Leader behaviours of family and non-family executives in family firms

How do family and non-family ties affect knowledge sharing in SMEs in a developing country? Linking social capital and network strength

Purpose

This study aims to examine how differences in the strength of interpersonal ties affect the social structure of organisational family and non-family relationships and their implications for work-related interactions.

Design/methodology/approach

This study used a quantitative approach. The hypotheses were tested using multi-group analysis in PLS-SEM as implemented in WarpPLS Version.

Findings

The results show that both family and non-family organisational members are inclined to ask from others whom they previously have given information, implying that reciprocity in work-related interactions in the workplace is present at the dyad level. Furthermore, the existing robust strength of ties among family employees facilitate a three-way relationship where each member is responsible for the quality of work-related interactions between other members. This means that triadic communication is only present within family networks. While, the absence of strong interpersonal ties within non-family network fuels the popularity effect, where non-family employees who are perceived to be knowledgeable tend to be approached by others for work-related information.

Originality/value

This study brings to the fore a nuanced perspective that complements our current understanding of the implications of social relationships within family and non-family employee groups on work-related interactions in the workplace. It provides clues on how family and non-family employees identify with the firm through their informal relational embeddedness towards work-related interactions within the organisation.

Adapting to dynamic business environments: a comparative study of family and non-family firms operating in Western Australia

Purpose

The purpose of this study is to examine adaptation to a dynamic business environment from the perspective of family and non-family firms. Furthermore, the study provides a comparative component and proposes a theoretical framework to understand firm adaptation, incorporating the dynamic capabilities approach.

Design/methodology/approach

Semi-structured, in-depth, face-to-face interviews were undertaken predominantly with firm owners and managers of family and non-family-owned firms operating in Western Australia.

Findings

Regardless of firms’ family or non-family background, valuable, rare, imperfectly imitable and non-substitutable attributes were strongly associated with both groups. Moreover, expertise, tacit and new knowledge, innovation or established brand image emerged as key adaptive responses to challenges posed by new trends, consumer expectations, increased demand or competition. These attributes allowed firms to sense and seize opportunities, and experience transformational processes to remain competitive. Implications of the findings and future research directions will be discussed.

Originality/value

First, and empirically, the study’s objectives contribute to addressing extant research gaps, including scant research on methodologies and innovative approaches used by family firms to adapt to contemporary challenges. Thus, the study complements entrepreneurship scholarly discourses on firms’ adaptation. Second, the chosen inductive approach results in the development of a framework, which also exhibits various relationships with the adopted dynamic capabilities approach. Both the findings and the developed framework enhance the understanding of adaptive behaviour among both family and non-family firms. Finally, the study contributes to the literature examining firms operating in geographically dispersed and isolated regions.

Non-family employee strategic renewal in family firms: the transformational leadership role of family board members and psychological ownership

Purpose

The study aims to reveal the strategic renewal (SR) of non-family employees in family small and medium enterprises (SMEs) with the effects of transformational board member leadership and psychological ownership (PO) dimensions.

Design/methodology/approach

Non-family employees at 82 export and import family firms (FFs) in Vietnam were selected for the study, which used a partial least square structural equation modelling (PLS-SEM) approach.

Findings

Family board members with transformational leadership (TL) qualities and PO play an essential role in developing non-family employee SR.

Originality/value

The authors grant advanced family roles and relationships knowledge to the renewal and transformation of FFs' strategies and organisational structures.

Female and environmental disclosure of family and non-family firms. Evidence from India

Purpose

This study aims to use the gender socialization theory, critical mass theory and legitimacy theory to examine the female gender and environmental disclosure of family and non-family-controlled firms in India.

Design/methodology/approach

A sample size of 783 and 177 firm-year observations for family and non-family-controlled firms, respectively, between 2009 and 2020 uses descriptive statistics, a test of difference in means and panel regression with random effect assumptions for data interpretation.

Findings

The descriptive statistics show a significant mean difference between family-controlled firms and non-family-controlled firms in India. The first findings show that female chief executive officers (CEOs) and CEO duality have a positive and statistically significant association with environmental disclosure in a family-controlled firm but not in non-family-controlled firms in India. The second findings show that independent female directors have no significant association with environmental disclosure of family and non-family firms in India. The fourth findings with critical mass theory confirm the insignificant association of female directors on environmental disclosure of family and non-family firms in India. The results are robust to controlling firm-level variables.

Practical implications

Firms in the Indian context, through this study, assure stakeholders that family firms are better at improving stakeholder’s expectation of environmental accountability than non-family firms, especially where female CEOs are in charge.

Originality/value

This study adds the family perspective of the relationship between female CEOs and the environmental disclosure of listed firms in India. Also, female CEO duality and environmental disclosure add novelty to the research studies on gender and environmental disclosure.

Are non-blood related “family” members treated differently? Determinants of bifurcation bias among family members in the family firm

Purpose

Possible asymmetric treatment among family members has long been neglected in the field of family firm research. To fill this gap, the purpose of this study is to shed light on the heterogeneity of treatment of family members in family firms by proposing factors that influence the likelihood of bifurcation bias among “family” members.

Design/methodology/approach

Drawing upon social identity theory and the concept of bifurcation bias, the authors theorize that family members working in family firms are not a homogenous entity, but rather a heterogeneous entity contingent on their status and/or position in the family. To provide a comprehensive understanding of heterogeneous treatment among family members, both individual factors and societal factors should be considered.

Findings

Blood relatedness of family members is suggested as an important determinant of the likelihood of bifurcation bias among family members. It is also proposed that the impact of blood relatedness is likely influenced by both individual factors (familial proximity and familial tenure) and a societal factor (collectivism).

Originality/value

Theorizing takes a step forward to advance the understanding of interpersonal dynamics in family firms. In particular, this article expands the research boundaries of family business research by taking into account that not all “family” members are treated preferentially. Moreover, this article deepens our understanding of the nature and status of non-blood related family members by unveiling the influence of both individual and societal factors. This article also provides a theoretical foundation for human resource management (HRM) research in family businesses by addressing bifurcation bias among family members.