Isabel C. Botero

Philanthropy in Family Enterprises A Review of Literature

Philanthropy in family enterprises operates at the crossroads of family, business, and society. Most of the research in this area is approached from the business or the individual level; thus, we have a fragmented understanding of philanthropy in family enterprises. This article presents a systematic review of the literature on the subject. Based on 55 sources published between 1988 and 2014, we explain the drivers of this behavior, the vehicles used to practice it, and the outcomes tied to the practice of philanthropy in family enterprises. We identify gaps in our understanding and provide ideas for future research.

Revealing the family: Effects of being perceived as a family firm in the recruiting market in Germany

Purpose Attracting and retaining a skilled labor force represents an important source for competitive advantage for organizations. In the European context, one of the greatest challenges that small- and medium-sized family firms face is attracting high quality non-family applicants. Researchers argue that one of the reasons for this difficulty is tied to the perception that non-family applicants have about family firms as a place to work. The purpose of this paper is to explore the perceptions that applicants have about family firms and their willingness to work in family firms in the German context. Design/methodology/approach Using principles from signaling theory, an experiment was conducted to explore the effects that information about family ownership and organizational age had on the perceptions about a firm (i.e. job security, advancement opportunities, prestige, task diversity, and compensation), and applicant’s attractiveness to it. Findings Based on the responses from 125 individuals in Germany, the authors found that explicitly communicating information about family ownership did not influence applicant perceptions about the firm or attractiveness to it. Although, information about organizational age affected perceptions of compensation, it did not affect attractiveness to the firm. Originality/value This study presents one of the first papers that focuses on the perceptions that non-family applicants have about family firms as a place to work in the European context. Thus, it provides a baseline for comparison to applicant perceptions in other European countries.

Family protocols as governance tools

Purpose – The purpose of this paper is to focus on the family protocol as a governance policy tool that can help ameliorate intra-family conflict and enhance the probabilities of survivability of the family business. Design/methodology/approach – Using equity theory and organizational justice as theoretical frameworks, the authors explain how and why the development of a protocol can help the family firm and their survivability. The authors combine academic and practitioner knowledge to present a process model for creating family protocols. Findings – Based on four important considerations (i.e. process view, deep knowledge about the family business, dynamic environment, and the need for change and adaptation) the authors develop a process model for the development of family tailored protocols. Originality/value – This paper integrates the work of practitioners and academics to help understand what is a family protocol, why and how the protocol affects the family and business relationships and presents a ...

Family business research in the European context

Family businesses are the most ubiquitous form of business organisation in Europe. Yet, most of the existing family business literature has been developed within a North American context. This introductory article builds on existing family business research conducted in the European context to portray Europe as a critically important context for extending our knowledge on important family business topics. It also counts on the view of the Secretary General of European Family Businesses to enhance our understanding of the institutional frameworks that can benefit family businesses in the EU zone. Specifically, the content of the article discusses some contextual factors that might affect the broadness, diversity, uniqueness and growth potential of family business research; identifies some of the interesting research questions that emerge from examining the distinctive traits of the European context; and stimulates further family business work in the European context and comparison with studies conducted in different geographies.

Factors that influence perceptions of work-life balance in owners of copreneurial firms

Purpose – The purpose of this paper is to explore the factors that influence perceptions of work-life balance among owners of copreneurial firms. Research on work-life balance in the context of family firms has focussed on the effects that perceptions of balance can have on the emotional well-being of business owners and performance of the firm. Less attention has been given to understanding the factors affecting an owners perceptions of work-life balance. This paper not only explores the antecedents of perceptions of work-life balance but does so with copreneurs, or couples who own and manage a firm. Design/methodology/approach – Data for this study were collected using surveys. In all, 210 copreneurs with businesses in nearly 20 industries answered questions about their perceptions of work-life balance, work-life conflict (WLC), life-work conflict, communication practices, characteristics of their jobs, and spousal support. Findings – WLC was negatively related to perceptions of work-life balance. Job ...

“We are a family firm”: An exploration of the motives for communicating the family business brand

Purpose Evidence suggests that some stakeholders perceive family firms as more trustworthy, responsible, and customer-oriented than public companies. To capitalize on these positive perceptions, owning families can use references about their family nature in their organizational branding and marketing efforts. However, not all family firms actively communicate their family business brand. With this in mind, the purpose of this paper is to investigate why family firms decide to promote their “family business brand” in their communication efforts toward different stakeholders. Design/methodology/approach Data for this study were collected using an in-depth interview approach from 11 Swiss and German family business owners. Interviews were transcribed and coded to identify different themes that help explain the different motives and constraints that drive their decisions to promote the “family business brand.” Findings The analyses indicate that promoting family associations in branding efforts is driven by both identity-related (i.e. pride, identification) and outcome-related (e.g. reputational advantages) motives. However, there are several constraints that may negatively affect the promotion of the family business brand in corporate communication efforts. Originality/value This paper is one of the first to explore why family businesses decide to communicate their “family business brand.” Building on the findings, the authors present a conceptual framework identifying the antecedents and possible consequences of promoting a family firm brand. This framework can help researchers and practitioners better understand how the family business nature of the brand can influence decisions about the company’s branding and marketing practices.

Recruitment challenges in family firms: the effects of message content and type of applicant on organisational attractiveness

Research suggests that family firms face big challenges when recruiting qualified non-family employees. In this paper we explore the effects of information about family ownership and organisational size on perceptions about a firm and attractiveness to a firm. One hundred and eighty seven participants (Undergraduate = 92, MBA students = 95) read one of four job advertisements created by manipulating information about organisational size (50 vs. 500 employees) and family ownership (explicit vs. implicit). Results indicate that explicitly communicating information about family ownership does not make a difference on perceptions about the firm and attractiveness to it. Information about organisational size affects applicant perceptions about job security, advancement opportunities, compensation, prestige, and organisational attractiveness particularly for MBA students. Implications of these results for research recruitment practices in family firms are discussed.

Corporate governance in family businesses from Latin America, Spain and Portugal: A review of the literature

Purpose The purpose of this paper is to summarize what is known about corporate governance in family firms from Ibero-American countries based on published research. Methodology The authors conducted a literature search to identify the articles that have been published about the corporate governance of family firms in Latin America, Spain, and Portugal between 1980 and 2014. The authors found 38 articles that provide the sample for this review. Findings The results indicate that research on governance in Ibero-American family firms has focussed on understanding structures and processes related to the business and ownership systems. However, generalization of results across the region is difficult because of the lack of systematic approach of studies and the focus on a small number of countries. Research limitations/implications There are at least two limitations of this work: the small sample of projects identified for the review and the lack of systematic approach to research. Both of these may be due to the importance given to publishing the university context in this part of the world. As the culture of knowledge changes, the authors expect that research in this area will grow. Originality/value Although previous research indicates that cultural characteristics affect governance system choices and understanding of family firms, not many studies explore the importance of culture in governance choices of family firms. This paper provides a baseline of the understanding of governance in Ibero-American family firms, and identifies important area for future research.

The role of non-economic goals for psychological ownership in family firms

Family business scholars are increasingly interested in psychological and motivational factors that play a role in the involvement and commitment that family members show towards the family firm. Psychological ownership (PSO) and the importance of non–economic goals for the family are two areas that help us understand how and why family shareholders become motivated and committed to their family business. Using in–depth interviews, this paper explores the role that non–economic goals play in the motivation that family shareholders have to control, gain knowledge and invest time/effort into the family firm. Data was collected from 20 family firm shareholders in Finland (N = 6) and Colombia (N = 14). Results indicate that non–economic goals are important in the formation of PSO because they activate the individual sense of responsibility that motivates shareholders to exercise control, gain knowledge and invest time in the firm. Implications of these results and ideas for future research are discussed.

Emotional intelligence in family firms

Purpose – Although researchers have highlighted the importance of relational and family factors for the sustainability of a family firm, there is not much empirical research exploring how emotions and the management of emotions play a role in the interpersonal dynamics of family business owners. The purpose of this paper is to explore how the way family members manage their emotions affects the interpersonal dynamics in the family, business, and ownership subsystems of a family firm. Design/methodology/approach – The paper presents an in-depth case study from a family firm in Colombia-South America. Findings – The results indicate that the capability that family members have to manage their emotions influences the interpersonal dynamics that take place in the family firm at the individual and group level. In this case, the paper found that although emotional intelligence (EI) affected interpersonal relationships in a firm, this effect was based on the individuals willingness to use their EI capabilities,...