Fa Family Functioning, En Entrepreneurship and Performance: Th - PowerPoint PPT Presentation

Fa Family Functioning, En Entrepreneurship and Performance: Th The case of family y businesses Matt Allen, Jim Davis, Albert James, Bill Worthington

PR PRIMARY FOCUS OF STEP …Fa Family Business & Entrepreneurship… Family is “the oxygen that feeds the fire of entrepreneurship” Rogoff and Heck, 2003 Aldrich and Cliff, 2003

Th The Literature

Th The Literature Overlap Family E.ship Bus. (Debicki et al. 2009; Benavides-Velasco, Quintana-Garcia and Guzman-Parra, 2013; Chrisman, et al. 2010; Debicki et al 2009; Shane 1997; Teixeira 2011)

Th The Literature Overlap Related, but Family Family E.ship E.ship Developed Bus. Bus. Independently (Debicki et al. 2009; Benavides-Velasco, (Anderson, Jack and Dodd 2005; Nordqvist and Melin Quintana-Garcia and Guzman-Parra, 2010) 2013; Chrisman, et al. 2010; Debicki et al 2009; Shane 1997; Teixeira 2011)

Th The Literature Overlap Related, but Family Family E.ship E.ship Developed Bus. Bus. Independently (Debicki et al. 2009; Benavides-Velasco, (Anderson, Jack and Dodd 2005; Nordqvist and Melin Quintana-Garcia and Guzman-Parra, 2010) 2013; Chrisman, et al. 2010; Debicki et al 2009; Shane 1997; Teixeira 2011) FB is Specialization in Entrepreneurship FB (Teixeira 2011) E.ship

Th The Literature Overlap Related, but Family Family E.ship E.ship Developed Bus. Bus. Independently (Debicki et al. 2009; Benavides-Velasco, (Anderson, Jack and Dodd 2005; Nordqvist and Melin Quintana-Garcia and Guzman-Parra, 2010) 2013; Chrisman, et al. 2010; Debicki et al 2009; Shane 1997; Teixeira 2011) This Research: Family & Entrepreurship FB is Specialization in Entrepreneurship FB Family E.ship (Teixeira 2011) E.ship

Bibliometric analyses of en entrep epren eneu eurship liter erature e “ fa family firm is pract ctica cally absent as a research area of interest among entrepreneurship scholars” M C López-Fernández, A M Serrano-Bedia, and M Perez-Perez , 2016

“5 “5 perce cent family firm literature studies focu cus on th the is issues of of entrepreneurship ip an and in innov ovat ation ion” M C López-Fernández, A M Serrano-Bedia, and M Perez-Perez , 2016

Entrepreneurship & Family Business Research (Rogoff & Heck, 2003) • both have viewed the business as the most important system under study, even to the exclusion of the family in its own right within the family business literature. • they focus on business by examining traditional business dimensions such as strategy, management, production, labor, and performance . • they both focus on time dimensions such as business stages and the transitions between them including the start-up phase, growth, maturity, and exit.

Ke Key di differenc nces be between n family bus busine ness and nd ent ntrepr prene neur urshi hip • Family businesses research: family ownership, management by a family member, operational involvement of family members, and family member involvement across generations • Entrepreneurship research: common and limited focus is on new venture opportunities and emergence

Th Theory Used to Define Entrepreneurship-Fa Family Link • Stewardship Theory • Motivation Theory, accountability to self and family, personal Gain • HR Theories: Time and terms of employment • Decision making Theory: Unity of command • Theories of Control: Clan and Market

Re Research Questions Is Family Harmony associated with Family Business Entrepreneurial Focus? Is an Entrepreneurially Focused Family Business associated with higher performance. Does Entrepreneurial Focus mediate the Family Harmony-Family Firm Performance relationship? How is Family Business associated with Family Harmony? How do Generations in the family business differ?

Accounting Performance Family Harmony Entrepreneurship Orientation Company Growth

St Step D Data • N= 1095 • Latin America: 170 • North America: 307 • Europe: 511 • Asia-Pacific: 107 • Generations • 1: 17.5% • 2: 31.2% • 3: 16.6% • 4: 6.5% • 5: 3.7%

Fa Family Harmony (Chronbach’sAlpha=.862) • Depend on Family • Communication • Family accepts your wishes to take on new activities and directions • Family expresses affection and support • Family spends time together

En Entrepreneurial Orientation (ChronbachAlpha=.756) • Favor High Risk Project with High Return • Bold Aggressive Posture under uncertain conditions maximize probability of exploiting potential opportunities • Explore bold, wide-ranging acts • Initiate actions to which competitors respond • Strong tendency to be ahead of competitors with novel ideas and products • Favor emphasis on R&D, technological leadership and innovation • Provide primary impetus for pursuing business opportunities • Encourage employee initiatives and input in identifying entrepreneurial opportunities

Pe Performance (Assessment of Family Firm relative to Industry) • Accounting Measures (Chronbach Alpha: .818) • ROE • ROA • Profit Margin • Growth Measures (Chronbach Alpha: .890) • Growth in Sales • Growth in Market Share • Growth in Employees • Growth in Profitability

Global Accounting Performance .246** .200** Entrepreneurship Family Harmony Orientation .279** Company Growth

Main effects harmony to performance Mediated effects Mediated Accounting .098** Performance .163** Family Harmony .128** Mediated .044 Company Growth

Drivers of Family Harmony in Family Business? • Family Business Delivering Family Health (Chronbach Alpha: .722) • Delivers Independence • Delivers Tightknit family relationships • Delivers respect in community • Delivers Development of Next Generation • Generation • The more generations, the lower the harmony

Global Generation Accounting Performance -.097** .246** .200** Family Harmony Entrepreneurship Orientation .417** .279** .160** Family Business Company Growth Delivering On Family Health

Latin America Accounting Performance Family Harmony .207** .284** .449** Entrepreneurship .065 .286** Family Business Orientation Delivering On Family Health Company Growth

North America Accounting Performance Family Harmony .282** .189** .460** Entrepreneurship .245** Family Business Orientation Delivering .340** On Family Health Company Growth

Europe Accounting Performance Family Harmony .213** .180** .365** Entrepreneurship .149** Family Business Orientation Delivering On Family Health .215** Company Growth

Asia-Pacific Accounting Performance Family Harmony .213** .297** .398** Entrepreneurship .061 Family Business Orientation Delivering .215** On Family Health Company Growth

Generations and Types of Innovation Outside in – Customer/Competitor Driven (Day, 2010) OR Inside Out – RBV Driven (Barney, 1991; Mwailu & Mercer, 1983)

Family Business Entrepreneurship Customer Competition Generation 3 + Customer Product Innovation Generation 2 Product Innovation Competition Generation 1 Family Harmony Remains Driver

Re Research Questions Is Family Harmony associated with Family Business Entrepreneurial Focus? Is an Entrepreneurially Focused Family Business associated with higher performance. Does Entrepreneurial Focus mediate the Family Harmony-Family Firm Performance relationship? Is Family Business Entrepreneurship Focus associated with Family Harmony? How do Generations in the family business differ?