Family member commitment, the opportunity costs of staying, and turnover intentions

Mahto, Raj V.; Vora, Gautam; McDowell, William C.; Khanin, Dmitry

doi:10.1016/j.jbusres.2019.10.013

Cited by 23 publications

(13 citation statements)

References 100 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…But this conceptualization is general to all firms and may not encompass the essence of a family firm that is family involvement in the business. The family involvement in the business is a compound concept that includes the owner family's control, continuity, commitment and enrichment (Debicki et al , 2016; Mahto et al , 2020; Sharma and Salvato, 2013). Since the owner family is an integral part of the firm, there is a systematic overlap of family and business that brings in distinct characteristics affecting almost every aspect of the firm including longevity.…”

Section: Introductionmentioning

confidence: 99%

Family firms’ sustainable longevity: the role of family involvement in business and innovation capability

Ahmad

Omar

Quoquab

2020

JFBM

View full text Add to dashboard Cite

PurposeThe objective of this research is to investigate the influence of family involvement in business and innovation capability on sustainable longevity of family firms.Design/methodology/approachData collected from 553 executives of 200 family firms that survived to the second generation and beyond was analyzed using partial least square (PLS) approach of structural equation modeling (SEM) to test the hypotheses and validate the model.FindingsThe results provided evidence of the significant influence of family involvement in business on sustainable longevity of family firms and partial mediation of innovation capability between family involvement in business and corporate sustainable longevity.Research limitations/implicationsThe sample included family firms owned and governed by the owner family. The future researchers may focus on professionally managed or publicly listed family firms.Practical implicationsThe path to family firms' sustainable longevity goes through innovation capability apart from effective family control, succession, commitment to the business and family enrichment. That requires the family firm to be proactive in innovation capability.Originality/valueFamily firms are the dominant form of business representing around 80% of global business structure that strives for survival and consistently pursues sustainable longevity strategies. In the current globally competitive environment, innovation capability has become a matter of life and death for any firm. Based on the transaction cost economics (TCE) theory of family firms, this study proposes an integrative model of sustainable longevity for family firms.

show abstract

Section: Introductionmentioning

confidence: 99%

Family firms’ sustainable longevity: the role of family involvement in business and innovation capability

Ahmad

Omar

Quoquab

2020

JFBM

View full text Add to dashboard Cite

show abstract

“…Finally, further evidence suggests that, despite having less incentive to downsize, family firms are associated with low-quality employment resulting in lower salaries than non-family firms in France (Bassanini et al 2013) and higher voluntary turnover in Belgium (Neckebrouck et al 2018). Indeed, there is also evidence showing that job insecurity (Hu and Schaufeli 2011) in China, disaffection (Khanin 2013) in the United States, a low employee relationship orientation in firms (Cameron et al 2009) in Australia, and superior employment prospects elsewhere (Mahto et al 2020) affect employees' turnover intentions in family firms. However, the empirical evidence of employment quality in family firms is contradictory.…”

Section: Context By Samplingmentioning

confidence: 99%

Contextualizing employment outcomes in family business research: current findings and future research avenues

2021

View full text Add to dashboard Cite

The empirical evidence of family business phenomenon in terms of employment outcomes is contradictory highlighting the micro–macro gap in the existing research. To address this contradiction, our study disentangles the role of context in family firms’ employment outcomes. To do so, we conduct a systematic literature review of 67 articles focusing on three employment-related outcomes—namely, growth, downsizing, and quality of labour—published in peer-reviewed journals from 1980 to 2020. Based on a two-by-two framework to classify this extant research, we unpack what we know about family firms and employment outcomes and where we can go from here. We highlight three main findings. First, current research is context-less since has mainly focused on the firm level in one context (i.e., region or country) and there is a lack of studies comparing family firms’ employment outcomes in different contexts and explicitly measuring the effects of contextual dimensions on family firms’ employment outcomes. This context-less approach could explain the conflicting results and lack of theoretical predictability about the family effect on employment across contexts. Second, the lack of understanding of the context in which family firms dwell highlights the need for future research to focus on context by theorizing about employment outcomes—that is, measuring context and its interactions with family- and job-related variables. Third, there is a need to further explore, analyse, and theorize on the aggregate effect of family firms on employment outcomes at different level of analysis (e.g., local, regional, and national).

show abstract

“…In this sense, the comprehension of the internal dynamics that impact family business' financial performance requires an in-depth analysis of the corporate governance mechanisms. On the point, academics paid specific attention to different dynamics such as the generational turnover, the involvement of external members within the board of directors, and the pressures made by society on organizations' strategies (Mahto et al 2020;Martinez Jimenez 2009;Casillas et al 2019).…”

Section: Family Business In Management Researchmentioning

confidence: 99%

The Relationship among Family Business, Corporate Governance, and Firm Performance: An Empirical Assessment in the Tourism Sector

Leopizzi

Pizzi

D'Addario

2021

Administrative Sciences

View full text Add to dashboard Cite

Tourism has been the subject of great attention of policy makers. The centrality of the sector derives from multiple factors, including the high number of subjects employed within the supply chain, the contribution to developing nations’ economic growth, and the environmental implications of establishing new productive activities. Under this scenario, family holdings play a central role as the main types of organisations active in the sector. In this sense, an understanding of these companies’ financial performance cannot disregard the understanding of the governance mechanisms that characterize the same given the potential divergence between “family” and “business” objectives. The research aims to encourage the development of new empirical evidence about this business model, providing specific contributions regarding the role of family members in companies’ decision-making mechanisms. For our purposes, an empirical analysis based on the evaluation of 343 Italian hotels was built.

show abstract

Family member commitment, the opportunity costs of staying, and turnover intentions

Cited by 23 publications

References 100 publications

Family firms’ sustainable longevity: the role of family involvement in business and innovation capability

Family firms’ sustainable longevity: the role of family involvement in business and innovation capability

Contextualizing employment outcomes in family business research: current findings and future research avenues

The Relationship among Family Business, Corporate Governance, and Firm Performance: An Empirical Assessment in the Tourism Sector

Contact Info

Product

Resources

About