Evolving corporate governance and firms performance: evidence from Japanese firms

This study is an attempt to investigate the implications of the ownership structure and control transfers in the Japanese corporate market, which are attributed mainly to the government’s liberalization policies during 1990s. It appears that institutional shareholdings—either financial or non-financial corporations—are associated with poor performance, whereas the foreign and domestic private ownerships lead to an improvement in the performance of the firms. We observe that unwinding the cross-shareholding between banks and corporations and mutual transfers among non-financial institutions allows for efficiency gain. Furthermore, the ownership transfer to private and foreign individuals is consistently associated with high market value, which implies that individuals’ transfers lead to an increase in efficiency.     

Succession in family firms from a multistaged perspective

Succession in family-owned businesses has been revealed to be a multi-staged phenomenon with trigger events distinguishing one stage from the other. Our aim is to apply change management theory to this process to improve our understanding and to identify the key factors that should be taken into account when implementing it. To achieve this goal, we will review the existing literature about organizational change and will adapt it to succession in family firms. We will end with a case study, concluding that a good succession process is not the one which avoids conflict, but the one which successfully manages it.

Who bribes in public contracting and why: worldwide evidence from firms

We study procurement bribery utilizing survey data from 11,000 enterprises in 125 countries. About one-third of managers report that firms like theirs bribe to secure a public contract, paying about 8 % of the contract value. Econometric estimations suggest that national governance factors, such as democratic accountability, press freedom, and rule of law, are associated with lower bribery. Larger and foreign-owned firms are less likely to bribe than smaller domestic ones. But among bribers, foreign and domestic firms pay similar amounts. Multinational firms appear sensitive to reputational risks in their home countries, but partially adapt to their host country environments.     

Board diversity and risk-taking of family firms: Evidence from China

Using a sample of more than 1,500 Chinese listed firms over four years of observation (2015–2018), this study examines the effects of family ownership and certain features of board diversity (gender diversity, age diversity, and education diversity) on the risk-taking of Chinese listed firms. First, a two-way fixed effects regression model is proposed. Then, this study finds that the examined Chinese family firms’ risk-taking, which is measured by their Z-scores and innovation intensity, is lower than that of the nonfamily firms. This result confirms the prediction of social-emotional wealth theory. Second, a diversity index is formulated to summarize the above three dimensions of board diversity. By regressing risk-taking measures on these board diversity features, this study finds that firms with less-diverse boards take more risks. Finally, the effects of the interaction between family ownership and board diversity are explored. The results reveal that the examined dimensions of board diversity have significant influences on risk-taking: family firms with lower levels of board diversity generally take more risks than those with higher levels of board diversity. Our study contributes to the literature on risk-taking of family business and has important practical implications for motivating family business innovation in China.

     

Multi-skilling in small and medium-sized engineering firms: evidence from Wales and Germany

A cross-national empirical study of forty-six engineering SMEs in Wales and two regions of Germany analyses the extent to which multi-skilling of staff is occurring, the underlying reasons for such developments, and how well placed firms are in relation to prevailing labour-market and training infrastructures strategically to develop hybrid occupations. We identify four types of skill accretion, only some of which presage net enhancements of the order of skills exercized. New quality assurance or continuous improvement programmes, and organizational restructuring, were the main reasons for multi-skilling. A majority of companies encouraged skill expansion on an ad hoc basis, yet strategic exploitation of multi-skilling incorporating comprehensive training support remained infrequent, especially in Germany. Nevertheless, a minority of the German multi-skilling leads to the award of innovative 'hybrid' qualifications fusing two skilled occupations. The breadth of German initial craft training both facilitates and inhibits potential for further multi-skilling in practice. In Wales, greater flexibility in occupational and training structures provides largely unrealized potential advantages over Germany in developing multi-skilling, especially as a means to resolve recurrent shortages of skilled workers. Welsh SMEs have preferred tentative, incremental, 'bolt-on' approaches to multi-skilling that facilitate only limited external transferability.     

Knowledge combination in networks: evidence from the international venturing of four small biotech firms

Although international forms of venturing are critical for the sustained economic growth of small firms, this phenomenon remains surprisingly unexplored in international small business research. This study aims to contribute to this field by shedding light on the underlying factors of the international venturing of these firms. In this endeavor, the study rests on the assumption that knowledge combination in networks is a critical requisite for seizing business opportunities in foreign markets. Hence, the specific purpose of this study is to investigate how knowledge combination in networks underlies the international venturing of four small biotech firms. The findings demonstrate that international venturings are strongly shaped by proactive strategies of identifying and implementing knowledge combinations that span across internationally dispersed network relationships. The findings also reveal that different strategies of knowledge combination in networks are pursued depending on the nature of the venture (namely, international product ventures and international market ventures).     

Human resource aspects of quality management: evidence from MNEs operating in Greece

This study is an attempt to investigate the extent to which companies different nationality operating in Greece and involved in different levels of quality management differ in the way they utilize their human resources as well as in the degree of influence their human resource/personnel departments enjoy. The study started with the premise that there is some difference in approaches to quality management and in relative emphasis given to the human dimension and the role of the human resource department when organizations pass through the different stages in a quality improvement effort. The results of our case studies indicate that, although the origin of the capital and the culture of a foreign-owned company may play an important role in development and implementation of quality initiatives, they may not greatly affect determine human resource utilization. It is the strategic orientation of an organization quality that seems to be the driving force in constructive human resource management.     

Production functions and productivity of family firms: Evidence from the S&P 500

This paper examines whether the higher profitability and valuation of family firms is related to differences in production technologies and production efficiency. Using data on S&P 500 manufacturing firms, we find that family firms are more productive than comparable non-family firms. Furthermore, our results show that the production technologies of family and non-family firms do not differ per se, thereby suggesting that the differences in the level of production output are caused by higher production efficiency of family firms. These findings indicate that the superior performance of family firms is related to their more efficient use of labor and capital resources.     

The use of flexible employment arrangements: some new evidence from Greek firms

The present study attempts an examination of the extent to which Greek firms use flexible employment arrangements, the kind of jobs in which they are used and the factors affecting their use. It concentrates on three types of flexible work: temporary workers, independent contractors and subcontractors. Drawing upon data from a sample of seventy-five companies, it identifies factors affecting: a) firm's decision to use flexible forms of work or not and b) the percentage of flexible workers used.

The main findings indicate that different types of flexible worker are used by the same firm for the accomplishment of different kinds of job and are affected by different factors. Training costs and monitoring problems appear to be the most influential factors explaining the use of temporary workers, while low frequency of specialized tasks is the main factor affecting the use of independent contractors and often the recourse to subcontractors. Results from the Greek national context would add to existing evidence on this important issue.     

Strategic entrepreneurship and competitive advantage of established firms: evidence from the digital TV industry

Although strategic entrepreneurship in established firms is recognized as a vital source of sustainable competitive advantage, this field has no clearly developed research paradigm. This study proposes a conceptual framework to investigate dimensions of strategic entrepreneurship and its function in sustainable competitive advantage of established firms in a modern volatile environment, through the lens of the dynamic capability view. By conducting a systematic literature review of previous research documents and considering conceptual interrelationships between strategic entrepreneurship and dynamic capabilities, we propose categories that comprise dimensions of a firm’s strategic entrepreneurship: environmental sensing, opportunity seizing, strategic flexibility, entrepreneurial orientation and organizational learning. We establish a conceptual framework of strategic entrepreneurship in which entrepreneurs’ managerial capabilities of environmental sensing, opportunity seizing, strategic flexibility and entrepreneurial orientation closely interact with organizational learning, thereby facilitating sustainable performance of established firms. Following empirical studies of established firms in the digital TV manufacturing industry, the proposed conceptual framework suggests that each dimension of strategic entrepreneurship plays a critical role in competitive advantage of firms. In addition, case study results indicate that a firm’s position and evolutionary path form antecedent factors influencing entrepreneurs’ managerial capabilities and organizational learning of established firms.     

Demand for labour inputs and adjustment costs: evidence from Spanish manufacturing firms

This paper studies the structure of the adjustment costs for heterogeneous labour inputs, allowing for asymmetries and interaction effects among them. To do this, I estimate Euler equations for the demands of permanent nonproduction (white collar) and production (blue collar) employees using a sample of Spanish manufacturing firms. These equations are estimated using the subsample of observations for which adjustment is done, controlling for endogenous sample selection. The main results confirm the heterogeneity of adjustment costs for these two labour inputs, and the existence of cross-adjustment effects between them. Weak evidence of asymmetry in permanent nonproduction labour is also found.     

Performance of the internal audit department under ERP systems: empirical evidence from Taiwanese firms

In this study, the performance of the internal audit department (IAD) and its contribution to a company under enterprise resource planning (ERP) systems was examined. It is anticipated that this will provide insight into the factors perceived to be crucial to a company’s effectiveness. A theoretical framework was developed and tested using the sample of Taiwanese companies. Using mail survey procedures, we elicited perceptions from key internal auditors about the ERP system and auditing software, as well as their opinions concerning the IAD’s effectiveness and its contribution within a company. Data were analysed using the partial least square (PLS) regression to test the hypotheses. Drawing upon a sample of Taiwanese firms, the study suggests that a firm can improve the performance of the IAD through an enterprise-wide integrated, effective ERP system and appropriate auditing software. At the same time, the performance of the IAD can also contribute significantly to the company. The results also show that investments in computer-assisted auditing techniques (CAATs) are crucial due to their tremendous effectiveness in regard to the performance of the IAD and for the contributions CAATs can make to a company.     

Problematizing socioemotional wealth in family firms: a systems-theoretical reframing

The concept of socioemotional wealth (SEW) seeks to present an independent paradigmatic basis for family-firm research, and in doing so aims to establish a sound basis for the scientific legitimacy of family-firm research. Establishing that legitimacy requires scholars to demonstrate that SEW is based on coherent assumptions on several theoretical levels. This paper uses the problematization methodology to challenge the coherence of the theoretical assumptions underpinning SEW and to advance theory development. The results of this problematization show that SEW is built on a theoretical level close to the object of research (in-house assumptions), but that more deeply-rooted theoretical levels (e.g. paradigmatic assumptions) are not sufficiently elaborated. Moreover, the original conceptualization is based on a positivist-mechanistic view, which hinders SEW reflecting the complex reality of family firms. Based on the results of this problematization, new systems theory is applied to reframe SEW’s theoretical grounding. Thereby the main contribution of the paper is a critical reflection on the theoretical underpinnings of SEW (in particular root-metaphor and paradigmatic assumptions), serving as the basis for advancing a coherent theoretical understanding of this important concept in family business research.     

The wage policy of firms: comparative evidence for the US and Germany from personnel data

The wage policy of a German firm and a US firm is subjected to a comparative analysis, focusing on the relation between wages and hierarchies. While previous studies have examined only one particular firm, this paper investigates two plants belonging to the same owners with similar production processes but in different institutional environments. Convex wage profiles over the hierarchy levels of both plants are found. The US plant shows considerably higher intensity of intra-firm competition in terms of higher intra-level wage inequality and annual promotion rate. In contrast, wages are more distinctly attached to hierarchy levels in the German firm, as shown by wage regressions. The results are discussed in relation to previous studies.     

Cooperation patterns of incubator firms and the impact of incubator specialization: Empirical evidence from Germany

The article examines cooperation patterns of 150 firms located in German business incubators (BIs). More specifically, this study distinguishes between networking within the tenant portfolio and the academic–industry linkages of the tenant firms. We further contribute to the relevant literature by explicitly considering differences in cooperation patterns between firms located on diversified and specialized incubator facilities. Empirical results do not support the common assumption that specialized incubation strategies increase the effectiveness of incubator-internal networking compared to diversified BIs. Also, incubator specialization is not superior to diversified incubators with respect to the promotion of linkages of their tenants with academic institutions. For academic linkages, industry effects matter more than incubator characteristics.     

Decomposing multifactor productivity in Italy from 1998 to 2004: evidence from large firms and SMEs using DEA

This paper presents a firm-level analysis of multifactor productivity (MFP) in Italy between 1998 and 2004. Using data envelopment analysis (DEA) technique, MFP change are measured for 31 industries and decomposed into efficiency change and technical change (which in turn is interpreted as the combined effect of technical progress and scale economies). The results highlight the stagnation in many Italian production activities and even a decrease in MFP in some industries. A non-parametric statistical test on the results obtained from DEA reveals that the analysed larger firms have been more likely to perform better in efficiency than the smaller ones. This outcome seems to complement the Schumpeterian view of a relatively high attitude of larger firms towards technological innovation and productivity growth.     

Environmental information disclosure and firm production: evidence from the estimated efficiency of publicly listed firms in China

Journal of Productivity Analysis - This study employs the recently developed conditional nonparametric frontier approach to assess the impact of environmental expenditures associated with...     

The impacts of family involvement on R&D investment intensity in firms: Evidence from China

Drawing on the perspective of socioemotional wealth, this paper explores the types of family involvement in family firms and their impacts on R&D investment intensity. Using data from the forecasts issued by A-share family firms listed on Chinese stock markets between 2008 and 2019, the study finds that the separation of ownership and control is negatively associated with R&D investment intensity in non-high-tech firms, whereas potential gains of socioemotional wealth from R&D activities by high-tech firms produce a positive influence that offsets the negative impact of the separation of ownership and control on R&D investments. It reveals the importance of gains of socioemotional wealth. In contrast to the separation of ownership and control, family involvement in management is negatively associated with firms’ R&D investment intensity in both high-tech firms and non-high-tech firms. Our results capture the diversity of family members’ identity recognition, which leads to family members’ different evaluations of the potential gains and losses of socioemotional wealth. Overall, the distinction between high-tech family firms and other family firms is shown to be significant, as is the distinction between the impacts of different types of family involvement.

     

Entrepreneurial orientation in family firms: the moderating role of technological intensity and performance

This paper examines how socio-emotional factors can influence family firms’ commitment to entrepreneurially- oriented activities, and how their level of commitment is moderated by the technological intensity of the sector and firm performance. We find that, while family firms are less entrepreneurially-oriented than non-family firms, this gap closes with increasing technological intensity of the sector. We find no evidence, however, to suggest any change in entrepreneurial orientation in family firms resulting from a drop in firm performance.     

Open business models in entrepreneurial stages: evidence from young Spanish firms during expansionary and recessionary periods

This study examines the effect of open business models on the innovation performance of young firms during expansionary and recessionary periods. Founded on previous studies regarding innovation and business models, evidence shows that open business models developed by young firms will increase their innovation performance independently of economic conditions. Moreover, the theoretical effect of different types of collaborations (science-based, commercial, and diverse collaborations) adopted by young firms could differ during diverse economic periods. We tested this theoretical development using a Tobit analysis with firm level data collected from the Spanish Technological Innovation Panel (PITEC). The total number of observations corresponds to 318 young Spanish firms in 2005 (expansionary period) that remained active in 2011 (recessionary period). Our results indicate that in expansionary periods, young Spanish firms benefit from open business models oriented toward diverse types of cooperation (even though commercial collaboration harms innovation performance), whereas in recessionary periods, commercial and diverse technological collaborations encourage young Spanish firms to exploit innovation benefits.