Robert S. Nason

Why Do Family Firms Strive for Nonfinancial Goals? An Organizational Identity Perspective

This paper develops an organizational identity–based rationale for why family firms strive for nonfinancial goals. We show that the visibility of the family in the firm, the transgenerational sustainability intentions of the family, and the capability of the firm for self–enhancement of the family positively influence the importance of identity fit between family and firm as well as the familys concern for corporate reputation. We suggest that the concern for corporate reputation leads the family to pursue nonfinancial goals to the benefit of nonfamily stakeholders. We also discuss reinforcing feedback loops in these processes.

From Longevity of Firms to Transgenerational Entrepreneurship of Families Introducing Family Entrepreneurial Orientation

Whereas existing research on the longevity of family firms has focused on the survival of firms, this article investigates transgenerational entrepreneurship of families. By building on the transgenerational entrepreneurship research framework, the authors argue that by shifting from firm to family level of analysis, one gains a deeper understanding of family firms’ ability to create value across generations. The authors find evidence for their argument in that such a level shift reveals extended entrepreneurial activity, which is missed when focusing exclusively on the firm level. The study introduces and empirically explores the construct of family entrepreneurial orientation, which may serve as an antecedent to transgenerational value creation by families.

A Stakeholder Perspective on Family Firm Performance

Through the lens of stakeholder theory, this article deepens our understanding of financial and nonfinancial performance outcomes in family firms across multiple stakeholder categories, including the family level of analysis. Based on this foundation, we develop a typology of performance relationships between performance outcomes: overlapping, causal, synergistic, and substitutional. We argue that these relationships, when used between constructive (positive) performance outcomes, are able to increase stakeholder satisfaction, which in turn increases organizational effectiveness. Through this analysis, we extend the common one-dimensional and cause-effect understanding of performance in family firms and move toward a comprehensive stakeholder performance perspective, which provides insights for increasing organizational effectiveness of family firms.

An Assessment of Resource-Based Theorizing on Firm Growth and Suggestions for the Future

Together, Penrosean and Barnean resource-based logic make up the dominant theoretical approach to understanding firm growth. While extant literature focuses on a common lineage between Penrosean theory and the resource-based view (RBV), we explicate divergence at these origins of resource-based theorizing and subject the growth implications of each to meta-analytic testing. RBV’s central tenets concern resources that meet valuable, rare, inimitable, and nonsubstitutable (VRIN) criteria, while Penrose’s theory discusses the versatility of resources. Theoretically, VRIN resources allow firms to exploit unique opportunities, while versatile resources allow firms to recombine resources in novel ways to create growth. Using meta-analytic techniques, we find that versatile resources are associated with higher levels of growth, whereas VRIN resources are not. We offer novel insights into alternative characteristics of resources derived from the same conceptualization of the firm, add greater specificity to the performance construct, and open up avenues for new theorizing on firm growth that is more closely aligned with Penrose’s theory.

Family Business and the 1

Growing concern about economic inequality has generated a polarized narrative regarding the causes and consequences of extreme wealth. We contend that divided ideological positions obscure a more mundane reality about the typical wealthiest 1% households. Using data from the triennial survey of consumer finance, we demonstrate that there is substantial heterogeneity within the 1%. Contrary to public discourse, the typical 1% household does not have wealth reflective of popular rich lists, but derives a significant share of its wealth from ownership and active management of small- to medium-sized private enterprise. We use these findings to shed new insights on business families’ relationship to economic inequality and open promising new areas of inquiry regarding the role of the family business in society.

Exploring Transgenerational Entrepreneurship : The Role of Resources and Capabilities

Transgenerational entrepreneurship, as a discipline, examines the processes, resources and capabilities that allow family enterprises to create social and economic value over time in order to succeed beyond the first generation of business owners. While tangible resources such as financial and physical capital are certainly important factors in the long-term success of a family-run business, this book focuses specifically on the role of intangible resources and capabilities, which are less easily quantifiable but equally vital. Drawing insights from in-depth longitudinal studies of twenty-six family firms in twelve countries, the contributors discuss the critical role of intangible assets such as values, virtues, tacit knowledge and learning, professionalization, internal and external social networks, and reputation. Each chapter includes both a case study that serves as a practical illustration of a particular topic as well as a discussion of the theoretical perspectives and broader implications. Featuring both contributors and case studies from across the world, this volume provides a truly global approach to the study of transgenerational entrepreneurship. Professors and students of business and management, entrepreneurship and family business studies will find this book a fascinating addition to their libraries, as will family business owners, consultants and researchers.

Going offline: broadening crowdfunding research beyond the online context

Abstract Crowdfunding is often touted as a recent innovation that unleashes entrepreneurial potential by connecting entrepreneurs to small amounts of money from a broad base of individuals. However, literature on the topic has largely neglected the rich history of crowdfunding and failed to make an interesting and salient distinction between online and offline crowdfunding. This paper explicates the historical roots and current practices of offline crowdfunding, compares and contrasts online and offline crowdfunding, develops theoretically grounded predictions linking each type of crowdfunding to entrepreneurship outcomes, and offers related future research opportunities. We hope to build a rich appreciation for offline crowdfunding, provide insight into how crowdfunding as a financing mechanism has evolved and persists in contemporary society, and lay a foundation for future scholarly work in the area.

Exploring Transgenerational Entrepreneurship

Transgenerational entrepreneurship, as a discipline, examines the processes, resources and capabilities that allow family enterprises to create social and economic value over time in order to succeed beyond the first generation of business owners. While tangible resources such as financial and physical capital are certainly important factors in the long-term success of a family-run business, this book focuses specifically on the role of intangible resources and capabilities, which are less easily quantifiable but equally vital. Drawing insights from in-depth longitudinal studies of twenty-six family firms in twelve countries, the contributors discuss the critical role of intangible assets such as values, virtues, tacit knowledge and learning, professionalization, internal and external social networks, and reputation. Each chapter includes both a case study that serves as a practical illustration of a particular topic as well as a discussion of the theoretical perspectives and broader implications. Featuring both contributors and case studies from across the world, this volume provides a truly global approach to the study of transgenerational entrepreneurship. Professors and students of business and management, entrepreneurship and family business studies will find this book a fascinating addition to their libraries, as will family business owners, consultants and researchers.

Introduction: exploring transgenerational entrepreneurship: the role of intangible resources: The Role of Resources and Capabilities

Las familias son los motores de la actividad economica en todo el mundo. En muchos casos, su impacto economico dura siglos y generaciones. Este fenomeno se denomina la iniciativa empresarial como transgeneracional (TE) y se define como los procesos, recursos y capacidades que utiliza una familia.

Introduction: Exploring Transgenerational Entrepreneurship: The Role of Intangible Resources

Transgenerational entrepreneurship, as a discipline, examines the processes, resources and capabilities that allow family enterprises to create social and economic value over time in order to succeed beyond the first generation of business owners. While tangible resources such as financial and physical capital are certainly important factors in the long-term success of a family-run business, this book focuses specifically on the role of intangible resources and capabilities, which are less easily quantifiable but equally vital. Drawing insights from in-depth longitudinal studies of twenty-six family firms in twelve countries, the contributors discuss the critical role of intangible assets such as values, virtues, tacit knowledge and learning, professionalization, internal and external social networks, and reputation. Each chapter includes both a case study that serves as a practical illustration of a particular topic as well as a discussion of the theoretical perspectives and broader implications. Featuring both contributors and case studies from across the world, this volume provides a truly global approach to the study of transgenerational entrepreneurship. Professors and students of business and management, entrepreneurship and family business studies will find this book a fascinating addition to their libraries, as will family business owners, consultants and researchers.