Is non-family social capital also (or <i>especially</i>) important for family firm performance?

Sanchez‐Famoso, Valeriano; Akhter, Naveed; Iturralde, Txomin; Chirico, Francesco; Maseda, Amaia

doi:10.1177/0018726714565724

Cited by 56 publications

(56 citation statements)

References 140 publications

(277 reference statements)

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“…Conceptually, we focus on the different resources that family and professional managers offer to the firm in terms of their respective managerial human and social capital. Such resources have been used to explore the impact of family and professional managers on family firm internationalization (D'Angelo et al, 2016;Kontinen & Ojala, 2011a, 2011bKraus, Mensching, Calabrò, Cheng, & Filser, 2016) as well as family firm performance (Sanchez-Famoso, Akhter, Iturralde, Chirico, & Maseda, 2015). Differences in a firm's endowment with these complementary and competitively relevant resources (Acquaah, 2012;Geletkanycz, Boyd, & Finkelstein, 2001) are expected to influence strategy and performance outcomes, particularly at the level of the top management team (TMT) (Minichilli, Corbetta, & MacMillan, 2010).…”

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confidence: 99%

International and product diversification: Which strategy suits family managers?

Stadler

Mayer

Hautz

et al. 2018

Global Strategy Journal

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Research Summary: This article explores the impact of family and professional managers on performance and how this relationship is affected by international and product diversification. Using a dataset of 262 German firms from 2000 to 2009, we find that an increasing proportion of family managers on the management board is associated with higher performance. This relationship is negatively moderated by higher levels of international diversification but reinforced by increased product diversification due to differences in the human and social capital between family and professional managers. Firms with a significant presence of family members on the top management team (TMT) face a choice of either adopting a corporate strategy that runs counter to “globalfocusing” or adjusting the balance of family and professional managers in the TMT. Managerial Summary: Deciding the extent of family involvement on the executive team is a key strategic decision. While our research supports the general proposition that family managers will enhance performance, we show they do not have the same positive impact in all situations. More precisely, we show that family managers are more suited to lead diversification than internationalization. If a family firm wants to go international, it is sensible to increase the proportion of professional managers on the executive team. Diversifying into new product markets, however, does not require outside expertise commonly associated with professional managers.

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confidence: 99%

International and product diversification: Which strategy suits family managers?

Stadler

Mayer

Hautz

et al. 2018

Global Strategy Journal

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“…Similarly, De Massis, Kotlar, Chua and Chrisman [5] discuss why family ownership may be used to explain family firms' heterogeneity. Previous research demonstrates that the type of ownership of a company influences their goals, motivations, investment horizon, performance, diversification plans, return aspirations, uniformity of relationships, and so on (e.g., [8,12,13]). …”

Section: Family Ownership As a Moderating Role In The Multigroup Analmentioning

confidence: 99%

“…For example, family firms with a higher percentage of family ownership are likely to benefit from internal relationships because of the unique organizational culture that these firms can create [12]. However, they are typically unwilling to cooperate with external partners, due to low levels of out-group trust and significant asymmetric information [54].…”

Section: Family Ownership As a Moderating Role In The Multigroup Analmentioning

confidence: 99%

Analysis and Evaluation of the Largest 500 Family Firms’ Websites through PLS-SEM Technique

et al. 2018

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As few studies relate the technical aspects of a corporate website to a firm's turnover, this paper aims to examine how the quality of a corporate website influences social networks and the company's turnover in large family firms. The moderating and mediating effect of social networks on the relationships between website quality and turnover are also tested. In addition, the paper performs a multigroup analysis to analyze the differences between family businesses with low and high family ownership concentration. The sample used in the study, the largest 500 family firms' websites around the globe extracted from The Global Family Business Index compiled by the University of St. Gallen, were analyzed using partial least squares-structural equation modeling (PLS-SEM). The results indicate that both the direct and indirect effect of website quality on turnover and the moderating effect of social networks in the relationship between website quality and turnover were negative and significant. The multigroup analysis reveals some significant differences between both groups. The study contributes to the evaluation of website literature by exploring a new sector of application: family businesses. Moreover, the largest family firms should improve their presence in social networks to increase their sales.

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“…Morris () and Essers et al. () observes that human capital resources are a vital part of the entrepreneurial process and a key role of the entrepreneur is to determine access and employ the necessary and appropriate resources (Sanchez Famoso, ). If the category and amount of skill are not equally distributed, and some firms can acquire the talent they need and others cannot, then that form of human capital can be a source of sustained competitive advantage’ (Snell, Youndt, and Wright, ).…”

Section: Literature Reviewmentioning

confidence: 99%

Shifts in Intergenerational Mobility of Indian Immigrant Entrepreneurs

Chavan

Taksa

2016

International Migration

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The objective of this article is to examine the shift in the intergenerational mobility of Indian immigrant entrepreneurs in Australia. Based on a qualitative methodology, this article reports on the differences in the entrepreneurial attitudes of push and pull and the aptitudes of social and human capital between pre 2000 and post 2000 immigrant entrepreneurs. The findings suggest that the post 2000 Indian migrant entrepreneurs in Australia are mostly pull motivated, have higher qualifications than the pre 2000 arrivals, speak better English, have professional educational qualifications relevant to their business, and operate predominantly in the service sector. They take fewer years to get into business and are less dependent on immigrant social capital resources than pre 2000 arrivals. The study proposes that, compared with social capital resources, human capital resource have a greater impact on entrepreneurial propensity in the case of second generation Indian migrant entrepreneurs in Australia. This research has implication for Australian immigration policy, labour laws and settlement services of migrants. It recommends successful implementation of policies and durable solutions for Indian immigrants in the labour market in Australia. The Australian Government will be assisted in examining and identifying future options for the intake of temporary and permanent migrants that improve the income, wealth and living standards of Australian citizens, improve the budgets and balance sheets of Australian governments, minimize administration and compliance costs associated with immigration, and provide pathways both for Australian citizens to be altruistic towards foreigners, and for Australia's international responsibilities and obligations to foreign residents to be met. Improvements in the labour laws would promote the effective integration of Indian immigrants into society. Further, Indians in the USA have contributed immensely to the entrepreneurial spirit due to the government support for migrant SMEs and the small business venture funds. The Australian government can replicate this policy, reduce restriction on employment opportunities and enhance entrepreneurship for all migrants.

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Is non-family social capital also (or especially) important for family firm performance?

Cited by 56 publications

References 140 publications

International and product diversification: Which strategy suits family managers?

International and product diversification: Which strategy suits family managers?

Analysis and Evaluation of the Largest 500 Family Firms’ Websites through PLS-SEM Technique

Shifts in Intergenerational Mobility of Indian Immigrant Entrepreneurs

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