Academic Papers

Recent Publications

Journal of Business Venturing

Cassar, G., & Craig, J. An investigation of hindsight in nascent activity. Journal of Business Venturing, Forthcoming.

Abstract
We posit that individuals who are actively engaged in activities to develop their own venture will exhibit hindsight bias when recalling their startup experiences. We observe that those who fail to develop their startup activity into an operating business demonstrate substantial hindsight bias concerning the probability of venture formation. In particular, the recalled probability of success, reported after their decision to quit, is lower than the probability of success solicited during the nascent process. We argue that the systematic distortion of the past has important implications for individuals involved in the venturing process. Specifically, we suggest that these individuals are at risk of overestimating their chances of success when starting future nascent activity if they do not correct for their optimistic tendencies. The evidence from this study suggests it is important to recognize that what nascent entrepreneurs believe they experienced, and what they actually experienced, may not be equivalent.

Zahra, Shaker A., Hayton, James C., Neubaum, Donald O., Dibrell, Clay., & Craig, Justin. Culture of family commitment and strategic flexibility: The moderating effect of stewardship.Entrepreneurship Theory and Practice. Fall, 2008.

Abstract
The ability of family firms to identify and respond to changes in their external environments can be a key source of competitive advantage leading to success and survival. Some research, however, has suggested family firms are conservative and often lack the ability to adapt to their changing competitive environments.  Using data from 248 family firms, we found a family firm’s culture of commitment to the business is positively associated with its strategic flexibility – the ability to pursue new opportunities and respond to threats in the competitive environment.  Further, we found stewardship-oriented organizational culture positively moderated the family commitment-strategic flexibility relationship.

 

 

 

 

Randoy, Trond., Dibrell, Clay., & Craig, Justin. Founding family leadership and industry profitability. Journal of Small Business Economics. April, 2008.

Abstract
In this paper, we argue that firms in high margin industries can benefit from founding family influence. Specifically, in these generally more profitable markets, the influence of the founding family provides an additional governance monitoring function.  The sample consists of 294 firm-year observations from 98 publicly-traded companies.  Our findings support that the effect of family leadership in publicly-held firms should be assessed in relation to the intensity of industry competition.

 Journal of Small Business Management

Craig, J. B., Dibrell, C., & Davis, P. S. Leveraging family-based brand identity to enhance firm competitiveness and performance. Accepted with revisions Journal of Small Business Management, January 2009. 

Abstract
Drawing on the family embeddedness perspective on entrepreneurship and the resource-based-view (RBV) of the firm, we investigate how the promotion of family-based brand identity influences competitive orientation (customer versus product) and firm performance in family businesses. Applying structural equation modeling to survey data collected from leaders of 218 family businesses, we demonstrate that developing a family-based brand identity positively contributes to firm performance (growth and profitability) indirectly, via a customer-centric orientation. In contrast, attempts to leverage family-based brand identity via a product-centric orientation do not impact firm performance. Our results suggest that family-based brand identity enhances the family business’ ability to persuade customers to make purchasing decisions based on the perceived attributes of the seller. As a result, we contribute to the discussions centered on how to optimize the intricate synergy between family and business.

 Journal of Small Business Management 

Dibrell, C., Davis, P. S., & Craig, J. B. Fuelling innovation through information technology in small and medium-sized firms. Forthcoming at Journal of Small Business Management.  

Abstract
This paper describes a study investigating the mediating effects of information technology (IT) on the relationships among product and process innovations - and firm performance (measured in terms of profitability and growth rates). Using structural equation modelling on a sample of 397 small- and medium-sized businesses (SMEs), we find evidence that (1) increases in the emphasis placed on innovation, both product and process, positively impacts the emphasis managers place on information technology; (2) the impact of innovation (both product and process) on performance (both profitability and growth) is primarily indirect, felt via the mechanism of the emphasis managers place on information technology; and (3) an increased emphasis on information technology abets managers’ perception of their firms’ performance, as compared to that observed among peer firms (other SMEs). 
 

Family Business Case Handbook

Moncrief, S., Paul, J., & Craig, J. B. (2006) Working with family business: A content validity study of the Aspen Family Business Inventory. Family Business Research Handbook. Elgar Publications, 215-233.

 Abstract
Using Lawshe’s (1975) individual item method and Gregory’s (1996) overall assessment method, this study measures the content validity of the Aspen Family Business Inventory (AFBI), an assessment instrument designed specifically for use by consultants working with families in business. Nineteen experts in the field of family business consulting rated the AFBI’s scales and items for relevance, fit, clarity and overall content. In addition to establishing the content validity of the AFBI, this research is designed to familiarize family business consultants and researchers with, and encourage them to use, techniques similar to those introduced in this chapter as a first step in establishing the validity of the instruments that they use in working with families in business.

Robinson, D. A., Harvey, M. & Yupitun, M. 2008. Destructive leadership in family business: Modelling social exchange between generations. International Journal of Entrepreneurship and Small Business. In Press.

Abstract

This article is to address an important aspect of family businesses that has a direct impact on their future success, namely the effects of social exchange between the leader of a family business and prospective future leaders. A model has been formulated that examines the probable effects of destructive leadership on the respective welfares of each generation and examines the resultant willingness of the next generation to contribute to the firm.

How the actions of the family business leader are perceived by the family members as being of a negative or conflict-inducing nature, i.e. his/her interactions with the successor, are seen to be of utmost importance. Consequently, the use of a ‘communication compass’ is proposed as a way of ensuring that communication patterns between generations is perceived as appropriate, to enable both leader and follower to benefit in the long run.

 

Family Business Review

Dibrell, C., & Craig, J. B. (2006) The natural environment, innovation, and firm performance: A comparative study of family and non-family firms. Family Business Review, 21(4), 275-287.

Abstract
In this paper, we investigate the affect of firm-level natural environment-related policies on innovation and financial performance in family and non-family firms. Our findings demonstrate that family firms are better able to facilitate environmentally-friendly firm policies, which are associated with improved firm innovation and greater financial performance, more effectively than their non-family competitors.
* An earlier version of this paper won the best family business paper at the 2005 Babson College Kauffman Foundation Entrepreneurship Research Conference

Family Business Review 

Craig, J. B., Cassar, G., & Moores, K. J. (2006) A ten year investigation of strategy, systems and environment upon innovation in family firms. Family Business Review, 19(1), 1-10. 

Abstract
This article studies innovation in family firms, filling in some gaps in existent literature. The research addresses the idea of shifting leadership, different mechanisms of facilitating communication, and the importance to the firm of technical progress, linking each to innovation. Shifting leadership is addressed through the longitudinal design. Communication mechanisms are monitored through two constructs: scope of information and timeliness of information. Technical progress is included in an environmental uncertainty factor technoeconomic uncertainty. The findings suggest that linkages between established family firms and innovation may be substantially stronger than currently assumed by many.
* This paper registered as the sixth most downloaded paper on Blackwell Synergy - Family Business Review in 2007

Family Business Review 

Craig, J. B., & Moores, K. J. (2005) Balanced scorecards to drive the strategic planning of family firms. Family Business Review, XVIII(2), 105-122.

Abstract
The focus of this research is the measurement and management tool known as the Balanced Scorecard (BSC) and how it can be applied in the family business context. In this article we add familiness to the four BSC perspectives (financial, innovation and learning, customer, internal process) and illustrate how this can assist business development, management, and succession planning in family-owned businesses. We use an action research project to highlight how family businesses can professionalize their management by the adoption of a BSC strategy map that includes a family business focus and links the core essence of the family business with the values and the vision of the founder to the strategic initiatives of the family business. The F-PEC Scale constructs of power, experience, and culture are used to introduce a PEC statement that identifies and articulates the core essence of the family business. Finally, we discuss potential contributions that this project has for family businesses and those who work with and for them.
* This paper registered as the sixth most downloaded paper on Blackwell Synergy - Family Business Review in 2006


Family Business Review 

Craig, J. B., & Moores, K. J. (2002) How Australia’s Dennis Family Corporation professionalized its family business. Family Business Review, March, XV(1), 59-70. 

Abstract
This paper examines a second-generation family business that recently introduced professional corporate governance structures to its organization. The paper includes an outline of the company and an in-depth interview with the second-generation family member who was responsible for the process. Advice to those who are considering corporate governance changes to their family business appears throughout the interview.  

Small Business and Enterprise Development

Craig, J. B., & Lindsay, N. J. (2002) Incorporating the family dynamic into the entrepreneurship process. Journal of Small Business and Enterprise Development, 9(4), 416-430.

 Abstract
This research furthers our understanding of the interaction between the fields of entrepreneurship and family business. It presents a framework that introduces the family dynamic to Timmons' (1999) driving forces model of entrepreneurship. The framework highlights the influence of the family in the entrepreneurship process and the importance of the fit among the three driving forces and the family. It highlights the importance of, and the pivotal roles played by, outside boards of directors when entrepreneurial activities are undertaken by family businesses. Using extracts from interviews with family and non-family executives and board members, the research employs a single case study that describes an actual series of events to provide a practical application of the theory. 

Family Business Review

Moores, K. & Mula, Joseph (2000) The Salience of Market, Bureaucratic, and Clan Controls in the Management of Family Firm Transitions: Some Tentative Australian Evidence. Family Business Review. 13 (2), 91–106.  

Abstract
Despite the numerical and economic significance of family businesses to Australia, they are not extensively researched. This paper reports some of the results from a nationwide study of Australian family-owned businesses that sought to ascertain and understand their management and control practices. In particular, the paper assesses the organizational transitions of Australian family firms in terms of their dominant control practices. These control measures are evaluated according to Ouchi's classification of market, bureaucratic, and clan controls. The salience of these different forms of control serves to identify distinctive patterns that define periods of organizational passage (life cycles).

* This paper won the best research paper at World Family Business Network Conference 1995