Organizational Ambidexterity in Family-Managed Firms: The Role of Family Involvement in Top Management

Kammerlander, Nadine; Patzelt, Holger; Behrens, Judith; Röhm, Christian W.

doi:10.1177/0894486520961645

Cited by 38 publications

(35 citation statements)

References 136 publications

(285 reference statements)

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“…Coherently with recent studies that are exploring family firm heterogeneity in relation to TMT composition (Ro ¨d, 2019), we argue that the presence of non-family members in the TMT is indicative of the degree of network sparseness, a means to access external novel and nonredundant knowledge (Yli-Renko et al, 2001). Research has shown that diversity increases creativity and TMT consisting only in family members misses the external perspective provided by non-family members (Kammerlander et al, 2020). Building on this view, when the TMT is composed of sole family members, it is likely to encounter issues related to a closed and dense social network (Alguezaui and Filieri, 2010) leading to redundant knowledge, thereby limiting the flow of TMT knowledge exchange.…”

Section: Hypothesis Developmentsupporting

confidence: 75%

“…Our findings show that TMT composition and CEO search in concert rather than in isolation are determinants of TMT knowledge exchange and, in turn, of innovation opportunity realization (Cao et al, 2010). In so doing, we combine internal and external perspectives by, respectively, considering the level of TMT knowledge exchange and the network of external contacts of the TMT members and CEO search behavior (Zahra et al, 2007;Kammerlander et al, 2020). Such endeavor allowed us to grasp the mechanisms of absorptive capacity through which family firms acquire external novel knowledge (examining the role of external networks of contacts), assimilate and transform it within the TMT and exploit it to realize innovation opportunities.…”

Section: Introductionmentioning

confidence: 90%

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Exchanging knowledge in the TMT to realize more innovation opportunities: what can family firms do?

Rondi

Rovelli

2021

JKM

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Purpose This paper aims to examine the influence that family firms’ top management team (TMT) behavior and characteristics exert on their innovation opportunity realization. Design/methodology/approach Data were collected through a survey addressed to a representative sample of Italian firms. The analyzed sample consists of 237 firms, 120 of which are family firms. A series of ordinary least squares models were used to test the four hypotheses. Findings Family firms realize fewer innovation opportunities than non-family firms. This result is fully mediated by the knowledge exchange in the TMT as follows: in family firms, the TMT exchanges less knowledge than in non-family firms, which drives their lower realization of innovation opportunities. In family firms TMT, the increase in the non-family members positively influences the TMT knowledge exchange, but only when the time the Chief Executive Officer (CEO) spends in searching for innovation opportunities outside the firm is low. The more the CEO search increases, the more this positive influence decreases, up to the point it becomes negative. Research limitations/implications The study contributes to the literature on innovation, knowledge management and organizational design in family firms. Nevertheless, data were collected at a single point in time and in a single country. Practical implications The study suggests family firms on how to foster the realization of innovation opportunities. A greater TMT knowledge exchange allows to realize more innovation opportunities and the TMT characteristics emerged as the drivers of this TMT knowledge exchange. As such, family firms should examine the interaction of their TMT composition in terms of non-family and family members with the effort that the CEO deploys to search for innovation opportunities outside the firm. Originality/value Empirical investigation of the link between family ownership, absorptive capacity and innovation performance by considering TMT behavior and characteristics.

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Section: Hypothesis Developmentsupporting

confidence: 75%

Section: Introductionmentioning

confidence: 90%

Exchanging knowledge in the TMT to realize more innovation opportunities: what can family firms do?

Rondi

Rovelli

2021

JKM

View full text Add to dashboard Cite

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“…To counter these potential business risks, increasing family influence may be accompanied by the family’s strengthened involvement in assessing such risks. This risk evaluation process is again supported by the broad and complementary experiences of various family members (Kammerlander et al, 2020; Kotlar et al, 2020), who may turn this evaluation into a collective learning process (Lumpkin & Lichtenstein, 2005). We argue that the risk-related learning mechanisms and accumulated expertise of families in how to deal with risk over time foster the development of risk management capabilities (Arena et al, 2013; Teece, 2018a).…”

Section: Hypotheses Developmentmentioning

confidence: 99%

“…We argue that in family-influenced firms, this encouragement grows with increasing family influence due to the growing sensitivity to firm survival. As argued above, increased levels of family influence lead to strengthened ties between family members, intensifying their interactions, and bringing together the complementary expertise of the broader family to address the risks that threaten the business (Cruz & Nordqvist, 2012; Kammerlander, Patzelt, et al, 2020; Kotlar et al, 2020). In turn, the more dynamic the business environment, the more effort the owning family might invest in accumulating risk management expertise (Chirico & Baù, 2014).…”

Section: Hypotheses Developmentmentioning

confidence: 99%

Family Influence and Digital Business Model Innovation: The Enabling Role of Dynamic Capabilities

Soluk

Miroshnychenko

Kammerlander

et al. 2021

Entrepreneurship Theory and Practice

Self Cite

158

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New digital technologies have prompted many firms, including family firms, to innovate their business models. We study the role of dynamic capabilities as mediator in the relationship between family influence and digital business model innovation (BMI), and the moderating role of environmental dynamism. Based on unique survey data from 1,444 German firms with and without family influence, we reveal that knowledge exploitation, risk management, and marketing capabilities mediate the positive relationship between family influence and digital BMI. Surprisingly, and contrary to our assumption, we find that the positive relationship between family influence and dynamic capabilities is weakened rather than strengthened by environmental dynamism. Our findings hold important implications for family business innovation and digital BMI research, offering valuable insights into the role of dynamic capabilities and environmental dynamism in the digital economy.

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“…One might argue that the level of indebtedness may affect how females are recruited in the different firms' corporate governance bodies. While perhaps the best way to test this endogeneity problem is by using a two-stage least squares approach [91], the limited available data makes it difficult to identify the appropriate instrumental variables required by this approach [92]. Therefore, to ameliorate this potential endogeneity problem, we use two different methods.…”

Section: Reverse Causalitymentioning

confidence: 99%

Does the Female Presence in Corporate Governance Influence the Level of Indebtedness in Agri-Food Family Firms?

2021

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Family firms form the backbone of most of the world’s economies. While the issues surrounding family firms are diverse, gender diversity and its impact on the strategic and financial decisions of such firms is a topic that has generated significant debate in recent years. In particular, one of the most crucial unresolved questions is whether or not increasing the female presence in the family firms’ corporate governance bodies would be beneficial for improving their internal functioning. To shed new light on these issues, our study aims to examine the influence of gender diversity on the level of indebtedness of Spanish agri-food family firms. Specifically, and applying a risk-aversion perspective, the research goal is to analyse whether the female presence in corporate governance structures (board of directors, top management team and general shareholders’ meeting) influences the level of firm indebtedness. To test the suggested relationships, ordinary least square regression models were applied to a sample of 137 firms. The final sample was obtained by combining quantitative data from the SABI database and qualitative data from a survey conducted by the Spanish Institute of Family Firms and the Spanish Network of Family Business Chairs. This study reveals an inverse relationship of female presence in the board of directors, in the top management team, and in the general shareholders’ meeting on the level of indebtedness of Spanish agri-food family firms. In other words, the findings show that female presence in corporate governance structures contributes to enhanced business management behaviour and, thus, to a better utilisation of firms’ financing strategies. The obtained results have very important practical and social implications, insofar as they contribute to the building of a more inclusive and sustainable business world, aimed at reducing gender inequality at top positions in firms.

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Organizational Ambidexterity in Family-Managed Firms: The Role of Family Involvement in Top Management

Cited by 38 publications

References 136 publications

Exchanging knowledge in the TMT to realize more innovation opportunities: what can family firms do?

Exchanging knowledge in the TMT to realize more innovation opportunities: what can family firms do?

Family Influence and Digital Business Model Innovation: The Enabling Role of Dynamic Capabilities

Does the Female Presence in Corporate Governance Influence the Level of Indebtedness in Agri-Food Family Firms?

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