Founder Influence in Family Business: Analyzing Combined Data from Six Countries

  • Robert N. Lussier Springfield College
  • Matthew C. Sonfield Hofstra University

Abstract

This study analyzed a combined sample of 593 family businesses in the United States, Croatia, Egypt, France, India and Kuwait to determine how the influence of the founder(s) relates to certain important family business managerial characteristics. Statistical analyses indicated that founder influence has significant correlations with the percentage of non-family managers, the use of a "team-management" style of management, the formulation of specific succession plans, time spent in strategic management activities, consideration of going public, and the use of equity rather than debt financing. These findings provide partial support to the few earlier writings and studies involving founder influence in family firms. The implications of these findings for family business owner/managers and for consultants to family businesses are provided, and suggestions for future research are presented.

Downloads

Download data is not yet available.

Author Biography

Matthew C. Sonfield, Hofstra University

with data collection from:

Mohsen Bagnied, American University of Kuwait

Mamdouh Farid, Hofstra University, USA

Loïc Maherault, Ecole de Management, France

S. Manikutty, Indian Institute of Management, India

Sanja Pfeifer, Univ. of Josip Juraj Strossmayer Osijek, Croatia

Louis Verdier, Ecole de Management, France

References

Bird, B, Welsch, H. Astrachan, J. H. & Pistrui, D. (2002). Family business research: The evolution of an academic field. Family Business Review, 15(4), 337-350.

Boeker, W. P. (1988). Organizational origins: Entrepreneurial and environmental imprints at the time of founding. In G.R. Carroll (Ed.). Ecological models of organizations (pp. 33-51). (Cambridge, MA: Ballinger Publishing).

Bruton, G. D., Ahlstrom, D., & Obloj, K. (2008). Entrepreneurship in emerging Economies: Where are we and where should the research go in the future. Entrepreneurship Theory and Practice, 32(1), 1-14.

Carney, M. (2007). Minority family business in emerging markets: Organization forms and competititive advantage. Family Business Review, 20(4), 289-300.

Carsrud, A. (1994). Lessons learned in creating a family business program. University of California, Los Angeles. Unpublished manuscript.

Center for Monitoring Indian Economy (CMIE). (2003). Data Base.

Chaganti, R. & Schneer, J. A. (1994). A study of the impact of owner's mode of entry on venture performance and management patterns. Journal of Business Venturing, (9), 243-261.

Chrisman, J., Steier, L. & Chua, J. (2008). Toward a theoretical basis for understanding the dynamics of strategic performance in family firms, Entrepreneurship Theory and Practice, 32(6), 935-947.

Chua, J. H., Chrisman, J. J., Sharma, P. (1999). Defining the family business by behavior, Entrepreneurship Theory and Practice, 23(4), 19-40.

Chua, J. H., Chrisman, J. J. & Sharma, P. (2003). Succession and nonsuccession concern of family firms and agency relationships with nonfamily managers. Family Business Review, 16(2), 89-108.

CIA (2008). World Fact Book. 2008 data retrieved April 24, 2009 from (www.cia.gov).

Cooper, D. R. and Schindler, P. S. (2008). Business Research Methods 10e (Burr Ridge, IL: McGraw-Hill/Irwin).

Davis, P. & Harveston, P. (1999). In the founder's shadow: Conflict in the family firm. Family Business Review, 12(4), 311-323.

Dennis, W. (2003). Raising response rates in mail surveys of small business owners: Results of an experiment. Journal of Small Business Management, 41(3), 278-295.

Denona, N., & Kraman-Aksentijevic, N. (1995). Mogucnosti razvoja obiteljskog poduzetnistva U Republici Hrvatskoj, International Conference, SME's in the economic development. Ekonomski fakultet Rijeka, (November), 16-17.

Dyer, W. G., & Sanchez, M. (1998). Current state of family business theory and practice as reflected in family business review 1988-1997. Family Business Review, 11(4), 287-295.

Eddleston, K. (2008). Commentary: The prequel to family firm culture and stewardship: The Leadership perspective of the founder. Entrepreneurship Theory and Practice, 32(6), 1055-1061.

European Union (2004). http://europa.eu.int/comm/enterprise/enterprise_policy/sme_definition/index_en.htm.

Galetic, L. 2002. Characteristics of family firms in Croatia. MER Journal for Management and Development, 1(1), 50-59.

Gattaz, Y. (2002). Communication from Académie des sciences morale set politques, (June 5).

Graves, C. & Thomas, J. (2008). Determinants of the internationalization pathways of family firms: An examination of family influence. Family Business Review, 21(2), 151-168.

Kelly, L. M., Athanassiou, N. & Crittenden, W. F. (2000). Founder centrality and strategic behavior in the family-owned firm. Entrepreneurship Theory and Practice, 25(2), 27-42.

Kets de Vries, M. (1993). The dynamics of family controlled firms: The good and bad news. Organizational Dynamics, 21(3), 59-71.

Lussier, R. N. (1997). Predicting entrepreneurial success versus failure: A comparison of multi and single-industry techniques. Academy of Entrepreneurship Journal, 3(1), 89-101.

Lussier, R. N. & Sonfield, M. (2004). Family business management activities, styles and characteristics: A correlational study. Mid-American Journal of Business, 19(1), 47-54.

Lyagoubi, M. (2002). Controle, propriete et comportement de financement: etude des enterprises patrimoniales, doctoral dissertation Universite Paris IX, Dauphine, CREFUGE.

Mahérault, L. (1999). Comportement financier des enterprises familiales: Approche Empirique. Economies et Sociétés, Série Siences de Gestion, 26(2), 247-272.

Manikutty, S. (2000). Family business groups in India: A resource based view of emerging Trends. Family Business Review, 13, 279-292.

McCann, J., Leon-Guerrero, A. & Haley, J. (1997). Family business with a capital "B:" Characteristics, priorities and performance of family firms. Paper presented at the Academy of Management Meeting, Boston, MA.

Morris, M. H., Williams, R. O., Allen, J. A. & Avila, R. A. (1997). Correlates of success in family business transitions. Journal of Business Venturing, 12(5), 385-401.

Oviatt, B. M. & McDougall, P. P. (2005). Defining international entrepreneurship and modeling the speed of internationalization. Entrepreneurship Theory and Practice, 29(5), 537-553.

Packalen, K. A. (2007). Complementing Capital: The role of status, demographic features, and social capital in founding teams' abilities to obtain resources. Entrepreneurship Theory andPractice, 31(6), 873-891.

Poza, E. (2007). Family Business. (Mason: OH, South-Western/Cengage).

Sonfield, M. & Lussier, R. N. (2004). First-, second- and third-generation family firms: A comparison. Family Business Review, 17(3), 189-202.

Sonfield, M. & Lussier, R. N. (2005a). Family Business Ownership and Management: A Gender Comparison. Journal of Small Business Strategy, 15(2), 59-75.

Sonfield, M. & Lussier, R. N. (2005b). A Cross-National Investigation of First- Generation, Second-Generation and Third-Generation Family Businesses. Journal of Small Business Strategy, 16(1), 9-26.

Teal, E., Upton, N., & Seaman, S. (2003). A comparative analysis of strategic marketing practices of high-growth U.S. family and non-family firms, Journal of Developmental Entrepreneurship, 8(2), 177-195.

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management, Strategic Management Journal, 18, 509-533.

Weber, J. & Lavelle, L. (2003). Family, Inc., Business Week, (November 10), 100-114.

Zara, S., Hayton, J., Neubaum, D., Dibrell, C. & Craig, J. (2008). Culture of family commitment and strategic flexibility: The moderating effect of stewardship. Entrepreneurship Theory and Practice, 32(6), 1035-1054.
Published
2009-01-21
How to Cite
LUSSIER, Robert N.; SONFIELD, Matthew C.. Founder Influence in Family Business: Analyzing Combined Data from Six Countries. Journal of Small Business Strategy, [S.l.], v. 20, n. 1, p. 103-118, jan. 2009. ISSN 2380-1751. Available at: <https://libjournals.mtsu.edu/index.php/jsbs/article/view/117>. Date accessed: 15 june 2019.
Section
Articles

Most read articles by the same author(s)

1 2 > >>