Lucio Cassia, Alfredo De Massis and Emanuele Pizzurno
This study aims to investigate the relationship between the presence of the family variable within a business enterprise and the managerial factors affecting the success of new…
Abstract
Purpose
This study aims to investigate the relationship between the presence of the family variable within a business enterprise and the managerial factors affecting the success of new product development (NPD). This can be structured into three research questions: What is the relationship between the presence of the family variable within a business enterprise and the managerial factors affecting the success of NPD activities? How the managerial factors affecting the NPD process are faced in family firms? Which are the main differences (e.g. strengths and/or weaknesses) in dealing with the managerial factors affecting the NPD process between family and non‐family firms?
Design/methodology/approach
The study employs a grounded‐theory and case‐study approach to investigate the relationship between the presence of the family variable within a business enterprise and the managerial factors affecting the success of NPD. The starting point is an in‐depth literature review on the managerial factors differentiating family from non‐family firms, and the managerial factors affecting NPD success. Then, a multiple case‐study on five Italian family firms and five Italian non‐family enterprises is conducted. The case‐studies lead to the development of an empirically grounded theoretical framework that outlines how the distinctive characteristics of family businesses are related to the managerial factors affecting NPD success.
Findings
Family firms clearly emerge as more long‐term oriented than non‐family enterprises. The long‐term orientation of family businesses vs non‐family companies seems to play a pivotal role in originating NPD projects with long‐term thrust. If a company is long‐term oriented it is reasonable to expect that it will put its long‐term vision in NPD programs, thus reaching a NPD long‐term thrust.
Research limitations/ implications
The study advances research on strategic innovation and NPD in family vs non‐family firms. It develops new theory at the important intersection of family business and innovation/NPD research, filling a gap in the literature and providing justification and guidance for the design of more comprehensive studies. Future research could investigate and test the theoretical framework on a wider empirical base, using either qualitative or quantitative methods.
Originality/ value
The paper addresses the failure of innovation management research to recognize, embrace, and deliberately incorporate family firms. It therefore fills a gap in the literature and extends prior research by introducing specific propositions that are supported by the case data and originally integrating them in the general research stream on NPD and family‐firm characteristics. The originality of the study lies also in the fact that it appears to be the first comparative analysis on this specific topic involving both family and non‐family enterprises.
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Lucio Cassia and Tommaso Minola
This study seeks to focus on factors characterizing a pool of hyper‐growth firms, trying to gather insights on how the hyper‐growth firms achieve hyper‐growth.
Abstract
Purpose
This study seeks to focus on factors characterizing a pool of hyper‐growth firms, trying to gather insights on how the hyper‐growth firms achieve hyper‐growth.
Design/methodology/approach
A theoretical framework is proposed, borrowing well established approaches from strategic management and entrepreneurship. Subsequently, some explorative case studies are described and help in understanding how much of a firm's hyper‐growth can be explained by the resource endowment and entrepreneurial orientation (EO). A revised framework and some propositions are eventually suggested.
Findings
Hyper‐growth seems mainly explainable by extraordinary business opportunities and extraordinary access to resources (especially knowledge‐based). Entrepreneurship appears much more as a moderating variable, rather than an explanatory variable per se of hyper‐growth.
Research limitations/implications
Although the case study approach is robustly motivated as a research step that can contribute to the process of theory building, the findings are not statistically generalizable.
Practical implications
It has long been argued that policy makers and governments, especially in Europe, should concentrate their efforts on those industries and environments where rapid growth firms are likely to be found. The paper offers a practical example on a suitable environment to facilitate such growth, where practices like mergers and acquisitions in foreign countries as well as venture capital and private equity financing play a role.
Originality/value
No research has been performed so far on the explicit link between resources, EO and hyper‐growth. Moreover, the research suggests a possible reconciliation of resource‐based view (RBV) and EO frameworks in explaining such a pattern.
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Lucio Cassia, Stefano Paleari and Silvio Vismara
In this chapter we study the peer comparable approach used for the valuation of companies that went public on the Italian Nuovo Mercato. In Italy, IPO prospectuses often report…
Abstract
In this chapter we study the peer comparable approach used for the valuation of companies that went public on the Italian Nuovo Mercato. In Italy, IPO prospectuses often report the valuation methods used by investment banks. This allows us to analyze the accuracy of “real-world” valuation estimates. We show that underwriters rely on price-to-book and price-earnings multiples. The valuation estimates generated by these multiples are closest to offer prices. Conversely, when using enterprise value ratios comparable firms’ multiples are typically higher than those of the firms going public. We argue that underwriters have the possibility to select comparables that make their valuations look conservative.
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting‐edge research and case studies.
Abstract
Purpose
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting‐edge research and case studies.
Design/methodology/approach
The paper is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
Studies into different organization types often overlook family‐run enterprises. But research is important because the structure of such organizations can have a considerable influence on their approach to issues like innovation and new product development (NPD). Indeed, the family variable has the power to moderate the impact of other factors on the chance of successfully executing such activities. Scoring a hit is difficult enough in the first place. There is never any guarantee of success and failure rates are costly and alarmingly high. Risk and uncertainty thus remain the norm where innovation is concerned. In order to unearth those winning products, companies need to excel in all the right areas. These include the processes associated with NPD, organizational capabilities and culture, leadership and the NPD strategy.
Practical implications
The paper provides strategic insights and practical thinking that have influenced some of the world's leading organizations.
Originality/value
The paper saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to digest format.
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Giancarlo Giudici and Peter Roosenboom
With the opening of the Nouveau Marché in France in 1996, followed by the Neuer Markt in Germany in 1997 and the Nuovo Mercato in Italy in 1999, the opportunities for small…
Abstract
With the opening of the Nouveau Marché in France in 1996, followed by the Neuer Markt in Germany in 1997 and the Nuovo Mercato in Italy in 1999, the opportunities for small companies to obtain a listing on European exchanges were growing rapidly. Other European countries with new stock markets included Belgium, Denmark, Finland, Greece, Ireland, the Netherlands, Poland, Portugal, Spain, Sweden and Switzerland. These stock markets had one common aim – to attract early stage, innovative and high-growth firms that would not have been viable candidates for public equity financing on the main markets of European stock exchanges. Of these new markets, the Neuer Markt emerged as Europe’s answer to NASDAQ.
The purpose of this paper is to identify the factors affecting the growth of companies listed on the Alternative Investment Market (AIM), the London Stock Exchange market for…
Abstract
Purpose
The purpose of this paper is to identify the factors affecting the growth of companies listed on the Alternative Investment Market (AIM), the London Stock Exchange market for young and growing companies.
Design/methodology/approach
The author investigates post-initial public offering (IPO) growth for a panel of 665 companies listed on the AIM between 1995 and 2006. The empirical model uses the generalized method of moment-System (GMM-SYS) estimator.
Findings
The findings confirm that small companies listed on the AIM grow more quickly after the IPO. It seems that both human capital and firm characteristics are important determinants of their rapid growth.
Practical implications
The results of this study have some implications for policy. Policy makers should take account of the relevance of an efficient financial system. It is important also to consider the process of transformation of the cultural and behavioural attitudes of various countries towards entrepreneurship.
Originality/value
This paper analyses the determinants of firm growth in a particular entrepreneurial setting, that is, IPO on the AIM, the sub-market of the London Stock Exchange.
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Gülçin Polat and Serap Benligiray
This study aims to broaden the multidimensional conceptualization of family business professionalization, and to investigate how professionalization influences the financial…
Abstract
Purpose
This study aims to broaden the multidimensional conceptualization of family business professionalization, and to investigate how professionalization influences the financial performance of family firms, in the context of private family firms.
Design/methodology/approach
Taking a quantitative research approach, the study empirically examines the effect of professionalization on family firm performance, using a sample of 111 privately held Turkish family firms. The hypotheses were tested using regression analysis and the independent samples t-test.
Findings
The results indicate that the professionalization of family businesses has a positive effect on their financial performance, and the professionalization of employees is the prominent dimension of professionalization in this effect.
Research limitations/implications
This study advances the understanding of how professionalization influences family firm performance by providing additional empirical evidence regarding the positive influence of multifaceted family business professionalization on financial performance.
Practical implications
The professionalization framework depicted in this study helps owners, managers, or consultants of family businesses assess the professionalization level of their firm and understand the performance effects of each of the family business professionalization dimensions on financial performance. It can also serve as a roadmap for family firms to professionalize and achieve better performance.
Originality/value
Unlike previous studies, this study incorporates employees, organizational culture and work environment, often neglected in the family business literature, into the multidimensional family business professionalization construct, thus extending previous research. The study contributes to a deeper understanding of the relationship between family businesses professionalization and firm performance.