Figuracion, Kris Elaine G.

Homework: 18 May 2015

Innovation in Family Businesses (INNOFAB)

Mr. Junius Yu

Author
Gilding, M., Gregory, S., &
Cosson, B. (2015).
Entrepreneurship: Theory
& Practice, 39(2), 299312.

Title
Motives and
Outcomes in Family
Business Succession
Planning

Dawson, A., Sharma, P.,

Irving, P. G., Marcus, J., &
Chirico, F. (2015).
Entrepreneurship: Theory
& Practice, 39(3), 545569.

Predictors of LaterGeneration Family

Members'
Commitment to
Family Enterprises.

Notes
There are two main motives on the
family business succession planning
literature on the part of incumbents:
family business continuity across
generations and family harmony.
The cross-tabulation of these motives
produces a typology consisting of
four distinct combinations of motives
for succession planning.
These four are institutionalization,
implosion, imposition and
individualization.
Institutionalization and implosion are
fully elucidated in the literature.
Imposition and individualization are
routinely overlooked.
Succession planning means making
the preparations necessary to ensure
harmony of the family and the
continuity of the enterprise through
the next generation.
Strong continuity and strong
harmony is
INSTITUTIONALIZATION.
Weak continuity and weak harmony
is IMPLOSION.
Strong continuity and weak harmony
is IMPOSITION.
Strong harmony and weak continuity
is INDIVIDUALIZATION.
This study examines the antecedents
of different bases of organizational
commitment and intention to stay of
later-generation family members who
are currently working in their family
firm.
When individuals identity and career
interests are aligned with their family
enterprise, they experience affective
commitment.
Family expectations are associated
with normative commitment.
Individuals who are concerned about

Figuracion, Kris Elaine G.

Homework: 18 May 2015

Innovation in Family Businesses (INNOFAB)

Mr. Junius Yu

Wen-Jie, Z., Yung-Ho, C.,

& Chia-Chien, H. (2014).
International Journal Of
Organizational Innovation,
7(1), 36-45.

Performance
Appraisals Between
Family Businesses
and Non-Family
Businesses

Farrington, S. M., Venter,

E., & Sharp, G. D. (2014).
South African Journal Of
Business Management,
45(3), 67-79.

Extrinsic rewards in
family businesses:
Perspectives of
nonfamily employees

losing inherited financial wealth or

who perceive a lack of alternative
career paths stay with the family
enterprise because of continuance
commitment.
Individuals driven by desire or
obligation exhibit low turnover
intentions.
Predictors of affective commitment
(desire based) are identity alignment
and career interest alignment.
Predictors of normative commitment
(obligation based) are family
expectations and family orientation.
Predictors of continuance
commitment (cost avoidance based)
are financial costs, social costs,
limited exposure to alternate career
paths and perceived lack of
marketable skills.
The main purpose of this
quantitative study is to compare and
evaluate the operating performances
between family businesses and nonfamily businesses using the MetaFrontier DEA.
With respect to the meta-technology
ratio (MTR) in each year, empirical
results show that ration in family
firms is much lower than in nonfamily firms.
Non-family firms are more efficient
than family firms.
Mann Whitney test presents a
significant difference between family
and non-family businesses, displaying
that difference of ownership structure
and management style between
family and non-family businesses do
effect production efficiency.
Employees compensation and
benefits in exchange for their labor
play an important role in influencing
their levels of job satisfaction and
organizational commitment and

Figuracion, Kris Elaine G.

Homework: 18 May 2015

Innovation in Family Businesses (INNOFAB)

Mr. Junius Yu

Benito-Hernndez, S.,
Priede-Bergamini, T., &
Lpez-Czar-Navarro, C.
(2014). South African
Journal Of Business
Management, 45(1), 1325.

Factors determining

exportation and
internationalization in
family businesses:
The importance of
debt.

ultimately in retaining their services.

The primary objective of this study is
to investigate the influence of
selected extrinsic rewards namely
compensation, promotion
opportunities and job security, on
the levels of job satisfaction and
ultimately on the levels of
organizational commitment of
nonfamily employees working in
family businesses.
Structural equation modelling was
used to assess the hypothesized
relationships.
Results show that compensation and
job security are significantly
positively related to job satisfaction.
Job satisfaction was found to be
significantly and positively related to
organizational commitment and also
found to acts as a mediator between
extrinsic rewards and organizational
commitment.
Establishing the perspectives that
nonfamily employees can obtain
rewards the same as the familyrelated employees provide family
business owners with valuable
insights intro attracting and retaining
this valuable stakeholder group.
This study focuses on the factors that
may influence family owned
businesses to decide to export and
move toward internationalization,
posing their level of debt as a possible
determining factor.
Review of publications on the subject
and empirical study using a sample of
1,846 businesses, which include
family and non-family firms, have
been made.
Results showed that the debt level of
businesses whose propriety and
management are handled by a family
differs from that of those do not fit

Figuracion, Kris Elaine G.

Homework: 18 May 2015

Innovation in Family Businesses (INNOFAB)

Mr. Junius Yu

Pedneault, S., & Peterson

Kramer, B. K. (2015).
Strategic Finance, 97(5),
46-55.

Shattered Trust:
Fraud in the Family

this characteristic, especially where

the decision whether or not to export
products is concerned.
Technical data used for the empirical
study are the following: type of
sampling is random stratified census
according to activity sector and firm
size; sample size of 1,846 Spanish
manufacturing firms; sampling error
of 95% (K=2 sigma)
Dependent variables are export
propensity (EXP) which analyzes
whether or not the company exports
and export intensity (INT) which is
the ratio of export sales to total sale.
Independent variables are debt ratio
(DEB) which is the ratio of outside
debt total liabilities of the business,
family management (FAM) that sets
if the business is family owned or not,
DEB_FAM which the ratio of outside
funding to total financing of the
business adjusted to family ownership
and diversification (DIV) that offer
of products and services belonging to
the various sectors of activity.
Control variables are number of
employees and age of the business.
Dummy variable is the sector of
activity.
Common fraud schemes in family
business are diverting (stealing)
business funds for personal
purchases, including making
purchases with business credit cards
and concealing them as legitimate
business expenses, skimming cash
receipts (customer payments) for
personal purposes or in other words
taking cash before it is recorded,
processing unauthorized payroll
like employees that do not exist,
using the companys fixed assets for
personal pursuits or outside interests,
stealing of supplies for personal use,
processing transactions of other

Figuracion, Kris Elaine G.

Homework: 18 May 2015

Innovation in Family Businesses (INNOFAB)

Mr. Junius Yu

Giarmarco, J. (2012).
Journal Of Financial
Service Professionals,
66(2), 59-69.

The Three Levels of

Family Business
Succession Planning

entities through the business,

diverting customers and sales too
competing entity for a fee and
providing business secrets.
Internal controls can be implemented
like owners original signature
whereas no signature stamps should
be used, two signatures on larger
checks, segregation of incompatible
duties, regular mandatory vacations,
careful independent review, regular
independent review of payroll, bank
statements mailed directly, use of prenumbered documents, physical
controls over inventory, clearly
written code of conduct, periodic
independent review of vendor list.
Business succession planning is
broken into three main issues:
management, ownership and transfer
taxes.
Level one is management where it is
necessary to recognize that
management and ownership are not
the same. The level comprises of
employment agreements,
nonqualified deferred-compensation
plans, stock option plans, change-ofcontrol agreements and advisory
board.
Level two is ownership. A major
concern for family business owners
with children who are active in the
business is how to treat all children
equally in the business succession
planning. Other concerns may include
when to give up control and how to
guarantee sufficient retirement
income. Techniques such as to sell to
active children, use voting and
nonvoting shares, leave nonbusiness
assets to inactive children, reward
active children for their sweat equity,
fair vs. equal, assurance for active
children, defer decision by retaining
voting shares, establish criteria for the

Figuracion, Kris Elaine G.

Homework: 18 May 2015

Innovation in Family Businesses (INNOFAB)

Mr. Junius Yu

Liang, Q., Li, X., Yang, X.,

Lin, D., & Zheng, D.
(2013). Asia Pacific
Journal Of Management,
30(3), 677-695.

How does family

involvement affect
innovation in China?

active children, provide business

owner with retirement income and
buy-sell agreements can be used to
resolve such concerns.
The final level is the transfer taxes
which involves strategies to transfer
ownership of the business while
minimizing gift and estate taxes. To
resolve such concerns, gifting
techniques like annual exclusion gifts,
gift tax exemption, gifts in trust, sales
strategies like installment sales,
freezing techniques, and statutory
relief and life insurance applications
may be used.
This paper explores the types of
family involvement in family firms
and their impact on innovation
performance.
This study aims to examine two
different types of family involvement
in firms and their impact on firm
innovation
Examination on a sample of listed
family firms in China suggests that
family involvement in board
decisions tends to strengthen the
positive relationship between R&D
investment and innovation
performance, whereas family
involvement in management team
tends to weaken this positive
relationship.
The dependent variable is innovation
performance operationalized by the
patenting frequency (annual number
of patents) of firms.
The independent variable is R&D
investment measured by the intensity
of R&D expenditure.
Moderating variables are family
involvement in boards of directors
(FIBD) and family involvement in
management (FIM) are separately
measured by the percentage of

Figuracion, Kris Elaine G.

Homework: 18 May 2015

Innovation in Family Businesses (INNOFAB)

Mr. Junius Yu

Ruiz Jimnez, M., Vallejo

Martos, M., & Martnez
Jimnez, R. (2015).
Journal Of Business
Ethics, 126(2), 259-272.

Organizational
Harmony as a Value
in Family Businesses
and Its Influence on
Performance

founding or owning family members

and descendants in boards of directors
and management teams, respectively.
Control variables are adopted in the
models to control for firm- and
industry-level factors that may
influence innovation performance.
These variables include family
ownership (FIO), stock of patents
(SOP), cash to vote (CTV), firm size
(Size), firm age (Age), and an
industry dummy variable.
In family firms, R&D investment
intensity is positively associated with
innovation performance as measured
by patent count.
In family firms, the relationship
between R&D investment intensity
and innovation performance is
positively moderated by family
involvement in boards of directors.
The aims of this research were
twofold: first, to compare the levels
of organizational harmony between
family and non-family firms and,
second, to study the influence of
organizational harmony on family
firms performance (profitability,
longevity and group cohesion).
Starting from a definition of
organizational harmony as a value
and considering the importance of the
management of organizational values,
we use the main topics indicated by
the general literature (organizational
climate, trust and participation) to
analyze organizational harmony, as
well as three other topics for
performance (profitability, survival
and group cohesion).
Results indicate that family firms
have higher levels of these three
qualities than non-family firms, and
that the levels of trust, participation
and organizational climate have a
positive and significant influence on

Figuracion, Kris Elaine G.

Homework: 18 May 2015

Innovation in Family Businesses (INNOFAB)

Mr. Junius Yu

Martnez, A. B., Galvn, R.

S., & Palacios, T. B.
(2013). Intangible Capital,
9(4), 1216-1238.

Study of factors

influencing
knowledge transfer in
family firms

the performance of family firms.

These results can be understood as a
consequence of the influence of
family social capital on
organizational social capital and so on
the performance of family businesses.
From the perspective of
institutionalism, the higher levels of
harmony existing in family
businesses are a reflection of the
pressures that the owning family as
an institution exercises on the
organizational social capital in its
companies.
This study, which is a comprehensive
framework characterized the
knowledge transfer literature in
family firms in terms of the factors
influencing them, was developed by
an extensive literature review.
Based on an extensive literature
review, the study concludes that
knowledge is best transferred when
family members value the following
factors: trust between family
members, commitment to the family
business, intergenerational
relationships, intragenerational
relationships, psychological
ownership of the family business,
successors aspects and training,
predecessor involvement in the
successor training, organizational
culture and relationships with Family
Business Associations.