Family and Lone Founder Ownership and Strategic Behaviour: Social Context,Identity, and Institutional Logics

There is controversy in the literature about the effects of ownership on strategy and performance. Some scholars have taken agency explanations as definitive, arguing that closely held firms outperform. Empirical studies, however, show conflicting findings for firms with concentrated ownership: lone founder firms outperform, family firms do not. Such conflicts may be due to the failure of agency theory to distinguish between the social contexts of these different types of owners. We argue that explanations of performance must take into account not simply ownership, but who are the owners or executives and how their social contexts may influence their strategic priorities. Family owners and CEOs, influenced by family stakeholders in the business, are argued to assume the role identities and logics of family nurturers and thus strategies of conservation. By contrast, lone founders, influenced by a wider set of market‐oriented stakeholders, are argued to embrace the identities and logics of entrepreneurs and strategies of growth. Family founders and founder‐executives are held to blend both orientations. These notions are supported in a study of Fortune 1000 companies.     

Stewardship vs. Stagnation: An Empirical Comparison of Small Family and Non‐Family Businesses*

abstract Two major perspectives can be construed in the literature concerning the nature of family owned businesses (FOBs). The first implies that these enterprises have unique characteristics of stewardship. FOB owners are said to care deeply about the long‐term prospects of the business, in large part because their family's fortune, reputation and future are at stake. Their stewardship is said to be manifested by unusual devotion to the continuity of the company, by more assiduous nurturing of a community of employees, and by seeking out closer connections with customers to sustain the business. The second perspective is less flattering. It proposes that FOBs are unusually subject to stagnation: they are said to face unique resource restrictions, embrace conservative strategies, eschew growth, and be doomed to short lives. This paper develops and examines the merits of the two perspectives, neither of which has been systematically articulated or researched. It does so in an empirical study of only small firms that are owned and managed by their founder. Within this sample, it compares firms that are FOBs, that is, family owned and managed, with non‐FOBs, that is, owned and managed by a founder with no other relative involved in the business. The findings show significant support for all three aspects of the stewardship perspective of FOBs, and no support for any elements of the stagnation perspective.     

Aggregation of heterogenous beliefs,asset pricing,and risk sharing in complete financial markets

Given a competitive equilibrium in complete asset markets, we propose a method that aggregates heterogeneous individual beliefs into a single “market probability,” which, if commonly shared by investors, generates the same marginal valuation of assets by the market as well as by each individual investor. As a result of the aggregation process, the market portfolio may have to be scalarly adjusted, upward or downward, a reflection of an aggregation bias due to the diversity of beliefs. From a dual viewpoint, the standard construction of an expected utility-maximizing aggregate investor designed to represent the economy in equilibrium, is shown to be also valid in the case of heterogeneous beliefs, modulo the above scalar adjustment of the market portfolio, thereby generating an Adjusted version of the Consumption based Capital Asset Pricing Model (ACCAPM). We analyze how the allocation of aggregate and individual risks relates to deviations of individual beliefs from the aggregate market probability. Finally, we identify the channels through which the distribution of beliefs and other microeconomic characteristics (incomes, attitudes toward risk) across investors impact the pricing of risky assets an may contribute to explaining the equity premium puzzle.     

Logistics and supply chain management in luxury fashion retail: Empirical investigation of Italian firms

The Italian industry of fashion goods is a business worth 67.6€ billion in 2006 (Il Sole 24ore, January 10, 2007), of which about 26€ billion is due to the luxury segment. Marketing gurus state that “consumers everywhere at every income level want more luxury” [Danziger, P.N., 2005. Let them Eat the Cake: Marketing Luxury to the Masses as well as the Classes. Dearborn Trade Publishing, Chicago]: therefore, companies should move brands towards a higher positioning and add more valuable features to products and services, but this cannot be obtained only by means of marketing efforts. Which is the role of operations and supply chain management in luxury fashion companies’ success? This paper presents the results of the exploratory stage of a research project ongoing at Politecnico di Milano and dealing with supply chain management in the luxury fashion industry. In total, 12 Italian luxury fashion retailers have been studied in order to describe the main features of operations and supply chain strategies in the luxury fashion segment and to identify their role with respect to the relevant critical success factors.     

What is the value of an IT e-procurement system?

E-procurement is gaining in popularity in business practice and its benefits encourage its adoption for a variety of areas, including IT (Information Technology) purchases. The problem with assessing the value associated with e-procurement has been addressed by researchers and practitioners, but a clear methodology to determine the benefits related to e-procurement adoption is still missing, especially for IT. This paper defines e-procurement and identifies the six most significant drivers for e-procurement adoption, which are the pillars of the proposed value assessment methodology. The authors have also applied the developed methodology to real cases in order to verify its validity and robustness. Finally, although the developed model takes into account the peculiarities of IT purchases, it also raises more research opportunities for other purchasing categories.     

Transformative travel as a sustainable market niche for protected areas: a new development,marketing and conservation model

Many protected areas worldwide are mandated to provide visitor enjoyment and sustainable heritage conservation but face growing challenges and competition. To satisfy modern aspirational markets, parks must design meaningful experiences delivering long-lasting participant benefits that cultivate visitation rates and a conservation constituency. Transformative travel can deliver such benefits through participants’ psycho-physiological transformation but market insights critical for experience development in parks are lacking. Our systematic quantitative review of 126 transformative travel articles provides those insights, linking experiential characteristics, participant traits and motivations to experience outcomes according to five transformative travel typologies pertinent to parks: health and wellness, nature-based physical activity, spiritual, cultural and volunteering travel. We identified 35 travel motivations, 14 participant traits and 23 experience characteristics linked to transformation and 28 purposefully or incidentally realised benefits. Transformative travel improved participants’ psychological, physiological, social, economic and environmental conditions, as well as satisfaction with and destination loyalty towards parks. Socio-demographic characteristics and propensity for independent versus social travel shaped choice of travel experience. Our results are uniquely conceptualised in a transformative travel framework and transformative market niche model which we apply to sustainable experience development and marketing in parks. We identify implementation possibilities and areas for future research and monitoring.     

Spatial clustering of events on a network

In this paper a methodology is proposed to compute spatial concentrations of point-based events on a network. The distance along the network is used as a measure of the spatial closeness of events. The network is divided into statistical units, based on a random distribution of points of measurement and corresponding network segments, which are the statistical units of reference. For each segment a dangerousness index is computed which indicates the distance-weighted number of traffic accidents in the neighbourhood. The statistical significance of clusters of accidents is tested using a Monte Carlo simulation. The methodology is applied to traffic accidents to detect dangerous locations on the road network of the city of Brussels in Belgium.     

Corporate citizenship: Cultural antecedents and business benefits

The article explores the nature of corporate citizenship and its relevance for marketing practitioners and academic researchers. Specifically, a conceptualization and operationalization of corporate citizenship are first proposed. Then, an empirical investigation conducted in two independent samples examines whether components of an organization’s culture affect the level of commitment to corporate citizenship and whether corporate citizenship is conducive to business benefits. Survey results suggest that market-oriented cultures as well as humanistic cultures lead to proactive corporate citizenship, which in turn is associated with improved levels of employee commitment, customer loyalty, and business performance. The results point to corporate citizenship as a potentially fruitful business practice both in terms of internal and external marketing. Isabelle Maignan is an assistant professor of marketing and international business at the University of Groningen, The Netherlands. Her research interests focus on business ethics, corporate social responsibility, and international marketing. Her work has appeared in theJournal of Advertising, Journal of Business Research, and theJournal of Business Ethics, as well as other journals and conference proceedings. O. C. Ferrell is a professor of marketing at Colorado State University. He is the coauthor of 16 books and 60 articles. His work has appeared in theJournal of Marketing, Journal of Marketing Research, Journal of the Academy of Marketing Science, Journal of Business Research, and theJournal of Public Policy and Marketing, as well as other journals and proceedings. G. Tomas M. Hult is the director of international business and an associate professor of marketing and international business at Florida State University. His research interests focus on marketing strategy, international marketing, and methodological issues in marketing. Dr. Hult’s work has appeared in theJournal of Marketing, Decision Sciences, Journal of Business Research, Journal of International Marketing, andInternational Marketing Review, as well as other journals and proceedings.     

Adolescent consumption autonomy: A cross-cultural examination

Adolescents are an important market segment globally not only for their spending power as adolescents but also for their future spending power as adults. One variable that impacts current and future spending power is the degree to which adolescents are autonomous consumers. This study reports on depth interviews conducted with adolescent girls in France and the United States for the purpose of identifying dimensions of adolescent consumption autonomy based on adolescents' perceptions. Four dimensions of adolescent consumption autonomy are identified, including attitudinal, emotional, functional and financial. Similarities and differences between the two cultures are discussed, and implications for marketing and future research are identified.