The Impact of Inter-personal Network Formality on SME Internationalisation

Eberhard, Manuel; Kiessling, Timothy

doi:10.5465/ambpp.2013.14660abstract

Cited by 2 publications

(2 citation statements)

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“…in which a family business is a firm in which ownership and policy-making are dominated by members of an emotional kinship group. This study identified firms as family enterprises when they are either owned by family firms (Sciascia and Mazzola, 2008) or have a family owner in management (Eberhard, 2013).…”

Section: Methodsmentioning

confidence: 99%

Examining formal and relational governance in family small medium enterprises

Kussudyarsana

Soepatini

Maimun

et al. 2019

JEEE

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Purpose The purpose of this study is to investigate factors that influence the application of governance mechanism in family small and medium-sized enterprises (SMEs) in Indonesia. Design/methodology/approach This study used multiple regression analysis to examine the hypothesis. For data collection, questionnaires were distributed to 337 owners and managers of SMEs around 7 districts in Java Island in Indonesia. Findings The result indicates that uncertainty influences the application of formal governance in family SMEs in Indonesia. Meanwhile, asset specificity has impact on both formal and relational governance in the context of firms. Financial and non-financial objectives did not impact both formal and relational governance. Research limitations/implications Though this research was carried out in a particular cultural context, this study was not specifically designed to examine the interaction between cultural variables and family corporate governance variables. In the future, there is need for a study that examines how culture can influence the practice of formal and relational governance in family business. Practical implications The study will give guidance to owners or managers of family business in terms of governance mechanism when uncertainty increases. This evidence suggests that family firms need to adopt formal governance within family firms when uncertainty exists. Social implications The research finding indicated that uncertainty influenced the application of formal governance in family SMEs in Indonesia. This research finding suggests that family firms need to adopt formal governance when uncertainty exists. The adoption of formal governance, however, may implicate to some others organizational areas in family firms such as leadership, recruitment and selection and corporate culture. Originality/value This study is one of the few on family SMEs, which applied the transaction cost theory. Most of the studies use agency theory for investigating governance mechanism in the family business. This study is one of the few on family SMEs, which applied the transaction cost. This study provides an explanation about a factor that influences a family firm to choose formal and relational governance within the firm.

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Section: Methodsmentioning

confidence: 99%

Examining formal and relational governance in family small medium enterprises

Kussudyarsana

Soepatini

Maimun

et al. 2019

JEEE

View full text Add to dashboard Cite

show abstract

“…O'Donnell i in. 2001;Hoang, Antoncic 2003, Eberhard 2013 akcentuje znaczenie relacji interpersonalnych i tych budowanych wewnątrz firmy jako czynników przyczyniających się do sukcesu na rynkach międzynarodowych.…”

Section: Modele Siecioweunclassified

Polskie inwestycje bezpośrednie. Doświadczenia przedsiębiorstw regionu łódzkiego

Buczkowski¹,

Kłysik-Uryszek²,

Kuna‐Marszałek³

et al. 2015

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The Impact of Inter-personal Network Formality on SME Internationalisation

Cited by 2 publications

References 0 publications

Examining formal and relational governance in family small medium enterprises

Examining formal and relational governance in family small medium enterprises

Polskie inwestycje bezpośrednie. Doświadczenia przedsiębiorstw regionu łódzkiego

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