Family involvement and the impact of information and communication technology on performance
TL;DR: In this paper, the authors explored the moderated effect of family involvement on the relationship between information and communication technology (ICT) and firm performance, using a large panel of Spanish manufacturing firms.
Abstract: Purpose
The purpose of this paper is to explore the moderated effect of family involvement on the relationship between information and communication technology (ICT) and firm performance.
Design/methodology/approach
According to agency and transaction cost theories, distinctive family business characteristics provide a unique context that favours a more efficient use of ICT. The authors perform a multivariate analysis that includes the moderating effect of family involvement and considers the possible endogeneity of the ICT variable.
Findings
The results, using a large panel of Spanish manufacturing firms, confirm the importance of family involvement for explaining differences in terms of the impact of this technology in family and non-family businesses. The relationship between ICT and performance is stronger for family firms than for non-family firms.
Research implications
The paper provides new evidence for the academic literature on ICT impact and family firms. It corroborates the importance of using an organizational perspective to explain differences in the effect of ICT on performance.
Practical implications
Family firms should understand the opportunities that family involvement offers regarding ICT impact on performance, and exploit this moderating effect to achieve competitive advantages.
Originality/value
No previous studies deal with the impact of family involvement on ICT-performance analysis. This study fills this gap and increases the understanding of how family business involvement moderates the ICT-performance relationship.
Citations
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01 Nov 2013
TL;DR: In this paper, the authors discuss the importance and interrelationships of goals, governance, and resources in family enterprises and conclude that a configuration approach to studying their interactions in family firms might be useful.
Abstract: We briefly reflect on the theoretical contributions of the ongoing series of special issues on theories of family enterprise and discuss the contributions of each article and commentary in the current special issue. We observe that the meta-themes—the unique goals, governance, and resources of family firms—are not only primary sources of heterogeneity but key determinants of outcomes such as the continuation of family involvement, firm survival and renewal, and financial performance. We conclude that the importance and interrelationships of goals, governance, and resources suggest that a configuration approach to studying their interactions in family firms might be useful.
152 citations
01 Jan 2020
TL;DR: In this paper, the authors investigated the effect of family involvement in management on firms' innovative behavior, namely on their innovation effort, and found that firms are more willing to develop innovative efforts when they are engaged in technological collaborations with external partners such as suppliers or customers.
Abstract: By taking insights from the Socioemotional Wealth theory, this chapter investigates the effect of family involvement in management on firms' innovative behavior, namely on their innovation effort. Furthermore, this research analyses whether firms are more willing to develop innovative efforts when they are engaged in technological collaborations with external partners, such as suppliers or customers. Authors used a panel dataset on 3,060 observations of Spanish manufacturing firms for the 2000–2012 period. The findings show a negative incidence of family managers on firms' innovative efforts. The empirical findings also reveal that technological collaborations with suppliers weaken the negative effect of family involvement in management on innovative effort.
3 citations
25 May 2021
TL;DR: In fact, el incremento de violencia o agresiones por medio del uso of las tecnologias in this ultimo ano ha tenido un incremento sobre todo in el contexto educativo, donde el uso de estas tiene una prevalencia mayor que en anos anteriores, debido a que la educación se ha virtualizado.
Abstract: El incremento de violencia o agresiones por medio del uso de las tecnologias en este ultimo ano ha tenido un incremento sobre todo en el contexto educativo, donde el uso de estas tiene una prevalencia mayor que en anos anteriores, debido a que la educacion se ha virtualizado. El acoso escolar o bullying que acontecia en las aulas ahora se ha convertido en ciberbullying o acoso en el ciberespacio, por los medios tecnologicos sirven de canal para estos ataques.
3 citations
Cites background from "Family involvement and the impact o..."
...…sus pares por medio de las redes sociales y diversos canales de comunicación virtual, pero no solo las utilizan de una manera adecuada y positiva, (Gargallo & Galve, 2017) sino que en muchas ocasiones le dan un mal uso a estos medios tecnológicos sirviéndose de ellos para insultar, burlarse u…...
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References
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Book•
01 Jan 2001
TL;DR: This is the essential companion to Jeffrey Wooldridge's widely-used graduate text Econometric Analysis of Cross Section and Panel Data (MIT Press, 2001).
Abstract: The second edition of this acclaimed graduate text provides a unified treatment of two methods used in contemporary econometric research, cross section and data panel methods. By focusing on assumptions that can be given behavioral content, the book maintains an appropriate level of rigor while emphasizing intuitive thinking. The analysis covers both linear and nonlinear models, including models with dynamics and/or individual heterogeneity. In addition to general estimation frameworks (particular methods of moments and maximum likelihood), specific linear and nonlinear methods are covered in detail, including probit and logit models and their multivariate, Tobit models, models for count data, censored and missing data schemes, causal (or treatment) effects, and duration analysis. Econometric Analysis of Cross Section and Panel Data was the first graduate econometrics text to focus on microeconomic data structures, allowing assumptions to be separated into population and sampling assumptions. This second edition has been substantially updated and revised. Improvements include a broader class of models for missing data problems; more detailed treatment of cluster problems, an important topic for empirical researchers; expanded discussion of "generalized instrumental variables" (GIV) estimation; new coverage (based on the author's own recent research) of inverse probability weighting; a more complete framework for estimating treatment effects with panel data, and a firmly established link between econometric approaches to nonlinear panel data and the "generalized estimating equation" literature popular in statistics and other fields. New attention is given to explaining when particular econometric methods can be applied; the goal is not only to tell readers what does work, but why certain "obvious" procedures do not. The numerous included exercises, both theoretical and computer-based, allow the reader to extend methods covered in the text and discover new insights.
28,298 citations
TL;DR: The authors argue that the separation of decision and risk-bearing functions observed in large corporations is common to other organizations such as large professional partnerships, financial mutuals, and nonprofits. But they do not consider the role of decision agents in these organizations.
Abstract: ABSENT fiat, the form of organization that survives in an activity is the one that delivers the product demanded by customers at the lowest price while covering costs.1 Our goal is to explain the survival of organizations characterized by separation of "ownership" and "control"-a problem that has bothered students of corporations from Adam Smith to Berle and Means and Jensen and Meckling.2 In more precise language, we are concerned with the survival of organizations in which important decision agents do not bear a substantial share of the wealth effects of their decisions. We argue that the separation of decision and risk-bearing functions observed in large corporations is common to other organizations such as large professional partnerships, financial mutuals, and nonprofits. We contend that separation of decision and risk-bearing functions survives in these organizations in part because of the benefits of specialization of
14,045 citations
TL;DR: The authors investigated the relation between founding-family ownership and firm performance and found that family ownership is both prevalent and substantial; families are present in one-third of the S&P 500 and account for 18 percent of outstanding equity.
Abstract: We investigate the relation between founding-family ownership and firm performance. We find that family ownership is both prevalent and substantial; families are present in one-third of the S&P 500 and account for 18 percent of outstanding equity. Contrary to our conjecture, we find family firms perform better than nonfamily firms. Additional analysis reveals that the relation between family holdings and firm performance is nonlinear and that when family members serve as CEO, performance is better than with outside CEOs. Overall, our results are inconsistent with the hypothesis that minority shareholders are adversely affected by family ownership, suggesting that family ownership is an effective organizational structure. FOUNDING-FAMILYOWNERSHIPAND CONTROL in public U.S. firms is commonly perceived as a less efficient, or at the very least, a less profitable ownership structure than dispersed ownership. Fama and Jensen (1983) note that combining ownership and control allows concentrated shareholders to exchange profits for private rents. Demsetz (1983) argues that such owners may choose nonpecuniary consumption and thereby draw scarce resources away from profitable projects. Shleifer and Vishny (1997) observe that the large premiums associated with superiorvoting shares or control rights provide evidence that controlling shareholders seek to extract private benefits from the firm. More generally, firms with large, undiversified owners such as founding families may forgo maximum profits because they are unable to separate their financial preferences with those of outside owners.1 Families also often limit executive management positions to family
4,923 citations
TL;DR: The concept of IT as an organizational capability is developed and empirically examining the association between IT capability and firm performance indicates that firms with high IT capability tend to outperform a control sample of firms on a variety of profit and cost-based performance measures.
Abstract: The resource-based view of the firm attributes superior financial performance to organizational resources and capabilities. This paper develops the concept of IT as an organizational capability and empirically examines the association between IT capability and firm performance. Firm specific IT resources are classified as IT infrastructure, human IT resources, and IT-enabled intangibles. A matched-sample comparison group methodology and publicly available ratings are used to assess IT capability and firm performance. Results indicate that firms with high IT capability tend to outperform a control sample of firms on a variety of profit and cost-based performance measures.
4,471 citations
Book•
01 Jan 2009
TL;DR: This book covers topics often left out of microeconometrics textbooks and omitted from basic introductions to Stata, and provides the most complete and up-to-date survey ofmicroeconometric methods available in Stata.
Abstract: An outstanding introduction to microeconometrics and how to do microeconometric research using Stata, this book covers topics often left out of microeconometrics textbooks and omitted from basic introductions to Stata Cameron and Trivedi provide the most complete and up-to-date survey of microeconometric methods available in Stata They begin by introducing simulation methods and then use them to illustrate features of the estimators and tests described in the rest of the book They address each topic with an in-depth Stata example and demonstrate how to use Statas programming features to implement methods for which Stata does not have a specific command Multi/Card Deck Copy
3,418 citations