the formulation of succession planning is an essential pursuit for family businesses to preserve sustainability and socioemotional wealth, the results reveal ways to facilitate succession planning through internal factors in the family business. This study contributes to organizational sustainable development literature, family business sustainability studies, and succession management research by validating the positive relationship between succession planning and organizational performance, indicating that succession planning is a vital driving force for achieving organizational sustainability.

CEO Gender and Family Business Performance: The Moderating Role of Socio-Emotional Wealth

Family businesses are businesses that are managed and/or owned by a family. Like in any other company, the CEO is the manager and is responsible for achieving good performance. But unlike in non-family businesses, women are more represented in leadership positions and are more likely to work their way up. There is considerable disagreement in the literature about whether female CEOs outperform male CEOs. While some studies confirm this, other studies refute it, and other studies find no connection at all. In this study, we therefore investigate whether female CEOs perform better than male CEOs within family businesses. However, given the target group, it is essential not to ignore the influence of socio-emotional wealth (SEW) on this relationship, since family businesses distinguish themselves from other organizational forms with this characteristic. SEW includes the non-financial aspects of a business, such as a desire to maintain family control and family values that are incorporated into the corporate culture. According to SEW theory, family businesses focus more on maintaining SEW than pursuing purely economic prosperity. This can ensure that not all decisions are made with profit maximization in mind. To empirically test our hypotheses, we use a sample of 238 Belgian family businesses. Our results do not show any statistically significant results for the impact of the CEO’s gender on firm performance. What is significant, though, is the positive moderating effect of SEW on the relationship between CEO gender and performance in family businesses. The more SEW retention within a family business, the better the performance will be in the case of a female CEO.

Reputational risk and firm performance: Family versus nonfamily firms in different regulatory environments

This paper explores the relationship between reputational risk and firm financial performance in both family and nonfamily businesses. Relying on an international sample of over 5,000 listed firms from 2007 to 2019, we find that family firms have significantly lower reputational risk, and the impact of reputational risk on financial performance is lower in family firms. However, these findings vary across different macro-regulatory environments. In countries with poor regulatory quality, the effect of reputational risk on performance becomes positive, and family firms strengthen this positive influence. We attribute the findings to socioemotional wealth (SEW) theory and rent-seeking theory.

Familiness and Business Strategy: Unraveling the Moderating Effect of Familiness on Performance in Family Firms

Existing literature has examined several viewpoints in the field of family business research. Nevertheless, the correlation between strategy and performance in family enterprises has not been extensively studied. Furthermore, the extent to which family influence impacts the link between strategy and performance is not well-defined. The distinguishing factor between family businesses and non-family businesses is the concept of familiness, which refers to the unique qualities and talents that stem from family influence. The current body of research focuses on examining the moderating influence of familiness on the link between strategy and performance in family businesses. This study focuses on examining the impact of business strategy on the development of exceptional performance in family firms. Additionally, it investigates if familiness has a moderating function in this connection. This study aims to conduct an empirical analysis of the connection between strategy and performance in family-owned businesses. Additionally, it seeks to investigate the influence of familiness as a moderating factor in this relationship. The research population consists of individuals who own or manage family businesses. A total of 203 owners/managers were chosen using a simple random sample method from the family businesses located in Multan. Data were obtained using a cross-sectional survey, and the hypothetico-deductive technique was employed in the research design. Partial least squares structural equation modeling (PLS-SEM) was utilized for assessing data. The research findings suggest a direct correlation between familiness and the performance of family businesses. The results also reveal that familiness moderates the association between family business strategy and family company performance. The findings of this research have crucial significance for family company owners/managers by underlining the fact that family business strategy’s influence on family business performance may be strengthened by concentrating on the aspects of familiness; power, experience, and culture. This research also contributes to the family business literature by evaluating the moderating influence of familiness on the strategy-performance relationship in a family company setting.

Family embeddedness and next generation aspirations to take over the family business: insights from the MENA region

PurposeThis study delves into the aspirations of young individuals to assume leadership roles in their family businesses. It assesses the impact of family embeddedness and the perception of positive family business performance on succession intentions and investigates potential gender differences in this context.Design/methodology/approachHierarchical multiple regression was determined for utilizing a sample of university students in seven countries from the Middle East–North African (MENA) region (N = 3,908).FindingsThe present study’s findings suggest that embeddedness in the family business has a much stronger role in shaping the succession intentions than previously envisioned. Females are more inclined to take over the family business when they perceive that the family business is not performing well.Originality/valueThis study provides important insights into the dynamic of family business succession intentions and family embeddedness. By providing a better understanding of some of the key drivers of family business succession intentions, it enables families in the MENA region to develop better family plans to engage with their successors effectively.

Unveiling the interplay of psychological capital, family business, and gender on firm performance during COVID-19

This study examines the complex relationships between Psychological Capital, family business, ownership, gender, and firm performance during the COVID-19 pandemic. The study examines the effects of these variables on firm performance and explores the empirical interaction effects. The findings reveal that Psychological Capital positively influences firm performance, supporting the hypothesis that owners with higher Psychological Capital contribute to better business outcomes. Additionally, family business and ownership significantly impact firm performance, indicating that family involvement and concentrated ownership drive organizational success. Surprisingly, the results indicate a negative impact of gender on firm performance, suggesting that firms managed by women are perceived as less successful. The study also explores the interaction effects and finds that the positive relationship between Psychological Capital and firm performance is amplified in family businesses. However, gender does not moderate this relationship, indicating that women Owners face challenges in translating their Psychological Capital into firm performance in the emerging economy of Ecuador. The results provide insights into the complex dynamics within family businesses and underline the need to address gender disparities and promote inclusive Ownership practices. Implications are discussed.

The role of strategic flexibility and dynamic capabilities on family business performance

The role of strategic flexibility and dynamic capabilities on family business performance

Influence of Family Leadership Style on Family Business Performance

Family businesses play a significant role in the global economy, yet leadership styles within families are often unique and complex. Performance in family business has been a focal point concerning the influence of family leadership style on family business performance. This research aims to analyze the influence of leadership style within the family context on family business performance. The study employs a quantitative method with a descriptive-verification approach to collect and analyze data. Quantitative data is obtained through surveys distributed to family members involved in the family business. The research focuses on family businesses owned by Entrepreneurship students at Universitas Pendidikan Indonesia. These family businesses are selected to represent diversity in leadership styles and their business sizes. The results of this study indicate that family leadership style significantly influences family business performance. The findings provide valuable insights into how families can enhance their business performance through effective family leadership styles.

The Effect of Succession Planning and Product Quality Innovation on Business Performance in Family Businesses

Family businesses play an important role in the local economy. The role of succession planning and product quality innovation are key factors that can affect family business performance. This study aims to determine the effect of succession planning and product quality innovation on family business performance. This study uses a quantitative method with a survey as a data collection tool. Data were collected through questionnaires distributed to family business owners. The conjecture of this study is that succession planning has a significant and positive influence on family business performance. This result suggests that companies with a mature succession planning strategy tend to have better performance. In addition, innovation in product quality also contributes positively to business efficiency. Family businesses that actively develop innovative products tend to achieve competitive advantage and better growth. Based on these results, it can be concluded that succession planning and product quality innovation play an important role in improving family business performance. Family businesses that invest in careful succession planning and prioritise product quality innovation are likely to continue to succeed and grow. Therefore, business owners need to pay attention to these important aspects to improve their business performance.

Regional development and family business: a perspective article

PurposeThis perspective article aims to summarise the understanding of the link between regional development and family business and explore potential pathways for further investigations.Design/methodology/approachThis study employed a scoping review methodology which attempts to explore a new topic of study and unveil its main concepts and relationships.FindingsThis study emphasises the need to enhance the cross-fertilisation of knowledge to bridge the gap between studies on regional development and family business. In addition to the traditional research pathways towards discerning the impact of formal and informal institutional contexts and economic and geographical locations on family business behaviour and performance, this perspective article encourages future researchers to delve into the regional-level mechanisms through which family businesses can influence and contribute to regional economic and social outcomes.Originality/valueThis perspective study employs a context theorising lens to examine the connection between regional development and family business.

Corporate social responsibility in family business: Using machine learning to uncover who is doing good

Rapid social and environmental changes continue to highlight the critical role of corporate social responsibility (CSR) in business operations. Research on the determinants of CSR has received widespread attention. However, there has been little focus on family businesses, which play an important function in the economy and differ from non-family firms. Synthesizing the resource-based view (RBV) with the behavioral agency theory (BAT), this study aimed to examine the factors that drive the CSR performance of family businesses from the perspective of the firm and chief executive officer (CEO) characteristics. By comparing the performance of a set of machine learning (ML) techniques, we found that the best predictive model with the lowest mean squared error is the random forest algorithm. The results from the random forest indicated that profitability was the most important attribute of CSR performance, followed by firm size, CEO education, leverage, and board ownership. This study is one of the first to adopt an ML approach to investigate the drivers of CSR performance in family businesses. The novel findings provide a deeper understanding of how the various aspects of a family business firm affect its CSR performance, which can facilitate future research.