Family Business Research Research Articles

Socioemotional wealth in family business research: A systematic literature review on its definition, roles and dimensions

This study aims to depict the current state of research on socioemotional wealth (SEW) in family businesses considering its definitions, roles, and dimensions. Using the SPAR-4-SLR protocol (Paul, Lim, O’Cass, Hao, & Bresciani, 2021), we develop a systematic review of literature on SEW covering 74 studies published between 2007 and 2022. We propose a comprehensive definition of SEW based on four nonfinancial aspects and an association model that reviews the roles of SEW as an antecedent, a consequence, or a moderator. We also offer a new conceptual model for SEW comprising a general dimension and ten specific dimensions to facilitate empirical inquiries into areas beyond those considered by extant SEW models. Finally, we highlight avenues for future research, emphasizing opportunities to advance the understanding of SEW in family business research.

Opening up the black box of family entrepreneurship across generations: A systematic literature review

What makes some families more entrepreneurial than others? How are they able to nurture entrepreneurship across generations? These are fundamental questions for family business and entrepreneurship research. In particular, the multigenerational dimension of entrepreneurial families (EFs) and the new family logics that emerge as the family grows may lead to different types of entrepreneurial activities. To shed light on these questions, we conduct a systematic literature review of 90 peer-reviewed articles focusing on the characteristics and behaviours of EFs, family members and their business activities. Specifically, we first identify and categorise the family-related factors characterising EFs across generations. Second, we link the identified factors to different types of entrepreneurial activities pursued as the generations advance, distinguishing two dimensions: mode of organising (internal vs. external), and degree of relatedness (related vs. unrelated). Finally, we highlight the main gaps in the literature and provide a future research agenda.

Understanding customer engagement in family firms: A conceptual framework

The customer engagement (CE) concept has been presented to encourage active customer contribution to the firm that can add value to both firms and customers. While this concept is now part of a rich body of knowledge in the marketing strategy literature, research in the family business stream has not paid attention to it. Building on the CE concept, while integrating the familiness concept from the family business research, we advance a conceptual framework to establish CE in family firms. This study uses a methodological triangulation approach (i.e., a combination of literature review, popular press articles, and managerial insights from interviews) as the study approach to develop the framework. Using grounded theory to analyze the data collected through the triangulation approach, this study identifies the relevant factors that are used in the framework. Specifically, we propose that firm-related factors (i.e., adaptive marketing capabilities, and regenerative capability) employed by the family firm can lead to the creation of a positive family firm experience, a new concept we introduce in this study. Particularly, we propose that the firm-related factors have a diminishing positive effect on the family firm experience. We also identify moderators (i.e., vision disharmony, role overlap, and ethnicity) that influence the diminishing positive relationship between firm-related factors and family firm experience. Further, we also propose that the spillover in family firm conflict moderates the influence of family firm experience on satisfaction and emotional attachment, ultimately leading to CE. Based on this framework, we advance research propositions that discuss the creation of positive family firm experiences and identify areas for future research.

One finding is no finding: Toward a replication culture in family business research

Our goal is to foster the development of a healthy replication culture in family business research. Replication, which advances theory by confronting existing understanding with new evidence, is of paramount importance in creating a meaningful cumulative knowledge base. In the family business field, however, as in many other fields within the broader management literature, dedicated replications are largely absent. After a brief analysis of the likely causes and consequences of our collective avoidance of replication studies, we examine four types of replication of particular importance to the field and provide guidelines and recommendations for family business scholars interested in conducting such research. We invite journals and their editors to reflect on the role they can play in changing the incentive structures to conduct and submit useful replication studies and provide actionable suggestions for improvement. We illustrate contemporary examples of family business knowledge advancement through replication research.

The interplay between digital social capital and family-owned SME performance: a study of social media business networks

PurposeThis paper aims to examine the relationship between being members of social media business networks and SME performance by comparing business performance between family-owned SMEs that are members and non-members of social media business networks.Design/methodology/approachThe analysis empirically draws on cross-sectional data of 9,292 English and Welsh family-owned SMEs from the UK's Government Small Business Survey 2015. Propensity Score Matching (PSM) is applied to control for selection bias and differences in firm characteristics before comparing business performance, measured in terms of annual turnover, sales-growth intention and innovation between family-owned SMEs that are members and non-members of social media business networks.FindingsThe findings show that family-owned SMEs that are members of social media business networks are more likely to have higher prior turnover and to grow their sales than non-members. Also, they are more likely to report being innovative in products and processes than non-members. The empirical results acknowledge the importance of online business networks and digital social capital on enhanced family-owned business performance.Originality/valueThis paper is the first to explore the comparative analysis of business performance between family-owned SMEs that are members and non-members of social media business networks. This paper is important for the development of family business research by providing a comprehensive evidence-based analysis regarding the importance of online business networks to improve family-owned business performance, given the significant contribution of digital business activities to the UK economy.

Family business system dynamics in the aftermath of in-law entry: A reflection on emotions and strategic change

In the family business system, the family and business subsystems overlap, thereby reciprocally and dynamically influencing each other. When a son- or daughter-in-law enters the family, the equilibrium of the family business system alters in terms of conflicts and emotions. In this study, we embrace family systems theory to conceptually devise how child-in-law entry in the family spurs strategic change in the business subsystem. Building on this speculation, we introduce a multi-level framework of the emotional and relational mechanisms that unfold at the family-business interface. Our study offers insights to family business research, family systems theory, and strategic management, as well as outlining promising directions for future research.

The role of trust in family business stakeholder relationships: A systematic literature review

An increasing number of studies emphasize the importance of trust between family businesses and their stakeholders. Surprisingly, family business research still lacks a comprehensive understanding of the role of trust in stakeholder relationships; whereas another field—that of organizational behavior—has examined trust-building in depth. Thus, in order to identify specific research gaps and to determine future research directions, we systematically review the literature on trust in the field of family business, as well as in organizational behavior research. Both streams pursue different, hence complementary, approaches in terms of the type of trusting stakeholders, theory building, nomological network (antecedents, components and consequences of trust), level of analysis and type of trust. Whilst family business research maintains a focus on the consequences of trust, organizational behavior focuses rather on its components. We formulate a set of propositions and future research questions as to how insights from organizational behavior research can help to fill existing research gaps and advance our understanding of trust in the management of family business stakeholder relationships.

What Leads to Impactful Family Philanthropy? Family Incubation as a Missing Link

Despite a wealth of research on philanthropy, gaps remain with respect to how enterprising families successfully navigate their giving over time. Impactful philanthropy is needed, and now more than ever ? in the post COVID-19 world in which society at large is facing a major global health and economic crisis. Thanks to an in-depth multiple case study of ten impactful enterprising families, we induct a theoretical framework that explains how enterprising families navigate their philanthropic activities successfully. We identify a process model of impactful family philanthropy, introducing a new construct of family incubation. Overall, we contribute to the literature on contemporary philanthropy, family business research as well as entrepreneurship, crystallizing the pivotal role of family incubation in the impactful family philanthropy, and shed light on the dynamic evolution of family philanthropy.

Socioemotional Wealth in Family Business Research: A Systematic Literature Review

This study aims to depict the current state of research on socioemotional wealth (SEW) in family businesses considering its definitions, roles and dimensions. We develop a systematic review of literature on SEW covering 56 studies published between 2007 and 2021 to propose a comprehensive definition of SEW based on four non-financial aspects, as well as an association model that reviews the roles of SEW as an antecedent, consequence or moderator. We also offer a new conceptual model for SEW comprising a general dimension and ten specific dimensions to facilitate empirical inquiries into areas beyond those considered by extant SEW models.

The Brightness of the Founder’s Shadow: Not an Oxymoron!

Most studies on family firms focus on the implications of one generation’s actions on the next, since memory is still fresh and the actors can still be accessed. Through an inductive study of 27 family firms, we develop theory about how the implications of the founder’s actions and beliefs go beyond one generation, potentially enduring even when the business no longer belongs to the founding family. Family business researchers typically study the practices of the founding family that sustain the founder’s influence. We reveal that the founder’s shadow is perpetuated by the firm’s stakeholders, especially the community of employees. We discuss the implications of the founder’s continued presence, even when absent, and suggest ways to use it to reinforce collective identity. Nonfamily firm managers might also learn from the positive outcomes of family firms using the founder’s shadow to strengthen collective identity rather than discarding their founding history.

Enhancing Enterprise Family Social Capital Through Family Governance: An Identity Perspective

Despite significant discussion surrounding the benefits of family social capital in family business research, precisely how it is built and maintained by enterprise families remains unclear. To explore how and when family governance practices can avoid the decay of enterprise family social capital, we examine the mediating role of family identity and the significance of both generational and business ownership. Testing of our moderated mediation framework using data from 175 enterprise families globally suggests that family governance can stimulate family social capital by strengthening family identity. We also find a negative moderating role for business ownership in this indirect relationship.

Dispersion of Family Ownership and Innovation Input in Family Firms

Innovation is an investment in future growth and development, and it is critical for family businesses to maintain a competitive advantage. Different types of innovation inputs have different uncertainties, advantages, and risks. Product innovation and process innovation are two distinct types of innovation that necessitate significantly different organizational resource allocation and risk taking. Ownership is the source of decision-making authority, and the dispersion of intra-family ownership influence goal preferences, risk taking, and resource allocation. We investigate the effect of intra-family ownership dispersion on the decision preferences of two unique types of innovation inputs by distinguishing between product and process innovations. The greater the concentration of ownership within the family, the more likely it is that the proportion of product innovation input is higher than the proportion of process innovation input. We further discuss the moderating effects of both the proportion of family directors and collective decision-making mode on the different innovation input decisions by family firms. Using a sample of 882 Chinese small- and medium-sized family firms from the 2015 All-China Federation of Industry and Commerce, we find support for these proposed relationships. The implications of these findings extend to both family business and innovation research.

The influence of corporate governance on the performance of family-controlled firms: exploring the effects of legal jurisdiction

PurposeThis study investigates effects of corporate governance on the financial performance of family-controlled firms and how these effects differ between common law and civil law jurisdictions.Design/methodology/approachThis study applies a number of corporate governance measures to the largest 243 publicly listed family-controlled businesses worldwide from 2009 to 2018. The corporate governance measures include board independence, board gender diversity, corporate governance index (CGI) and the percentage of family ownership.FindingsThe empirical evidence indicates that board independence improves financial performance; this positive effect is more pronounced in common law than civil law jurisdictions. Board gender diversity has a negative impact on financial performance under common law but a positive impact in civil law jurisdictions. Moreover, the CGI and family ownership structure are positively associated with financial performance, and no difference is found between the two jurisdiction types. In addition, family ownership negatively moderates CGI in civil law countries only.Originality/valueThis study provides new insight on the relevance of considering jurisdictional differences when examining the effect of corporate governance on performance. The study also addresses important concerns in family business research relating to unobserved heterogeneity and endogeneity. Implications of these for research and practice are discussed in the paper.

The influence of digital entrepreneurship and entrepreneurial orientation on intention of family businesses to adopt artificial intelligence: examining the mediating role of business innovativeness

PurposeThis study aims to investigate the adoption intention of artificial intelligence (AI) in family businesses through the perspectives of digital entrepreneurship and entrepreneurship orientation.Design/methodology/approachThe study examines contributing factors explaining the adoption intention of AI in the context of family businesses. The developed research model is examined and validated using structural equation modelling based on 631 respondents' data. Purposeful sampling is used to collect the respondents' data.FindingsThe proposed model included two endogenous (i.e. business innovativeness and adoption intention) and six exogenous variables (i.e. affordances, culture and flexible design, entrepreneurial orientation, generativity, openness and technology orientation) through ten direct paths and three indirect paths. The results depicted the significant influence of all the exogenous variables on the endogenous variable reflecting support of all the hypotheses. The business innovativeness partially mediates the relationships of culture and flexible design, entrepreneurial orientation and technology orientation with adoption intention. Further, the results demonstrated a model variance of 24.6% for business innovativeness and 64.2% for adoption intention of artificial intelligence in the family business.Research limitations/implicationsThe study contributes to theoretical developments in entrepreneurship and family business research and AI's theoretical progress, especially to digital entrepreneurship.Originality/valueTheoretically, it contributes to the literature of entrepreneurship, particularly digital entrepreneurship. Additionally, the research model adds to the role of entrepreneurial orientation and digital entrepreneurship in the emerging family entrepreneurship literature. Considering the scarcity of research in this field, the empirically validated model explaining critical antecedents of AI adoption intention in the family business is a foundation for discussion, critique and future research.

Human resources and mutual gains in family firms: New developments and possibilities on the horizon

Human resources are paramount to family firms and to families in business because they are essential for achieving human flourishing and building family businesses that last for generations. Despite the increasing focus on HR in recent years, our understanding of the drivers, processes, and outcomes of family firm HR practices is still in its infancy. As a result, the development of useful theory has opportunity to grow. The aim of our Special Issue is to demonstrate the power of the mutual gains perspective to advance actionable insights around HR issues in family business scholarship and practice. Toward this aim, this Special Issue presents five research articles that have taken the mutual gains perspective to heart in their own ways, making significant contributions not only to the family business field but also to the HRM domain and beyond. Inspired by, but also going beyond the articles in this Special Issue, we develop concrete ideas and questions that flesh out new developments and possibilities on the horizon, using the following question as a leitmotiv: “How can family business research and practice help create healthy, flourishing family firms for flourishing people (family and nonfamily), taking into account the heterogeneity of family firms and families in business?”

Entrepreneurial Leadership in Austrian Family SMEs: A Configurational Approach

This article explores the role of stewardship practices related to entrepreneurial leadership in turning entrepreneurial orientation (EO) into family firm performance while considering its environmental context. Family business research has not fully investigated how the EO–financial performance relationship depends on configurations of internal and external factors which establish strategic fit. We argue that family firms can overcome the often-highlighted paternalism-entrepreneurship paradox by employing stewardship practices related to entrepreneurial leadership (internal factor), which in turn can help them leverage strategic fit between EO and dynamic environments (external factor). The results of a survey of 162 Austrian small and medium-sized family enterprises (family SMEs) show that family SMEs can only profit from EO under certain configurations of internal and external factors. Employing stewardship practices related to entrepreneurial leadership turns out to be an efficient and necessary condition for transforming EO into performance. Environmental dynamism is, furthermore, a double-edged sword facilitating and impeding the transformation of EO into performance. These findings contribute to existing research by shedding light on the role of stewardship practices in establishing strategic fit in entrepreneurial family firms.

Family Social Capital in Family Business: A Faith-Based Values Theory

When this study was initiated in 2008, the concept of family social capital was new to the family business discipline. This paper summarizes in-depth qualitative research grounded in owning family experience to understand the nature and source of owning family social capital. Exploratory research began with roundtable discussions among family business owners, advisors, and researchers to understand how owning families sustain positive relationships characteristic of family social capital. These discussions revealed that some family business owners rely on their family faith to sustain and establish ethical norms. A follow-up review in the family studies literature revealed that many families rely on family faith practices and faith-based narratives to reinforce ethical norms that strengthen family relationships. Based on these findings, researchers developed hypotheses to guide additional research. Four owning families affiliated with different Christian denominations participated in in-depth qualitative research that supports hypotheses. Interviews and archival data revealed very similar faith-based practices, beliefs, and values across the four owning families. And additional qualitative evidence indicated positive connections between values-based family social capital and family owner succession, business performance, and community support. Theoretical relationships derived from qualitative data are summarized in a Faith-Based Values Theory of Family Business.

What to green: Family involvement and different types of eco‐innovation

AbstractResearch on the relationship between family involvement and eco‐innovation presents conflicting results. To address this issue, this study explores the role of family involvement in eco‐innovation by dividing it into pollution prevention and cleaner production types. We propose that family involvement positively relates to pollution prevention eco‐innovation, but negatively relates to cleaner production eco‐innovation. Moreover, we explore the boundary conditions of the proposed relationships. We also contend that internal social capital positively moderates the relationship between family involvement and eco‐innovation in both types of eco‐innovation, while external social capital exhibits positive and negative moderating impacts on pollution prevention and cleaner production, respectively. Data from Chinese listed firms from 2007 to 2019 support these arguments. This study adds to the family business research and eco‐innovation literature by providing a more comprehensive view of the role of family engagement in eco‐innovation.

A Survey of Asian Family Business Research*

AbstractWe survey the literature on family firms with a focus on Asian countries. We begin with identifying three key motivational drivers of international research on family business—their dominance, relative performance, and extent of family embeddedness in the business. Second, we provide a brief survey of family firms in eight Asian economies with a focus on the history and current challenges faced by family firms in each country. Third, we document the variety of family firm definitions used in the literature and the resulting difficulty in drawing inferences due to a lack of definitional consistency. Fourth, we discuss the strategic advantages family assets such as legacy and networks bring to family firms in the Asian context. Fifth, we identify some unique challenges family firms face in their countries, and provide examples of how ownership and succession structures mitigate these challenges. We close this survey by suggesting some open research questions relevant for Asian family firms.

СІМЕЙНИЙ БІЗНЕС УКРАЇНИ: РОЛЬ ОСВІТНЬОГО СЕРЕДОВИЩА У ФОРМУВАННІ ПРОФЕСІЙНИХ КАДРІВ

Education as a purposeful cognitive activity of people to acquire knowledge, skills or competences, or their improvement, is considered by us as one of the key factors on the way to legitimization and further development of family business in Ukraine. To implement these issues, it is necessary to develop national curricula, determine the qualification standards of specialists relevant to this field of activity and to distinguish the definition and concept of "family business" in a separate area of domestic research. The purpose of family business research in any country is to study the patterns of family business development, to identify its national characteristics, problems of functioning, causes of their emergence and to identify effective strategies for solving problems in the context of global trends. We have explored the timeline of professional education in family business in the world, and found that this process began in the late 1980 s. The Matrix of Disciplines and Knowledge has been published on the recommendation of the Family Firm Institute (FFI). The main components of the educational environment of Ukraine in the professional training of family business professionals have been identified, systematized and characterized. We can say that the training of family business professionals in Ukraine is carried out mainly through business schools, distance learning, self-study, transnational education and stakeholders, in the complete absence of vocational, higher and postgraduate education. Higher professional education is capable of securing the acquisition of a complex of competencies as the realizing abilities of future specialists in family business. The national science is obliged to supply topical theoretical material for educational programs, to develop the methodology of family business research, to provide open access to practical results in accordance with the scheme "science - education - family business". Effective work of the scientific and educational communities is a decisive factor in the formation of professional staff for the country's family business.vironment in the formation of professional staff.