Shared vision promotes family firm performance

Fitting the name or unworthy of the name?—Does the name of family firm major shareholder influence family’s egoistic behavior?

It has been generally believed that the major shareholders of family firms are more willing to implement egoistic behaviors aimed at benefiting the family. This study analyses whether the major shareholder of the family firm whose name contains “Confucian symbols” such as benevolence, righteousness, loyalty, and kindness will reduce family self-interested behaviors as his name indicates. Using a sample consisting of all 425 family firms listed on Small and Medium Enterprise Board and Growth Enterprise Board, the result shows that the major shareholder whose name contains Confucian symbols is less likely to misappropriate corporate assets and less likely to make “family-first” personnel arrangements, meanwhile is more open to external supervision. Further mechanism testing reveals that the major shareholder whose name contains Confucian symbols also tends to choose corporate culture that reflects Confucianism. The study confirms that the name of the major shareholder is one of the factors which can affect the operation of the family business, demonstrates that different family firms have different attitudes towards family self-interest, and promotes the extant research from the “differences between family and non-family firms” level further to the “differences among family firms running by different families” level.

Unraveling the Role of Shared Vision and Trust in Constructive Conflict Management of Family Firms. An Empirical Study From a Mixed Methods Approach

Family firms are a unique setting to study constructive conflict management due to the influence of family ties of the owning family imprinting a sense of common purpose and shared destiny, and high levels of trust. We study the relationship between shared vision and trust that intervene in the adoption of constructive conflict management. To achieve our purpose, we carried out a systematic indirect observation using a mixed methods approach. We used the narratives of 17 semi-structured interviews, audio-recorded and transcribed, of family and non-family managers or directors from five Spanish family firms in the siblings' partnership stage, combined with documentary data obtained from different sources. Intra- and inter-observer reliability were confirmed. Results show a dynamic relationship between shared vision and specific components of trust (benevolence and ability) at different levels of conflict management. We also provide evidence of specific processes of concurrence-seeking and open-mindedness in family and ownership forums accounting for the relevance of family governance in these type of organizations. Family firms are a sum of several subsystems which exhibit a particular resources configuration. This study sheds light on constructive conflict management in family firms opening interesting avenues for further research and offering practical implications to managers, owners, and advisors.

The role of the positive emotional attractor in vision and shared vision: toward effective leadership, relationships, and engagement

Personal and shared vision have a long history in management and organizational practices yet only recently have we begun to build a systematic body of empirical knowledge about the role of personal and shared vision in organizations. As the introductory paper for this special topic in Frontiers in Psychology, we present a theoretical argument as to the existence and critical role of two states in which a person, dyad, team, or organization may find themselves when engaging in the creation of a personal or shared vision: the positive emotional attractor (PEA) and the negative emotional attractor (NEA). These two primary states are strange attractors, each characterized by three dimensions: (1) positive versus negative emotional arousal; (2) endocrine arousal of the parasympathetic nervous system versus sympathetic nervous system; and (3) neurological activation of the default mode network versus the task positive network. We argue that arousing the PEA is critical when creating or affirming a personal vision (i.e., sense of one's purpose and ideal self). We begin our paper by reviewing the underpinnings of our PEA-NEA theory, briefly review each of the papers in this special issue, and conclude by discussing the practical implications of the theory.