Qiuqin He, Tomás González-Cruz, Javier Muñoz-de-Prat and Eduard Montesinos-Sansaloni
Digital transformation is the key for family firms to gain a competitive advantage in the digital economy. This paper empirically examines the effect of founder control on family…
Abstract
Purpose
Digital transformation is the key for family firms to gain a competitive advantage in the digital economy. This paper empirically examines the effect of founder control on family firms’ digital transformation from the perspectives of risk-taking and founders’ power.
Design/methodology/approach
This paper uses an unbalanced panel dataset to test the hypotheses using a sample of Chinese A-share listed family firms from 2010 to 2022.
Findings
Compared to non-founder-controlled firms, founder-controlled family firms are more capable of driving digital transformation and only facilitate substantive transformation rather than symbolic transformation. Mechanism analysis reveals that founder control is associated with a higher inclination for risk-taking and higher power, which leads to a greater willingness and ability to facilitate digital transformation. Heterogeneity analysis indicates that founder control is particularly advantageous for promoting substantive digital transformation in family firms without state capital participation, second-generation involvement and weak Confucian cultural embeddedness.
Originality/value
To study how family control affects digital transformation, this article splits family enterprises into founder and non-founder control. This study divides digital transformation into substantive and symbolic paths, each with distinctive objectives. This study improves the understanding of family enterprise digital transformation processes and provides policy insights for their digital evolution.
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José Antonio Clemente-Almendros and Tomás González-Cruz
This paper investigates whether board composition, a family chief executive officer (CEO) and the firm's managerial capabilities affect proactive tax management in family small…
Abstract
Purpose
This paper investigates whether board composition, a family chief executive officer (CEO) and the firm's managerial capabilities affect proactive tax management in family small and medium-sized enterprises (SMEs). The main statement is that the professionalisation of corporate government and management practices explains the difference in tax avoidance behaviour in closely held family SMEs.
Design/methodology/approach
Using the 2012 Spanish thin-capitalisation rule as a quasi-experiment, the authors estimate panel regressions with firm fixed effects and robust standard errors. This model represents a triple difference-in-differences combined with propensity score matching (PSM-DID).
Findings
Analysis shows that having a high proportion of non-family board members and a high endowment of managerial capabilities lead to tax liability optimisation in family SMEs. Conversely, familial boards and family SMEs with low managerial capabilities lack enough expertise to weigh the costs of tax avoidance over the benefits, resulting in a reluctance to engage in tax optimisation behaviours. Alike, results show no significant relation between CEO's family affiliation and tax management behaviour.
Practical implications
When implementing fiscal policies, the specific needs of family SMEs should be considered, and how these needs interact with corporate governance and managerial mechanisms. Moreover, policymakers need a deeper understanding of family SMEs in order to develop policies appropriate to their characteristics. A more comprehensive knowledge of how family firm heterogeneity affects corporate decisions, such as indebtedness and fiscal decisions, may improve public policies.
Originality/value
This study addresses the issue of tax behaviour in family SMEs in a particular event that implies a specific logic to weigh the pros and cons of each alternative: reducing debt or paying more taxes. This study’s conclusions are based on a model that deals with potential endogeneity problems, which avoids bias in the findings.
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Tomas F. Gonzalez‐Cruz, Ana Huguet‐Roig and Sonia Cruz‐Ros
With a view to contributing to a better understanding of the interactions between design dimensions, the authors aim to present a formal model that analyzes the internal fit…
Abstract
Purpose
With a view to contributing to a better understanding of the interactions between design dimensions, the authors aim to present a formal model that analyzes the internal fit relationship between centralization and formalization, taking into account organizational technology and the “systems approach”.
Design/methodology/approach
Based on the study by Zeffane, the authors develop an alternative, formal model that introduces organizational technology and assumes that greater structural control does not necessarily lead to better organizational integration. The model equally considers the possibilities of underfit and overfit.
Findings
The proposed formal model provides a sound rationale on how organizational technology determines the contribution of centralization and formalization to the achievement of integration. The complementary interactions between design dimensions result in very clear patterns, with all the complementary choice variables tending to be done together at a comparable level. Also, it evidences that only a finite of feasible set of intermediate choices exists.
Research limitations/implications
In the interests of simplicity, the model does not include other contingency factors, such as environment and strategy, nor does it address the question of non‐concavity of the objective function that allows equifinality. Questions such as whether the consequences of underfit are different from those produced by overfit should be addressed in further research and model developments.
Originality/value
This paper develops a rationale for better understanding the interactions between design dimensions, such as centralization and formalization and helps to fill the research gap related to the absence of analytical models that allow a rigorous analysis of the internal relationships between different organizational design dimensions.
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Carmen Pérez‐Cabañero, Tomás González‐Cruz and Sonia Cruz‐Ros
This paper seeks to extend knowledge on the impact of different marketing capabilities on various measures of organisational performance in the context of family‐run small to…
Abstract
Purpose
This paper seeks to extend knowledge on the impact of different marketing capabilities on various measures of organisational performance in the context of family‐run small to medium‐sized enterprises (SMEs).
Design/methodology/approach
Aspects regarding marketing capabilities in family‐owned SMEs and their impact on superior performance are identified and briefly discussed according to the existing literature. Then, quantitative research is presented followed by a discussion of the findings. The paper ends with the conclusion, managerial implications, limitations and lines for future research.
Findings
The results of the study show the relevance of marketing capabilities for product differentiation to gain stakeholders' satisfaction. Other marketing capabilities related to marketing planning and pricing have a positive impact on financial performance.
Originality/value
Different marketing capabilities have a different impact on various measures of performance. The nature of the marketing capabilities under consideration determines whether their main impact is on financial performance rather than on stakeholders' satisfaction.
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Clara Martínez Fuentes, Francisco Balbastre Benavent, M. Angeles Escribá Moreno, Tomás González Cruz and Manuela Pardo del Val
Examines the literature relating to the implementation of quality assurance systems and then uses a questionnaire to a number of organisations and consultants to compare…
Abstract
Examines the literature relating to the implementation of quality assurance systems and then uses a questionnaire to a number of organisations and consultants to compare “practice” with “theory”. Analyses the implementation process for quality assurance systems designed to meet the requirements of the ISO 9000 standard to identify the role of the different “actors” to find out which factors facilitate the implementation or make it more difficult. Suggests that the primary motivation for introducing ISO 9000 systems is to improve image and reputation rather than processes.
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This study aims to investigate the influence of the financial system (financial development and financial structure) on firms' innovation efficiency in China.
Abstract
Purpose
This study aims to investigate the influence of the financial system (financial development and financial structure) on firms' innovation efficiency in China.
Design/methodology/approach
This study employs country level data of capital markets and financial institutions along with innovation data from 18 high-tech industries in China spanning the 2009–2016 period, and the stochastic frontier analysis (SFA) is applied to explore how financial development and financial structure affect the innovation efficiency of these industries.
Findings
Results show that financial development influences firms' innovation efficiency positively and the capital-market-based financial structure has a positive impact on innovation efficiency of high-tech industries. Furthermore, when the high-tech industries are grouped into five sub-industries, the results show that financial structure had different effects on the innovation efficiency in each sub-industry.
Originality/value
This work contributes to the empirical research on considering the influential factors of innovation efficiency from the perspective of financial system. This paper also extends the existing literature by the different influences of financial system on innovation efficiency in each sub-industry of Chinese high-tech industries.
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Mauricio Castillo-Vergara, Diego Duarte Valdivia, Víctor Muñoz-Cisterna, Alejandro Álvarez-Marín, Cristian Geldes and Rodrigo Esteban Ortiz-Henriquez
This study developed a theoretical model to test the relationship between digital capability and Industry 4.0 (I4.0) and its effect on innovation performance in small and…
Abstract
Purpose
This study developed a theoretical model to test the relationship between digital capability and Industry 4.0 (I4.0) and its effect on innovation performance in small and medium-sized enterprises (SMEs).
Design/methodology/approach
The proposed theoretical model was evaluated using partial least-squares structural equation modeling and fuzzy-set qualitative comparative analysis. The data were obtained from a sample of 536 SMEs in Chile.
Findings
The proposed model presented two dimensions of digital capability: management and information and communication technologies (ICTs). Management models composed of enterprise resource planning and customer relationship management systems are essential for optimizing organizational management. Meanwhile, ICTs facilitate the smooth flow of information within an organization, leading to improved efficiency in production processes. I4.0 is encouraged by exposing SMEs to base technologies such as data analytics. These results confirm that I4.0 influences innovation performance.
Practical implications
SME managers should encourage the development of digital capabilities to transition toward I4.0, as this can make SMEs more competitive and innovative in changing and dynamic scenarios.
Social implications
I4.0 adoption and the development of digital capabilities can directly affect employment and national economic growth.
Originality/value
Most studies focus on the organizational factors affecting SMEs’ I4.0 adoption. They do not, however, address the role played by current digital capability in I4.0 technology adoption and its effect on firms’ innovation performance.
Propósito
Este estudio desarrolló un modelo teórico para probar la relación entre la capacidad digital y la Industria 4.0 (I4.0) y su efecto en el desempeño de la innovación en pequeñas y medianas empresas (PYME).
Diseño/método/enfoque
El modelo teórico propuesto se evaluó mediante el uso de modelos de ecuaciones estructurales de mínimos cuadrados parciales y análisis comparativo cualitativo de conjuntos difusos. Los datos se obtuvieron de una muestra de 536 pymes de Chile.
Resultados
El modelo propuesto presenta dos dimensiones de la capacidad digital: la gestión y las tecnologías de la información y la comunicación (TIC). Los modelos de gestión compuestos por sistemas de planificación de recursos empresariales y de gestión de relaciones con los clientes son esenciales para optimizar la gestión organizacional. Por su parte, las TIC facilitan el flujo fluido de información dentro de una organización, lo que conduce a una mejora de la eficiencia en los procesos de producción. La I4.0 se fomenta exponiendo a las PYME a tecnologías de base como el análisis de datos. Estos resultados confirman que la I4.0 influye en el rendimiento de la innovación.
Originalidad
La mayoría de los estudios se centran en los factores organizativos que afectan a la adopción de la I4.0 por parte de las pymes, pero no abordan el papel que desempeña la capacidad digital actual en la adopción de la tecnología I4.0 y su efecto en el desempeño innovador de las empresas.
Implicaciones prácticas
Los gestores de las PYMES deben incentivar el desarrollo de capacidades digitales para realizar la transición hacia la I4.0, ya que esto puede hacer que las PYMES sean más competitivas e innovadoras en escenarios cambiantes y dinámicos.
Implicaciones sociales
La adopción de la I4.0 y el desarrollo de capacidades digitales pueden afectar directamente al empleo y al crecimiento económico nacional.
Details
Keywords
- Industry 4.0
- Technology
- Innovation
- Small and medium-sized enterprises
- Enterprise resource planning
- Customer relationship management
- Industria 4.0
- Tecnología
- Innovación
- Pequeñas y medianas empresas
- Sistema de planificación de recursos empresariales (ERP)
- Sistema de gestión de relaciones con los clientes (CRM)
- O300
- O30
- O320
- O330
Leonardo Mastrangelo, Sonia Cruz-Ros and Maria-Jose Miquel-Romero
The purpose of this paper is to investigate the factors that determine two forms of crowdfunding campaign success: success in securing the necessary financial resources and…
Abstract
Purpose
The purpose of this paper is to investigate the factors that determine two forms of crowdfunding campaign success: success in securing the necessary financial resources and personal success in terms of the entrepreneur’s satisfaction. Specifically, it studies factors linked to the relationship between entrepreneurs and funders (co-creation and feedback) and factors linked to the campaign’s content (dimensions of corporate social responsibility (CSR)).
Design/methodology/approach
An empirical study of 52 crowdfunding entrepreneurs was conducted. Data were gathered using a structured questionnaire. Fuzzy-set qualitative comparative analysis was performed.
Findings
For financial and personal success, all factors, except the social dimension of CSR, are necessary conditions. Two configurations are sufficient for entrepreneurs to achieve financial success. The first configuration that is sufficient for personal success is the same as the first configuration for financial success. The second configuration for personal success is similar to the second configuration for financial success, except that it also includes financial success itself.
Research limitations/implications
Entrepreneurs should invest in CSR and seek to improve the quality of their relationships with their funders. Crowdfunding platforms should design and manage co-creation and feedback tools that are capable of providing deep knowledge of users’ opinions and concerns whilst generating value. The limitations of this study are that only the reward-based crowdfunding model was considered, and the data covered just two platforms.
Originality/value
This study contributes to the literature by presenting empirical analysis of the factors that influence financial success and personal success in reward-based crowdfunding. It examines aspects that strictly refer to the content of the project and aspects that refer to the entrepreneur–funder relationship. Specifically, the roles of the four dimensions of CSR were considered. Moreover, the fsQCA method provides a fresh approach to research in this area.