scholarly journals From Personal Relationship to Psychological Ownership: The Importance of Manager–Owner Relationship Closeness in Family Businesses

2013 ◽  
Vol 9 (2) ◽  
pp. 295-318 ◽  
Author(s):  
Hang Zhu ◽  
Chao C. Chen ◽  
Xinchun Li ◽  
Yinghui Zhou
Keyword(s):  
Family Businesses ◽  
Personal Relationship ◽  
Psychological Ownership ◽  
Intention To Stay ◽  
Relationship Closeness ◽  
Professional Managers ◽  
Benevolent Leadership ◽  
Relational Perspective ◽  
Practical Implications

AbstractIntegrating theories of psychological ownership and stewardship, and taking a relational perspective, we examine key antecedents and outcomes of professional managers' psychological ownership in Chinese owner-managed family businesses. We tested the model using a survey of 166 Chinese professional managers (one from each of 166 family businesses). We find that owner–manager relationship closeness at work mediates the effect of both the owner's benevolent leadership and owner–manager friendship ties on the manager's psychological ownership. Psychological ownership, in turn, is positively related to the manager's intention to stay and to stewardship behaviour. Theoretical and practical implications are discussed.

Family involvement in management in private businesses and the effect on professional managers’ psychological ownership

2018 ◽  
Vol 9 (2) ◽  
pp. 225-243
Author(s):  
Hang Zhu ◽  
Pengxiang Zhang ◽  
Xiaoyan Han ◽  
Ting Huang
Keyword(s):  
Family Involvement ◽  
Negative Relationship ◽  
Personal Relationships ◽  
Psychological Ownership ◽  
Family Management ◽  
Content Type ◽  
Relationship Closeness ◽  
Professional Managers ◽  
Family Involvement In Management ◽  
Management Involvement

Purpose The purpose of this paper is to unveil how family involvement in management teams of private Chinese companies affects professional managers’ psychological ownership and sense of “us”, in the hopes of understanding why their devotion cannot coexist with the higher level of commitment of family managers. Design/methodology/approach This paper includes two main studies. The first uses regression to analyze survey data provided by 165 professional managers working in Chinese private companies. The second is a scenario experiment in which 106 MBA candidates participate. Findings The study finds that there is a negative relationship between family management involvement and professional managers’ perceived relationship closeness to owners and psychological ownership of firms. It also finds that relationship closeness fully mediates the negative influence of family management involvement on managers’ psychological ownership. Originality/value This paper contributes to both the theoretical literature and management practice. From a theoretical perspective, it connects studies in indigenous sociological psychology with new literature on psychological ownership. The paper finds that personal relationships nurture the shared psychological ownership of managers by generating a sense of “us”, providing a new theoretical explanation for its formation process. Furthermore, this study offers an explanation for the negative signal effect of family involvement in management. From a practical perspective, this study finds that family involvement in management acts as a critical boundary condition for using personal relationships to stimulate professional managers.

Family entrepreneurship and internationalization strategies

2017 ◽  
Vol 27 (2) ◽  
pp. 150-160 ◽  
Author(s):  
Vanessa Ratten ◽  
Veland Ramadani ◽  
Leo-Paul Dana ◽  
Frank Hoy ◽  
Joao Ferreira
Keyword(s):  
Family Businesses ◽  
Content Type ◽  
Main Research ◽  
Research Areas ◽  
Inclusive Approach ◽  
Internationalization Strategies ◽  
Entrepreneurial Knowledge ◽  
Emerging Themes ◽  
Family Entrepreneurship ◽  
Practical Implications

Purpose The purpose of this paper is to provide an overview of family entrepreneurship and internationalization strategies by discussing the papers in this special journal issue. Design/methodology/approach The main research areas related to family business are discussed in terms of socioemotional wealth and societal trends. A review of the literature is conducted to highlight the emerging themes affecting the decision of family businesses to internationalize. Findings The paper stresses how it is important to have an entrepreneurial approach to internationalization of family businesses. Research limitations/implications As more family businesses are born globals, it is important to focus on the positive aspects of internationalization, including emerging markets and gaining important entrepreneurial knowledge. Practical implications Family businesses need to be more innovative and risk-taking in their approach to internationalization as it helps them build their reputation and increase performance. Originality/value As there are limited studies about family entrepreneurship and internationalization in terms of a broad view of family, this paper takes an inclusive approach to the changing nature of how a family is defined in today’s global society.

Mixing the human cocktail of employee contentment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Job Satisfaction ◽  
Work Performance ◽  
Extrinsic Motivation ◽  
Organizational Context ◽  
Intention To Stay ◽  
Content Type ◽  
Survey Results ◽  
Pertinent Information ◽  
Emotionally Intelligent ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on emotionally intelligent ways of tracking employee contentment, as a route to understanding how job satisfaction manifests. The Taiwanese survey results revealed that employee's experiencing contentment strongly boosts their job satisfaction, their work performance, and their intention to stay working at the company. Job satisfaction most powerfully drives intention to stay, while contentment is best at driving work performance. The most powerful upward shift in employee contentment was derived from the organizational context, followed by intrinsic motivation, and finally by extrinsic motivation. Originality/value The briefing saves busy executives, strategists and researchers’ hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Corporate social responsibility practices developed by Mexican family and non-family businesses

2019 ◽  
Vol 9 (1) ◽  
pp. 40-53 ◽  
Author(s):  
José Luis Esparza Aguilar
Keyword(s):  
Design Methodology ◽  
State Of The Art ◽  
Family Businesses ◽  
University Education ◽  
Quintana Roo ◽  
Southern State ◽  
Content Type ◽  
Mexican Family ◽  
Corporate Social ◽  
Practical Implications

Purpose The purpose of this paper is to identify the CSR practices developed by Mexican family and non-family MSMEs. The study also aims to compare the CSR practices carried out by family and non-family businesses in a country with an emergent economy. Design/methodology/approach The paper opted for an exploratory study using a sample of 384 businesses was selected in the southern state of Quintana Roo, Mexico, distributed in 245 family and 139 non-family businesses and a questionnaire was applied directly to the managers/owners. Findings The results show that family MSMEs develop CSR practices to a higher extent than non-family ones, mainly on environment and societal dimensions. In addition, CSR practices in family-owned enterprises develop to a higher extent when the manager/owner has more years of experience in the business, has a higher university education and the size of the business is larger. Research limitations/implications The study was developed exclusively with a MSMEs sample with a scope only on the southern part of Quintana Roo, Mexico; the shortage of business databases and the stratification of businesses based exclusively on the number of employees. This work presents information that contributes to the state of the art, broadening the existing literature related to CSR in businesses of a country with an emergent economy and an environment where the tourism and commercial sectors predominate. Practical implications This paper provides information to government institutions for the establishment of public policies targeted for an increase of CSR activities by businesses in the area. Manager and/or owners can understand the importance of implementing CSR activities within the business as a competitive strategy. It is also important for universities, professors/researchers and for all interested parties. Originality/value This paper provides theoretical and empirical evidence about CSR practices carried out among family and non-family MSMEs in an emergent economy.

scholarly journals Ownership structure and performance in family businesses at early developmental stage: evidence from China

2009 ◽  
Vol 7 (1) ◽  
pp. 138-150 ◽  
Author(s):  
Zhong Qin ◽  
Xin Deng
Keyword(s):  
Developmental Stage ◽  
Ownership Structure ◽  
Family Firms ◽  
Family Businesses ◽  
Early Developmental Stage ◽  
Governance Mechanism ◽  
Professional Managers ◽  
And Performance ◽  
The Impact ◽  
Early Developmental

This paper explores the impact of ownership structure on performance of family businesses at its early developmental stage in a context of under-developed market environment. Using a survey data of 296 private family firms in Ningbo, China, we find both management and single largest shareholder’s ownership is positively related to firm’s performance. However, family’s shareholding does not have significant impact on performance. Further inquiry on firm’s willingness to give shares to managers who are not family members indicates that while nearly half of the firms are willing to provide shares to professional managers, weak corporate governance mechanism and under-developed market may discourage such practice.

Entrepreneurial communities and family enterprises of India

2018 ◽  
Vol 12 (1) ◽  
pp. 32-49 ◽  
Author(s):  
Kanupriya Misra Bakhru ◽  
Manas Behera ◽  
Alka Sharma
Keyword(s):  
Family Businesses ◽  
Government Policies ◽  
Indian Government ◽  
Policy Makers ◽  
Content Type ◽  
Family Enterprises ◽  
Global Presence ◽  
Source Of Information ◽  
Practical Implications

Purpose This paper aims to examine the traditional business communities and family businesses of India, their emergence and sustained growth. Design/methodology/approach The authors analyze the role of business communities in family businesses of India and identify business communities that have still sustained and marked a global presence. Findings Business communities such as Marwaris have the knack for business activities and are leaders of family businesses in India today, who have sustained their past success and continue to create new histories. Other traditional business communities such as Parsis, Sindhis, Chettiars and Gujarati banias have not been able to sustain much. Possible reasons were switching to white-collar jobs, taking up diplomacy and other professions, inter caste marriages, international migration in search of business and Indian government policies. Research limitations/implications This study provides a useful source of information for academics, policy-makers and economists. Practical implications Traditional business communities populate the list of family businesses that have marked their global presence. This paper identifies various factors that are responsible for the growth and sustainability of these business communities. Social implications The study clarifies the role of business communities in domestic economic development. Originality/value The paper explored traditional business communities of India and assessed their role in family businesses of India that currently mark a global presence.

Cultural values and their implications to family business succession

2019 ◽  
Vol 10 (4) ◽  
pp. 281-292 ◽  
Author(s):  
Grisna Anggadwita ◽  
Werda Bagus Profityo ◽  
Dini Turipanam Alamanda ◽  
Anggraeni Permatasari
Keyword(s):  
Cultural Values ◽  
Family Business ◽  
Family Businesses ◽  
Chinese Family ◽  
Content Type ◽  
The Family ◽  
Succession Process ◽  
Business Succession ◽  
Family Business Succession ◽  
Practical Implications

Purpose The family business is one of the business entities that contribute to the economy of a country. Succession in the family business occupies a strategic position, especially in maintaining the company’s sustainability. The Chinese family business has unique characteristics in maintaining and growing its business with the cultural values that underlie how their business. The purpose of this paper is to discuss the cultural values of Chinese ethnic and their implications in the succession process in small family businesses in Bandung, Indonesia. Design/methodology/approach This research uses a qualitative method with the in-depth interview method as a data collection technique. The sampling technique uses purposive sampling, while to test the validity of research data using a triangulation technique. A total of four small Chinese-owned family businesses participated as informants in this study. The study will identify the stage of succession process in the Chinese family business. Findings There are several stages identified in the succession planning of small Chinese-owned family business in Bandung which include succession antecedents, succession activities and desired outcomes. The results showed that small Chinese-owned family business in Bandung has not applied the rules and procedures in the succession process. Most of the Chinese family business in this research still holds Confucianism culture; they prioritize boys as business successors, who have a greater responsibility rather than successor with other gender. Practical implications Several implications are discussed. One of them is the Chinese family business holding cultural values in the process of family business succession. Originality/value This research is expected to provide theoretical and practical implications for academics and family companies with similar cases.

Sustainable family business

2019 ◽  
Vol 41 (7) ◽  
pp. 945-965 ◽  
Author(s):  
Rawa Alwadani ◽  
Nelson Oly Ndubisi
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Environmental Sustainability ◽  
Family Businesses ◽  
Psychological Ownership ◽  
Environmental Sensitivity ◽  
Bottom Line ◽  
Content Type ◽  
Mindful Organizing ◽  
The Relationship

Purpose Family centered non-economic (FCNE) goals, such as environmental and social goals, are sometimes strenuous to “sell” to non-family members in a family business, and are often open to resistance. The purpose of this paper is to identify socio-psychological mechanisms for achieving FCNE goals because, in addition to economic goals, they are the other two components of the triple bottom line. Design/methodology/approach Through a juxtaposition of the literature on family businesses, and the theories of mindfulness and psychological ownership, this paper argues for the facilitating roles of family involvement and mindful organizing in the achievement of FCNE goals. An example of how a Kuwaiti oil company implements these ideas is appended. Findings A moderated link between family involvement, mindful organizing and FCNE goal of environmental sustainability. Besides its direct effect on environmental sustainability, mindful organizing also has a potential mediating role in the relationship between family involvement and environmental sustainability. Psychological ownership, environmental sensitivity and individual mindfulness will moderate the relationship between mindful organizing and the achievement of environmental sustainability goals. Research limitations/implications The paper presents ten propositions and argues that three types of family involvement (ownership, management and inter-generational), together with non-family engagement (through mindful organizing) would lead to success in achieving the FCNE goal of environmental sustainability. Psychological ownership, environmental sensitivity and individual mindfulness are potential moderators. Practical implications The paper suggests some key drivers of FCNE goal of environmental sustainability as well as several contingent factors. Applicable to family businesses, owners and/or managers of similar firms can apply knowledge from this study in the pursuit of environmental sustainability. Originality/value The paper’s model advances the current understanding of the link between family involvement, mindful organizing, environmental sustainability, psychological ownership, environmental sensitivity and individual mindfulness in the context of family business. The paper further suggests new future research directions.

The State Matters: Management Models of Singaporean Chinese and Korean Business Groups

2003 ◽  
Vol 24 (4) ◽  
pp. 507-534 ◽  
Author(s):  
Lai Si Tsui-Auch ◽  
Yong-Joo Lee
Keyword(s):  
Business Groups ◽  
Family Businesses ◽  
The State ◽  
Family Control ◽  
Management Models ◽  
Professional Managers ◽  
Chinese Business ◽  
Role Of The State ◽  
Before And After ◽  
Asian Currency Crisis

Both the proponents and critics of Asian economic organization have been preoccupied with the ideal-typical management models of family businesses, and have rarely identified their changing management structures. We, instead, identify the change and continuity in these management structures through an analysis of family-controlled business groups in Singapore and South Korea before and after the Asian currency crisis. In our view, these business groups professionalized their management, but retained family control and corporate rule before the crisis. The crisis, however, increased the pressure on such groups to relinquish family control and corporate rule. Singaporean Chinese business groups tended to loosen their tight grip on corporate rule by absorbing more professional managers into their upper echelons. The surviving Korean chaebol, however, intensified family control. Only a few chaebol, which were on the brink of bankruptcy, relinquished corporate rule to professional managers. We argue that other than the market, cultural, and institutional factors as suggested in the existing literature, state capacities and strategies do matter in shaping the changing management structures of business groups. Drawing on our analysis, researchers will be able to conduct comparative studies of family businesses across East Asian societies, of organizational imitation, and of the role of the state in influencing management models.

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