Non-family Employees Research Articles

Linking psychological ownership to employee extra-role behaviours in small overseas Chinese family businesses

Purpose– The purpose of this paper is to examine the impact of psychological ownership (both job and organisational based) on extra-role behaviours among family and non-family employees in small overseas Chinese family businesses.Design/methodology/approach– Empirical evidence was drawn from a survey of 80 family owners/managers and non-family employees from 40 small overseas Chinese family businesses from the transport industry in Malaysia. All proposed hypothesis were tested using hierarchical moderated regression analyses.Findings– Job-based psychological ownership was found to significantly predict both types of extra-role behaviours. Organisational-based psychological ownership, however, was only a significant predictor of voice extra-role behaviour. Interestingly enough, no significant moderating effects on the relationships between the two dimensions of psychological ownership and two types of extra-role behaviour were found.Originality/value– Having a dedicated workforce of both family and non-family employees who are willing to display extra-role behaviours may be considered as an essential component of business success and long-term continuity for many family firms around the world. This particular paper represents one of the few empirical efforts to examine the extra-role behaviours of employees in family firms from emerging economies.

Trust Based Relationships between Family Members and Long-Term Employees of Family-Owned SMEs

The purpose of this study is to identify dimensions of trust between family members in family-owned SMEs and long-term non-family employees who have been working in the enterprise with at least two generations. The data of the study were collected through interviews with the second generation members actively working in ten family businesses that operate in different sectors. The thematic analysis of the interview notes revealed that the dimensions of trust of family members in non-family employees included competence, identification and personal trustworthiness. Competence of the non-family employees means that they possess the practical skills to tackle various issues related to the family and enterprise. Identification of the long-term employees with the enterprise refers to the content that can be explained with the protection of the interests of the family and enterprise, self-commitment, and adaptation to the values. This is interpreted as psychological ownership. Trustworthiness, on the other hand, points to the ethical conduct such as truthfulness and contentedness. These findings show that trust in the non-family employees who have been working in family-owned SMEs has a specific context. Suggesting some implications for future studies, the findings also contain evidence demonstrating that the family business is a strong niche for scholars studying organizational behavior.

Non-family employees in family firms: an empirical analysis of antecedents of affective commitment

Despite the importance of non-family employees’ organizational commitment for the success of family firms there is still a lack of knowledge about its antecedents. Accordingly, this study examines ...

Family firms as incubators for ethical behavior: An exploratory study from the perspective of stewardship theory

AbstractThis work aims to determine whether family firms have differential characteristics that make them better incubators for ethical behavior from the perspective of stewardship theory. Results show that the psychological and situational factors that stewardship theory points to as determinants in the construction of principal–steward relationships are more evident in family firms than in non-family firms. These factors result in the behavior of owners and non-family employees becoming more ethical – with all the benefits this implies for these firms.

Extrinsic rewards in family businesses: Perspectives of nonfamily employees

The rewards employees receive in exchange for their labour play an important role in influencing their levels of job satisfaction and organisational commitment, and ultimately in retaining their services. The issues surrounding rewards are, however, complex in the field of family business. The primary objective of this paper is to investigate the influence of selected extrinsic rewards, namely, compensation, promotion opportunities and job security, on the levels of jobsatisfaction and ultimately on the levels of organisational commitment of nonfamily employees working in family businesses. Structural equation modelling was used to assess the hypothesised relationships, and the results show that compensation and job security are significantly and positively related to job satisfaction. Job satisfaction was found to be significantly and positively related to organisational commitment and also found to act as a mediator between these extrinsic rewards and organisational commitment. Establishing the perspectives that nonfamily employees have of the rewards given to them by the family businesses in which they work, provides family business owners with valuable insights into attracting and retaining this valuable stakeholder group.

Ropajes-Cursos de costura y diseño de modas

Vilma Martínez es una empresaria que comenzó una escuela de costura que expandió sus cursos y diversificó a negocios relacionados en Puerto Rico. Sus negocios envuelven industrias tales como educación, moda, y entretenimiento. Además de tener que manejar funciones como mercadeo, operaciones, y recursos humanos, también tuvo que enfrentar problemas que son particulares a negocios de familia y al emprendimiento de negocios nuevos. Aunque el ambiente económico de PR e industria fueron difíciles, a su escuela le ayudaron a crecer ciertos factores sociales y demográficos. El crecimiento de su escuela de costura también se debió a anuncios, precios, y otras actividades de mercadeo implementadas basadas de su experimentación constante. Se presentan varios problemas estratégicos tales como: relocalización, local más espacioso, acreditación, y contratación de empleados fuera de su familia.

Psychological ownership in small family firms: Family and non-family employees’ work attitudes and behaviours

Family and non-family employees’ sense of attachment towards the firm and their job can have a number of positive pro-organisational attitudinal and behavioural outcomes, which are essential for family firms’ success. While research interest in psychological ownership (PO) in family firms has increased, further research is still needed in understanding its impact on family firms. To address this gap, we investigate whether organisational-based and job-based psychological ownership (PO) has an impact on extra-role behaviours and employees’ level of work engagement in family businesses. Moreover we look at whether the status of the employees (family or non-family) moderates these relationships. Based on a sample of 101 employees from small Malaysian Chinese family firms, we find significant effects of organisation-based and job-based PO on extra-role behaviours and work engagement. Moreover we find that the effects of job-based PO on vigour and absorption to be moderated by family status. Our findings offer valuable insights into the family business and overseas Chinese family business literatures.

Family Firms, Social Responsibility, and Non-Family Member Employees Identification

The objective of this paper is to find the relationship between family firms’ CSR engagement and their non-family member employees’ organisational identification. Drawing upon the existing literature on social identity theory, corporate social responsibility and family firms, the author proposes that family firms engage actively in CSR programs in a balanced manner to increase non-family member employees’ organisational identification. The findings of the research suggest that by developing and implementing balanced CSR programs, and actively getting engaged in CSR activities, family firms may help their non-family member employees better identify themselves with the firms. The article points out that due to unbalanced CSR resource allocation, family firms face the problem of inefficient CSR program implementation, and are suggested to switch alternatively to an improved scheme. Family firms may be advised to take corresponding steps to select right employees, communicate better with non-family member employees, use resources better and handle firms’ succession problems efficiently. The paper extends employees’ identification and CSR research into the family firm research domain and points out some drawbacks in family firms’ CSR resource allocation while formerly were seldom noticed.

A Research to Determine the Relationship between Organizational Justice and Psychological Ownership among Non-family Employees in a Family Business

The concept of ownership which has been the focus of attention by scholars and business managers has three different dimensions. These are legal-economic, psychological and social ownership. This research is mainly concerned with psychological ownership that can be stated as a question “How much do I feel this organization is mine?” This can be the most congenial for family and paradoxically the most repellent question for non-family members in a family business. In family businesses, there are two different groups as the family members and the non-family members. In order to develop a sense of psychological ownership in family enterprises, managers should uphold justice between family members and non-family members. Therefore, this study examines the relation between organizational justice and psychological ownership within a family business. To fulfill this purpose, we studied a large scale ceramic company employing 70 white collar employees in the Turkey. The main hypothesis of the study - that “Organizational justice perceptions of non-family employees are positively related to their psychological ownership toward the family business”- seems valid from the results obtained. Furthermore it has been concluded that there is a significant relationship between organizational justice and psychological ownership.

Is a high level of milk production compatible with good reproductive performance in dairy cows?

Milk production and reproductive performance are two major determinants of dairy cow profitability. There is much debate among dairy producers and researchers about possible antagonism between high milk production and reproductive performance. There are questions about possible conflicts of genetic selection for production and fertility and whether management can meet the needs of cows for both high production and timely and efficient pregnancy. This paper reviews and critiques data on measuring the association of the level of milk production with pregnancy rate in dairy cows. Many papers refer to a decline in fertility in dairy cattle over the last 20 to 30 years but valid primary data to support this assertion are scarce. While there are reports from 50 to 80 years ago expressing concern about reproductive performance and the effect of increasing production on it, it seems that measures of reproduction in large datasets only began to decline in the mid-1970s to mid-1980s (Nebel and McGillard, 1993; Lucy, 2001; Stevenson, 2001). This coincided with acceleration of trends toward fewer, larger dairy farms with more non-family employees and increasing use of technologies to assist management. Despite the continued march of increasing production per cow per year, recent data suggest that the trend in the US in some of the same measures of reproduction has begun to improve (Norman et al., 2009). There are a few frequently referred-to datasets (e.g., Butler, 1998; Royal et al., 2000; Lucy 2001) that show an apparent decrease in conception risk over the last 50 years, during which time milk production per cow has increased substantially. These data warrant scrutiny. Temporal associations do not imply causation. To the extent that producers abandon breeding on low producing animals but continue to inseminate high producing animals, it is not surprising that there is an apparent association between higher milk yield and a higher number of artifical insemination (AI) per pregnancy. Also, many aspects of dairy production have changed in the last two generations, so caution is needed in inferring a cause-and-effect relationship between high production and decreased reproductive performance when the potential for confounding of the relationship is high. The weaknesses and pitfalls of causal reasoning relative to study design and analysis in the context of the present question have been well discussed by Morton (2006) and Bello et al. (2012). Some key points include: • Failure to account for confounders: many studies ignored other variables that have changed over time along with production and reproduction (e.g., herd size, the skill and experience of farm personnel, increasing confinement on concrete floors which may impair estrus expression), leaving these analyses susceptible to confounding and therefore overestimation of the strength of the effect of production. For example, at the cow level it may be body condition that is a determinant of reproductive function rather than milk yield (Santos et al., 2009), but the former is often not available in large datasets.

Is the spiritual bond bound by blood? An exploratory study of spiritual leadership in family firms

Our research is one of the first to examine spiritual leadership, which lies at the crossroads of workplace spirituality and transcendental leadership, within the context of family firms. We describe how the unique characteristics of family firms allow for and encompass spiritual leadership. First, we adapt the construct of spiritual leadership to the firm level. Then, analyzing dyadic data, we provide empirical support for the emerging theory of spiritual leadership by linking the spiritual bond between leader and follower to organizational citizenship behavior, a new dependent variable in the nomological net of spiritual leadership. We further explore the relationship in subsets of our data, finding that the relationship holds for family members but does not hold for non-family employees of the family business. Implications and avenues for future research are discussed.

Give Me Your Entrepreneurs, Your Innovators: Estimating Employment Impact of a Startup Visa

One proposed version of a Startup Visa would make 75,000 visas available for current holders of H-1B and F-1 visas. To remain eligible, Startup Visa companies must employ two full-time, non-family employees after one year, and raise or invest $100,000. After three subsequent years, Startup Visa companies must employ five full-time, non-family employees. At the end of four years, Startup Visa holders may apply for permanent residence. A Startup Visa would release considerable pent-up entrepreneurial energy in the United States. Consider the following scenarios: • Using the legislative minimum requirements, and applying company and employment survival rates from Census data, we estimate that four-year- old Startup Visa companies would create nearly 500,000 new jobs after ten years. • Using Census data on average employment per firm, we estimate that four-year-old Startup Visa companies would create nearly 900,000 new jobs after ten years. • Assuming that half of the Startup Visa companies would be technology and engineering companies, we use data on immigrant-founded technology companies in the United States. We estimate that, in this scenario, Startup Visa companies would create nearly 1.6 million new jobs after ten years. For various reasons, we consider these three scenarios to be conservative, low-end estimates. None of these estimates take into account potential high-growth and scale firms or the continued growth of Startup Visa companies after they age out of the program. Nor do they account for a Startup Visa’s impact on innovation, GDP, and productivity. The current proposed design has two potential shortcomings. First, the 75,000 Startup Visas it would create are a fixed number, so new slots become available only as companies fail. Second, the Startup Visa may actually penalize failure, and care should be taken to build tolerance for failure into the design and execution.

Non-family employees in small family business succession: the case of psychological ownership

This study is analysing non-family employees' perceptions on psychological ownership during the family business succession process. Three small family companies were chosen for the multiple case studies. The results of this study show that non-family employees are participating on the small family business succession and they do possess a strong psychological ownership towards the family business, their own work, and the founder generation. Non-family employees recognise the changing management and leadership in successions. Non-family employees' psychological ownership increases in succession. This has got influence on commitment and well being in unique way according to personal characteristics of a non-family employee.

Escalation of Conflict in Large Private Family Business

Family businesses represent the majority of firms and play a major economic role worldwide. This study investigates escalation of intra-familial conflicts in family top management teams. Using a Critical Incident Technique approach, this study uses interviews to collect data from 23 family and non-family individuals and groups within six large-scale privately-held family businesses in Indonesia. The study develops a theoretical model to explain why family business conflicts escalate and become destructive. An inductive content analysis found that the use of a dominating strategy by both parties in dealing with conflict, the expression of negative emotions, and the involvement of non-family employees are more likely to cause escalation. Based on the results the study proposes a model of conflict in family businesses. This study contributes to the theory of family business conflict to help make family business more satisfying and productive.

Towards a theory of nonfamily employees' organizational identification and attachment in family firms

PurposeSince non‐family employees form a large portion of employees in many family firms and they play an important role in the transgenerational survival of those firms, the purpose of this paper is to explore how family influence factors affect non‐family employees' organizational identification and then organizational attachment, which can consequently influence their turnover intentions.Design/methodology/approachIn this conceptual paper, the paper attempts to answer two important research questions: What are the family firm‐specific determinants of nonfamily employees' organizational identification in family firms? How does nonfamily employees' organizational identification affect their tenure in family firms? Thereby, the paper develops a conceptual model linking family influence dimensions (i.e. power, experience, and culture), nonfamily employees' organizational identification, organizational attachment, and turnover intentions within the domain of the stewardship theory.FindingsThe model presented in this paper can help scholars and family business managers better understand the idiosyncratic family influence dimensions that can affect nonfamily employees' perceptions and intentions associated with their tenure in family firms. If family firms can limit the negative effects of family influence factors, make the best use of the positive effects, and integrate key nonfamily employees into the family firm through helping them satisfy their higher‐order needs, they can uninterruptedly move forward toward achieving long‐term competitive advantages and superior performance.Research limitations/implicationsAside from the antecedents of nonfamily employees' organizational identification that are pointed out in this paper, there may be other determinants that are beyond the scope of this paper. The governance structure and strategic orientations are some of the possibilities constituting avenues for future research.Social implicationsFamily firms with great employee care cannot only increase employees' loyalty to their firms, but also help them develop work‐life balance.Originality/valueThis paper is one of the only attempts to use social identity theory to explain non‐family employees' organizational identification and attachment in family firms that can affect their turnover intentions. Not only does this add to our knowledge of family firm human resources management and provide new directions for future research, but it also suggests the usefulness of social identity theory in family business research.

Effects of kin density within family-owned businesses

We examined how kin density within family-owned firms related to perceptions of nepotism and organizational justice; we also examined the moderating role of family membership in these relationships. In a sample of 79 family employees and 299 non-family employees in 21 family-owned businesses, both kin density and family membership were found to be related to nepotism perceptions. Additionally, family membership moderated the relationships of kin density to nepotism and justice perceptions, as well as the relationship between nepotism and justice perceptions. Finally, nepotism perceptions provided a partial mediating link between kin density and organizational justice perceptions. These results suggest that kin density and family membership are important variables to consider in understanding the experiences and attitudes of employees in family-owned businesses.

Is the Spiritual Bond Bound by Blood? An Exploratory Study of Spiritual Leadership in Family Firms

Our research is one of the first to examine spiritual leadership, which lies at the crossroads of workplace spirituality and transcendental leadership, within the context of family firms. We describe how the unique characteristics of family firms allow for and encompass spiritual leadership. First, we adapt the construct of spiritual leadership to the firm level. Then, analyzing dyadic data, we provide empirical support for the emerging theory of spiritual leadership by linking the spiritual bond between leader and follower to organizational citizenship behavior, a new dependent variable in the nomological net of spiritual leadership. We further explore the relationship in subsets of our data, finding that the relationship holds for family members but does not hold for non-family employees of the family business. Implications and avenues for future research are discussed.

Non-Family Employee's Identification with Family: The Moderating Effect of Culture in Family Firms

Through their distinct cultures, families that own firms have a unique ability to convey a sense of affiliation and belonging to their non-family employees. Such identification can impact non-family employees in a variety of ways. It can lead to increased levels of loyalty, trust and performance; but it can also have potential negative effects, such as feelings of entitlement or even fraudulent behavior. The purpose of this exploratory research is to determine how non-family employees develop strong identities with the owning family, and under which conditions their identification leads to positive or negative outcomes. In this respect, the role of family business culture as a potential moderator of this relationship will be of particular interest. Social identity theory and agency theory will serve as conceptual foundations for this study. A mixed methods approach will be used to investigate the research question. In a first step, semi-structured personal interviews with family business owners and their employees will be conducted. In a second step, a quantitative survey based on the results from the qualitative analysis and review of the literature will be administered to a random sample of small and medium enterprises in the United States.

Affective commitment and job satisfaction among non-family employees: Investigating the roles of justice perceptions and psychological ownership

Due to numerous characteristics often attributed to family firms, they constitute a unique context for non-family employees’ justice perceptions. These are linked to non-family employees’ pro-organizational attitudes and behaviors, which are essential for family firms’ success. Even though scholarly interest in non-family employees’ justice perceptions has increased, more research is still needed, also because the mechanism connecting justice perceptions and favorable outcomes is not fully understood yet. We address this gap by explicitly investigating non-family employees’ justice perceptions and by introducing psychological ownership as a mediator in the relationships between justice perceptions (distributive and procedural) and common work attitudes (affective commitment and job satisfaction). Our analysis of a sample of 310 non-family employees from Germany and German-speaking Switzerland reveals that psychological ownership mediates the relationships between distributive justice and affective commitment as well as job satisfaction. This represents valuable contributions to family business research, organizational justice and psychological ownership literature, and to practice.

Psychological Ownership in Small Family-Owned Businesses: Leadership Style and Nonfamily-Employees’ Work Attitudes and Behaviors

Using a sample of 229 nonfamily employees working in 52 small family-owned businesses, we examined the relationships between owner-managers’ leadership style and employees’ psychological ownership of the family business and their job. We also examined whether psychological ownership mediated the link between leadership style and employees’ organizational attitudes and behaviors. Hierarchical linear modeling (HLM) analysis confirmed transformational and transactional leadership as contextual facilitators of psychological ownership for the family business and for the job. Passive (laissez-faire) leadership was negatively related to employees’ ownership feelings for the family business. Psychological ownership of the organization and the job mediated the relationship between leadership style and affective organizational commitment, job satisfaction, and turnover intentions. In addition, feelings of psychological ownership for the family business mediated the relationship between transformational leadership and organizational citizenship behavior (OCB). Implications for research and practice are discussed.