Family Firm Identity Research Articles

Exploring the Role of Religious Rituals in Family Firm Identity Work: An Ethnographic Study

Exploring the Role of Religious Rituals in Family Firm Identity Work: An Ethnographic Study

Ceasing to communicate public family firm identity: the decoupling of internally experienced and externally communicated identities

PurposeThe purpose of this study is to explore how the family firm identity is affected when it is no longer publicly communicated.Design/methodology/approachA case study approach was used to follow a third-generation family business, a large Swedish home electronics firm that acquired a competitor and, initially, continued using its family firm identity after the acquisition. This study longitudinally tracks the company and its owning family using archival data combined with interviews.FindingsThe case company decided to stop communicating their identity as a family business. Such a move initially appears counterintuitive, since it potentially threatens the family firm identity and leads the firm to forgo other advantages, e.g. in branding. However, the decision was based on arguments that were rational from a business perspective, leading to a decoupling of family and firm identity.Originality/valueThis study contributes to the literature by showing a decoupling of internally experienced and externally communicated identities. It further contributes to the understanding of the family firm identity concept.

Untangling Goal Tensions in Family Firms: A Sensemaking Approach

AbstractWhile economic and non‐economic goals may converge in the long term, they often lead to tensions for organizational decision‐makers in the short term, especially in family firms that place much emphasis on family‐related goals. We draw on a sensemaking approach to investigate such potential tensions in the decision‐making of family firms. Based on a qualitative analysis of 59 interviews, 501 items of archival data and 39 observations from eight private Irish firms, we explore the perceived goal tensions of family firm decision‐makers as they seek to balance economic and non‐economic goals. We identify three sensemaking mechanisms – ensuring continuity in the family firm, preserving family cohesion, and delegating responsibilities to trusted advisors – that assist family firm decision‐makers in managing these goal tensions. Moreover, we identify that sensegiving based on three different values – sense of commitment, community embeddedness, and family firm identity – helps family firm decision‐makers to justify and communicate their decisions. Our model contributes to a more granular understanding of the management of goal tensions and of decision‐making in family firms by going beyond the question of whether family firms prioritize economic or non‐economic; instead, it reveals concrete processes showing how firms balance and aim to incorporate both goals. Furthermore, we advance knowledge on sensemaking in family firms by revealing how sensemaking can explain idiosyncratic family firm behaviour and by showing how family firm decision‐makers use specific values when ‘giving sense’ to justify their decisions.

Family Business and Creation of Brand Communities

Background: Brand management is an important factor in every business, especially in family businesses. Through brands, firms can build and communicate their reputation with their stakeholders. For family businesses, revealing the family identity in branding influences both the internal and external stakeholders of the family businesses. There is a lot of evidence that shows the relationship between family businesses and their stakeholders, but limited studies are showing how these family business branding creates a community among its stakeholders. Purpose: The focus of the paper is to identify the variables that influences how family business branding creates communities among its different stakeholders, considering all stakeholders such as customers, employees, suppliers, and society holistically. Methods: The study used a secondary data collection approach based on the family business perspectives found in existing literature on how family businesses contribute to the creation of a community and influence the formation of a brand community. Results: Different studies show the connection between these revelations of family brand identity and the impact on the creation of a community among its stakeholders. Family firms differ from other non-family businesses in the creation of a family firm identity, bringing trust, reputation, image, authenticity, and integrity and influence behavior among internal and external stakeholders.

Transmission of family identity and consumer response: do consumers recognize family firms?

PurposeCommunicating the identity of a family business generates positive results in consumer response. The paper aims to understanding how the efficient transmission of family identity can influence consumer behavior is essential for designing family firms' marketing communication strategies.Design/methodology/approachAn experimental study based on the eye-tracking technique was designed to determine how attention to (familiar vs non-familiar) visual stimuli on a website influences consumer recognition of a family firm status and how it influences consumer behavior. A sample of 212 individuals was exposed to (simulated) websites of family and non-family firms in the hospitality industry to capture information about their eye movements and measure visual attention to specific stimuli that communicated family identity.FindingsVisual attention has a direct and positive influence on recognizing family firm's identity (FFI). Through FFI, visual attention has an indirect positive effect on trust in the company and attitude toward the brand (BraAtt). Trust in a firm positively affects purchase intention (PurInt).Originality/valueIt is known that consumers can perceive a FFI; however, there is no study on the sensory mechanisms operating in consumers' perceptions of family identity. The study contributes to understanding how consumers can perceive a FFI. This study proposes a novel method for evaluating consumer responses by transmitting family business identity on digital platforms.

Should a family firm communicate their family identity and country of origin? A cross-cultural study from Chile and Spain

PurposeThis paper investigates the influence of firms' communication in terms of family firm identity and country-of-origin on consumer response.Design/methodology/approachA self-supplied online experiment in Chile and Spain is employed using as dependent variables brand trust and intention to buy. The experiment includes the following factors: family firm identity (family vs non-family), country of origin (national vs foreign) and as a manipulation check (type of product: hedonic vs utilitarian).FindingsThe results indicate that communicating the family firm identity increases brand trust and purchase intention. Consumers show higher scores on trust and purchase intention when exposed to national country of origin products. The effect of the variability on the dependent variables is greater when the family firm identity is communicated. Trust and purchase intention are different in Chilean and Spanish consumers when the family firm identity is combined with a national country of origin cue.Originality/valueThis article contributes to family business theory by exploring how to capitalize on the family firm identity component in brand communication. It also contributes to the theory of corporate brand identity by proposing a communication model oriented toward consumer behavior. It also examines firms' communication (family firm identity and country-of-origin) on consumer.

Differences in Family-Owned SMEs’ Ethical Behavior: A Mixed Gamble Perspective of Family Firm Tax Evasion

We develop a mixed gamble perspective of tax evasion that explains why family firms vary in how they weigh the costs and benefits of tax evasion. Testing our framework on family firms from India, we find that family firm identity is negatively related to tax evasion when firm performance is high. However, when firm performance is low, family firm identity is positively related to tax evasion. Our study therefore reveals why some family firms refrain from tax evasion, some rationalize it for the sake of the family firm, and others see tax evasion as a financial gain worth the risks.

Family Firm Identity Approach: A Systematic Literature Review

Family business is created when the family leads commercial activities. This intersection represents emotions and trade within the same entity, driving attention toward intangible resources. History has shown that families can gather together and run successful businesses. 
 
 Non-financial topics are capturing the attention of the management field, and family firm identity (FFI) is an interesting topic for those who want to study more in-depth this type of business. This paper will give a review of the academic literature about the FFI identified as a field that needs to be explored more in depth. Interested researchers will find a general view of how this approach is developed from scholars around the world. 
 
 The aim is to present how the family and business identity relate to one another, seen from different perspectives by scholars. Researchers’ invaluable contributions are used to design this review, using databases such as Emerald, ProQuest (ABI/INFORM), EBSCOhost and Science Direct. Keywords used for search are family business identity and family firm identity. The data are gathered during May and June 2019. The review shows that several dimensions can influence on the level of FFI. Some of the dimensions which resulted from this study are generations, boundaries, identity conflict, growth, communication and globalization.

LA EMPRESA FAMILIAR COMO CLAN: RECURSOS Y UNICIDAD

RESUMEN
 Este trabajo se enfoca en la empresa familiar, siendo su principal objetivo realizar una revisión del constructo de la familiaridad y específicamente de la dimensión de la identidad familiar, al teorizar como un primer cercamiento, la manera en que esta se construye a partir de la integración de distintos enfoques teóricos como lo son la teoría basada en recursos, la teoría de la identidad organizacional y la estructuración organizacional rescatada de la teoría de costos de transacción. La discusión gira en torno a los orígenes de una identidad colectiva en las organizaciones y como en este caso, será un punto de diferenciación entre las empresas familiares y aquellas que no lo son mediante proposiciones lógicas construidas a partir de la revisión de la literatura relevante al tema.

Role of Sovereignty Goals in Explaining Stakeholder Orientation in Family Firms

This study shows that pursuit of goals associated with sovereignty (i.e. independent and sustainable power over the firm) is a pivotal antecedent of the link between stakeholder orientation and family involvement. We argue that this is due to organizational legitimacy concerns and family-firm identity fit arising from sovereignty pursuit.

In a Family Way? A model of family firm identity maintenance by non-family members

Focusing on the case of a successful French pharmaceutical family firm – VetCo, we develop a process model of family firm identity maintenance by non-family members. Being the first family-owned pharmaceutical actor exclusively dedicated to animal health worldwide, VetCo has a strong family firm identity. The maintenance of this identity is remarkable, as VetCo experienced a withdrawal of the owning family when its founder suddenly passed away and, later on, when other family members disengaged from operations. Using grounded theory, we build a process model of identity maintenance that emphasizes meaning multiplicity. Specifically, we identify three main mechanisms of meaning preservation – passing on the family legacy, unifying the metaphorical family and modelling the family business – and two mechanisms of meaning connection – holding on and bridging. In elaborating theory on family firm identity maintenance, this study contributes to family business and organizational identity scholarships.

Unraveling the impact of family antecedents on family firm image: A serial multiple-mediation model

While revealing a family firm’s identity can enhance the firm’s appeal to customers and employees and positively affect firm performance, many family firms decide not to portray a family firm image. Until now, we have not had a clear understanding of the factors that determine whether family businesses intentionally project their family firm identity to their external stakeholders. As this decision may affect a family firm’s competitive positioning and its prospects for continuity, it is important to understand the family logic within this decision-making process. Building on stakeholder theory arguments, we examine how family-related factors (e.g., family involvement, transgenerational succession intention and family-centered noneconomic goals) influence the extent to which a dominant family coalition leverages its family image on the company’s website. Our results, which originate from survey research and content analysis of the websites of 340 Dutch family firms, reveal the mechanisms that regulate this process. In particular, we show that transgenerational succession intention and family-centered noneconomic goals serially and double mediate the family involvement–family firm image relationship.

Family firm identity and capital structure decisions

PurposeThe purpose of this paper is to grasp the effect of familiness on capital structure decisions in family firms, as family firm identity may be an important source of competitive advantage due to its potential to moderate relationships with stakeholders such as banks.Design/methodology/approachThe paper uses panel data from 2010 to 2014, which combine financial and structural data on 691 large private German companies. The econometric approach is a random-effect and tobit panel regression using different dependent variables relating to debt.FindingsThe study reveals that family firms have significantly higher overall and long-term debt levels compared to their non-family counterparts. Contrary to the extant literature, tangibility is not significantly related to debt in the context of family firms and the hypothesized higher usage of trade credits by family-owned businesses could not be supported.Research limitations/implicationsFuture research can improve the measurement of familiness by changing from a dichotomous to a continuous variable, acknowledging that family businesses are not homogenous. This would also enable a different econometric approach.Practical implicationsA practical implication for family firms is to actively capitalize on their identity and thus, improving the way they present themselves towards different groups of stakeholders to mitigate information asymmetries and enhance trust.Originality/valueThe paper investigates large private family-owned businesses, applies multiple dependent variables, and uses a family firm specific theoretical framework, namely familiness, to explain the family’s influence on the business.

Linking Bonding and Bridging Ownership Social Capital in Private Firms

This study examines the relationship between bonding and bridging ownership social capital (OSC) for a random sample of 679 privately held small and medium-sized firms. Results confirm the positive effects of bonding OSC (quality of relationships and shared vision) on bridging OSC (network mobilization) as well as two- and three-way moderator effects of family firm identity and ownership–management overlap. Moderator effects are more robust, however, for the shared vision indicator of bonding OSC. Implications for social capital theory, social and organizational identity theory, and family firm research and practice are discussed.

Understanding multiple family firm identities: An exploration of the communicated identity in official websites

In recent years, family firm identity has been introduced as one of the perspectives to explain how family involvement can result in a source of distinctiveness and competitive advantage for a family business. This paper introduces the idea of multiple family firm identities and explores whether, and if so how, organizations communicate their family firm identity in their official websites. One thousand and thirty-six family firm websites from three countries (Australia: N=560; US: N=310, UK: N=166) were analyzed. Results indicate that fifty seven percent of the firms made some reference to being a family firm in their websites. Twenty six percent of the firms used an explicit message strategy and thirty eight percent used an implicit strategy in their communication efforts. Additionally, firm characteristics (i.e., firm age, country of origin, type of industry, and market orientation) were related to how and where organizations communicated they were family firms. Implications for family firms and ideas for future research are discussed.

ORGANIZATIONAL CULTURE, ENTREPRENEURIAL ORIENTATION AND GROWTH IN FAMILY FIRMS. A CASE STUDY FROM A MATURE INDUSTRY.

In this paper we present a case study to describe how organizational culture influences the growth processes of the family firm through its impact on entrepreneurial orientation and family firm's goals. The case shows that growth processes of family business may occur not through an holistic strategy aimed at the maximization of the overall value of the activities, but focusing on those activities that can have a positive impact on the family firm's identity, even through the pursuit of non economic goals.

Exploring the concept of familiness: Introducing family firm identity

Our paper contributes to the overarching question: “ How does the family contribute to firm success?” We add to the nomological net of the familiness construct, by reaching beyond the components of involvement and the essence approach and by introducing organizational identity as a third dimension of familiness. As such, we investigate which families are most likely to build familiness. Specifically, the organizational identity dimension of familiness reflects how the family defines and views the firm, which can facilitate performance advantages through leveraging familiness both internally and externally. Lastly, we discuss how the combinations of components of involvement, essence and identity dimensions of familiness interact and explain why and how some families are a key resource to their firms while others add little value to their organizations.