USING INTERPRETIVE STRUCTURAL MODELLING TO EXPLORE SOCIO-EMOTIONAL WEALTH (SEW) THAT INFLUENCE ON FAMILY FIRM PERFORMANCE
Keywords:
Interpretive structural modelling, Socio-emotional wealth, family firm performanceAbstract
Family firm are very important organization form because it generate more than 50 % of GDP of many countries but empirical research still not clear how family involvement in family business influence on firm performance.The objective of this study is to explore the relationships between the factors of socio-emotional wealth relating to governance mechanism, and the entrepreneurial orientation impact on performances of family firm in Thailand. This study was employed interpretive structural modelling technique. Data were collected by applying the Delphi method from the seven experts from scholar and automobile industry. This study found that the factors of socio-emotional wealth has a strong power on ownership, the notion of fairness, the board of directors, an entrepreneurial orientation and firm performance. This finding would be beneficial to practitioners on how to balance their socio emotional wealth or the effective needs or goals of a family and effective strategies to improve family firm performance.
References
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Poduval, P. S., & Pramod, V. R. (2015). Interpretive structural modeling (ISM) and its application in analyzing factors inhibiting implementation of total productive maintenance (TPM). International Journal of Quality & Reliability Management, 32(3), 308–331.
Romero, M. J. M., & Ramírez, A. A. R. (2016). SEW: Looking for a definition and controversial issues. European Journal of Family Business, 6(1), 1–9.
Rudmin, F. W., & Berry, J. W. (1987). Semantics of ownership: A free-recall study of property. The Psychological Record, 37(2), 257–268.
San Martin-Reyna, J. M., & Duran-Encalada, J. A. (2012). The relationship among family business, corporate governance and firm performance: Evidence from the Mexican stock exchange. Journal of Family Business Strategy, 3(2), 106–117.
Suess, J. (2014). Family governance–Literature review and the development of a conceptual model. Journal of Family Business Strategy, 5(2), 138–155.
Suess-Reyes, J. (2017). Understanding the transgenerational orientation of family businesses: the role of family governance and business family identity. Journal of Business Economics, 87(6), 749–777.
Anderson, R. C., & Reeb, D. M. (2003). Founding-family ownership and firm performance: evidence from the S&P 500. The Journal of Finance, 58(3), 1301–1328.
Attri, R., Grover, S., Dev, N., & Kumar, D. (2013). Analysis of barriers of total productive maintenance (TPM). International Journal of System Assurance Engineering and Management, 4(4), 365–377.
Berrone, P., Cruz, C., & Gomez-Mejia, L. R. (2012). Socioemotional wealth in family firms: Theoretical dimensions, assessment approaches, and agenda for future research. Family Business Review, 25(3), 258–279.
Cheng, Q. (2014). Family firm research–A review. China Journal of Accounting Research, 7(3), 149–163.
Chua, J. H., Chrisman, J. J., & Sharma, P. (1999). Defining the family business by behavior. Entrepreneurship: Theory and Practice, 23(4), 19–19.
Combs, J. G., Russell Crook, T., & Shook, C. L. (2005). The dimensionality of organizational performance and its implications for strategic management research. In Research methodology in strategy and management (pp. 259–286). Emerald Group Publishing Limited.
Corbetta, G., & Salvato, C. A. (2004). The board of directors in family firms: one size fits all? Family Business Review, 17(2), 119–134.
Covin, J. G., & Wales, W. J. (2012). The measurement of entrepreneurial orientation. Entrepreneurship Theory and Practice, 36(4), 677–702.
Cruz, C. C., Gómez-Mejia, L. R., & Becerra, M. (2010). Perceptions of benevolence and the design of agency contracts: CEO-TMT relationships in family firms. Academy of Management Journal, 53(1), 69–89.
Cruz, C., Justo, R., & De Castro, J. O. (2012). Does family employment enhance MSEs performance?: Integrating socioemotional wealth and family embeddedness perspectives. Journal of Business Venturing, 27(1), 62–76. https://doi.org/10.1016/j.jbusvent.2010.07.002
Davis, J. H., Schoorman, F. D., & Donaldson, L. (1997). Toward a stewardship theory of management. Academy of Management Review, 22(1), 20–47.
Dubey, R., Gunasekaran, A., Wamba, S. F., & Bag, S. (2015). Building theory of green supply chain management using Total Interpretive Structural Modeling (TISM). IFAC-PapersOnLine, 48(3), 1688–1694.
Eisenhardt, K. M. (1989). Agency theory: An assessment and review. Academy of Management Review, 14(1), 57–74.
Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. The Journal of Law & Economics, 26(2), 301–325.
Gallo, M. A., & Kenyon-Rouvinez, D. (2005). The importance of family and business governance. In Family Business (pp. 45–57). Springer.
Gersick, K. E., & Feliu, N. (2014). Governing the family enterprise: Practices, performance, and research. The SAGE Handbook of Family Business, 196–225.
Goel, S., Mazzola, P., Phan, P. H., Pieper, T. M., & Zachary, R. K. (2012). Strategy, ownership, governance, and socio-psychological perspectives on family businesses from around the world. Journal of Family Business Strategy, 3(2), 54–65. https://doi.org/10.1016/j.jfbs.2012.03.005
Gomez-Mejia, L. R., Cruz, C., Berrone, P., & De Castro, J. (2011a). The bind that ties: Socioemotional wealth preservation in family firms. The Academy of Management Annals, 5(1), 653–707.
Gomez-Mejia, L. R., Cruz, C., Berrone, P., & De Castro, J. (2011b). The bind that ties: Socioemotional wealth preservation in family firms. Academy of Management Annals, 5(1), 653–707.
Hallowell, M. R., & Gambatese, J. A. (2009). Qualitative research: Application of the Delphi method to CEM research. Journal of Construction Engineering and Management, 136(1), 99–107.
Hallowell, M. R., & Gambatese, J. A. (2010). Population and initial validation of a formal model for construction safety risk management. Journal of Construction Engineering and Management, 136(9), 981–990.
Henssen, B., Voordeckers, W., Lambrechts, F., & Koiranen, M. (2014). The CEO autonomy–stewardship behavior relationship in family firms: The mediating role of psychological ownership. Journal of Family Business Strategy, 5(3), 312–322.
Jaffe, D. T., & Lane, S. H. (2004). Sustaining a family dynasty: key issues facing complex multigenerational business-and investment-owning families. Family Business Review, 17(1), 81–98.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (2000). Investor protection and corporate governance. Journal of Financial Economics, 58(1), 3–27.
M. Lau, C., & Martin-Sardesai, A. (2012). The role of organisational concern for workplace fairness in the choice of a performance measurement system. The British Accounting Review, 44, 157–172. https://doi.org/10.1016/j.bar.2012.07.006
Madison, K., Holt, D. T., Kellermanns, F. W., & Ranft, A. L. (2015). Viewing family firm behavior and governance through the lens of agency and stewardship theories. Family Business Review, 0894486515594292.
O’Boyle Jr, E. H., Pollack, J. M., & Rutherford, M. W. (2012). Exploring the relation between family involvement and firms’ financial performance: A meta-analysis of main and moderator effects. Journal of Business Venturing, 27(1), 1–18.
Pindado, J., & Requejo, I. (2015a). Family business performance from a governance perspective: a review of empirical research. International Journal of Management Reviews, 17(3), 279–311.
Pindado, J., & Requejo, I. (2015b). Family business performance from a governance perspective: A review of empirical research. International Journal of Management Reviews, 17(3), 279–311.
Poduval, P. S., & Pramod, V. R. (2015). Interpretive structural modeling (ISM) and its application in analyzing factors inhibiting implementation of total productive maintenance (TPM). International Journal of Quality & Reliability Management, 32(3), 308–331.
Romero, M. J. M., & Ramírez, A. A. R. (2016). SEW: Looking for a definition and controversial issues. European Journal of Family Business, 6(1), 1–9.
Rudmin, F. W., & Berry, J. W. (1987). Semantics of ownership: A free-recall study of property. The Psychological Record, 37(2), 257–268.
San Martin-Reyna, J. M., & Duran-Encalada, J. A. (2012). The relationship among family business, corporate governance and firm performance: Evidence from the Mexican stock exchange. Journal of Family Business Strategy, 3(2), 106–117.
Suess, J. (2014). Family governance–Literature review and the development of a conceptual model. Journal of Family Business Strategy, 5(2), 138–155.
Suess-Reyes, J. (2017). Understanding the transgenerational orientation of family businesses: the role of family governance and business family identity. Journal of Business Economics, 87(6), 749–777.
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Published
2020-01-23
How to Cite
Arunchit, B., Saenchaiyathon, K., Naipinit, A., & Petison, P. (2020). USING INTERPRETIVE STRUCTURAL MODELLING TO EXPLORE SOCIO-EMOTIONAL WEALTH (SEW) THAT INFLUENCE ON FAMILY FIRM PERFORMANCE. Modern Management Journal, 17(2), 91–98. Retrieved from https://so04.tci-thaijo.org/index.php/stou-sms-pr/article/view/207657
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