Value creation in privately held family businesses: The moderating role of socioemotional wealth

Martínez‐Romero, María J.; Ramirez, Alfonso A. Rojo; Capobianco-Uriarte, María de las Mercedes

doi:10.1002/cjas.1540

Cited by 20 publications

(22 citation statements)

References 77 publications

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“…In this vein, these findings are consistent with prior studies [31,84,107], which stated that although R&D investments are carried out with the purpose of obtaining innovation outputs and, therefore, enhancing firm performance, they imply substantial investments in sunk costs due to their expenditure nature [108,109]. Thus, the results support that R&D expenses, as an investment decision, reduce the firms' operating result, and thereby, the performance outcomes, because of the decrease in cash flow at the time of investment [47,48,50].…”

Section: Discussionsupporting

confidence: 91%

“…Namely, innovation investments are developed with the final goal of achieving innovation outputs, and thus increasing economic outcomes. However, when intramural and extramural R&D expenses are carried out, the firms' potential operating result will be reduced [47,48], and thus the economic performance will be also diminished [49,50]. That is, as R&D expenses increase, the lower will be the firm profitability.…”

Section: Innovation Inputsmentioning

confidence: 99%

“…Furthermore, the authors controlled for territorial specificities or context conditions [99] with dummy variables that represent seven Spanish territorial subdivisions (see Table 1 for a more detailed description of each territorial subdivision). Finally, because of the generated economic performance may vary among the specific subindustries in which businesses operate [50], a group of dummy variables representative of each activity sector is also included (see Table 1).…”

Section: Control Variablesmentioning

confidence: 99%

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Examining the Impact of Innovation Forms on Sustainable Economic Performance: The Influence of Family Management

2019

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The aim of this research is to explore the effect that innovation, as a potential source of sustained competitive advantage and firm growth, has on the achievement of sustainable economic performance. In particular, this paper empirically examines the influence of four innovation forms (intramural R&D, extramural R&D, product innovation, and process innovation) on firms’ sustainable economic performance, considering the moderating effect of family involvement in management. To test the hypotheses, random-effects regression analyses are applied to a longitudinal sample of 598 Spanish private manufacturing firms throughout the 2006–2015 period. The results show a negative effect of intramural and extramural R&D on sustainable economic performance and a positive effect of process innovation on sustainable economic performance. Moreover, a reinforced relationship between process innovation and sustainable economic performance is also revealed when family involvement in management acts as a moderator. The findings make several contributions to research and practice.

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Section: Discussionsupporting

confidence: 91%

Section: Innovation Inputsmentioning

confidence: 99%

Section: Control Variablesmentioning

confidence: 99%

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Examining the Impact of Innovation Forms on Sustainable Economic Performance: The Influence of Family Management

2019

Self Cite

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“…As indicated by Martínez-Romero (2018) and Vandekerkhof et al (2015), based on Brambor et al (2006), in an interactive model, the effect of any independent variable ( X ) on the dependent variable ( Y ) is not any single constant. The mentioned effect is contingent upon the coefficients ( β s) of X and of the interaction term XM , as well as on the value of the moderator ( M ).…”

Section: Methodsmentioning

confidence: 99%

The impact of technological innovation efficiency on firm growth

Martínez-Alonso

Martínez‐Romero

Ramirez

2019

EJIM

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Purpose The purpose of this paper is to offer new insights regarding an issue that has attracted the interest of multitude academics and practitioners in business management and family firm literature: technological innovation (TI). Specifically, this study brings new knowledge regarding both the impact of TI efficiency on firm growth and the moderating role of family involvement in management on such relationship. Design/methodology/approach The authors use a matched-pairs design and an ordinary least squares regression analysis to examine a sample of 152 Spanish manufacturing firms. Findings First, the authors show that firms obtaining higher TI efficiency are also those that achieve superior growth. Second, the authors reveal that as family involvement in management increases, the positive effect that TI efficiency exerts on firm growth is strengthened. Practical implications This study suggests that family managers should essentially consider various aspects such as tacit knowledge, social capital and long-standing collaborations with stakeholders to reinforce the relationship between TI efficiency and firm growth. Originality/value To the best of the authors’ knowledge, this is the first study that analyses the effect of TI efficiency on firm growth, as well as, when and to what extent family involvement in management influences the TI efficiency–growth relationship. Thus, this paper provides a deeper understanding of the importance that family managers could have on firm growth deriving from TI efficiency.

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“…Management plays an important role in corporate decision making for the benefits of shareholders [6,7]. Its foremost goal is to maximize the value of the firm and increase the market value of its stock [8,9]. In general, managers appear to firmly believe that the market values companies with a stable dividend policy [10].…”

Section: Introductionmentioning

confidence: 99%

R & D Intensity and Dividend Policy: Evidence from South Korea’s Biotech Firms

Lee

2019

Sustainability

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In this paper, we examine the relation between a firm’s research and development (R & D) intensity and dividend payout policy with a focus on biotech firms in a sample of 18,253 firm-year observations in South Korea. We find that biotech firms’ R & D intensity is negatively related to dividend payout. Furthermore, for biotech firms, increased internal cash holding accomplished via a lower dividend policy is positively associated with long-term corporate value. In particular, this study reports that the relation between biotech firms’ cash holding and corporate firm value is significantly positive in firms with high stock dividends. Moreover, it shows that non-biotech firms in the maturity stage of the corporate lifecycle tend to distribute cash dividends, a practice that is relatively uncommon among biotech firms in an R & D steady state.

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Value creation in privately held family businesses: The moderating role of socioemotional wealth

Cited by 20 publications

References 77 publications

Examining the Impact of Innovation Forms on Sustainable Economic Performance: The Influence of Family Management

Examining the Impact of Innovation Forms on Sustainable Economic Performance: The Influence of Family Management

The impact of technological innovation efficiency on firm growth

R & D Intensity and Dividend Policy: Evidence from South Korea’s Biotech Firms

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