Family involvement as influencer on family firm’s growth

Cano‐Rubio, Myriam; Lombardo, Guadalupe Fuentes; Sanchez‐Famoso, Valeriano

doi:10.1007/s10843-021-00290-y

Cited by 3 publications

(1 citation statement)

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“…However, other studies also show the dark side of family firms' idiosyncratic leadership (e.g., Ding & Wu, 2014; Eddleston & Mulki, 2021), which stems from the excess power of family owners and leaders of the business may cast a shadow on ethical leadership (Dyer, 2021). Other characteristics of family firms, such as distinctive human and social capital, maintaining family‐oriented goals related to socioemotional wealth, and long‐term orientation due to their transgenerational intention (Cano‐Rubio et al, 2021; Chrisman et al, 2012; Gómez‐Mejía et al, 2011), also determine behaviors that may influence leadership (e.g., McAdam et al, 2020; Miller & Le Breton‐Miller, 2021). Leadership succession is a singular event in family firms that depend on the leadership of the incumbent (Fries et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

A generational perspective of family firms' social capital: Interplay between ethical leadership and firm performance

Sanchez‐Famoso

Maseda

Iturralde

et al. 2023

Business Ethics Env & Resp

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This study proposes and tests a model that integrates ethical leadership, internal social capital, and firm performance in small‐ and medium‐sized family firms at different generational stages. Using the upper echelons theory and the social capital perspective of familiness, this study shows that ethical leadership can explain the effectiveness of certain behaviors in relation to family firm performance. Moreover, social capital helps spread a leader's business ethics to firm members, thus improving the family firm's performance. Our results show that founders' personalities and identities determine high internal social capital, which decreases over generations. The study also shows that internal social capital is a communicative element crucial to ethical leadership, facilitating the absorption of the culture and values of the family in the firm. This powerful resource should be promoted and supported by coherent behavior over time by senior leaders.

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