Family Social Capital, Venture Preparedness, and Start-Up Decisions

Chang, Erick P. C.; Memili, Esra; Chrisman, James J.; Kellermanns, Franz W.; Chua, Jess H.

doi:10.1177/0894486509332327

Cited by 180 publications

(162 citation statements)

References 91 publications

(172 reference statements)

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“…Increasing family size, geographical distribution, and ownership dispersion usually coming along with generational transition (Schulze et al 2003) could give strong incentives to pursue international entrepreneurship opportunities. In a similar vein, research on ethnic entrepreneurship (Chang et al 2009;Light and Bonacich 1988;Light and Gold 2000) has found that ethnic entrepreneurs pursue other, non-financial goals when internationalizing their businesses, such as maintaining relationships with relatives in their home countries. Hence, immigration status, ethnical background, kinship ties in the country of origin, as well as the number of generations owning the business and ownership dispersion could be important drivers behind the decision to take the family business international.…”

Section: Limitations and Future Research Directionsmentioning

confidence: 99%

The role of family ownership in international entrepreneurship: exploring nonlinear effects

et al. 2010

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Empirical research on international entrepreneurship is growing, but results on the role of family ownership in this phenomenon are inconsistent. We believe these inconsistencies owe to prior researchers having not yet investigated nonlinear relationships. Drawing on opposing perspectives of stewardship and stagnation, we explore potential benefits and drawbacks of family ownership for international entrepreneurship and explore nonlinear relationships among these two variables. Using a sample of 1,035 US family businesses and applying ordinal regression analysis, we find an inverted U-shaped relationship between family ownership and international entrepreneurship: International entrepreneurship is maximized when family ownership stands at moderate levels. We discuss the implications of our findings for theory and practice and indicate avenues for future research.

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Section: Limitations and Future Research Directionsmentioning

confidence: 99%

The role of family ownership in international entrepreneurship: exploring nonlinear effects

et al. 2010

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“…However, studies that have addressed these factors have only studied family firms, and usually study the effect these factors can have on incentives to mitigate agency problems. For example, authors have shown variations in that relationship when introducing mediating variables, as is the case when considering the generation in control [30,42,43], family management involvement [37,44,45], provision of incentives [46], and when distinguishing between lone-founder and family firms [43,47]. Thus, it is increasingly important to study the way in which these factors function in order to discover the nuances that make them successful for family firms and unsuccessful for non-family firms, and vice versa.…”

Section: Effect Of Other Factors On Performancementioning

confidence: 99%

Effects of Family Ownership, Debt and Board Composition on Mexican Firms Performance

Martín-Reyna

Durán-Encalada

2015

IJFS

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This study examines the relationship between ownership structure and performance of public firms in Mexico, considering debt and the structure of the board of directors as contextual and institutional factors. This research seeks to explain the mixed results about the relationship of ownership and performance presented by other relevant studies in family and non-family businesses, mainly in emerging countries. The results confirm the positive association between family ownership concentration and performance, calculated by Tobin's Q, showing how the participation of inside shareholders on the board and a low debt level contribute to higher performance. However, the association of these variables with performance shows a contrasting effect in the case of family as compared to non-family businesses. The particular corporate legal context in Mexico could be highlighted as one of the main reasons for these results.

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“…Family and relatives, friends and social networks' peers are an integral part of the game (Chang, Memili, Chrisman, Kellermanns, & Chua, 2009;Zahra, Hayton, Neubaum, Dibrell & Craig, 2008) as the social relationship offers further legitimacy to new venture (Meyer & Rowan, 1977;Hannan & Freeman, 1984;Nagy, Pollack, Rutherford, & Lohrke, 2012). The emerging trend of crowdfunding further emphasizes of the traditional factors (Brown, 1993;Mollick, 2014) most probably due the fact that entrepreneurs and new ventures will likely in need of presenting their credentials to gradually gain credibility (Hannan & Freeman, 1984).…”

Section: A Brief Literature Reviewmentioning

confidence: 99%

Resources, Experience and Perseverance in Entrepreneurs' Perceived Likelihood of Success in an Emerging Economy

Vuong

Do²,

Vuong

2016

SSRN Journal

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This paper introduces new results obtained from a statistical investigation into a 3071-observation data set collected from a Vietnamese nationwide entrepreneurship survey. From established relationships, such factors as preparedness, financial resources and participation in social networks are confirmed to have significant effects on entrepreneurial decisions. Entrepreneurs, both financially constrained and unconstrained, who have a business plan tend to start their entrepreneurial ventures earlier. Also, financial constraints have a profound impact on the entrepreneurial decisions. When perceiving the likelihood of success to be high, an entrepreneur shows the tendency for prompt action on business ideas. But when seeing the risk of prolonging the waiting time to first revenue, a prospective entrepreneur would be more likely to wait for more favorable conditions despite the vagueness of "favorable". Additionally, empirical computations indicate that there is a 41.3% probability that an extant entrepreneur who is generating revenue sees high chance of success. Past work and entrepreneurial experiences also have positive impacts on both the entrepreneurial decisions and perceived chance of success. Abstract:This paper introduces new results obtained from a statistical investigation into a 3071-observation data set collected from a Vietnamese nationwide entrepreneurship survey. From established relationships, such factors as preparedness, financial resources and participation in social networks are confirmed to have significant effects on entrepreneurial decisions. Entrepreneurs, both financially constrained and unconstrained, who have a business plan tend to start their entrepreneurial ventures earlier. Also, financial constraints have a profound impact on the entrepreneurial decisions. When perceiving the likelihood of success to be high, an entrepreneur shows the tendency for prompt action on business ideas. But when seeing the risk of prolonging the waiting time to first revenue, a prospective entrepreneur would be more likely to wait for more favorable conditions despite the vagueness of "favorable". Additionally, empirical computations indicate that there is a 41.3% probability that an extant entrepreneur who is generating revenue sees high chance of success. Past work and entrepreneurial experiences also have positive impacts on both the entrepreneurial decisions and perceived chance of success.

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Family Social Capital, Venture Preparedness, and Start-Up Decisions

Cited by 180 publications

References 91 publications

The role of family ownership in international entrepreneurship: exploring nonlinear effects

The role of family ownership in international entrepreneurship: exploring nonlinear effects

Effects of Family Ownership, Debt and Board Composition on Mexican Firms Performance

Resources, Experience and Perseverance in Entrepreneurs' Perceived Likelihood of Success in an Emerging Economy

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