Franz W. Kellermanns

Family Control and Family Firm Valuation by Family CEOs: The Importance of Intentions for Transgenerational Control

Family firms are thought to pursue nonfinancial goals that provide socioemotional wealth, but socioemotional wealth is feasible only with family control of the firm. Using prospect theory, we hypothesize that socioemotional wealth increases with the extent of current control, duration of control, and intentions for transgenerational control, thus adding to the price at which owners would be willing to sell their firms to nonfamily buyers. Findings from two countries show that current control has no impact, and duration of control has a mixed impact. However, intention for transgenerational control has a consistently positive impact on the perceived acceptable selling price.

The Adolescence of Family Firm Research: Taking Stock and Planning for the Future

Through its rapid growth during the past decade, family business research has reached its adolescence as a field of study, and family business scholars now regularly contribute interesting and thought-provoking work to top-tier management, entrepreneurship, and finance journals. In this review article, the authors seek to document the growing maturity of family business research and to promote its integration into broader streams of inquiry in the organizational sciences. To do so, the authors describe recent family business research that addresses two fundamental questions: “How do firms differ in terms of their financial performance?” and “How do institutional conditions moderate performance differences between firms?” Based on their review, the authors describe the past and potential future contributions of family business research and conclude that it holds great promise to “give back” and provide meaningful contributions to the general field of management.

The Effects of Family Firm Specific Sources of TMT Diversity: The Moderating Role of Information Exchange Frequency

We examine the relationships among three family firm specific sources of top management team (TMT) diversity (the generation in charge of the family firm, the number of family employees, and the number of employed generations) and family firm performance. By integrating upper-echelons and team process research, we hypothesize that these TMT diversity sources interact with information exchange frequency among TMT members to affect family firm performance. Multisource survey data with lagged performance measurement, including CEOs and TMT members from 86 family firms, support our hypotheses. We discuss the implications of our findings and develop avenues for future research.

Priorities, Resource Stocks, and Performance in Family and Nonfamily Firms

This article discusses how the performance of family firms and nonfamily firms might differ as a result of the different priorities flowing from family influence, even when the two types of firms possess comparable levels of resource stocks. Using hierarchical regression to analyze data from a national study of the Small Business Development Center program, we find that family influence has both a positive and a negative moderating effect on the relationships between different categories of resource stocks and performance. Specifically, family firms benefit more from resource stocks based on external relationships while nonfamily firms benefit more from resource stocks based on functional skills.

Family Social Capital, Venture Preparedness, and Start-Up Decisions A Study of Hispanic Entrepreneurs in New England

Using insights from the resource-based view, social capital, and network theories, the authors develop a model of how family social capital, as well as an entrepreneur’s knowledge capital and external social capital, influences the venture creation process. The model is tested on a sample of 85 nascent Hispanic entrepreneurs. Results indicate that family social capital, measured as family support, contributes to venture preparedness and the start-up decision, suggesting that it has both a direct and an indirect influence on venture creation.

Decision Making Within and Between Organizations: Rationality, Politics, and Alliance Performance

This study extends research on strategic decision making into the realm of strategic alliances by examining the interactive effect of decision process characteristics at the firm and alliance levels on alliance performance. Located both within and at the boundary between partners, alliance-related decision processes have to balance each partner’s self-interest on one hand and collective actions on the other hand, with both partners being dependent on each other’s collaboration. Using primary, cross-sectional data obtained from 103 high-technology alliances, the authors study the effects of procedural rationality and politics in decision making. The results corroborate the importance of procedural rationality that facilitates collective actions between alliance partners but also uncover the pitfall of an unconditional reliance on procedural rationality at the firm level. The results further show that politically charged decision processes impair decision makers’ ability to reconcile individual interests both within and between alliance partners and therefore jeopardize alliance performance.

Financial Decision Making in Family Firms: An Adaptation of the Theory of Planned Behavior

Adapting the theory of planned behavior to the area of financial choices in family firms, we argue that these choices in family firms are largely affected by family norms, attitude, perceived behavioral control, and behavioral intentions. A time-lagged sample, estimated via structural equation modeling of 118 German family firms, supports a behavioral approach to the study of financing decisions. Specifically, we show that family norms and attitude toward external debt and external equity affect behavioral intention to use the respective financing choices, which in turn affects financing behavior. Perceived behavioral control, however, was shown to negatively affect behavioral intentions to use external equity and was positively related to the use of internal funds. Implications of these capital structure decisions and ideas for future research are discussed.

Viewing Family Firm Behavior and Governance Through the Lens of Agency and Stewardship Theories

Agency and stewardship theories are prominent perspectives to examine myriad issues within family firms. Although considered opposing theories, both address the same phenomena: the individual-level behaviors and firm-level governance mechanisms that predict organizational outcomes. Accordingly, we review and synthesize these theories concurrently, using the concepts of behavior and governance as our organizing framework. Our review encompasses 107 family firm articles grounded in agency and/or stewardship theory, published between 2000 and 2014 in 24 journals across several disciplines. Additionally, we identify future research areas that provide scholars opportunities to push theoretical boundaries and offer further insights into the family firm.

Five-factor model personality traits as predictors of perceived and actual usage of technology

Understanding the adoption and use of technology is extremely important in the field of information systems. Not surprisingly, there are several conceptual models that attempt to explain how and why individuals use technology. Until recently, however, the role of personality in general, and the five-factor model (FFM) of personality in particular, had remained largely unexplored. Our study takes an interactional psychology perspective, linking components of the FFM to the use of technology within the conceptual framework of the Unified Theory of Acceptance and Use of Technology (UTAUT). After empirically confirming previous research findings linking performance expectancy, effort expectancy, and social influence to technology use, we test direct relationships between FFM personality traits and technology use in the context of a web-based classroom technological system, utilizing measures of perceived and actual use of technology. Consistent with expectations, conscientiousness and neuroticism are associated with perceived and actual use of technology, with conscientiousness demonstrating a positive association with both perceived and actual use and neuroticism, a negative association. Extraversion was also significantly associated with actual use, although not in the positive direction expected. Further, the significant relationships between the personality traits and the actual use of technology were direct and not mediated by expressed intentions to use the system.

The Longitudinal Impact of Enterprise System Users’ Pre-Adoption Expectations and Organizational Support on Post-Adoption Proficient Usage

Although enterprise systems (ES) are ubiquitous, many firms report less than stellar payoffs from these costly investments, with underutilization often attributed to failures in the implementation process. Unfortunately, research has not provided sufficient insights into these failures, in part because it has focused on actual usage, as opposed to proficient usage, as the benchmark for successful implementation. Moreover, research has not generally examined how the adoption process unfolds over time, thus overlooking potential underlying mechanisms that may help explain how adopters achieve proficiency. To begin addressing these shortcomings, we study how adopters’ pre-adoption expectations, enacted over time, can influence their post-adoption proficiency, by shaping how and why they spend time using the system during the adoption period. We analyzed time-lagged survey data from 153 financial analysts, required to adopt new ES-based software, at a multinational bank. We found that adopters who hold pre-adoption expectations reflecting greater internal and external motives to adopt the system as well as systematically integrate it into their work routines are more apt to use the system in ways that enhance their cumulative knowledge of it, and subsequently develop higher levels of proficiency post-adoption. Moreover, greater organizational support enhanced the impact of adopters’ expectations on proficiency, except when their actual use is low in which case organizational support had an adverse effect.