Family Business Studies Research Articles

Examining Dark Triad Traits in Formal Leaders and Their Impact on Employee Workplace Stress: A Comparative Study of Family and Non-Family Businesses

This paper aims to explore differences between the perception of dark traits in formal leaders and levels of workplace stress among employees working in family and non-family businesses. Furthermore, we assess if the company nature (family-owned versus non-family-owned) moderates the relationship between the employees’ perception of dark triad traits in their formal leaders and their workplace stress levels. The empirical evidence is provided by a sample of 220 Portuguese employees who responded to a questionnaire that included their perceptions of their formal leaders’ dark triad traits and workplace stress measures. All respondents are employed in small and medium-sized private companies, holding no management responsibilities and under formal hierarchical supervision. The initial ideas that family firms’ employees perceive higher levels of dark triad traits in their formal leaders than non-family firms’ employees and that they also show higher levels of workplace stress than non-family firms’ employees were confirmed. The results also support the notion that higher perceptions of dark triad traits in formal leaders are related with higher levels of workplace stress of employees and that the company nature significantly moderates this relationship. These findings enhance the research literature by addressing two often overlooked aspects in the comparison between family and non-family firms. Additionally, they provide valuable insights into the relationship between dark triad traits in formal leaders and employee workplace stress levels.

Development of a new concept and definition of inheritance risk management in family businesses toward sustainability

This paper examines how family businesses manage risks when transferring wealth across generations to ensure sustainability. It develops a thorough framework focusing on maintaining family legacies and business continuity. Key challenges identified include managing control, balancing interests, planning succession, preparing future leaders, and maintaining respect for leadership. The study uses a quantitative method to show that managing risks related to the owner's death is crucial. The findings suggest that managing inheritance risks and achieving successful transitions are vital for the sustainability of family businesses. Inheritance Risk Management (IRM) also helps mediate the impact of legacy risk management on sustainability. The paper recommends creating guidelines, launching awareness campaigns, offering specialized courses, and promoting family governance to improve business performance and social responsibility. Additionally, this research contributes to family business studies by enhancing understanding of inheritance risks and setting the stage for ongoing research and best practices development. These strategies aim to equip family businesses to meet current needs and future challenges effectively.

Institutional effects on family business internationalization: a systematic review

Abstract Family firms play a vital role in the global business landscape, significantly impacting their home countries GDP. These firms diverge from non-family counterparts in their internationalization strategies, yet they stand to gain substantial benefits from international expansion. Beyond economic considerations, family resources and values introduce non-economic factors that challenge traditional economic theories. This study leverages an institutional approach to illuminate the multifaceted influences shaping family firms’ internationalization, encompassing positive and adverse dynamics. The integration of institutional theory marks a recent shift in understanding family firm internationalization, encompassing institutional and economic geography perspectives. To foster discourse and guide future research, this paper systematically reviews peer-reviewed articles covering over a decade, from 2010 to 2023. It identifies formal and informal institutional elements, alongside economic geography factors, that either facilitate or impede family firms’ internationalization. This review underscores existing knowledge gaps at the nexus of institutional theory, economic geography, internationalization, and family business studies. Notably, the systematic literature review uncovered a limited corpus of only 41 articles, indicating the need for more research exploring the synergy between economic geography and institutional factors in the context of diverse internationalization strategies. Furthermore, the review highlights the underexplored terrain within social institutions and economic geography, revealing a notable gap in the extant research.

Risk management during the COVID-19 crisis: insights from an exploratory case study of medium-sized family businesses

Current crises pose uncertainties and threats to family businesses (FBs), demonstrating the importance of risk management (RM). Based on an explorative case study of nine Austrian medium-sized FBs, we examine the design of RM in FBs and how the COVID-19 crisis impacts their RM practices. The findings highlight that the medium-sized FBs analyzed generally rely on both formal and informal RM, and that these structures are strongly connected to their unique stewardship culture. In the wake of the COVID-19 crisis, formal RM gained increased relevance, prompting FBs to allocate additional resources for its professional upgrading. Likewise, when confronted with heightened risks during the COVID-19 crisis, informal practices such as family bonds and close ties to employees and customers are not only reinforced but also proven highly effective, resulting in increased loyalty. The COVID-19 crisis serves as a compelling illustration of how both informal and formal RM methods have grown in strength. The synergy between these RM methods enhances risk awareness within FBs, ultimately fostering resilience during unpredictable and uncertain times.

Heritage and Legacy in Small Family Firms in Latin America

Family businesses in Latin America often have deep roots and play a significant role in the region's economy. The heritage and legacy of small family businesses in Latin America can be understood through several key aspects. One is the historical context; many small family businesses in Latin America have a long history that spans several generations. Another is influenced by the region's rich and diverse cultural heritage. Cultural values, such as a strong sense of family, community, and tradition, can shape the decision-making processes within these businesses, as well as the adaptation to Economic Challenges. At the same time, Latin America has faced economic challenges and fluctuations over the years. Small Family businesses in the region have often demonstrated resilience and adaptability in navigating economic uncertainties. In this Special Issue about Heritage and Legacy in Small Family Firms in Latin America, we have assembled a compilation of articles by researchers who interact closely with business families throughout Latin America. Building on a collaborative research framework involving authors from several countries, this effort accounts for the increasing number of family business studies in Latin America. The authors explore diverse issues and processes within family businesses in the region.

Study of family business in Kazakhstan

Study of family business in Kazakhstan

First (latent) generation and family business: a perspective article

PurposeFamily businesses are characterized by the simultaneous presence of the family and the business system. The literature analyses sporadically the family support during the creation of a new family business. For this reason, the aim of this article is to offer new reflections and theoretical approaches in the field of family business studies. In fact, the study focuses on the first generation and the relationship and support with the previous generation (latent generation).Design/methodology/approachThis perspective paper is based on a concise review of the literature.FindingsThe results of this offer a state of the art, synthesized and integrated, on the first generation to proposal the reader new knowledge on the first generation and relationships with family members.Originality/valueThis perspective paper distinguishes between the first generation formally engaged in the family business and the latent generation. The authors identify latent generation as a generation coeval with the first that supports the entrepreneur without being formally engaged in the family business. This study summarizes existing research on the first generation, highlighting the crucial role of the latent generation. Considering the latent generation determines an implicit and tacit generational transition not yet considered in the literature on the topic This study provides new research directions for scholars and managers to understand the entrepreneurial behaviors of families, family members and family businesses.

Women in the family business: self and family's influence on their perceptions of financial performance

PurposeThis study examines how women and men in family firms respond differently when asked about perceptions of financial performance. The study poses three research questions around this topic: Are there differences among female and male responses, do those perceptions change if men and women are leaders of the family business and does the family's socioemotional wealth (SEW) influence such responses.Design/methodology/approachThis study uses a quantitative research design to determine if financial performance perceptions of family firms differ based on the gender of the respondents and their leadership position, and second, if SEW's dimensions influence those perceptions, using data from the Successful Transgenerational Entrepreneurship Practices (STEP) survey in 2015.FindingsThe findings indicate that due to the lack of theory regarding gender as a social construct, empirical data collected for family business studies should take under consideration if respondents are women, men, leaders and the family influence in the family business when collecting data from surveys and asking for perceptions of financial performance. Results show that women in family businesses tend to have more positive perceptions of financial performance than men, but if women are leaders, those perceptions not only decrease but become negative. In addition, the family's socioemotional wealth (SEW) exacerbates those tendencies.Originality/valueThis study contributes to the literature by helping to understand the potential limitations of subjective measures of financial performance, as women increasingly become family business leaders. It also contributes to gender studies by demonstrating that there is a lack of gender theoretical perspectives specifically, gender roles, suggesting that differences in self-promotion and self-evaluation between men and women leaders of their family firms. Finally, this study adds to the study of SEW as a multidimensional construct by showing the different effects, or lack of them by each dimension and showing the strong effect of family continuity on the perception of financial performance.

Family firms, Regional Competitiveness and Productivity: A Multilevel Approach

ABSTRACT As not all firms benefit to the same extent from regional competitiveness, this article investigates the influence of the regional context on the productivity of a sample of family and non-family manufacturing firms in Spain. Using a multilevel approach to account for the nested structure of the data, and a composite indicator of regional competitiveness, to capture the spatial endowment of tangible and intangible resources, we found family firms to be more sensitive to the regional context than non-family businesses. Cross-level interactions show that family firms achieve higher productivity gains from their location in more competitive regions than their non-family counterparts. This result is in line with our theoretical arguments postulating the unique social capital of family firms which allows them to benefit most from location advantages. Implications for regional and family business studies, as well as policymakers, are discussed.

Exploring Family Businesses Succession in Indonesia: The Knowledge Management Lenses

This study aims to formulate knowledge management strategies within the scope of family businesses to achieve succession success. The researchers examined knowledge management practices in family businesses in Indonesia, which have a collectivistic culture and contribute to family business literature. Successor characteristics were measured using an exploratory qualitative case study approach using Likert scales and semi-structured face-to-face interviews to support data. The study's results found that successor characteristics in family businesses positively influence all succession phases, and the average values in all phases meet good criteria. Suggestions for future researchers, this family business study is limited to successful intergenerational transfer cases. It does not examine failed cases, so it needs to expand the sample to a wider range of family businesses undergoing transition.

The Influence of Corporate Social Responsibility on Financial Performance: Study of Family Business in Central Java

The Influence of Corporate Social Responsibility on Financial Performance: Study of Family Business in Central Java

Beyond Charity: Family Foundations Perpetuating Longevity of Family Businesses

Family foundations are prevalent, but seldom have researchers examined its function and influence as an ownership vehicle for family businesses. This paper advances an institutionalized reference-point theory to explain family foundation’s role on perpetuating family business. The theory posits that these foundations cultivate family members long-term commitment to corporate responsibility which enhances the identification and socio-economic wealth creation of business families. In a longitundinal study of public-listed family businesses (1996-2016) in Taiwan using survival analysis, the presence of family foundation not only itself promotes, but also, as a moderator, heightens the positive effect of family ownership on longevity of family firms. Qualitative evidence from interviewing professional accountants affirmed that family foundations strengthened the identification of members to the family businesses. Further, while their purpose was for charity and not control of the business, establishing the foundation shifted family members’ orientation for the long-term, which resulted in longer survival.

Effective Resources to Mobilize Women Entrepreneurship: A Success Case Study of Family Tourism Businesses in Tioman Island, Malaysia

Family-owned tourism businesses have unique resources to empower women in remote island destinations. There is limited literature that postulates the resource acquisition to mobilize women entrepreneurs within the family business study. Hence, this paper provided empirical knowledge on family tourism businesses methods to mobilize women entrepreneurs in rural Tioman Island in Malaysia. This study employed a qualitative case study approach by applying in-depth interviews for data collection. A successful case study was carried out in Tioman Island with 11 women entrepreneurs who have been actively involved in family tourism business operations since the 1980s. The resulting opportunities from the family organization setting, familiness nature and tourism industry as a setting modifier have greatly mobilized women into family tourism entrepreneurship. Thus, this case study provided comprehensive information on family tourism businesses’ implications on women entrepreneurs’ competitiveness in Tioman Island.

How to observe business operations: An empirical study of family business.

The direct observation method is commonly used for data collection in family business case studies. Nevertheless, in research on family business succession that is mainly based on retrospective data, it is difficult to directly observe an event or situation at a given time. This paper thus first explores the application of observation data in the published research results of some family business case studies through a literature review. It then describes our observation methodology, i.e., sampling process, method, observation process, and reevaluation of our interview data, through a case study. Finally, the conclusion offers suggestions for using these observation methods, i.e., employing different types of observation, by considering running time and financial cost, familiarizing observers with various observation occasions, and seeking the assistance of relevant professionals for a research topic.

Deconstructing Socioemotional Wealth: Social Wealth and Emotional Wealth as Core Properties of Family Firms

ABSTRACTThe concept of socioemotional wealth (SEW) has become a dominant perspective in family business studies. In this article, we review the SEW literature, the explanatory power of SEW in family firm behavior, and the heterogeneity of family firms. Although we find that SEW distinguishes the behavior of family firms from that of nonfamily firms, the concept has been used and operationalized differently across studies. The few studies that measure SEW directly do not find clear and consistent explanatory power of the construct. Moreover, not many studies are conducted in Asian countries such as Japan, Korea, and China, raising the question as to whether the concept applies equally across institutional and cultural contexts. This article takes a pragmatic perspective on SEW by discussing and distinguishing between key dimensions of social wealth and emotional wealth, which we believe can enhance understanding of the behavior and heterogeneity of family businesses. Based on our deconstruction of the SEW concept, we propose various directions of future research.

The role of filial piety in career interest alignment, identity alignment, and affective commitment: Evidence from Indonesia

In Indonesia, where most business organizations are family-owned, culture influences family employees’ behavior. Filial piety, or honoring the seniors, is considered a significant cultural value that motivates the family employees to be committed to the business. This study aims to test the effect of filial piety on identity alignment, career interest alignment, and affective commitment. Quantitative analysis is conducted to test the hypotheses of this study using purposive sampling based on questionnaire survey responses from 270 junior family business employees. The study employs Partial Least Square-Structural Equation Modelling (PLS-SEM) analysis with the SmartPLS software to test the hypotheses. The test result shows that: 1) filial piety has a positive effect on identity alignment and career interest alignment, 2) identity alignment has a positive effect on affective commitment, and 3) career interest alignment has a positive effect on affective commitment. The study illustrates how filial piety affects junior family employee behavior, an issue that has not been addressed before in Asian family business studies. Acknowledgment The publication of this study is supported by Indonesia International Institute for Life Sciences (i3L) LPPM fund.

When do Non-financial Goals Benefit Stakeholders? Theorizing on Care and Power in Family Firms

Research studying the effects of non-financial goals on stakeholder relationships remains inconclusive, with scholars disagreeing on which goals increase or decrease a firm’s proactive stakeholder engagement (PSE). Instead of examining which goals act as forces for good or evil, we shift the focus of recent discussions by emphasizing the mechanisms that can explain the positive and negative stakeholder outcomes of non-financial goals under the umbrella of one theoretical lens. We do so by introducing an ethics of care perspective. Specifically, we first show that four of the five most distinctive non-financial goals of family owners jointly stipulate care-based morality, which likely enhances PSE. However, we subsequently argue that one goal, namely, the wish to exert power and influence, interacts with other goals and related care-based morality to lower PSE. Finally, we show how female family directors temper these interactions. Our insights into the additive and interactive effects of non-financial goals on PSE contribute to corporate social responsibility research, to the organizational goal literature, to family business studies and to work drawing on care ethics in management studies.

Advancing small family business studies: beginning evidence of psychological capital for approaching creativity

Advancing small family business studies: beginning evidence of psychological capital for approaching creativity

Advancing small family business studies: beginning evidence of psychological capital for approaching creativity

Advancing small family business studies: beginning evidence of psychological capital for approaching creativity

Total quality management as driver for internationalization: a case study of a small family firm

PurposeThis study investigates the relationship between Total Quality Management (TQM) and internationalization in small family firms, focusing on the role that the dimensions of TQM may have as strategic resources to implement successful internationalization strategies.Design/methodology/approachBuilding on the Resource-Based View (RBV), the study is based on a single case study, and data were gathered through in-depth interviews with the family owner-manager.FindingsFindings show that small family businesses that aim to operate in international markets have to invest constant attention toward TQM by developing strategies able to achieve excellence. More in detail, for small and medium family firms, TQM represents a driver to internationalize. Therefore, family-owned managers sustain that internationalization success depends on the increasing attention exhibited toward the following dimensions of quality, specifically on three main pillars: relationships, professionalization and long-term vision, which appear to be strategic resources in international markets. An interpretive model is proposed with a set of propositions.Research limitations/implicationsScholarly implications are threefold. First, findings contribute to the RBV theory by introducing the long-term vision as a strategic resource able to activate a loop between TQM and internationalization success. Second, results contribute to TQM literature, highlighting that it represents a driver to internationalize, and following a long-term perspective, its enhancement is stimulated by internationalization. Third, findings contribute to family business studies, underlining the relevance done of owners on professionalization as a strategic resource to ensure excellence and obtain success in overseas markets. The main drawback refers to the fact that results stemmed from one single case study. Further studies could deepen the analysis on multiple cases.Practical implicationsThe proposed case study represents a best practice and can stimulate other entrepreneurs and consultants to invest in TQM to thrive internationalization strategies.Originality/valueThe current study, elucidating that TQM is the driver to stimulate family business internationalization, proposes an interpretive model to study TQM and internationalization in small and medium family firms.