Frank C. Butler

Resources Matter Examining the Effects of Resources on the State of Firms Following Downsizing

Downsizing is a common business management practice. Prior research has examined the financial consequences of downsizing or the impact on individuals remaining in a downsizing organization. Taking a resource-based perspective, this study integrates and extends prior research on downsizing by examining how downsizing influences the relative likelihood that a firm will experience one of three states in the three years following downsizing. Multinomial logistic regression is employed to test hypotheses using a sample of 445 firms that downsized during the period 1995 to 2000. The authors find significant differences in the relative likelihood of Chapter 11 bankruptcy, acquisition, or remaining a nonbankrupt going concern based on the size of the downsizing, firm-level intangible resources, the tangible asset intensity of the firm, and industry-level knowledge intensity. Implications for managers and future research are discussed.

The Influence of Family Firms and Institutional Owners on Corporate Social Responsibility Performance

Research on corporate social responsibility (CSR) has traditionally focused on managerial discretion and stakeholders’ influence. This study extends current research by addressing the effect of family firms and institutional owners on CSR performance, namely, CSR strengths and concerns. Based on stewardship theory and the socioemotional wealth perspective, we propose that family firms are more likely to value CSR performance. Next, drawing from multiple agency theory, we predict that institutional owners, unlike family owners, will influence a firm’s CSR performance differently. We tested our hypotheses using a sample of 153 firms from 1994 to 2006 and found general support for our hypotheses. A higher percentage of family owned equity and the presence of a family CEO are found to increase CSR strengths, whereas transient institutional owners have an opposite effect. The presence of a family CEO and founding family are found to reduce CSR concerns. Contrary to our predictions, dedicated institutional owners are positively associated with CSR concerns.

Family firms and corporate social responsibility: exploring “concerns”

Purpose Scholars are devoting increasing attention to understanding a specific type of strategic initiative in family firms: corporate social responsibility (CSR). Prior studies have focused on the strengths of family firms’ CSR performance. However, to more fully understand family firms and their engagement in CSR, a granular approach is needed that teases apart the strengths and concerns of CSR performance and examines the specific dimensions that comprise CSR performance. Thus, the purpose of this paper is to theorize about six negative (i.e. concern-oriented) dimensions of family firms’ CSR performance. Design/methodology/approach To examine the interrelationship between a firm’s percentage of family ownership and its CSR concerns, a sample of 71 public firms from Fortune 500 companies was constructed. The sample includes 13 years of firm-level data spanning 1994-2006 and represents over 600 firm-year observations. Findings As predicted, a higher percentage of family owners’ equity is positively related to diversity-oriented CSR concerns and negatively related to employee relations and environmental CSR concerns. However, the percentage of equity owned by family members is not associated with community, product quality and safety, and corporate governance CSR concerns. Originality/value The paper addresses substantive omissions in existing research on the influence of family ownership on CSR performance.

The auto industry: adapt to disruptive innovations or risk extinction

Purpose This paper aims to examine the automotive industry and how it ripe for disruption. By examining the current state of the industry and how technology will shape the future of the car, this paper outlines why the automotive industry is ready to be disrupted and provides insights as to whom the major players may be in the future and why. Design/methodology/approach This paper uses examples from companies and the media to identify how the automotive industry is ready to be disrupted. Findings This paper identifies that the automotive industry is ready to be disrupted. With Tesla having secured over 400,000 pre-orders for its new Model 3 sedan, there is a movement that will pave the way to a new era of the automobile. Practical implications This paper demonstrates that a new way of thinking is needed for top managers at traditional automakers. In this paper, a new way of thinking about the future of the car is presented. Originality/value This paper takes a new perspective on what the future of the automobile may resemble and the companies that will likely be involved as a result of the disruption in the industry.