Family Firm Research Research Articles

Unpacking Saudi Family Firm Performance Benefits of Entrepreneurial Orientation, Digitalization, Ambidexterity, and Involvements

This study aims to enhance family firm research by introducing contemporary concepts such as entrepreneurial orientation, digitalization, and ambidexterity. It develops hypotheses to examine their impacts on family firm performance, while also exploring the influence of family and generational involvements on the relationship between entrepreneurial orientation and family firm performance. Furthermore, the study investigates the mediating role of innovation ambidexterity in the relationship between entrepreneurial orientation and performance. Using a quantitative approach, this study analyzed data from 256 Saudi family firms through structural equation modeling (SEM). The findings indicate that both firm digitalization and entrepreneurial orientation significantly affect innovation ambidexterity. Additionally, entrepreneurial orientation and innovation ambidexterity have significant impacts on family firm performance. However, firm digitalization does not demonstrate a significant effect on family firm performance. Moreover, innovation ambidexterity mediates the relationship between digitalization (fully) and entrepreneurial orientation (partially) with family firm performance. This research highlights the importance for family firms seeking to combine entrepreneurial orientation with a high degree of digitalization to explore and leverage innovative practices, especially when family involvement holds greater significance than generational involvement. These findings reinforce the notion of revitalizing entrepreneurial orientations by involving new, well-educated generations. The study also calls for further empirical research on the potential of Saudi family firms and their generations to engage in entrepreneurial behaviors, ensuring their sustainability and modernization in the digital era.

Succession and gender dynamics in family firms – A systematic literature review and future research agenda

The influences of gender relations and gender dynamics within family firm succession have been widely studied in recent decades. However, there have been few attempts to synthesise existing results in the field. Thus, this article aims to provide a systematic literature review focusing exclusively on the gendered issues related to family firm succession processes. A comprehensive analysis of 57 journal articles extracted from the Scopus database was conducted. As a result, (1) the topics of gendered influences on daughter’s succession in family firms, (2) gender and succession processes in family firms, and (3) gender and intra-family relationships in family firm succession are identified as the central areas. Based on these findings, a future research agenda is outlined. The paper contributes to the field of family firm research by highlighting the research trends in the gendered analysis of family firm succession, and by pointing out under-researched areas that merit further exploration.

Advancing Family Firm Research: The Importance of Multilevel Considerations

Advancing Family Firm Research: The Importance of Multilevel Considerations

Microfoundations in Family Firm Research: A Review and Agenda for Theoretically Driven Future Inquiry

Microfoundations research, generally conceptualized as explaining macro concepts and relationships in terms of micro-level behaviors and interactions, has been argued as critical to knowledge-building. Thus, we reviewed the family business literature to assess the state of microfoundations knowledge. Results indicate most research does not examine all microfoundational links. In addition, much of the research lacks a theoretical foundation. To provide structure to guide future inquiry, we offer theoretically-driven directions for family business research for each microfoundation link. This will help prevent microfoundations knowledge from developing in a disjointed manner, and allow future research to build more systematically.

Exploratory Innovation in Family-Owned Firms: The Moderating Role of Digital Search

Family firm research agrees that family involvement in ownership gives rise to idiosyncratic innovation behaviors. However, whether family ownership fosters or hampers innovation is still debated because the distinction among the types of innovation outcomes has been often overlooked. To address this gap, we focus on exploratory innovation intensity as innovation outcome (i.e., the ratio between exploratory innovations and all the innovations developed by a firm) to improve our understanding of the family ownership-innovation relationship. Rooted in socioemotional wealth and social capital theories, our arguments posit that family ownership negatively influences exploratory innovation intensity. Recalling the literature on search and recombination, we further propose that this relationship is positively moderated when family-owned firms rely more heavily on digital, information and communication technologies (ICT) related knowledge components during the innovation process (i.e., on a digital search). A panel data analysis of 504 US public limited companies supports both our hypotheses. This article responds to calls for distinguishing exploitative and exploratory innovation outcomes in family firm research. Furthermore, it adds to the digital innovation research by studying the role of digital search as a contingency factor in the pursuit of exploratory innovations and, relatedly, contributes to the literature on search and recombination by underlying that the ICT domain is a relevant search space where to search knowledge to innovate.

Digital innovation in family firms: The roles of non-family managers and transgenerational control intentions

AbstractDigital innovation, i.e. the creation of products and services, processes, or business models on the basis of digital technology, represents a new innovation phenomenon that offers important opportunities, but also entails high risks. Family firm research argues that family firms generally possess a greater ability to innovate, but differ in their willingness to do so. We propose that with regard to digital innovation family firms rather face an “ability and willingness challenge”, i.e. they differ in their willingness and their ability to engage in digital innovation. We analyze two factors—non-family managers and transgenerational control intentions—that might help family firms overcome the ability and willingness challenge and that allows to explain heterogeneity among family firms in the adoption of digital innovation. An empirical, survey-based investigation of 104 German family firms supports our hypotheses. We contribute to the literature on digital innovation in family firms as well as on family firm professionalization.

Building bridges between gender and family business literature to advance women’s empowerment

PurposeThis study aims to underline the importance of addressing gender issues in family firms. It reinvigorates research in this field by revealing its current state, identifying research gaps and suggesting future agendas.Design/methodology/approachA bibliometric approach using a co-word analysis of 376 papers from the Web of Science database and their 885 keywords was performed to reveal the thematic structure of gender and family firm research, research topics, associations among them and their evolution over the last 30 years (1991–2021).FindingsThis review provides an extensive literature base and suggests research topics that facilitate the adoption of a gendered lens in family firm literature and business practice.Research limitations/implicationsThis review demonstrates how gender issues are intertwined with management, leadership and family firm approaches. Our observations inform scholars, policymakers and practitioners on the need to integrate gender issues into organizational culture and to connect empowerment strategies with the sociocultural environment.Originality/valueThis study shows the need to address women’s empowerment in business, considering different sociocultural contexts in addition to a Western focus. It also calls for embracing gender and feminist perspectives in research.

Corporate Social Responsibility in Family Firms: Status and Future Directions of a Research Field

This systematic literature review contributes to the increasing interest regarding corporate social responsibility (CSR) in family firms—a research field that has developed considerably in the last few years. It now provides the opportunity to take a holistic view on the relationship dynamics—i.e., drivers, activities, outcomes, and contextual influences—of family firms with CSR, thus enabling a more coherent organization of current research and a sounder understanding of the phenomenon. To conceptualize the research field, we analyzed 122 peer-reviewed articles published in highly ranked journals identifying the main issues examined. The results clearly show a lack of research regarding CSR outcomes in family firms. Although considered increasingly crucial in family firm research, a study investigating family outcomes (e.g., family community status, family emotional well-being), as opposed to firm outcomes, is missing. This literature review outlines the current state of research and contributes to the actual debate on CSR in family firms by discussing how family firms can use CSR activities as strategic management tools. Moreover, our analysis shows a black box indicating how CSR links different antecedents and outcomes. The black box is significant since firms generally need to know where to allocate their scarce resources to generate the best outcomes. We identify nine research questions based on these findings, which we hope will inspire future research.

Do Managerial Entrenchment and High Free Cash Flow Always Have a Negative Impact?

Presence of free cash flow and anti-takeover provisions are often symptomatic of agency problem in a firm. We argue that this relationship is likely to be mediated by motivations of the management. Extant family firm research suggests that the management in family firms are more likely to focus on long-term performance and are more likely to be motivated by the desire to build legacy and attain longevity. This study finds that whereas on average for a non-family firm, both free cash flow and anti-takeover provisions are negatively related to firm performance, the relationship flips in the case of family firms. We find that increased anti-takeover defenses and high free cash flow are related to superior performance in the case of family firms.

Contradiction and disaggregation for family firm research

We suggest how research into family firms can be advanced via an approach of contradiction and disaggregation – two complementary processes. The former questions, generally via direct contradiction, popular theories and normative postures. The latter employs methods to disaggregate samples, causal relations, and constructs to detect or reconcile contradictory findings and avoid excessive generalization. Disaggregation also can identify specific, neglected types of organizations, actors, and contexts that evoke challenges to prevailing perspectives.

Internationalization-Performance Relationship of Family Firms: The Moderating Role of Familyness

Despite the growth in family firm (FF) research we hardly know how internationalization (I) impacts performance (P) of FFs, and how the familyness within FFs shape their IP relationship. Drawing on IB and FF literatures, we theorize in this study how two important sources of heterogeneity—extent of family ownership and involvement of CEO (family versus professional; founder versus non-founder)—moderate FFs’ IP relationship. Our empirical analysis of data from India suggests that FFs’ IP relationship is negative, but the extent of family ownership and involvement of professional CEO and founder CEO positively influences this relationship. Our results also demonstrate that involvement of family CEO and non-founder CEO casts a negative moderating influence on FFs’ IP relationship. Our results further provide evidence that FFs’ IP relationship is positively moderated when family CEOs possess international experience. Our study contributes to the IB and FF literature in multiple ways.

Facing COVID-19 challenges: What is so special in family businesses?

PurposeThis study aims to explore the main drivers that family businesses possess to strengthen their resilience during the COVID-19 crisis.Design/methodology/approachThis study followed a quantitative method analysis through a multiple regression analysis based on a sample of 570 Italian family firms.FindingsThe results showed that job quality and innovation significantly stimulate family firms' resilience during the COVID-19 crisis.Practical implicationsThe study has several academic implications. Firstly, the study contributes to family firm research by extending the studies on factors that significantly influence the concept of resilience; secondly, the work contributes to crisis management, offering suggestions to help other firms exceed the COVID-19 crisis.Originality/valueThe present study clarifies the role of family firms' resilience, and it reveals how job quality and innovation play a meaningful role during the COVID-19 crisis.

Marketing and family firms: Theoretical roots, research trajectories, and themes

Marketing in a family firm context has been increasingly researched over the past years. This study reviews 104 publications at the intersection of marketing and family firms to identify their theoretical roots, research trajectories, and themes and to propose new research avenues. For this, we integrated three bibliometric analyses: co-citation analysis, historical direct citation analysis, and co-occurrence analysis. We also conducted a qualitative review to further examine the obtained quantitative results. The findings show that the theoretical roots in the marketing and family firm research domain are characterized by two groups of cited references: those representing the earlier (before 2010) and later (after 2012) periods. The two main research trajectories identified are developed under the influence of two pioneering studies. Moreover, five distinct research themes are identified: brand and image, resources and performance, reputation, market orientation, and marketing strategy of family firms. Our results also highlight avenues for further research.

Bibliometric analysis of studies on family firms

Several authors have highlighted the importance of family firms in the worldwide generation of wealth, wellbeing, and employment. Recently, the importance of family firms has resulted in the proliferation of many academic works in prestigious journals. Hence, studying their development and evolution is deemed necessary. This study conducts a bibliometric analysis of the literature on family firms to show the research trends and guide researchers in their work; it is conducted using a detailed and systematic study of the scientific production of papers on family firms published in the Web of Science (WoS) between 1975 and May 2020. Its contributions are as follows. First, it consolidates family firms as an area of research, which reflects on several papers focusing on this topic (1990 papers published in the WoS database, 55982 total citations). Second, it finds that family firm research has mainly developed in the last few years. Third, it discovers that Kellermanns and Chrisman are the most relevant authors in this field. Fourth, it suggests that the most influential journal is Family Business Review. Fifth, it finds that that the Mississippi State University is the most renowned family firm research institution. Sixth, it discovers that the United States has the highest production in the field. Finally, the bibliometric map identifies four clusters, the most relevant being the family firm theory and its evolution.

Family business and business family questions in the 21st century: Who develops SEW, how do family members create value, and who belongs to the family?

Family firm research has made substantial progress in recent years, contributing, for instance, to knowledge on family firm succession, innovation, and performance. In this essay, it is proposed that some important – ‘grand’ – questions become increasingly salient and need to be answered by family business scholars. These include the following: How exclusive is socioemotional wealth (SEW) to family owners, and which elements (if any) could be transferred to other settings? What are the different ways that family members can create value for their family businesses in the 21st century? What is the 21st century ‘version’ of a family, and what roles do other individuals, such as close friends, play? Each of these questions is motivated based on practical observations and examples from prior studies and some initial thoughts and insights are provided, with the hope of encouraging fellow researchers to find answers to the questions.

A New Era for EJFB

A New Era for EJFB

Brief reflections on family firm research and some suggested paths forward

We reflect on some limitations that seem to have become more common in family business research and propose some paths forward. For fairness, we refrain from listing specific papers in our critiques because 1) no one should be singled out for criticism when the limitations to which we refer apply so broadly; 2) our own work suffers from some of these very same limitations.

Are non-blood related “family” members treated differently? Determinants of bifurcation bias among family members in the family firm

PurposePossible asymmetric treatment among family members has long been neglected in the field of family firm research. To fill this gap, the purpose of this study is to shed light on the heterogeneity of treatment of family members in family firms by proposing factors that influence the likelihood of bifurcation bias among “family” members.Design/methodology/approachDrawing upon social identity theory and the concept of bifurcation bias, the authors theorize that family members working in family firms are not a homogenous entity, but rather a heterogeneous entity contingent on their status and/or position in the family. To provide a comprehensive understanding of heterogeneous treatment among family members, both individual factors and societal factors should be considered.FindingsBlood relatedness of family members is suggested as an important determinant of the likelihood of bifurcation bias among family members. It is also proposed that the impact of blood relatedness is likely influenced by both individual factors (familial proximity and familial tenure) and a societal factor (collectivism).Originality/valueTheorizing takes a step forward to advance the understanding of interpersonal dynamics in family firms. In particular, this article expands the research boundaries of family business research by taking into account that not all “family” members are treated preferentially. Moreover, this article deepens our understanding of the nature and status of non-blood related family members by unveiling the influence of both individual and societal factors. This article also provides a theoretical foundation for human resource management (HRM) research in family businesses by addressing bifurcation bias among family members.

Refining the influence of family involvement in management on firm performance: The mediating role of technological innovation efficiency

Determining what factors influence firm performance constitutes an essential issue in both the management and the family firm research fields. This article, building on the resource-based view perspective, develops a mediation model that involves a unique intervening mechanism, namely, technological innovation efficiency (TI efficiency), with the potential to explain the inconsistencies found in prior work on the ways through which family involvement in management affects performance outcomes. Regression analyses utilizing a longitudinal sample of 1,118 Spanish private firms largely support the hypothesized mediating relationship, revealing that TI efficiency leads to richer firm performance in family firms with active family involvement in management. Overall, our findings help elucidate the black box of performance outcomes within family firms and make several contributions to theory and practice. JEL CLASSIFICATION L25; M12; O32

Understanding the Internationalization Process of Family Firms: A Multi-Case Study

Whereas family firm research is becoming increasingly mature, research on family firm internationalization management processes and the influences of the family on their international orientation remains under-researched. This lack of research is surprising because insights on the international orientation and the behaviors of the family might help explain why some firms (operating in their global niche or not) follow international paths despite potential resource constraints, limited market knowledge, and an aversion to lose control over their firm. Therefore, we provide new insights on the internationalization of family firms based on a qualitative multi-case study. We find that despite the experienced market pressures to internationalize, a family’s motivation, goals, and governance situationally deviates from the rather objective need to opt for a more global growth. First, the internationalization initiative undertaken follows a motivation resulting on emotions and a trust-based relationship with the respective responsible person that internationalizes, serving as the initiator. Second, the motivation to penetrate a new market resides on the pressures by loyal and long-standing customers. Third, the interviewed family firms all follow a product quality-based strategy, without including the market position within their goals. Thus, a firm with highest product quality standards seems to lead towards (niche) market leadership. Forth, despite the family firm constraints and limits, the firms do not possess a fully developed governance structure due to a lack of formulated quantitative and measurable goals.