Similarities and Differences Between Family and Nonfamily Business Enterprises

Kaslow, Florence W.; Friedland, Lilli

doi:10.1007/978-3-030-72022-3_3

Cited by 2 publications

(3 citation statements)

References 25 publications

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“…Family business owners and executives have a strong bond with their companies, value their influence on them, look out for their devoted staff, and remain conscious of social concerns and acts of kindness in the local community. Consequently, compared to non-family enterprises, family business executives are more knowledgeable and engaged with their stakeholders (Kaslow, Friedland, 2021).…”

Section: Differences Between Family and Non-family Businessesmentioning

confidence: 99%

“…The objectives, principles, and priorities of a family business have a significant impact on the decision-making process of family business leaders. Conversely, non-family enterprises place a greater emphasis on maximising earnings and pay less attention to social and emotional factors (Kaslow, Friedland, 2021). According to Stalk and Foley (2012), the average tenure of family business leaders is 20325 years, while that of non-family business leaders is only 6 years.…”

Section: Differences Between Family and Non-family Businessesmentioning

confidence: 99%

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Untitled

2024

SPSUTOM

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The originality of the conducted research lies in a holistic approach to analysing entrepreneurs' satisfaction, identifying statistical relationships between satisfaction and diverse economic behaviours, and exploring the role of emotions in making business decisions. This collectively provides a new perspective on the behavioral finance of businesses. Literature reviewEmotions play a significant role in the process of making business decisions. Despite the common tendency to focus on data and facts analysis, it is emotions, both conscious and hidden, that influence the shaping of strategies, the selection of business partners, and the willingness to take risks. Entrepreneurs, considering their personal emotions, introduce a subjective element into the decision-making process, which can lead to both successes and failures.The origin of the word "emotion" derives from the Latin verb "motere," meaning "to move".However, to fully understand the meaning of this term, it is worth noting the prefix "e-", suggesting something more than just movement or stirringit may indicate an additional, extended, or surpassing basic activity. This prefix indicates that emotions have a tendency to act or react (Goleman, 1997, p. 27). Emotions are not only associated with experiencing specific mental states but also with a tendency to evoke particular behaviors or reactions. They are deeply embedded within a person and often guide their actions and influence the decisions made.According to D. Goleman, emotions can be defined as a complex blend of feelings and thoughts that are associated with specific psychological states and biological reactions of the organism. These emotional states, along with predispositions to action, constitute an integral part of the human heritage passed down to us by evolution (Goleman, 1997, p. 442). D. Goleman asserts that emotions essentially serve as stimuli shaping an individual's readiness for action. These are rapid life-saving or life-sustaining plans embedded in our psyche by evolutionary history. Emotional reactions triggered by various situations, such as fear, joy, anger, or sadness, not only influence human thoughts and feelings but also activate instincts and prepare individuals to take appropriate actions at the given moment. Therefore, comprehending emotions is crucial for a better understanding of human behaviour and responses in various life situations.Another renowned psychologist, R. Lazarus, proposes a more intricate approach to emotions. He contends that emotions result from an individual's appraisal of a situation, rather than being merely reactions to specific stimuli. According to his theory, emotions are more

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Section: Differences Between Family and Non-family Businessesmentioning

confidence: 99%

Section: Differences Between Family and Non-family Businessesmentioning

confidence: 99%

Untitled

2024

SPSUTOM

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“…This investigation gains importance since family firms are usually better managed and have longer-term planning horizons than non-family firms. In addition, family firms tend to be more innovative, more involved with their local communities, and longer-lived than non-family firms (Kaslow & Friedland, 2021).…”

Section: Family Firmsmentioning

confidence: 99%

Testing the contributions of outside directors: should family firms respond differently?

Sznajder Mesnik.,

Amado Bahia Gama,

Manoel Teixeira Carneiro

2023

RBGN

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Purpose -This paper demonstrates that the effects of the presence of outside directors on the board of directors can be different across family vs. non-family firms, regarding the financial performance. We propose that the presence of outside directors in the board is relevant to explain the performance of family firms, because they better deal with mechanisms that reduce the type II agency conflicts.Theoretical framework -Based on agency theory and its derivatives, we capture the specificities of family firms relative to non-family firms.Design/methodology/approach -Drawing from an extensive and updated database of over 370 publicly listed companies in Brazil, this study conducted panel data regressions with fixed effects on three different response variables, in order to have a broader perspective and reduce the bias of the results. Moreover, we performed robustness tests with different measurement methods. In addition, we tested the selection of variables by addressing both internal and external validity criteria, in addition to convergent and nomological validity, according to the literature. Findings -The empirical results indicate that there is a relationship between board independence and short-term financial performance for a cohort of family firms.Practical & social implications of research -This research contributes to various stakeholders by providing relevant insights about an important ESG criterion, which opens up a path for further studies.Originality/value -This is a novel approach to relevant phenomena from the perspective of family firms compared to non-family firms. Also, this paper deepens the study of family businesses and considers different cohorts of firms.

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Similarities and Differences Between Family and Nonfamily Business Enterprises

Cited by 2 publications

References 25 publications

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Testing the contributions of outside directors: should family firms respond differently?

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