Retrenchment Strategies and Family Involvement: The Role of Survival Risk

Casillas, José C.; Moreno-Menéndez, Ana M.; Barbero, José Luís; Clinton, Eric

doi:10.1177/0894486518794605

Cited by 56 publications

(61 citation statements)

References 80 publications

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“…The biggest problem related to internal environment of FE is obtaining a stable qualified workforce (confirmed by hypothesis H4). Similar results were achieved by foreign researchers [4,14,17], who have observed that external employees often work in the FE for several years, and after achieving their own experience, they leave the enterprise which invested into their development, in order to establish their own enterprises. For FE, this represents a great loss, and it forces them to search new qualified employees in the job market.…”

Section: Friedman and Wilcoxon Tests Confirmed Hypothesis H4 Which Msupporting

confidence: 83%

“…Micro-environment consists of the competition, suppliers, customers, intermediaries, and other entrepreneurs along with the public. As noted by [7,12,14], it is a worldwide trend that FE are becoming more and more competitive. Fast technological changes and interferential innovations represent the basic elements which accelerate this process.…”

Section: Methodsmentioning

confidence: 99%

“…It is suggested that in order to eliminate the negative determinants of the external environment (at both the macro and micro levels), FE could be assisted by being defined as an entrepreneurial unit, and being incorporated into the existing legislation and the initiatives aiming at supporting SMEs. As presented by [14], following the example of the western countries of the EU, it would be appropriate to create organizations that would represent the interests of FE at the national level. Further, the attention was given to examining the internal determinants of FE.…”

Section: Friedman and Wilcoxon Tests Confirmed Hypothesis H4 Which Mmentioning

confidence: 99%

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Global determinants of sustaining and developing family enterprises in Slovakia

2020

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Family enterprises play an important role in global economies and in national economies of all developed countries. Creating new, and maintaining the existing family enterprises, combined with their continuous development should be the key priority of all countries. Based on the evaluation of the current state of family business in Slovak micro, small, and medium enterprises, the main objective of this paper is to identify the key determinants which affect its development. At the same time, the authors propose such measures the implementation of which into business practice will lead to sustainability of the existing, as well as the support of the newly established family enterprises in Slovakia. The research has been evaluated with the use of methods of testing the statistical hypothesis and methods of descriptive statistics. As the conducted research has proved, at the external environment, the most negative determinant that limits the activities of family enterprises is strong competition of other enterprises operating in the Slovak market. The biggest problem related to internal environment of family enterprises is obtaining a stable qualified. The results led to conclusions and recommendations, the implementation of which into practice will help to support family business in Slovakia.

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Section: Friedman and Wilcoxon Tests Confirmed Hypothesis H4 Which Msupporting

confidence: 83%

Section: Methodsmentioning

confidence: 99%

Section: Friedman and Wilcoxon Tests Confirmed Hypothesis H4 Which Mmentioning

confidence: 99%

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Global determinants of sustaining and developing family enterprises in Slovakia

2020

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“…Moreover, it would be relevant in future research to discuss the difference between short‐ and long‐term outcomes, such as growth, and the role of managerial incentives, which we discuss as a core aspect of BAM, thus explaining firm behavior, and EO, to predict firm outcomes according to a time orientation (Sharma et al ., 2014; Stenholm et al ., 2016; Zellweger and Sieger, 2012). Similarly, it is important to distinguish between objective and perception‐based growth, for example, accounting for the contingent situation the family business experiences, and whether the business experiences of the enterprising family actually lead to perceiving declining performance and survival risk (Casillas et al ., 2019; DeTienne and Chirico, 2013), which might influence the firm's risk‐bearing and strategic posture. In a similar vein, it is important to disentangle the effects of different dimensions of family involvement (e.g., Pittino et al ., 2018).…”

Section: Discussionmentioning

confidence: 99%

Does Growth Represent Chimera or Bellerophon for a Family Business? The Role of Entrepreneurial Orientation and Family Influence Nuances

Campopiano

Brumana

Minola

et al. 2019

European Management Review

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Growth brings lifeblood to sustain longevity across generation, but also critical challenges for family business. Relying on the behavioral agency model and its assumptions on risk-bearing in family firms, we discuss and test the effect of family involvement in the top management team (TMT) on family business growth. We use an inputbehavior-outcome framework based on the mediating role of entrepreneurial orientation. We also consider the moderating role of different ownership structures on the relationship between family involvement in the TMT on entrepreneurial orientation (EO). Results based on survey data collected by the STEP research consortium support the hypothesized negative effect of family involvement in the TMT on growth, fully mediated by EO. We also find that the presence of passive family members as majority shareholders and multigenerational involvement in ownership are important contingencies of the direct effect. Our evidence points to the fact that risk-bearing in family firms is not just dependent on the degree of family involvement in management, but also on the interests of different types of shareholders. We show that the at-times stylized negative traits of family firms are not universally valid, and that a comprehensive view of family influence over the business is needed to ascertain whether and to what extent these firms actually achieve growth.

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“…In a recent study, Casillas et al . (2019) show furthermore that family firms increase the intensity of retrenchment strategies more than nonfamily firms do during economic downswings, and even more when their survival is threatened.…”

Section: Literature Reviewmentioning

confidence: 99%

Family Firm Performance Over the Business Cycle: A Meta‐analysis

Hansen¹,

Block²,

Neuenkirch³

2020

Journal of Economic Surveys

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The financial performance of family firms has been widely studied in the literature. Combining the results of 172 primary studies from 38 countries with data about business cycles, we investigated how family firm performance changes over the business cycle. Using meta-analytic estimation methods, we found that family firms slightly outperform nonfamily firms in both economically good and economically difficult times. For non-OECD countries, we found evidence for a countercyclical effect where the relative outperformance of family firms is higher in economically difficult times. No such cyclical effect was found for family firms in OECD countries. Our study extends the literature on how family firm performance depends on macroeconomic factors.

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Retrenchment Strategies and Family Involvement: The Role of Survival Risk

Cited by 56 publications

References 80 publications

Global determinants of sustaining and developing family enterprises in Slovakia

Global determinants of sustaining and developing family enterprises in Slovakia

Does Growth Represent Chimera or Bellerophon for a Family Business? The Role of Entrepreneurial Orientation and Family Influence Nuances

Family Firm Performance Over the Business Cycle: A Meta‐analysis

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