Business Members Research Articles

How family businesses transfer their values across generation: a conceptual framework

Purpose Recognising the value of sustaining virtuous values in family business across generations, this paper aims to provide a conceptual framework and propose a mediated-moderated mechanism through which family members’ traits, such as family size and parenting style, influence the extent to which family business’s virtuous values transfer across generations. Design/methodology/approach The paper is based on systematic literature that was conducted using specific keyword searches in the business source databases of Emerald, ProQuest, ScienceDirect, EBSCOhost and SpringerLink. Findings This paper leads to a conceptual framework proposing a mediating relationship between family members’ traits and the transfer of virtuous values to the next generation. Further, two parallel mediators are proposed, moderated by traits of family members’ offspring, such as the age gap and gender of offspring. Research limitations/implications This paper proposes a conceptual framework focusing on transferring virtuous values across generations in the family business. It investigates family members’ traits, such as the size of the family and parenting style, to comprehend the family members’ traits and the transfer of virtuous values relationship. Practical implications The proposed conceptual framework should form the basis of interventions adopted by family business members to enhance the transfer to virtuous values across generations by positively impacting their moral self-efficacy and affective commitment to virtuous values. Originality/value Prior research on family businesses has primarily explored transgenerational succession. However, sustaining virtuous values across generations is equally important to retain a business’s legacy. Very limited scholarly attention has focused on these virtuous values in family business.

On the rights of former members of business companies to receive information about their activities

On November 15, 2023, the Presidium of the Supreme Court of the Russian Federation approved the “Generalization of judicial practice on corporate disputes on the provision of information by business companies.” In one of its points, attention was drawn to the need to clarify the position on the issue of the possibility of requesting information from the society by its former participants. The scope of rights retained by former participants in relation to business companies from which they left, were excluded or left for other reasons, in itself is of undoubted interest. Such rights cannot be unlimited and must ensure the property interest of former participants.

Defining Inheritance Risk Management as A New Concept Towards Sustainability of Family Businesses

This study investigates the relationship between success, Inheritance Risk Management (IRM), and sustainability in family businesses. This paper is based on a quantitative approach. The population includes family-owned businesses located in Abu Dhabi that have been in operation for at least two generations. The study sample consisted of family-owned business members. However, this paper focuses only on measuring variables and testing hypotheses for the proposed measurement. Due to the complexity of the model, Smart PLS-4 was used. Through an analysis of empirical data and theoretical frameworks, the research explores the direct and mediated relationships between these key variables. The findings underscore the critical role of success in driving effective risk management practices within family enterprises. Furthermore, the study highlights the significance of IRM in promoting the sustainability and resilience of family businesses over time. The results reveal a direct positive correlation between success and sustainability, emphasizing the importance of achieving and maintaining success for long-term viability. Additionally, the mediating role of IRM underscores its crucial contribution to the overall sustainability of family businesses. The study identifies various challenges in managing inheritance risks and ensuring the continuity of family enterprises, including maintaining family control, balancing family and operational responsibilities, succession planning, grooming successors, and respecting family elders. By addressing these challenges and leveraging IRM strategies, family businesses can navigate uncertainties and capitalize on opportunities, ensuring continued success across generations. These findings provide valuable insights for strategic decision-making and resource allocation in family enterprises, guiding efforts to enhance governance structures, succession planning, and risk mitigation practices. In addition, this research contributes to advancing our understanding of the complexities surrounding family businesses and underscores the importance of proactive risk management and strategic planning for long-term sustainability.

Life satisfaction of family business members: The role of socioemotional wealth goals and psychological functioning

ABSTRACT Family businesses offer affective benefits to family business owners and family members employed at their family’s businesses. However, little is known about whether the pursuit of “Socioemotional Wealth” (hereafter “SEW”) goals in family businesses relates to the psychological functioning and life satisfaction of family business owners/members. Utilizing a self-determination theory perspective, this study examines whether the pursuit of SEW goals is associated with life satisfaction of family business owners/members through intrinsic psychological needs fulfillment and positive psychological functioning in terms of purpose in life, personal growth, mastery, positive relations, and autonomy. Following a quantitative methodology, survey data was collected from 175 family business owners/family members employed in their family’s business in the United States. Results of PLS-SEM show that SEW goals have a significant positive association with subjective well-being and that psychological functioning fully mediates this relationship. This study adds to our understanding of mental health of family business owners/members and individual-level outcomes of SEW.

EFFECT OF SOCIAL CAPITAL, FAMILY BUSINESS INNOVATION, AND DYNAMIC CAPABILITIES ON THE ORGANIZATIONAL AGILITY OF FAMILY BUSINESS

The research is conducted to determine the effect of Social Capital (X1), Family Business Innovation (X2), and Dynamic capabilities (X3) on Organizational Agility (Y). The research is conducted using the quantitative method, applying the 5-Likert scale questionnaires to 180 Respondents who are family business members, by utilizing the purposive sampling method. This research utilizes multiple linear regression analysis to analyze the factors that provide significant effects on organizational agility. All three factors (Social Capital, Family Business Innovation and Dynamic capabilities) are reliable and valid according to the SPSS result after further calculation The result of the research presents the positive relationship and the significant impact that Social Capital, Family Business Innovation, and Dynamic Capabilities have on Organizational Agility in Family Businesses.

Goal setting for family firm owners: An agency-stewardship perspective

Goal setting for family firms is a vital activity since the performance of businesses is measured against their goals. Using prior research on goal-setting in the context of family firms, this narrative literature review paper aims to bring forth, the importance of goal-setting specific to family business owners who straddle family and business. A review of family-business literature indicates that using the three-circle model comprising family, business, and ownership as the base theory, goal setting in family firms has been examined from the perspective of whether they are economic or non-economic and whether they are family-oriented or business-oriented. Both these approaches to family business goal setting are based on the ideology that the unique feature of family businesses is that they aim to satisfy two groups of stakeholders — family members and business members. While family and business perspectives are captured in these two approaches, goal setting from an owner’s perspective has been largely ignored. Rooted in the concept of corporate responsibility, the agency-stewardship framework is emerging as an alternative perspective for family businesses and hence is proposed as a useful dominant logic framework for decisions on goal setting. This conceptual paper based on a narrative literature review aims to present the agency-stewardship framework as a relevant and important lens in the two most important decision contexts of family businesses, i.e., governance and succession. The paper exemplifies how the agency-stewardship continuum can be used for goal setting to nurture next-generation family business leaders and manage family business operations through goal setting in governance policies and succession processes.

Capacities of the members of the family business in the consolidation of sustainable productive projects

Capacities of the members of the family business in the consolidation of sustainable productive projects

Implementation of the Pentahelix Model in Community-Based Downstreaming of Non-Timber Forest Products (NTFPs) in Kerinci Regency

Accelerated downstreaming of Non-Timber Forest Products (NTFPs) products can be achieved if cooperation and coordination between relevant stakeholders (multi-stakeholders) goes well, so that sustainable adoption of innovation can occur. This research aims to analyze the effectiveness of multi-party communication in community-based downstreaming of non-timber forest products. The research was carried out in August-October 2023 in Kerinci Regency. This research used a qualitative method, with key informants being the Head of the Kerinci Production Forest Management Unit (KPHP), the Social Forestry Business Group (KUPS), Companions, Non-Governmental Organizations (NGOs), as well as community members of the HHBK processing business. Data collection was carried out through Focus Group Discussion (FGD), using questionnaires, interview guides and observations. Secondary data was obtained from KPHP, Forestry Service and Kerinci Agriculture Service. Data were analyzed using N-Vivo analysis. The research results show that multi-party communication between non-timber forest product managers has not been effective. The interaction patterns of parties in the forest management network are not evenly distributed. The forest farmer group assisted by KPHP Kerinci has attempted to downstream processed products such as robusta coffee, kawa leaf, honey, cinnamon bark, cinnamon tea, coffee leaf dent, various taro chips, serundeng and so on, but are still constrained by market access and capital. , as well as its institutions. This means that the success of social forestry is not enough to only rely on strengthening one aspect, but must go hand in hand and complement each other.

Revolutionizing family businesses with artificial intelligence: a perspective article

PurposeThis perspective article addresses the essential need to comprehend what artificial intelligence (AI) entails and how it can revolutionize the family business sector.Design/methodology/approachThis article presents a literature review and the authors' perspectives to unravel the potential benefits of AI in family businesses.FindingsIt is crucial to understand what AI is and its various types before the authors can discern which AI tools can be beneficial or tailored to family businesses. A promising area for future research is the use of Theory of Mind AI, which can help minimize conflicts of interest among family business members and assist in clear decision-making and succession planning. However, integrating AI brings about ethical implications, such as data privacy concerns, the need for transparency in AI decision-making and the necessity to ensure fair AI practices. These are all critical issues that the future research will need to tackle.Originality/valueThis article emphasizes the potential of AI to be customized and incorporated to tackle the distinct dynamics, obstacles and opportunities prevalent in family-owned businesses. It also proposes future research areas that could enhance the application of AI in such enterprises.

Family Kinship in Community-Based Tourism Businesses in Homestay Entrepreneurs Organization in Raja Ampat

The success and sustainability of tourism depends on the local community as the social unit that supports tourism. Community-based tourism initiatives offer solutions to place communities as the main actors in tourism development. In the implementation of tourism business development, communities in Raja Ampat Regency utilize social capital as a tribal, kinship and family unit in developing their businesses. Family members as part of the kinship unit often play a role in running economic businesses and often take part in making important decisions that affect the course of tourism businesses. This paper aims to determine the form and relationship of kinship among members of the Raja Ampat indigenous business and livelihood association, as well as provide a case example of an organization whose decision-making is based on the kinship of its members. Based on the results of the analysis, it is known that family kinship as social capital has an important role in running tourism businesses, and homestay tourism businesses in Raja Ampat are formed because they have an extensive family kinship network. This is closely related to the concept of kinship adopted by the Biak tribe. This complexity also affects the running of the organization and decision-making in the organization of homestay entrepreneurs in Raja Ampat, such as the election of the chairman who comes from the clan with the largest number of members and other decision-making processes.

The impact of parental emotional support on the succession intentions of next-generation family business members

ABSTRACT Drawing on social cognitive theory, this study investigates the influence of family business owners as parents on the succession intentions of their children. Measures of parental emotional support, entrepreneurial self-efficacy, and affective commitment are applied to predict succession intentions. We test our research model on an international sample of 21,525 sons and daughters of family business owners. The results suggest that parental emotional support positively influences succession intentions and is mediated by two cognitive factors: entrepreneurial self-efficacy and affective commitment to the family business. The results also suggest interaction effects of gender and birth order on succession intentions. This study offers important theoretical and practical insights into the aspirations of next-generation members of family businesses.

Bringing context to the foreground: Explaining the early-stage career development of next-generation family business members

This study employs an interpretive grounded theory approach to explore how family contexts shape the early-stage career development of next-generation family business members (next-gens) in succession and non-succession careers. Career theories suggest that early-stage career development is an outcome of individual–context interaction. However, the current literature on careers in a family business offers limited insights into the enabling and constraining contexts within the family, such as the family social system, marriage, traditions, and cultural environment. In line with the systems theory framework of career development, our findings demonstrate that individual and family contextual interactions not only shape the careers of next-gens but also drive variations in succession and non-succession careers. Our study contributes to the literature by constructing an early-stage career development model that helps to explain the importance of marriage and family traditions in the early-stage career development of next-gen family business members.

Family social capital as a mediator between socioemotional wealth and entrepreneurial orientation: evidence from Mexican SMEs

ObjetivoAs relações e conexões das famílias envolvidas nos negócios, ou capital social familiar, têm efeitos positivos e negativos nas empresas familiares. Este artigo investiga o papel mediador das relações sociais dos membros da empresa familiar entre a riqueza socioemocional e a orientação empreendedora das empresas.Desenho/metodologia/abordagemFoi aplicado um inquérito realizado nas quatro principais cidades do México. A amostra foi constituída por 360 PME. A estrutura de pesquisa e a hipótese deste estudo foram testadas usando análise de regressão e a técnica de Modelagem de Equações Estruturais (SEM).ResultadosNosso estudo conclui que a riqueza socioemocional não apenas influencia fortemente a orientação empreendedora das empresas familiares, mas que esse fator também é mediado pela capacidade dessas famílias de desenvolver seu capital social.Originalidade/ValorEste trabalho contribui para a literatura acadêmica sobre empreendedorismo e capital social. Como mediador entre a riqueza socioemocional e a orientação empreendedora, o capital relacional familiar tem recebido pouca pesquisa. Nossos resultados revelam implicações significativas para a gestão de rede e estratégias de capital relacional para PMEs.

QR-code-based payment. Does the consumer intend to adopt a retail buying transaction?

The Quick Response (QR) code payment is a relatively new means of payment in Indonesia. Even though this strategy offers a great deal of use, not many people are familiar with it or use it. In this regard, it is fascinating to look at what makes people use the QR Code payment method. The quantitative study used a five-point Likert scale questionnaire to sample e-money users through social media groups. In addition, structural Equation Modeling (SEM), employee Smart-PLS 3.0, was used to examine the data. The results show that social factors affect how people feel about QR code payments, and facilitating support and performance expectations affect how likely they are to use it. Also, attitudes, a mediator of social impact, can change the effect of support performance expectations on adoption intentions. Because of this, people accepting QR code-based payments take a positive attitude. Also, the facilities and environment affected a positive attitude, expected performance, ease of operation, and social interactions. Based on the results, the recommendation for financial institutions and innovation is that the facility and social environment are critical to the success of financial innovation. So, if more people want to use QR code-based payments, financial institutions need to make it easy for them. AcknowledgmentThe author would like to thank the Rector, Vice-Rector of the University of Muhammadiyah Malang. Furthermore, the author sincerely thanks the University of Muhammadiyah Malang’s Dean of Business and Economics Faculty. A University of Muhammadiyah Malang’s School of Economics and Business member supported finishing this paper.

Sustainability innovation index for micro, small and medium enterprises and their support ecosystems based on an empirical study in India

Competitiveness of a country depends on the innovation capacity of its industries while sustainability relies upon the adoption of cleaner production processes. Hence, to promote economic development without negative environmental impact, it is imperative to have appropriate development policies and also a sound instrument to monitor the effectiveness of the supporting ecosystem. India, one of the world's largest economies with a huge base of Micro, Small, and Medium Enterprises (MSMEs), makes it a perfect sample for creating an Index to measure innovation for sustainability and adds to the empirical literature. The study identifies the determinants of innovation and the key drivers using multivariate tools on the empirical data collected from the MSMEs in 4 key sectors that have Social, Economic, and Environmental relevance. The findings suggest that “Market sources” is the most influential determinant of innovation, followed by “Institutional sources”, “Market sophistication” and “Business Membership Organisations”. Further, findings of the Principal Component Analysis revealed that “Productivity and Profitability” consideration is the most important driver for adoption of innovation for sustainability by MSME units. The other drivers are “Regulatory and Occupational Health and Safety Needs”; “Immediate Survival Needs”; “Raw Material and other Cost Issues”; “Developmental Support”, and “Competition from Similar Units”. Based on the relative importance of these factors, an index is created to measure the effectiveness of the innovation ecosystem. The paper also suggests the use of this index to assess the strength of the ecosystem at the national, sectoral, regional or state, and district or cluster level. This study offers promising avenues for future research ideas for evidence-based policy formulation.

Systematic Literature Review and Multiple Case Study: Cooperative Defaults and Covid-19

The phenomenon of cooperatives failing to pay up to trillions of rupiah and killing tens of thousands of people is rife in Indonesia. This study aims to investigate and confirm the causes of cooperative defaults, how the process of default occurs and whether it has anything to do with the Covid-19 pandemic. The method used is Systematic Literature Review and Multiple Case Study. The results of the study explain the factors that make cooperatives fail to pay. External factors, namely the member's business went bankrupt and there was no member's good faith in returning the loan funds. Internal factors are risky borrower profiles, yields that are too high, lack of monitoring, collection efforts, and management factors. Covid-19 also had an effect because it made member businesses bankrupt or lost, and made the number of borrowers from cooperatives increase significantly

Pemberdayaan Masyarakat Melalui Budidaya Pembesaran Ikan Lele dengan Sistem Bioflo

The problem faced by the Coal Fish Farm catfish farming business group is that they are still cultivating using conventional systems. Another factor is the lack of knowledge and skills possessed by business members on how to cultivate catfish, such as feeding methods and maintain good water quality. The purpose of the service is to provide education to business groups through cognitive aspects about the benefits of cultivating catfish with the biofloc system, increasing independence in the economy, and being able to compete with the market. The method is carried out by surveying target partners to identify problems, needs, socialization, training and mentoring. The result of this service is increased knowledge and understanding of community in implementing the catfish rearing biofloc system. In addition, the success of community empowerment can be seen from the increase in cultivation group members from the surrounding village community.

Does Globalization Impact Entrepreneurship?

Purpose: This paper examines the effect of the globalization phenomenon and its impact on the dynamic development of entrepreneurship based on changing economic, cultural, and business environments both within and between nations. 
 Design/methodology/approach: The authors use theoretical perspectives and analyze literature reviews to identify the effect of the relationship that exists between globalization and entrepreneurship, which plays a variety of important roles in the business world.
 Findings: The findings of the study show that while there is a significant statistical difference between U.S. and international entrepreneurs regarding the importance of cross-cultural considerations, there are no statistical differences regarding the importance of global entrepreneurial innovation, business environment, and the effect of globalization on the economy.
 Research limitations/implications: The paper presents a critical analysis of the impact of globalization on entrepreneurs in the U.S. and internationally.
 Practical implications: The authors investigate the characteristics necessary for entrepreneurs to be successful, such as skills, knowledge, experience, and the abilities needed to apply technology and innovation, and they navigate complex cultural differences that may exist between business members and stakeholders from diverse cultural backgrounds.
 Paper type: Research paper

The role of values in enhancing longevity among indigenous black South African family businesses

Background: Values play a fundamental role in the longevity of family businesses. However, not fully understanding these roles threatens their long-term survival. Given their potentially large numbers and subsequent ability to reduce unemployment and poverty, it is critical that black-owned South African businesses achieve entrepreneurial success. While much research exists on family business values in a Western and European context, research on family business values in an indigenous black South African (IBSA) context is nonexistent.Aim: The aim of this research is to determine the role that family business values play in enhancing the longevity of IBSA family businesses.Setting: The study focused on IBSA family businesses that are independently owned and managed by one or more IBSAs and which are located in various major cities of South Africa.Methods: A qualitative methodological approach following a multiple–case study design was adopted. Semistructured interviews were conducted with several key participants using a combination of face-to-face, telephone and online interviews. The six steps of reflexive thematic analysis were used to analyse the data.Results: Four themes describe the role of family business values in enhancing longevity among the IBSA family businesses. Family business values were found to guide the behaviour of family business members, build the identity of the business-owning families and their businesses and build a sense of community in both the family and the family business. The continuity and success of their family businesses were also attributed to these underlying family business values.Conclusion: Family business founders and/or current leaders should articulate the value set they uphold and use it as a resource to build the identity of both their families and family businesses while moderating the behaviours of family business members.Contribution: The study responds to several research calls to investigate family businesses in African cultural settings and provides practical guidance to scholars, entrepreneurs and practitioners on how family businesses can use values as strategic resources to enhance business longevity and success.

Analisis Pengembangan Usaha Peternakan Sapi di Kecamatan Landono Kabupaten Konawe Selatan (Studi Kasus pada Anggota Kelompok Tani Budi Karya)

Landono District has a potential area for developing a cattle breeding business, but cattle farming requires a considerable investment. The Budi Karya Farmers Group is one of the groups that conduct cattle farming in Landono District, South Konawe Regency. The research objective was to determine the feasibility of developing a cattle breeding business for members of the Budi Karya farmer group in Landono District, South Konawe Regency. Determination of the research location was carried out purposively with the consideration that in Landono District, there is a cattle business carried out by farmer groups. The number of respondents, namely all members of the Budi Karya farmer group, as many as 19 people and one of the officers from the livestock service who helped develop the cattle farming business in Landono District. Data analysis used feasibility and sensitivity analysis. The results of research on the development of a cattle farming business for members of the Budi Karya farmer group obtained an NPV value of Rp663.881.185, an NBCR value of 2,412, an IRR value of 35,97%, a PP value of 2 years four months, a production BEP of 2 heads and a BEP price of Rp389.153. The results of the sensitivity analysis of the cattle farming business of members of the Budi Karya farmer group to a 10% decrease in production and an increase in production costs of 10% meet the five eligibility assessment criteria so that the development of cattle farming business members of the Budi Karya farmer group is feasible to be cultivated or run.