Family Business Research Research Articles

Family CEO and radical innovation: A stewardship perspective

This article integrates the literature on radical innovation, the stewardship perspective, and family business research to develop and test a model examining the influence of a family CEO and the CEO's generational stage on radical innovation, considering different types of family CEOs as distinct manifestations of strategic leaders' stewardship behavior. Furthermore, building on the notion of “doing more with less”, we propose and empirically test the notion of “doing better with less”—specifically, whether the presence of a family CEO enhances the pursuit of radical innovation under resource constraints (i.e., with lower R&D intensity). Using longitudinal data over an 11-year period from 227 listed firms in the automotive and pharma/biotech industries from 29 countries, we find that firms led by a family CEO, especially those led by descendants, excel at radical innovation. Descendant-led firms are also better at radical innovation with lower R&D intensity, suggesting they do better with less. That is, our study shows that family CEOs at a later generational stage serve as catalysts for radical innovation, even under resource constraints. In addition to implications for theory and practice, our findings offer a more advanced understanding of the strategic leadership-innovation relationship in terms of distinct manifestations of stewardship behavior for radical innovation in firms with family leadership.

Editorial: New contexts in family business research: sport, fitness and lifestyle

Editorial: New contexts in family business research: sport, fitness and lifestyle

Eco-innovations in family SMEs: Understanding the role of financial performance satisfaction

ABSTRACT What drives eco-innovations among family SMEs? Given the mixed findings about family firms’ engagement in environmental practices, this question has profound implications for academia and practitioners. By applying the mixed gamble lens, we propose an inverted U-shape relationship between financial performance satisfaction and the extent to which family SMEs introduce eco-innovations. An analysis using data from Dutch family SMEs supports our hypothesis. Our results provide not only managerial implications for family business practitioners to enhance eco-innovations, but also challenge prior findings in sustainability and family business research regarding the linear relationship between financial performance satisfaction and strategic decisions, opening avenues for future research to dive deeper into the complex impact of financial performance satisfaction on organizational outcomes.

Exploring the moderating effect of family communication patterns on the family CEO characteristics – family firm internationalization relationship

This article explores the impact of family CEO characteristics on internationalization and how this relationship is moderated by family communication patterns. Drawing on family communication patterns theory, which states that family communication varies across two dimensions, i.e., family conversation orientation and family conformity orientation, we argue that early family communication shapes family CEOs’ behavior in later life and moderates the effect of family CEO characteristics on internationalization. Our results from a sample of 182 Belgian private family firms (FFs )show that family CEO education has a positive effect on the internationalization of FFs, but this effect decreases as the family conformity orientation increases. These findings make unprecedented and interesting contributions to upper echelon and family business research.

Green human resource management in a family business setting: a fuzzy set approach

ABSTRACT Sustainability in family businesses as an entrepreneurial initiative is an emerging research field. The literature assumes that owners, managers, and employees in family businesses adopt homogeneous sustainability practices as a global construct mixing social and environmental issues. However, green human resource management (GHRM), considered as an innovative process, is focused on understanding how regular managers and employees become green-oriented and aim for business sustainability by applying green policies and practices. Based on previous green HRM research, this study proposes to apply a fuzzy set qualitative comparative analysis to identify the combinations of key practices observed in 513 family businesses in Quebec. This perspective helps to explain some of the boundary conditions and combinations of green HRM practices in family businesses based on more realistic insights by avoiding a merely linear analysis. We highlight four different pathways connecting green HRM system to economic performance. This study is the first to explore green HRM practices in family businesses. The paper concludes by discussing how the findings advance knowledge on sustainability in family business research.

Social Exchanges in Family Businesses: A Review and Future Research Agenda

Different social exchange relationships among family members and between family and non-family stakeholders influence individual, group, and family-firm outcomes. Although many studies provide insights into social exchange relationships in family businesses, these studies are scattered across multiple literatures. Using the lens of social exchange theory, we review and organize 74 such studies. After discussing what is known and what gaps remain, we juxtapose our review with new theorizing about social exchanges to elicit research opportunities for family business research and for leveraging the family business context to “give back” to social exchange theory.

Creating and sustaining mutualistic well-being: Toward a theory of family and business symbiosis

This paper addresses a question that is fundamental to the domain of family business research yet still inadequately addressed by the field’s predominant theories: Why are some family business systems able to create and sustain the simultaneous health of both the business and the family over generations, whereas many others experience an erosion in the well-being of one sphere relative to the other? Invoking analogical theorizing, we demonstrate the fruitfulness of applying key concepts from biological research on symbiotic relationships between organisms of different species. More specifically, we suggest that the area’s distinction between mutualism, commensalism, and parasitism provides a useful vocabulary for conceptualizing the heterogeneity evident amongst family business systems. By delineating factors that are likely to influence the nature and strength of a family business system’s symbiotic relationship, we hope that our conceptual framework helps guide future research on why, when, and how the interdependence between family and business can range—and sometimes shift—along a continuum from strong mutualism to strong parasitism.

Family business culture: a strategic resource and driver of firm performance

PurposeThrough a resource-based theoretical lens, we elucidate conditions under which family business culture (FBC) amplifies the positive effects of high-performance work systems (HPWS) intensity and exacerbates the negative effects of low human capital uniqueness (HCU) on firm performance. By doing so, we answer the call for more research on the conditions under which FBC influences firm outcomes.Design/methodology/approachThe present study sampled 226 small business owners across the USA, who provided their responses to online survey questions. Hypotheses were assessed via path analysis in MPlus 8.8, using maximum likelihood estimation.FindingsFBC, HPWS intensity and HCU were positively associated with firm performance. Further, the HPWS intensity – firm performance and HCU – firm performance links were moderated by FBC. Specifically, increased levels of HPWS intensity were associated with greater firm performance when FBC was high, and firms with low levels of HCU tended to have particularly decreased levels of firm performance when FBC was low.Research limitations/implicationsConsistent with the resource-based view, firms' unique resources and competitive advantage may be tied to the extent to which they have an established FBC. High levels of FBC, which are characterized by shared values, loyalty, proud involvement and care toward the organization, can play a significant role in enhancing organizational performance. Family business leaders should prioritize cultivating an enhanced FBC alongside investments in HPWS and unique human capital.Originality/valueThis study contributes to understanding the theoretical underpinnings of FBC and its relationship with firm performance by examining FBC’s interaction with HPWS intensity and HCU. We highlight FBC as a valuable intangible resource that can enhance or diminish the effectiveness of other strategic resources in family firms, further extending the application of resource-based view theory in family business research.

How Do You Feel? A Systematic Review on Affect in Family Business Research

How Do You Feel? A Systematic Review on Affect in Family Business Research

Legacy: The meaning of lasting impact for family, business, and beyond

The concept of legacy exists at the core of family business research, yet as a construct, the nature of what legacy is and why and how legacy matters across generations has been poorly understood (Hammond, Pearson, & Holt, 2016). This lack of conceptual clarity has limited legacy research in the domain of family business. In this article, we provide a comprehensive definition of legacy that can be used to draw connections across existing legacy research and open new avenues of inquiry critical to understanding both family firms and legacy itself.

Balancing work and family when family is work: a reconceptualization of work–family integration, burnout and detachment in family business

PurposeBuilding from calls for greater interdisciplinary research in interpreting family business phenomena, we integrate research on work–family conflict, detachment and burnout from both organizational and family studies. Using the characteristic work–family integration of family business settings as a backdrop we develop theoretical arguments that emphasize the reconciliatory role of interdisciplinary perspectives to explain the ostensibly contradictory findings in extant research. The diminishing barriers separating work and life spheres occurring in most global industries illustrate the importance of conceiving the study of work–life phenomena through recursive, rather than linear, logics and emphasizing the relevance of family business research in providing a contextual foundation for interdisciplinary discussions.Design/methodology/approachThis theoretical paper integrates perspectives from the literatures on organizational behavior and family systems theory to form six propositions on the relationship between work–life integration and the antecedents and consequences of burnout and psychological detachment.FindingsThis paper explores the nuances that overlapping work and family roles might be a source of both harmony and discord in family firms. In doing so, our research contributes to the growing relationship between family systems theory and family business research, and creates the foundation for future empirical studies on the psychological dynamics that underlie work–family integration.Originality/valueThis research advances a novel perspective on the interactions between work–family integration and burnout and detachment, and does so by noting that the way the family business literature treats work–family integration may apply to any employee that experiences tension between these different spheres of their identity.

A conceptual framework of executive coaching in family business succession planning: the Malaysian context

ABSTRACT Family business succession planning receives much attention globally, but executive coaching remains underutilized. This applies to family-owned businesses; particularly challenging would be the survivorship of small and medium enterprises. Given the growing need for more effective succession planning, this paper aims to improve the existing executive coaching framework by applying it to family business succession planning in Malaysia. This conceptual article contains an accessible definition and presentation of executive coaching. Each framework component depicts the coach, coached person (‘coachee’), and organizational roles in the coaching, which leads to the possible leadership transfer outcome. This paper suggests a new succession planning direction for researchers and executive coaches. The planning direction aims to aid family business owners in understanding the executive coaching ‘what, why, and how’ and an alternative succession planning approach is suggested. The mechanism of executive coaching and the basis for novel family business research are discussed and established.

Familiness and Business Strategy: Unraveling the Moderating Effect of Familiness on Performance in Family Firms

Existing literature has examined several viewpoints in the field of family business research. Nevertheless, the correlation between strategy and performance in family enterprises has not been extensively studied. Furthermore, the extent to which family influence impacts the link between strategy and performance is not well-defined. The distinguishing factor between family businesses and non-family businesses is the concept of familiness, which refers to the unique qualities and talents that stem from family influence. The current body of research focuses on examining the moderating influence of familiness on the link between strategy and performance in family businesses. This study focuses on examining the impact of business strategy on the development of exceptional performance in family firms. Additionally, it investigates if familiness has a moderating function in this connection. This study aims to conduct an empirical analysis of the connection between strategy and performance in family-owned businesses. Additionally, it seeks to investigate the influence of familiness as a moderating factor in this relationship. The research population consists of individuals who own or manage family businesses. A total of 203 owners/managers were chosen using a simple random sample method from the family businesses located in Multan. Data were obtained using a cross-sectional survey, and the hypothetico-deductive technique was employed in the research design. Partial least squares structural equation modeling (PLS-SEM) was utilized for assessing data. The research findings suggest a direct correlation between familiness and the performance of family businesses. The results also reveal that familiness moderates the association between family business strategy and family company performance. The findings of this research have crucial significance for family company owners/managers by underlining the fact that family business strategy’s influence on family business performance may be strengthened by concentrating on the aspects of familiness; power, experience, and culture. This research also contributes to the family business literature by evaluating the moderating influence of familiness on the strategy-performance relationship in a family company setting.

Advancing diversity research in family business

The purpose of this special issue is to advance the ongoing dialogue on gender diversity in family businesses and, more generally, encourage further research on individual distinctions to foster an inclusive milieu leading to greater equity, innovation, and organizational resilience. The studies in this special issue exemplify various aspects of gender diversity in family business, offering innovative perspectives to examine gender roles and representation within family businesses. Building on these articles, we offer a perspective that combines feminist theories with a social identity theory approach, going beyond the Business Case for gender equality and incorporating an emphasis on gender and power dynamics and identities. We conclude by proposing several future research directions to advance gender diversity studies in family business context.

Families and Their Firms Behaving Badly: A Review of Dysfunctional Behavior in Family Businesses

Family business research across academic disciplines has increasingly considered the causes of “bad behavior” in family firms and its impact. A review of this literature is important because different emphases in different disciplines may obscure the nature of dysfunctional behaviors in family firms. After reviewing 160 studies from 64 journals, we propose family firm dysfunction is better understood by emphasizing the roles the family and the firm’s external environment play because negative behavior often traces to family interactions predating firm engagement and to external pressures. We also present research questions to guide future studies on family firm dysfunction across disciplines.

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.

Nonfinancial Outcomes in Family Business Research: A Review and Future Research Agenda

Nonfinancial outcomes (NFOs) are goals, objectives, performance indicators, or other results, effects, and consequences not operationalized in terms of direct monetary value. The most salient NFOs for family businesses represent socioemotional considerations that are unique to the family’s decisions and behaviors; yet there are hundreds of different outcomes that can be classified as nonfinancial, with numerous implications for family and nonfamily businesses. With the objective of advancing knowledge of NFOs, we review 267 articles containing 322 NFOs, synthesize our findings by classifying the NFOs into quadrants, discuss how they are utilized in the extant literature, and suggest future research opportunities.

Resilience in Family Businesses: A Systematic Literature Review

Resilience attracts increasing attention across scientific domains, particularly in the context of family businesses, for which the ability to navigate adversity is pivotal for transgenerational success. This systematic literature review investigates 87 publications on organizational resilience in family businesses. Our analysis highlights four distinctive themes of family business resilience: (1) defining family business resilience, (2) long-term orientation and family values, (3) resource and capability endowments, and (4) demonstration of resilience and learning. We contribute to family business research by providing a novel framework and integrated definition, accompanied by a future research agenda.

The evolution of the field of family business research over a decade (2012–2022)

The continuous challenges to which family firms are subjected have led research in this field to focus on various aspects, thus generating a large and heterogeneous body of literature. This paper describes the evolution, status, and trends in family business literature over the decade 2012–2022 and also identifies gaps that may require further investigation. In that regard, new opportunities for additional analyses are also determined. To this end, a bibliometric study has been carried out based on a collection of articles from the Business Source Premier, Web of Science, and Scopus databases, yielding a total of 4064 articles. We analyze the main indicators of activity in family business research over the aforementioned period. The most productive authors and institutions, leading journals, and main research topics of these publications are reflected in this analysis. Likewise, the relationships between the most frequent co-authorships within the field are mapped, as well as the connections between co-words in published articles. In addition, the 10 most influential works published during those 10 years and changes in trends related to the most popular topics, in contrast to previous years, are also highlighted.

Entrepreneurial resilience (ER) and family business: a perspective article

Purpose This paper highlights the need for future studies researching the subject of resilience in family firms on different levels.Design/methodology/approach This paper reviews the literature on resilience in family businesses.Findings Resilience has become more important due to the recent multiple crises, starting with the coronavirus pandemic, followed by high inflation and energy prices, partly resulting from the war in Ukraine. These multiple crises affect the family and the business level. Future research must account for multiple levels when addressing it, i.e. the individual, the team, the family, and the business level. Resilience has to encompass all levels to sustain family business continuity.Originality/value By giving an overview of the concept of resilience, taking the family's perspective, and suggesting future avenues of research, the paper contributes to the development of family business research.