The pervasive effects of family on entrepreneurship: toward a family embeddedness perspective
TL;DR: The authors argue that long-term changes in family composition and in the roles and relations of family members have produced families in North America that are growing smaller and losing many of their previous role relationships.
About: This article is published in Journal of Business Venturing.The article was published on 2003-09-01. It has received 2192 citations till now. The article focuses on the topics: Entrepreneurship & Embeddedness.
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TL;DR: The authors explored the multiplicity of contexts and their impact on entrepreneurship, identifying challenges researchers face in contextualizing entrepreneurship theory and offers possible ways forward, arguing that context is important for understanding when, how, and why entrepreneurship happens and who becomes involved.
Abstract: This paper sets out to explore contexts for entrepreneurship, illustrating how a contextualized view of entrepreneurship contributes to our understanding of the phenomenon. There is growing recognition in entrepreneurship research that economic behavior can be better understood within its historical, temporal, institutional, spatial, and social contexts, as these contexts provide individuals with opportunities and set boundaries for their actions. Context can be an asset and a liability for the nature and extent of entrepreneurship, but entrepreneurship can also impact contexts. The paper argues that context is important for understanding when, how, and why entrepreneurship happens and who becomes involved. Exploring the multiplicity of contexts and their impact on entrepreneurship, it identifies challenges researchers face in contextualizing entrepreneurship theory and offers possible ways forward.
1,856 citations
Cites background from "The pervasive effects of family on ..."
...Aldrich and Cliff (2003) argue that a family embeddedness perspective of entrepreneurship has been neglected so far....
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TL;DR: In this article, the authors make the case for the socioemotional wealth (SEW) approach as the potential dominant paradigm in the family business field and argue that SEW is the most important differentiator of the family firm as a unique entity and helps explain why family firms behave distinctively.
Abstract: This article makes the case for the socioemotional wealth (SEW) approach as the potential dominant paradigm in the family business field. The authors argue that SEW is the most important differentiator of the family firm as a unique entity and, as such, helps explain why family firms behave distinctively. In doing so, the authors review the concept of SEW, its different dimensions, and its links with other theoretical approaches. The authors also address the issue of how to measure this construct and offer various alternatives for operationalizing it. Finally, they offer a set of topics that can be pursued in future studies using the SEW approach.
1,592 citations
Cites background from "The pervasive effects of family on ..."
...Some argue that kinship ties, unique to family firms, have a positive effect on entrepreneurial opportunity recognition (Aldrich & Cliff, 2003) and that the long-term nature of family firms’ ownership fosters entrepreneurship (Zahra et al., 2004)....
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TL;DR: In this article, a review of 217 refereed articles on family business studies is presented, focusing on individual, interpersonal or group, organizational, and societal levels of analyses, and an assessment of the status of our current understanding at each level is provided and directions for future research are suggested.
Abstract: Based on a review of 217 refereed articles on family business studies, the literature is organized according to its focus on individual, interpersonal or group, organizational, and societal levels of analyses. An assessment of the status of our current understanding at each level is provided and directions for future research are suggested. A discussion of definitional issues, bases of distinctiveness, and family firm performance is used to help understand the domain or scope of the field. Methodological issues and strategies aimed to enhance the pace at which the field achieves a distinctive legitimate place in organizational studies are presented.
1,469 citations
Cites background from "The pervasive effects of family on ..."
...Others have encouraged the adoption of a “family embeddedness perspective” by including the characteristics of family systems in research studies (Aldrich & Cliff, 2003; Chrisman, Chua, & Steier, 2003; Zahra et al., in press)....
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...6 11 For example, Aldrich and Cliff (2003) explore link-...
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...1 In a crisp articulation of the linkages between the fields of entrepreneurship and family business studies, Aldrich and Cliff (2003) suggest that families aid founders to recognize the opportunities around which to create a venture and lend support to ensure its birth and sustenance over time....
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...Efforts have been made to understand the leadership styles adopted by these leaders and their relationship with other family and nonfamily members (Aldrich & Cliff, 2003; Lubatkin, Ling, & Schulze, 2003; Sorenson, 2000)....
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...11 For example, Aldrich and Cliff (2003) explore linkages of family business studies with entrepreneurship; Stewart (2003) does it with anthropology; Sirmon and Hitt (2003) and Zahra (2003) link it to strategic management....
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TL;DR: In this paper, a review of important trends in the strategic management approach to studying family firms is provided, including convergence in definitions, accumulating evidence that family involvement may affect performance, and the emergence of agency theory and the resource-based view of the firm as the leading theoretical perspectives.
Abstract: This article provides a review of important trends in the strategic management approach to studying family firms: convergence in definitions, accumulating evidence that family involvement may affect performance, and the emergence of agency theory and the resourcebased view of the firm as the leading theoretical perspectives. We conclude by discussing directions for future research and other promising approaches to inform the inquiry concerning family business.
1,180 citations
Additional excerpts
...دریگ یم رارق یعامتجا گنهرف و یگداوناخ راتخاس ریثات تحت عبانم ملاعا رد یگداوناخ تکرش کی یناوتان هنوگچ هک دندومن رد ار یدرف هب رصحنم یاه یرترب دناوت یم مجسنم یگداوناخ تکرش کی هک دندنز سدح زین ناققحم ریاس دروآ تسدب عبانم بسک (Aldrich & Cliff, 2003; Haynes, Walker, Rowe &,Hong, 1999 ( ( یدوم و چیردلآ ،…...
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TL;DR: In this article, the authors focus on risk taking as one important dimension of entrepreneurial orientation and its impact in family firms and find that risk taking is a distinct dimension of entrepreneurship orientation in families and that it is positively associated with proactiveness and innovation.
Abstract: This article focuses on risk taking as one important dimension of entrepreneurial orientation and its impact in family firms. Drawing on a sample of Swedish SMEs, we find that risk taking is a distinct dimension of entrepreneurial orientation in family firms and that it is positively associated with proactiveness and innovation. We also find that even if family firms do take risks while engaged in entrepreneurial activities, they take risk to a lesser extent than nonfamily firms. Moreover, and most importantly for our understanding of entrepreneurial orientation in family firms, we find that risk taking in family firms is negatively related to performance. Both theoretical and practical implications of our findings are provided.
1,130 citations
Cites background from "The pervasive effects of family on ..."
...There are several arguments supporting the view that family firms can preserve their entrepreneurial capacity and continue to engage in risky projects and ventures (Aldrich & Cliff, 2003; Rogoff & Heck, 2003; Zahra et al., 2004)....
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...There are several arguments supporting the view that family firms can preserve their entrepreneurial capacity and continue to engage in risky projects and ventures ( Aldrich & Cliff, 2003; Rogoff & Heck, 2003; Zahra et al., 2004)....
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References
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Book•
01 Jan 2000TL;DR: Putnam as mentioned in this paper showed that changes in work, family structure, age, suburban life, television, computers, women's roles and other factors are isolating Americans from each other in a trend whose reflection can clearly be seen in British society.
Abstract: BOWLING ALONE warns Americans that their stock of "social capital", the very fabric of their connections with each other, has been accelerating down. Putnam describes the resulting impoverishment of their lives and communities. Drawing on evidence that includes nearly half a million interviews conducted over a quarter of a century in America, Putnam shows how changes in work, family structure, age, suburban life, television, computers, women's roles and other factors are isolating Americans from each other in a trend whose reflection can clearly be seen in British society. We sign 30 percent fewer petitions than we did ten years ago. Membership in organisations- from the Boy Scouts to political parties and the Church is falling. Ties with friends and relatives are fraying: we're 35 percent less likely to visit our neighbours or have dinner with our families than we were thirty years ago. We watch sport alone instead of with our friends. A century ago, American citizens' means of connecting were at a low point after decades of urbanisation, industrialisation and immigration uprooted them from families and friends. That generation demonstrated a capacity for renewal by creating the organisations that pulled Americans together. Putnam shows how we can learn from them and reinvent common enterprises that will make us secure, productive, happy and hopeful.
24,532 citations
Book•
01 Jan 1934
TL;DR: Buku ini memberikan infmasi tentang aliran melingkar kehidupan ekonomi sebagaimana dikondisikan oleh keadaan tertentu, fenomena fundamental dari pembangunan EKonomi, kredit, laba wirausaha, bunga atas modal, and siklus bisnis as mentioned in this paper.
Abstract: Buku ini memberikan infmasi tentang aliran melingkar kehidupan ekonomi sebagaimana dikondisikan oleh keadaan tertentu, fenomena fundamental dari pembangunan ekonomi, kredit dan modal, laba wirausaha, bunga atas modal, dan siklus bisnis.
16,325 citations
TL;DR: In this article, structural holes are defined as network gaps between players which create entrepreneurial opportunities for information access, timing, referrals, and for control, and the structural holes also generate control benefits giving certain players an advantage in negotiating their relationships.
Abstract: The study analyzes the social structure of competition. It addresses the consequences of voids in relational and resource networks. Competitive behavior can be understood in terms of player access to \"holes\" in the social structure of the competitive arena. Those \"structural holes\" are network gaps between players which create entrepreneurial opportunities for information access, timing, referrals, and for control. A player brings capital to the competitive arena and walks away with profit determined by the rate of return where the capital was invested. The rate of return is keyed to the social structure of the competitive arena. Each player brings three kinds of capital to the competitive arena: financial capital, such as money and investments; human capital, such as his or her natural qualities and skills; and social capital, i.e. networks of other players. Social capital is the final determinant of competitive success. Something about the structure of a player's network (his or her relations with other players, such as colleagues, friends, and clients), and the location of the player's network in the structure of the arena defines the player's chances of getting higher rates of return. These chances are enhanced by two kinds of network benefits for those who can exploit structural holes: information and control. Opportunities for success are many, but it is information that plays a central role in seizing them; structural holes determine who knows about opportunities, what they know, and who gets to participate. Structural holes also generate control benefits, giving certain players an advantage in negotiating their relationships. Following sociological theory, a player who derives benefit from structural holes by brokering relationships between other conflicted players is called tertius gaudens. The essential tension in tertius strategies is not hostility of participants, but rather uncertainty; no one has absolute authority in the relationship under negotiation. The findings of empirical research indicate that structural holes are advantageous to suppliers and customers, but not to producers in their negotiated transactions, because suppliers and customers benefit from competition among producers. The information and control benefits of structural holes are advantageous to managers, and the managers who develop those benefits are an asset to the firm employing them. Managers with networks rich in structural holes often reach promotion faster. Hole effects are most evident for managers operating on a social frontier, i.e. in places where two social worlds meet. Social frontiers involve continual negotiations of the expectations of the manager and those of the people across the frontier, and thus more entrepreneurial skill is required. The most serious frontier is the political boundary between top leadership and the rest of the firm. To move up the corporate ladder, a manager has to transform his or her frame of reference from that of an employee protected by the firm, to that of a leader responsible for the firm. The findings also indicate that women and entry-rank men tend to be promoted earlier because they build hierarchical networks around a strategic partner who helps them break into higher ranks. Although the reported differences between the manager networks have clear implications for promotions, there are no differences among managers in their tendencies to have one network rather than another, which is especially striking with respect to the sex and rank differences that are observed to be important in distinguishing network effects. Structural holes provide a theoretical connection between micro and macro levels of sociological analysis. The structural hole argument extends other theories, such as personality theory, interface theory of markets and population ecology, and resource dependence and transaction cost theory
12,103 citations
"The pervasive effects of family on ..." refers background in this paper
...During the past two decades, the notion that entrepreneurs are embedded in social relationships has become almost axiomatic in the entrepreneurship literature (Aldrich and Zimmer, 1986; Burt, 1992; Larson and Starr, 1993)....
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TL;DR: In this article, the authors draw upon previous research conducted in the different social science disciplines and applied fields of business to create a conceptual framework for the field of entrepreneurship, and predict a set of outcomes not explained or predicted by conceptual frameworks already in existence in other fields.
Abstract: To date, the phenomenon of entrepreneurship has lacked a conceptual framework. In this note we draw upon previous research conducted in the different social science disciplines and applied fields of business to create a conceptual framework for the field. With this framework we explain a set of empirical phenomena and predict a set of outcomes not explained or predicted by conceptual frameworks already in existence in other fields.
11,161 citations
Book•
01 Jan 1878
TL;DR: The Red River of the North basin of the Philippines was considered a part of the Louisiana Purchase by the United States Department of Commerce in the 1939 Census Atlas of the United Philippines as discussed by the authors.
Abstract: 1 Includes drainage basin of Red River of the North, not a part of any accession, but in the past sometimes considered a part of the Louisiana Purchase. i Includes Baker, Canton, Enderbury, Rowland, Jarvis, Johnston, and Midway Islands; and also certain other outlying islands (21 square miles). 3 Commonwealth of the Philippines, Commission of the Census; 1939 Census, Census Atlas of the Philippines. Source: Department of Commerce, Bureau of the Census.
10,650 citations