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Office) / +6010-226-8117 (mobile) . 1 Abstract This is a conceptual paper in exploring the differences in decision making process between family business and non-family business in the construction industry in Malaysia. The understanding of the complexity and dynamics of a family business is becoming more prevalent among researchers. Fast decision...
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... study will compare family business with non-family business, therefore, context of corporate entrepreneurship with regard to entrepreneurial orientation and RBV are taken as suggested by scholars. And the dependant variable for both family business and non-family business is the outcome of the decision making, i.e. new venture creation. On top of that, in both family business and non-family business, the mediating influences are: (a) Cultural – this refers to the ethnic or country cultural influences; (b) Environment – this refers to the externalities of the economy, region, country etc; (c) Industry – this refers to the specific factors related to the industry or industries of the business group; However, the uniqueness of family business, whereby it may influence ―families‖ , two additional mediating influences are included (as per what is suggested by the STEP model). (d) Family life stage – this refers to the generation and development of the family and business; (e) Family involvement – this refers to the role family members play in ownership and or management of the group. (note that the last two family categories strongly relate to the governance resource pool of the firm). By addressing these five categories, it allows us to investigate and answer the question of what mediating influences have on entrepreneurial orientation and resource pools. Shane, Scott & Collin (2003) suggest how human motivations might influence the entrepreneurial process and how at each stage of the process, the level, inclusion of or exclusion of some or all of the motivation may matter, or change, to the entrepreneur. See figure 2 below : In exploring motivation and the entrepreneurial process, this study hopes to better understand entrepreneurial cognition and the entrepreneurs‘ decision making process, and would be able to identify how differently or similarly decisions are made between family businesses and non-family ...
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Citations
... Decision making process varies according to different characteristics of firms like size, industry, age, ownership and management structure, and culture. For family firms, decision making process is mostly associated with the leadership styles of business leaders (Mohd-Nor, 2010). Founders and founder like siblings like to be autocratic leaders and their decision making processes tend to be short. ...
Innovation in family firms has been a topic of increasing interest in family business research among management and business scholars in recent years. Innovation is one of the most important determinants of long-term performance and competitiveness of firms in today’s global economy. While firms that innovate can survive in the competitive economies, there is little known about the innovativeness of family firms. Family involvement in ownership and management, shared family values, the ease in accessing financial resources definitely affect the innovation capabilities of family firms differently. Although it is possible to increase the number of such characteristics that family firms possess and explore the relation between these factors and innovation performance, this study focuses on understanding how innovation is evolved in time across the three dimensions of family, business and ownership of family firms. The three-dimensional developmental model (Gersick et al., 1997) served as a good framework to explain the dilemmas that are related to family, organization, and the distribution of ownership that family businesses encounter with the passage of time, yet, the applicability of the three-dimensional developmental model within Turkish family business context has been a question mark in the Turkish family business literature.
This study thus aims to understand the explaining role of the three-dimensional developmental model in the context of Turkish family businesses, on the one hand, and to examine the innovation approaches of these firms at different developmental stages along the three dimensions, on the other hand. In-depth interviews with family owned firms that turned to third-generation businesses are conducted to realize the objectives of this study. The data that are obtained through in-depth interview approach are evaluated via content analysis technique to determine the qualitative factors that affect the evolution and innovation performances of the family businesses. The evaluation of these findings enables to develop scales, which measures the relation between the factors that affect the developmental stages of the family businesses and their innovation performances quantitatively. This study fills a gap in the literature, which lacks in terms of systematic research and data in the field, by developing metrics that will measure the factors that affect the developmental stages and the innovation performances of family businesses.
Keywords: family business, innovation, three-dimensional development model, family firm attributes
... Decision making process varies according to different characteristics of firms like size, industry, age, ownership and management structure, and culture. For family firms, decision making process is mostly associated with the leadership styles of business leaders (Mohd-Nor, 2010). Founders and founder like siblings like to be autocratic leaders and their decision making processes tend to be short. ...
This research seeks to answer the question of whether the foresight of the top managers influences their strategic choices in a specific sector, which ultimately affect the organizational performance. Here the chosen strategic decision is forward integration in terms of value addition in the textiles sector. This is an empirical study that has co-relational design approach. It is exploratory in nature, where hypotheses are developed and tested. Based on a cross sectional survey, the data refers to duration between the years 2015-2016. Sample size n=306 consisted of the CEO, CFO and the MDs of 156 listed textile mills of Pakistan. The survey was carried out in two phases; pilot testing and the final survey. Analysis of the data depicted statistically significant results; which revealed that the proposed predictor managerial foresight contributes towards the outcome variables-; 'organization performance' or 'strategic decision' that is acting as a mediating variable. Moreover, the results also prove mediation effect of strategic decision between managerial foresight and organizational performance.
