Fernando Muñoz-Bullón, Maria J. Sanchez-Bueno and Mattias Nordqvist
The purpose of this paper is to investigate how family ties in new venture teams (NVTs) influence the intended future growth of a nascent entrepreneur’s business. The authors…
Abstract
Purpose
The purpose of this paper is to investigate how family ties in new venture teams (NVTs) influence the intended future growth of a nascent entrepreneur’s business. The authors posit that R&D-oriented entrepreneurs in NVTs with family ties have higher growth intentions relative to those who are less oriented toward R&D.
Design/methodology/approach
The hypotheses were tested using data from the Panel Study of Entrepreneurial Dynamics II (PSED II). One distinctive feature of the PSED is that it is based on a random sample of 1,214 nascent entrepreneurs in the process of starting new ventures in the USA, which overcomes the recall biases associated with surveying entrepreneurs already in business and potential survivorship biases.
Findings
The results show that growth intentions in NVTs with family ties is greater when the nascent entrepreneur shows an R&D behavior, even though the presence of family members in the team is negatively related to the intentions of nascent entrepreneurs with regard to new venture growth. This effect is attributed to entrepreneurs’ long-term vision and a more favorable attitude toward change.
Research limitations/implications
Data on startup teams in the PSED II come from one team member (the respondent). Therefore, differences in perceptions regarding growth intentions cannot be determined. Moreover, the sample consisted exclusively of nascent entrepreneurs in the USA.
Practical implications
Knowledge about the determinants of growth intentions during the venture creation phase becomes relevant if we want to influence and support the growth of newly founded firms. Nascent entrepreneurs need to understand the trade-off between emotional and financial concerns.
Social implications
Nascent entrepreneurs more oriented toward R&D become more risk tolerant, and may accept certain losses to their emotional endowment in favor of pure financial goals, being more able to access the additional external resources (tangible and intangible) needed for growth.
Originality/value
The research expands previous evidence on the family involvement-performance debate in large firms by focusing on new ventures with family ties, with distinctive characteristics that may affect growth intentions. The authors also shed new light on the interplay between family business and entrepreneurship. In particular, the research helps gain an understanding of how NVTs with family ties deal with the opposition between the benefits from venture growth and the tendency to preserve team member’s emotional attachment.
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Fernando Muñoz‐Bullón and Maria J. Sanchez‐Bueno
The purpose of this paper is to examine the joint effect of product and international diversification strategies on the performance of small and medium enterprises (SMEs) in Spain.
Abstract
Purpose
The purpose of this paper is to examine the joint effect of product and international diversification strategies on the performance of small and medium enterprises (SMEs) in Spain.
Design/methodology/approach
The authors rely on a panel data of small and medium Spanish manufacturing enterprises over the period 1993‐2006, collected from the Spanish Survey of Business Strategies.
Findings
The evidence reveals the existence of a negative relationship between geographic expansion and profitability. Likewise, the adoption of both product and international diversification is not associated with higher performance.
Research limitations/implications
A promising avenue for future research is the analysis of firms located in different countries (for example, emerging economies), or the study of this issue considering factors such as the ownership structure (family firms, the role of the state and banks, etc.).
Practical implications
The authors' analysis underlines the fact that the distinctive particularities of SMEs – for example, limited resources, lack of previous experience in the adoption of new products and accessing new markets – might constrain diversification as an alternative for firm growth. As a practical implication, Spanish SMEs should overcome their shortcomings before adopting diversification in order to improve the profitability associated with these strategies.
Originality/value
Although Spain's economic structure is highly segmented and made up of mainly SMEs, research on these companies in this country is rather scarce. In particular, the distinctive characteristics of SMEs mean that diversification might have different performance implications than for larger companies. Moreover, the authors' analysis offers new insights compared to previous research, which has traditionally relied on cross‐section data.
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Maria J. Sanchez‐Bueno and Isabel Suarez‐Gonzalez
The objective of this paper is to analyze the organizational change in 100 of the largest Spanish firms (a new national context) over the period 1993‐2003 (a more recent time…
Abstract
Purpose
The objective of this paper is to analyze the organizational change in 100 of the largest Spanish firms (a new national context) over the period 1993‐2003 (a more recent time period).
Design/methodology/approach
To achieve this purpose, consideration has been given to both traditional organizational categories and new organizational forms, such as cooperative multidivisional, competitive multidivisional, and the internal network. Detailed definitions of the new organizational forms being developed by companies are provided in the paper. Thus, these new organizational forms may differ in several aspects, such as the decision‐making process and integration between divisions.
Findings
The results show that over this period, Spanish firms experienced a steadily rising trend towards divisionalization. The cooperative multidivisional structure is the one most frequently adopted in Spain, as opposed to the competitive multidivisional form and the internal network.
Originality/value
The systematic study of the distinctive attributes of the new forms of organization, providing accumulated knowledge, is in an emergent phase of development in the international field, and this work seeks to contribute to such development. The nature of the study strengthens the global implications of the work, and the information obtained from top practitioners in these Spanish firms enhances the contribution of the study.
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Fernando Muñoz‐Bullon and Maria J. Sanchez‐Bueno
The objective of this paper is to analyze whether the way that downsizing is implemented has any impact on the firm's performance.
Abstract
Purpose
The objective of this paper is to analyze whether the way that downsizing is implemented has any impact on the firm's performance.
Design/methodology/approach
The sample under investigation consists of a set of Spanish companies, which downsized between 1995 and 2001. The paper includes downsizing announcements and combines information from two different datasets (BARATZ and SABI). The focus is placed on the size of downsizing and the use of disengagement incentives.
Findings
A negative relationship between the size of downsizing and post‐downsizing corporate performance is found. In particular, firms which announced severe downsizing experience relatively lower performance in the year following the announcement.
Originality/value
The analysis advances organizational research by reinforcing the concept that firm performance is not only contingent on strategies, but also influenced by the means through which these strategies are implemented.
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Abstract
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María Concepción López-Fernández, Ana María Serrano-Bedia and Manuel Palma-Ruiz
The purpose of this paper is to explore to what extent different obstacles (financial, knowledge, market, and perception) affect the propensity of Mexican family firms to engage…
Abstract
Purpose
The purpose of this paper is to explore to what extent different obstacles (financial, knowledge, market, and perception) affect the propensity of Mexican family firms to engage in innovation activity. Second, it examines whether the perception of these obstacles differs between two subgroups of family firms, considering levels of ownership and family management control.
Design/methodology/approach
Information was gathered through a CIS methodology-based questionnaire applied to 161 CEOs of Mexican family firms. Binomial logistic regressions were performed identifying obstacles that were truly relevant for the family firm subgroups in the sample.
Findings
For subgroup 1, knowledge and market factors were significant and negatively related to the propensity to engage in innovation activities; for subgroup 2, only market factors were relevant. The results also show how the tenure of the CEO, the number of generations involved, and the family involvement in management and non-management positions affect the results obtained.
Practical implications
Implications for family business scholars embrace the assessment criteria of different family business definitions. While the implications for managers and policy makers include the recognition of the factors that affect innovation in Mexican family firms in order to design and implement adequate strategies to overcome them.
Originality/value
This study addresses some of the raised demands in the literature. First, to the best of the authors’ knowledge, it is the first attempt to explore the factors hampering innovation in family firms in Latin America. Second, this study was undertaken in response to the call for exploring variations in innovation behavior across different family business types in regards to ownership and family management control. Moreover, this study responds to the call to analyze financial and non-financial factors separately and to expand the geographical areas, sectors, and sizes of family firms, more specifically in Latin America.
Propósito
En este trabajo se explora hasta qué punto los diferentes obstáculos (financieros, de conocimiento, de mercado y de percepción) afectan a la propensión de las empresas familiares en México para participar en actividades de innovación. En segundo lugar, se examina si la percepción de estos obstáculos se diferencia entre los dos subgrupos de empresas familiares, considerando los niveles de propiedad y el control de la gestión familiar.
Diseño/metodología/enfoque
La información se obtuvo a través de un cuestionario basado en la metodología CIS aplicado a 161 CEOs de empresas familiares mexicanas. Se llevaron a cabo regresiones logísticas binomiales para la identificación de los obstáculos verdaderamente relevantes para los subgrupos de empresas familiares en la muestra.
Resultados
Para el subgrupo 1, los factores de conocimiento y de mercado fueron significativos y negativamente relacionados con la propensión a participar en actividades de innovación; para el subgrupo 2, sólo los factores de mercado fueron relevantes. Los resultados también muestran como la permanencia del director general, el número de generaciones que participan, y la participación de la familia en puestos directivos y no directivos afectan los resultados obtenidos.
Implicaciones prácticas
Implicaciones para los investigadores en empresas familiares incluyen los criterios de evaluación de diferentes definiciones de empresa familiar. Mientras que las implicaciones para gerentes y responsables políticos incluyen el reconocimiento de los factores que afectan a la innovación en las empresas familiares mexicanas con el fin de diseñar e implementar estrategias adecuadas para superarlas.
Originalidad/valor
Este estudio aborda algunas de las demandas planteadas en la literatura. En primer lugar, en la medida del conocimiento de los autores, se trata del primer intento por explorar los factores que dificultan la innovación en empresas familiares en Latinoamérica. En segundo lugar, este estudio se llevó a cabo en respuesta a la llamada para explorar variaciones en el comportamiento innovador entre diferentes tipos de empresas familiares considerando los niveles propiedad y el control de la gestión familiar. Por otra parte, este estudio responde al llamado para analizar los factores financieros y no financieros por separado y para expandir a otras áreas, sectores geográficos y tamaños de empresas familiares, más específicamente en América Latina.
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S. Alireza Alerasoul, Giovanna Afeltra, Ricarda B. Bouncken and Henri Hakala
The purpose of this study is to identify groups of manufacturing firms having different combinations of strategic orientation (market and technology orientations) and compare the…
Abstract
Purpose
The purpose of this study is to identify groups of manufacturing firms having different combinations of strategic orientation (market and technology orientations) and compare the viable groups for differences in their sustainable innovation (SI) performance.
Design/methodology/approach
A sample of 373 Italian manufacturing firms is clustered (using non-hierarchical cluster analysis) based on their combinations of market orientation (MO) and technology orientation (TO). Subsequently, the one-way between-groups analysis of variance (ANOVA) with post-hoc tests is conducted to detect how the resulting groups differ in their SI performance.
Findings
The synergistic co-alignment of TO with both dimensions of MO (i.e. responsive and proactive) can help firms enhance their performance regarding SI. Amongst the groups of manufacturing firms identified in the context of this research, ‘future-oriented entrepreneurs’ appear to represent the strongest combination of MO with TO, leading them to achieve higher levels of SI performance.
Research limitations/implications
This study, by referring to a survey-based empirical study of manufacturing firms in Italy, extends the literature by arguing that higher levels of balanced TO–MO results in greater SI performance. To confirm and extend the results of this work, future research should assess the examined combinations of orientations in other contexts, and with respect to other performance variables (e.g. sustainable entrepreneurship).
Practical implications
By recognizing the real value of foresight practices, manufacturing firms should be equipped with organizational capabilities that enable them to systematically predict potential discontinuities, explore the future and simultaneously maximize their innovation and technology capacity. The findings of this research provide insights to managers on how to invest in resources linked to different configurations of MO and TO so that they can lead to the improvement of sustainability-oriented innovation performance.
Originality/value
This work represents a first attempt to explore the viable combinations of MO (including responsive and proactive dimensions) with TO in the manufacturing context, and to investigate how these combinations contribute to different levels of SI performance.
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Rubén Martínez-Alonso, María J. Martínez-Romero and Alfonso A. Rojo-Ramírez
The aim of this study is to investigate the relationship between heterogeneous collaborative networks and firm performance, using the resource-based view (RBV) and its extension…
Abstract
Purpose
The aim of this study is to investigate the relationship between heterogeneous collaborative networks and firm performance, using the resource-based view (RBV) and its extension through the knowledge-based view (KBV) as theoretical lens. Moreover, the authors examine family management and intellectual property rights (IPRs) as contingent factors that enhance the effectiveness of heterogeneous collaborative networks in achieving superior firm performance.
Design/methodology/approach
The hypotheses are developed and checked by using a panel data sample of 10,985 firm-year observations from 1,766 Spanish manufacturing firms over the period 2007–2016.
Findings
The results indicate that heterogeneous collaborative networks positively influence firm performance. Furthermore, the positive impact of these innovation networks on firm performance is reinforced by high levels of family management, and such effect is even stronger when there exists high levels of IPRs.
Originality/value
This research is the first, to our knowledge, to provide important new insights into the manner in which the effect of both family management and IPRs have the potential to amplify the performance gains attained from heterogenous collaborative networks.
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Alfonso Andrés Rojo Ramírez, MCarmen Martínez-Victoria and María J. Martínez-Romero
The relationship between risk and return has been widely analysed in the scope of listed companies. However the present literature leaves uncovered an important study area with…
Abstract
Purpose
The relationship between risk and return has been widely analysed in the scope of listed companies. However the present literature leaves uncovered an important study area with regards to privately held firms. In order to cover this gap, this study analyses the risk-return trade-off in the context of private enterprises. Furthermore, the authors incorporate the contingent effect of being a family firm on the abovementioned relationship.
Design/methodology/approach
Using information from the SABI (Sistema de Análisis de Balances Ibéricos) database, a sample of 2,297 private manufacturing firms were analysed for the period of 2009–2016. So as to ascertain the proposed hypotheses, dynamic panel data methodology was applied. Specifically, the authors estimated the two-step general method of moments (GMM).
Findings
The obtained findings reveal that, according to prospect theory arguments, privately held firms adopt a conservative attitude toward risk when results are higher than a target level, while becoming risk seeking when results are lower than a target level. Moreover, the fact of being a family firm softens the risk-return relationship both when performance is above the target level and also when firms find themselves in the lowest performing case.
Originality/value
This article is, to the best of the authors' knowledge, one of the first studies dealing with the risk-return relationship in a privately held firm context. Moreover, the inclusion of being a family firm as a contingent factor in the abovementioned link is a complete novelty.
Objetivo
La relación riesgo-rentabilidad ha sido ampliamente analizada en el ámbito de las empresas cotizadas. Sin embargo, la literatura existente deja al descubierto una importante área de estudio en relación con las empresas no cotizadas. Para cubrir esta brecha, el presente estudio analiza el binomio riesgo-rentabilidad en el contexto de empresas privadas. Adicionalmente, incorporamos el efecto contingente de ser una empresa familiar sobre esta relación.
Diseño/metodología/enfoque
Utilizando información de la base de datos SABI (Sistema de Análisis de Balances Ibéricos) se analizó una muestra de 2.297 empresas manufactureras privadas para el período 2009–2016. Para comprobar las hipótesis propuestas se aplicó la metodología de datos de panel, específicamente, utilizamos el Método de los Momentos Generalizado (GMM).
Resultados
Los resultados muestran que, de acuerdo con la Teoría Prospectiva, las empresas no cotizadas presentan una mayor aversión al riesgo cuando su nivel de rentabilidad es superior al valor de referencia establecido, mientras que presentan una mayor propensión al riesgo cuando su rentabilidad es inferior al valor de referencia. Además, el hecho de ser una empresa familiar suaviza la relación riesgo-rentabilidad en ambos escenarios.
Originalidad/valor
Este es uno de los primeros estudios en abordar la relación riesgo-rentabilidad en el contexto de empresas no cotizadas. Además, la inclusión de ser una empresa familiar como factor contingente es completamente novedosa.
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Georges Samara, María Jose Parada and Ramzi Fathallah
The purpose of this study is to explore the drivers for proactive workplace social performance in family firms through a configurational approach. Comparative research on family…
Abstract
Purpose
The purpose of this study is to explore the drivers for proactive workplace social performance in family firms through a configurational approach. Comparative research on family versus non-family firms and workplace social performance has produced mixed results. Consequently, several calls have been made to account for family business heterogeneity to understand better how family involvement in the business affects the workplace social performance. The authors respond to these calls by exploring the governance antecedents that can catalyze family firms’ workplace social performance.
Design/methodology/approach
Using qualitative comparative analysis, the authors analyze 131 family firms from the STEP survey data.
Findings
The authors find two governance configurations that lead to better family business workplace social performance. The first configuration is the combination of 100% family ownership, high family involvement in management and a mix of outside directors and family members on the board. The second configuration is the combination of less than 100% family ownership and low family involvement in management.
Originality/value
The study builds on and extends the nascent work suggesting the integration of agency and stewardship theories. The authors show that these two theoretical approaches are able to not only coexist, but that they can also be complementary in helping to understand the unique workplace social behaviors of family firms.