Open Access
When do women make a better table? Examining the influence of women directors on family firm's corporate social performance
(SAGE Publications, 2019) Cruz, Cristina; Justo, Rachida; Larraza Kintana, Martín; Garcés Galdeano, Lucía; Enpresen Kudeaketa; Institute for Advanced Research in Business and Economics - INARBE; Gestión de Empresas
Our paper seeks to further understand the influence of gender board diversity on firms' corporate social performance (CPS) in the context of publicly held family firms. Grounded on corporate governance and family firm literature, we argue that the influence of women directors on CSP will be contingent on their relative power and legitimacy within the board, and that such dynamics are particularly important in family firm boardrooms. Our empirical results show that increases in CSP associated with the presence of women in the boards of family firms are due mainly to the presence of outsider nonfamily and insider family women directors. Implications for the theory of family firms are discussed.
Open Access
The role of female directors in family firms' annual report's readability
(Emerald, 2024) Abinzano Guillén, María Isabel; Garcés Galdeano, Lucía; Martínez García, Beatriz; Gestión de Empresas; Enpresen Kudeaketa; Institute for Advanced Research in Business and Economics - INARBE
Purpose: this paper investigates the impact of board gender diversity on the readability of the annual reports of family-controlled public companies. Design/methodology/approach: grounded in the premises of the restricted and extended views of the socioemotional wealth (SEW) approach and executive power theory, this paper explores the ways in which family-affiliated female directors influence report readability in a sample of 133 publicly traded US companies listed in the Fortune 1,000. We use the system GMM estimator, which deals with two key sources of endogeneity by controlling first for reverse causality, using the lags of the endogenous variables as instruments, and then for omitted variables, capturing the individual effect. Findings: our analysis confirms that the significant enhancement in annual report readability is associated with the presence of female family directors, particularly those who are insiders within the company. In contrast, non-family female directors and family outsider directors appear to have a negative impact on annual report readability. Originality/value: while scholars have increasingly focused on variations in annual report readability among family firms, the contribution of female directors to this phenomenon has received minimal attention. In our study, we integrate the theories of restricted and extended SEW perspectives with the theory of women's executive power within the board. This integration is essential for considering two critical factors: firstly, the primacy of their SEW objectives, and, secondly, their legitimacy within the board.
Open Access
Are family firms really more socially responsible?
(SAGE, 2014) Cruz, Cristina; Larraza Kintana, Martín; Garcés Galdeano, Lucía; Berrone, Pascual; Gestión de Empresas; Enpresen Kudeaketa
This paper conducts an empirical study as to whether family firms are more socially responsible than their non-family counterparts, and explores the conditions in which this difference in social behavior occurs. We argue that family firms, given their socioemotional wealth bias, have a positive effect on social dimensions linked to external stakeholders, yet have a negative impact on internal social dimensions. Thus, family firms can be socially responsible and irresponsible at the same time. We also suggest that institutional and organizational conditions act as catalysts in the relationship between firm type and CSR. General support for our thesis that family firms neglect internal social dimensions came from the study of a sample of 598 listed European firms over a period of 4 years. Moreover, while national standards and industry conditions influence the degree of CSR in non-family firms, these factors do not affect family firms. However, family firms’ social activities are more sensitive to declining organizational performance.
Embargo
Editorial note: heterogeneity in management and governance in family firms
(Elsevier, 2023) Garcés Galdeano, Lucía; Gestión de Empresas; Enpresen Kudeaketa; Institute for Advanced Research in Business and Economics - INARBE
Heterogeneity within family firms has emerged as a pivotal area of research interest. This special edition of The Journal of High Technology Management Research makes a significant contribution to the existing body of knowledge on the diversity found within family-run enterprises, with a specific emphasis on the variances in governance and management structures. In this introductory piece, the proposition is put forth that family governance, encompassing both ownership and management, alongside the decisions guiding governance practices, plays a pivotal role in driving diversity within family businesses. This exploration delves into multiple facets of heterogeneity within family firms. The subsequent content of this issue comprises four studies that illuminate the impact of governance on diverse aspects, including the intergenerational transmission of knowledge, innovation in products and processes, strategic maneuvers, and the distinctive governance structures prevalent in Latin American family businesses. Furthermore, this discourse extends beyond the findings presented in these studies by delving into uncharted realms of research, focusing on the disparities evident in the contextual settings and governance mechanisms adopted by different family firms.
Open Access
Psychological ownership in family firms: a perspective article
(Emerald, 2024-02-12) Caicedo Leitón, Ana Lucía; Garcés Galdeano, Lucía; Larraza Kintana, Martín; Gestión de Empresas; Enpresen Kudeaketa; Institute for Advanced Research in Business and Economics - INARBE
Purpose: This article explores psychological ownership (PO) in family firms (FFs); its impact on interpersonal relationships, attitudes and behaviors within the organization; and its importance for long-term success. It also highlights the factors that contribute to PO in these types of businesses. Design/methodology/approach: The article conducts a literature review that utilizes existing research to delve into the phenomenon of PO within the context of FFs. Findings: The article emphasizes that PO significantly impacts employee behavior and attitudes toward FFs. It shows the favorable influence of PO on employees' conduct and mindset. However, excessive PO can lead to disputes and obstruct the transfer of control. Practical implications: The success of family businesses depends on nurturing strong, positive PO in future generations and among nonfamily members. Originality/value: The article contributes to PO literature in FFs by analyzing its influence on FFs. It highlights factors affecting PO formation and its consequences and highlights novel lines of future research.
Open Access
Emprendimiento y empresa familiar: ¿dos disciplinas hermanas o distintas?
(Universidad de Deusto, 2023) Garcés Galdeano, Lucía; Larraza Kintana, Martín; Gestión de Empresas; Enpresen Kudeaketa
El emprendimiento y la empresa familiar ¿son dos disciplinas hermanas o distintas? Ambas son disciplinas con entidad propia, pero desde el inicio ambas han estado fuertemente conectadas. De hecho, las empresas familiares han sido consideradas como un elemento central del proceso emprendedor donde la influencia de la familia es particularmente relevante en las primeras etapas de la creación de la empresa. Sin embargo, la etapa inicial de estas empresas ha sido poco explorada. Este artículo tiene un doble objetivo. En primer lugar, proporciona una pequeña perspectiva histórica de la evolución de las dos disciplinas académicas y sus interrelaciones, y, en segundo lugar, trata de resumir las principales conclusiones de la escasa literatura sobre la perspectiva del arraigo familiar que estudia el binomio familia-emprendimiento. Por último, el trabajo propone diferentes líneas de investigación para futuros estudios relacionados con la empresa familiar y el emprendimiento.
Open Access
Female CEOs and default risk in listed family firms
(Emerald, 2023) Abinzano Guillén, María Isabel; Garcés Galdeano, Lucía; Martínez García, Beatriz; Gestión de Empresas; Enpresen Kudeaketa; Institute for Advanced Research in Business and Economics - INARBE
Purpose: The purpose of this paper is to examine the effect of female CEO board members on listed family firms’ corporate default risk, integrating upper echelons theory with social role theory and the socio-emotional wealth approach and proxying default risk with the Black–Scholes–Merton model. It also searches for possible differences attributable to the type of female CEO. Design/methodology/approach: This study is applied to a longitudinal sample of listed US family firms. After a preliminary analysis of the main descriptive, several models are estimated with the system GMM estimator, which is a panel data estimator. The models are dynamic, including the lagged value of the dependent variable. In addition, the model estimation is repeated with a different measure of default risk, for robustness. Findings: This research findings show that default risk diminishes in the presence of a female CEO, whose reduction is even greater if she is a family member. The results are proven to be robust to the measure for proxying default risk. Originality/value: This study primarily contributes to the existing literature by exploring a possible link between female CEOs, particularly those with a family affiliation, and a lower level of default risk in family firms. It also provides practical implications for policymakers, who would be advised to promote conditions enabling women to contribute towards family business viability. In addition, this study offers encouragement for family business owners to value the potential of their female family members in company succession processes.
Open Access
Family firms: the role of non-economic factors
(2015) Garcés Galdeano, Lucía; Larraza Kintana, Martín; Gestión de Empresas; Enpresen Kudeaketa
En esta tesis se estudia el papel de los factores no económicos en la toma de decisiones de las empresas familiares y las compara así con las decisiones tomadas por las empresas no familiares. Analiza los factores no económicos en distintas bases de datos y a través de diferentes variables económicas, como son: la orientación emprendedora, la responsabilidad social corporativa y la satisfacción general de la empresa respecto a los resultados económicos. La variedad de contextos económicos, así como la distintas variables analizadas hacen que los resultados sean mucho más consistentes. Además, se utilizan distintos factores moderadores que contribuyen y enriquecen el marco teórico. La tesis no sólo compara las empresas familiares y las no familiares en base a las anteriores variables económicas sino que además es capaz de explicar las variaciones que exiten en los comportamientos dentro de las empresas familiares, contribuyendo al actual debate sobre la heterogeneidad de la empresa familiar. Por último, la tesis amplia el estudio sobre la teoría de la riqueza socioemocional, y su aplicación en la empresa familiar junto con otras teorías que hacen más fácil la comprensión del especial comportamiento de la empresa familiar.
Open Access
The hidden value of intangibles: do CEO characteristics matter?
(Emerald, 2019) Garcés Galdeano, Lucía; García Olaverri, Carmen; Enpresen Kudeaketa; Estatistika, Informatika eta Matematika; Institute for Advanced Research in Business and Economics - INARBE; Gestión de Empresas; Estadística, Informática y Matemáticas
Purpose: A great deal of research has examined the relationship between a single CEO attribute and a single measure of firm performance; no attempts have been made to integrate them to create a more global vision of both. Therefore, trying to answer new calls from Wang et al. (2016) or Liu, Fisher and Chen (2018) about a more global vision of the CEO characteristics, the authors are going to take a step forward to combine different CEO characteristics with different firm performance measure in order to show that a certain managerial profile would have an impact on several variables of firm performance. This paper aims to discuss these issues. Design/methodology/approach: Using a sample of 1,236 small firms in high- and medium-high-technology sectors and through the Canonical Correlation Analysis, the authors are able to create different CEO’s profiles that influence on different combinations of firm performance variables. Findings: The authors obtain different CEO’s profiles that influence on different combinations of firm performance variables. Each CEO profile will enhance or diminish one kind of performance measure. The authors found that on the one hand, young, well-educated with external experience CEO profile will enhance innovative performance and firm growth, and on the other hand, old and more internal and external experience CEO profile will enhance the exploitation of external knowledge. Originality/value: Through this analysis, the authors will be able to provide a more comprehensive analysis of the predictions about the role of CEOs in small firms.
Open Access
Bundles of HRM practices in family and non-family firms: the impact on enhancing performance
(Routledge, 2019) Bello Pintado, Alejandro; Garcés Galdeano, Lucía; Gestión de Empresas; Enpresen Kudeaketa; Institute for Advanced Research in Business and Economics - INARBE
This paper analyzes how ability, motivation and opportunity bundles of HRM practices affect enhanced manufacturing performance in family firms (FFs) and non-family firms (NFFs). Five hypotheses were proposed and tested using data from a unique survey of 301 manufacturing plants located in Uruguay and Argentina. Estimations indicate that coherent bundles comprising HRM practices aimed at enhancing abilities (A) and giving workers the opportunity to participate in the decision-making process (O), individually and interactively, have a positive effect on manufacturing performance in FFs. A motivational bundle of HRM practices (M) has a positive effect on enhanced performance in NFFs. The study therefore establishes the existence of hierarchies among bundles, which vary with company ownership.