Owner orientations and strategies and their impact on family business

Moog, Petra; Mirabella, Désirée; Schlepphorst, Susanne

doi:10.1504/ijeim.2011.038450

Cited by 14 publications

(8 citation statements)

References 18 publications

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“…Furthermore, MA practices that aim to support managerial decision making, such as planning and budgeting (e.g., Hansen et al, 2003;Davila and Foster, 2005;Byrne and Pierce, 2007;Sandino, 2007;Malmi and Brown, 2008;Horngren et al, 2010), should offer less value to firms that have high family influence. Family members who are involved in the management of a family business usually have deep firm-and market-specific know-how and thus they show a lower reliance on formalised managerial decision-making support practices (Sirmon and Hitt, 2003;Chirico, 2008;Eddleston et al, 2008;Eddleston et al, 2010;Moog et al, 2011). Hence, family influence and the establishment of discrete MA departments are negatively correlated.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

The changing role of management accounting in the transition from a family business to a non‐family business

Hiebl

Feldbauer‐Durstmüller

Duller

2013

Journal of Accounting &Amp; Organizational Change

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The purpose of the present paper is to investigate whether the transition from a family business to a non-family business affects the institutionalisation of management accounting. Design/methodology/approach: This paper is based on an online survey among all large and medium-sized Austrian firms. Univariate and multivariate statistical analyses were used to test the impact of the level of family influence on aspects of the institutionalisation of management accounting. Firm size is included as the main control variable. Findings: A lower level of influence from the controlling family was found to be correlated with the institutionalisation and intensification of management accounting in medium-sized firms. For large firms, such a linear relationship could not be drawn. The level of education of management accountants was inversely correlated with the level of family influence in both large and medium-sized firms. Research limitations/implications: Further research into the reasons, underlying drivers and inter-organisational promoters of management accounting change in family businesses is needed. Furthermore, the organisational impacts of the transition from family businesses to non-family businesses deserve further investigation. Originality/value: A framework for assessing the organisational effects of the transition from family businesses to non-family businesses is provided. The empirical results on the impact of the transition on the institutionalisation of management accounting are presented. The level of family influence was found to act as a significant contextual factor for the organisation of management accounting in medium-sized firms.

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Section: Hypotheses Developmentmentioning

confidence: 99%

The changing role of management accounting in the transition from a family business to a non‐family business

Hiebl

Feldbauer‐Durstmüller

Duller

2013

Journal of Accounting &Amp; Organizational Change

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“…By using the information produced by a management accounting department, the principal can establish remuneration packages and adopt performance management systems in order to align the principal's and the agent's interests (Malmi and Brown, 2008). Drawing on stewardship theory, such goal alignment is not as necessary in FBs as it is in NFBs (Corbetta and Salvato, 2004;Jaskiewicz and Klein, 2007), as the personal union of owners and managers as well as reciprocal trust lower the need for control mechanisms (Vallejo, 2009;Moog et al, 2011). Hence, the establishment of a department for management accounting should offer fewer benefits to FBs compared with such a department in NFBs.…”

Section: Institutionalisation Of Management Accounting In Fbs and Nfbsmentioning

confidence: 99%

“…As complexity increases, there is also a need for more coordination within a firm (Kahn et al, 1964). To master this increased complexity and the need for coordination, firms turn to management accounting practices such as strategic planning, budgeting and controlling (Moores and Mula, 2000;Upton et al, 2001;Moog et al, 2011). Thus, firm size is correlated positively with the need for management accounting and, as a consequence, the institutionalisation of management accounting.…”

Section: Contextual Factors Of Management Accounting Institutionalisamentioning

confidence: 99%

“…These results also support the notion that stewardship behaviour might prevail within FBs and that FBs make use of the FB-specific resource "familiness". Because of mutual trust, high value commitment and tacit firm and market knowledge (Davis et al, 2010), the mechanisms to control, coordinate, plan and budget seem to offer fewer benefits to FBs than they do to NFBs (Corbetta and Salvato, 2004;Jaskiewicz and Klein, 2007;Moog et al, 2011).…”

Section: Logistic Regressionmentioning

confidence: 99%

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Institutionalisation of Management Accounting in Family Businesses — Empirical Evidence From Austria and Germany

Hiebl

Feldbauer‐Durstmüller

Duller

et al. 2012

J. Enterprising Culture

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This study investigates whether family businesses (FBs) differ from non-family businesses (NFBs) regarding the institutionalisation of management accounting. Furthermore, it analyses whether FB-specific contextual factors such as the existence of non-family management and the level of family influence affect the establishment of discrete management accounting departments. Six hypotheses are formulated and tested based on survey results from 479 firms from Austria and 418 firms from Germany. Our results indicate that FBs establish fewer management accounting departments than NFBs do and that the heads of management accounting in FBs are less likely to hold a university degree compared with their counterparts in NFBs. Moreover, within FBs, larger firm size and the existence of non-family management are positively correlated with the establishment of management accounting departments, where firm size acts as the strongest predictor. As firm type (FB vs. NFB) emerged as a significant contextual factor for the institutionalisation of management accounting, this factor should be included in future studies of the organisation and set-up of the corporate management accounting function. Moreover, deeper investigation into the drivers and outcomes of FB-specific management accounting institutionalisation is needed.

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“…This study therefore goes a step further by exploring the relationship between owner characteristics, the informal strategic management mode employed, and the performance of small enterprises. Moog et al (2011) basing their research on six qualitative case studies conducted in Germany in 2008 observed that personal or individual orientations of the owners, predecessors, and successors affect the strategy and performance of their family businesses. They concluded that the individual orientation of previous, current, and future owners of a family business might be the key to those differences in performance of such businesses.…”

Section: Personal Characteristicsmentioning

confidence: 99%

Factors influencing choice of strategic management modes of small enterprises

2015

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Studies indicate that 75% of small enterprises in the world fail during their first 5 years of operation. In Kenya, just about 20% grow to the next size category. Scholars have prescribed formal strategic management modes, but the small enterprises (SEs) continue to not only fail but also depict informal strategic management modes. However, few studies have been done to examine whether the dismal performance of SEs is due to other factors unrelated to the management of the enterprises, especially in the context of a developing country like Kenya. The specific objectives were to identify the strategic management modes employed by the small enterprises in Kisumu County with specific reference to the Youth Enterprise Fund beneficiaries in Kisumu County and to assess the factors influencing the choice of these modes. The study was anchored on Mintzbergs' theories on deliberate, emergent, and reactive strategic management modes. The study adopted a descriptive cross-sectional research design. The target population was the 242 small enterprises run by the Youth Enterprise Development Fund (YEDF), out of which 134 enterprises were sampled using Yamane's criteria. The study adopted questionnaire and interview methods as the basic data collection methods with the questionnaire being tested through content validity index and Cronbach alpha's internal consistency index, respectively. The study found that the basic modes used by small enterprise were deliberate, emergent, and reactive and that the small enterprises in Kisumu County used these modes interchangeably but relied more on the reactive mode of strategic management. The study revealed that the choice of these modes was dictated by the personal, environmental, and firm characteristics of the enterprises. The study concludes that continued exposure to formal modes would only sustain the endemic failure of the SEs because the SEs need formal exposure to models that address their situation. The study therefore urgently recommends formalization of elements of reactive strategic management modes and the personal factors in small firm curricula.

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Owner orientations and strategies and their impact on family business

Cited by 14 publications

References 18 publications

The changing role of management accounting in the transition from a family business to a non‐family business

The changing role of management accounting in the transition from a family business to a non‐family business

Institutionalisation of Management Accounting in Family Businesses — Empirical Evidence From Austria and Germany

Factors influencing choice of strategic management modes of small enterprises

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