Academic Papers

Balancing natural environment concerns of internal and external stakeholders in family and non-family businesses

Journal of Family Business Strategy, (2012) March.

Neubaum, D. O., Dibrell, C., & Craig, J. B.

Abstract
While researches have long suggested that firms must be attentive to their key stakeholders, the question of how attention to different stakeholders may have different benefits for different firms has not been well addressed. This is especially true in the case of family businesses, which confront a unique set of stakeholder challenges, and socioemotional goals not confronted by non-family firms. In this study, we investigate the effect of these competing demands across family and non-family firms. We argue that while being attentive to both internal and external stakeholders is important to firm performance in family and non-family firms, family firms can benefit more when they match their concern for natural environmental stakeholders with a demonstration of concern for their employees. By effectively leveraging the power of these critical internal stakeholders, family firms can gain competitive advantages over non-family firms as it is through these internal stakeholders which the demands of external stakeholder are often met.
 

The distinctiveness, design, and direction of family business research: Insights from management luminaries.

(2012) Family Business Review, (March), pagination to follow. Available on-line December 5, 2011.

Craig, J. B., & Salvato, C

Abstract
In this article, the authors contribute to the 25th anniversary edition of Family Business Review by gleaning from a coterie of six established scholars insights related to the distinctive nature of family business research, the research designs that emanate from this distinctiveness, and their thoughts related to the direction of the field. While their insights are confirmatory to many who have contributed to the field’s strong current positioning, they serve to highlight to others the rich research opportunities that remain unexplored in the vast family business arena.
 

Firm ownership and productivity: a study of family and non-family SMEs

(2011) Journal of Small Business Economics.

Francesco Barbera & Ken Moores

Abstract
Motivated by a lack of consensus in the current literature, the objective of this paper is to reveal whether family firms are more or less productive than non-family firms. As a first step, this paper links family business research to the theoretical notion that family involvement has an effect on the factors of production from a productivity standpoint. Second, by using a Cobb–Douglas framework, we provide empirical evidence that family labour and capital indeed yield diverse output contributions compared with their non-family counterparts. In particular, family labour output contributions are significantly higher, and family capital output contributions significantly lower. Interestingly, differences in total factor productivity between family and non-family firms disappear when we allow for heterogeneous output contributions of family production inputs. These findings imply that the assumption of homogeneous labour and capital between family and non-family firms is inappropriate when estimating the production function.

Natural Environment, Market Orientation, and Firm Innovativeness:
An Organizational Life Cycle Perspective

Journal of Small Business Management 2011 49(3)

Clay Dibrell, Justin Craig, and Eric Hansen

Abstract
Drawing upon the corporate social responsibility literature, we investigate the moderating effects of the natural environment and the stage of an organization’s life cycle on the market orientation to firm innovativeness relationship. Through 229 owners or chief executive officer respondents, our results establish evidence of (1) a positive linkage between market orientation and firm innovativeness; (2) natural environmental policy positively moderating the market orientation to firm innovativeness relationship; and (3) organizational life cycle negatively moderating market orientation to innovativeness. Our findings suggest ventures characterized as being early in the organizational life cycle are more likely to have a positive environmental policy toward the natural environment leading to a competitive advantage through firm innovativeness.
 

How managerial attitudes toward the natural environment
affect market orientation and innovation

Journal of Business Research 64 (2011) 401–407

Clay Dibrell, Justin B. Craig, Eric N. Hansen

Abstract
This study investigates natural environmental attitude linkages held by strategic decision makers and hypothesizes that the interaction between market orientation and managerial natural environmental attitudes serves to enhance the effect of market orientation on firm innovativeness. Using questionnaire responses from 284 owners or chief executive officers residing in the food processing industry, the findings establish evidence of (1) a positive linkage between market orientation and firm innovativeness, and (2) the moderating effect of managerial attitudes of top managers toward the natural environmental in the market
orientation to firm innovativeness relationship. The results provide insight into the nature of the cultural values on which a market orientation is based in relation to the natural environment.
 

Desk Rejection: How to Avoid Being Hit by a Returning Boomerang

Justin B. Craig

Family Business Review 2010 December

Abstract
Desk rejection is something that most scholars experi¬ence sometime during their career. The stories of woe are commonplace in conference hotel bars, campus cof¬fee shops, and faculty photocopy room conversations, and reactions are shared in colorful language in various postrejection emails and phone calls among disenchanted authors. This article contributes to this discourse and in so doing continues a series of editor’s notes aimed at reflecting on issues of importance to Family Business Review (FBR) readers and contributors. To date, the edi¬torials from the current editorial team have addressed (a) publishing your qualitative research (Chenail, 2009), (b) the craft of reviewing (Sharma & Kellermanns, 2009), and (c) strengthening your literature review (Reuber, 2010).

Clarifying the strategic advantage of familiness:
Unbundling its dimensions and highlighting its paradoxes.

(2010) Journal of Family Business Strategy 1(3)

Irava, W., & Moores, K.

Abstract
Using a resource-based theoretical lens we clarify familiness by identifying the dimensions of this unique family business resource in multigenerational family firms. Using data from four in-depth case studies, we provide evidence that familiness is comprised of human resources (reputation and experience), organisational resources (decision-making and learning), and process resources (relationships and networks). Furthermore, we demonstrate how these resource dimensions are paradoxical in nature in that each influences the family firm in both positive and negative ways. These dimensions and their nature (positive/negative) thus not only help clarify a firm's familiness but also move the construct from a conceptual notion into a more operationalised form

Research on accounting in family firms:
past accomplishments and future challenges

(2010) Family Business Review 23(3)

Salvato, C., & Moores, K.

Abstract
Accounting practices in family firms, although displaying evident unique features, have received relatively little attention as distinct from their equivalents in publicly held firms. This may have hampered conceptual advancements in both the accounting and the family business literatures. In this article the authors first assess accounting areas in which the “family entity” plays a distinct role and elaborate on important characteristics of these phenomena. They also report evidence suggesting that additional research efforts may illuminate both unresolved issues in the accounting literature and so-far-neglected dimensions of the family business entity. Finally, the authors examine several different avenues for research at the accounting—family business interface and identify common themes among them.

The intersection of family business and audit research: Potential opportunities

(2010) Family Business Review 23(3)

Trotman, A.J., & Trotman, K.T.

Abstract
Previous research has illustrated the importance of family businesses and significant differences between family and nonfamily businesses. Such differences will likely affect auditing for family versus nonfamily businesses. The authors emphasize experimental research labelled as “audit judgment and decision making research.” They argue that some aspects of people, tasks, and environment are different between family and nonfamily businesses and that these differences affect auditor judgments. A range of theoretical frameworks applicable to auditing research related to family businesses are considered. The authors suggest potential research opportunities related to auditor judgments, auditor—client negotiations, the demand for auditing, audit quality, corporate governance, and internal audit.
 

Strategically Aligning Family and Business using the Balanced Scorecard

(2010) Journal of Family Business Strategy 1 (2)

Craig, J. B., & Moores, K. J.

Abstract
We take an integrated approach to align issues that influence the family and business systems. Using innovation action research (Kaplan, 1998) we illustrate how the Balanced Scorecard that includes reference to family business challenges can be introduced and used to assist family members, board members and management in a third-generation Australian family-owned business. The process of scorecard development is discussed and the development of the core essence, vision and mission statements, strategic objectives, measures and targets, which can be scrutinized by family business stakeholders to ascertain consistency with the vision of the company, is outlined. We suggest that, in the family domain, the BSC assists in the education of, and communication among, family members. From a business system perspective, the BSC is a useful tool to link and align the family with the business, and this too has benefits in communication and education terms. A conceptual mapping framework is introduced and propositions that will guide future projects are detailed.

Championing Family Business Issues to Influence Public Policy: Evidence from Australia

(2010) Family Business Review 23 (2)

Craig, J. B., & Moores, K. J.

Abstract
This paper proposes a strategy for the family firm sector to gain the attention of policy makers. The strategy builds through influencing social expectations, creating political issues, developing legislative actions which are subsequently implemented and regulated. To achieve this, we suggest that the family business sector must achieve salience as a community’s definitive stakeholders in which capacity they possess, or are perceived to possess, attributes of power, legitimacy and urgency. Propositions are advanced consistent with developing these attributes that collectively build a policy pathway from the societal benefits that family firms can provide by suggesting the building and management of family firm resources to generate optimal outcomes. Experiences from Australia to illustrate the introduced processes are included.

Family business research at a tipping point threshold

(2009) Journal of Management and Organization 15(3)

Craig, J. B., Howorth, C., Moores, K., & Poutziouris, P.

Abstract
In this paper, we report the frequency that family business research has been published by year and by discipline in top-tier journals as listed in the Journal Quality List (JQL) (Harzing 2008) to argue that family business research has reached a tipping point threshold. We suggest that the acceptance of family business research in top-tier journals is the tipping point that will enamour the field to a wider researcher audience and thereby further contribute to paradigmatic development.

Spotlights and shadows: Preliminary findings about the
experiences of women in family business leadership roles

(2009) Journal of Management and Organization 15(3)

Barrett, M., & Moores, K.

Abstract
This study focuses on women in FCBs to better understand how they exercise leadership and entrepreneurship in the family firm context. Case study analysis of an international sample of women FCB leaders, using frameworks which avoid essentialist assumptions about women’s and men’s approach to leadership, suggest there are some characteristic ways women leaders learn FCB leadership and entrepreneurship roles. We have tentatively labelled them stumbling into the spotlight, building your own stage, directing the spotlight elsewhere, and coping with shadows. This paper uses Eisenhardt’s (1989) framework to elaborate on the stumbling into the spotlight and coping with shadows journeys and what can be learned from them.

Family business: A rich research repository

(2009) Journal of Management and Organization 15(3)

Craig, J. B., Moores, K., Howorth, C., & Poutziouris, P.

Abstract
This article serves as the epilogue to the Family Business Special Issue of the Journal of Management and Organization in July 2009. Key issues raised in the special issue are highlighted; most significantly the growth and internationalisation of family business research, such that it has reached a ‘tipping point’, encouraging scholars from all disciplines to contribute to the growing body that is family business research.

Research Family Business: An interview with Danny Miller

(2009) Journal of Management and Organization 15(3)

Moores, K.

Abstract
In 2005 Danny Miller and Isabelle Le Breton Miller published Managing for the Long Run: Lessons in Competitive Advantage from Great Family Businesses which together with a series of articles have had a significant impact on scholarship in the field of family business. Here we explore with Danny his motivations for entering this emergent field and seek his insights for those wanting to follow his lead into family business research. Specifically Danny answers the why, what, and how of his entry into family business research: why he was motivated to move to the field, what he found and focused on, and how he sought to make contributions to the broad areas of management and organizations from the context of family business.

Paradigms and theory building in the domain of business families.

(2009) Family Business Review, 22(2), 167-180. 

Moores, K. J.

Abstract
This article argues the bona fides of the study of family business as a standalone discipline. Using a widely accepted evolutionary process for the development of scientific disciplines and an established theory-building methodology, the author introduces a theoretically robust explanation of the domain of business families. Established theories widely acknowledged as having relevance to business families are meshed with the universally accepted three-circle Venn diagram-based paradigm to illustrate both the stage of the discipline in theory building terms and an evolutionary path to further develop a theory of the business family domain.

An investigation of hindsight in nascent activity.

(2009) Journal of Business Venturing, Forthcoming

Cassar, G., & Craig, J.

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 recognise that what nascent entrepreneurs believe they experienced, and what they actually experienced, may not be equivalent.

Culture of family commitment and strategic flexibility:
The moderating effect of stewardship.

(2008) Entrepreneurship Theory and Practice.

Zahra, Shaker A., Hayton, James C., Neubaum, Donald O., Dibrell, Clay., & Craig, Justin.

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 organisational culture positively moderated the family commitment-strategic flexibility relationship.

Founding family leadership and industry profitability.

(2008) Journal of Small Business Economics.

Randoy, Trond., Dibrell, Clay., & Craig, Justin.

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.

Leveraging family-based brand identity to enhance firm competitiveness and performance.

(2008) Journal of Small Business Management,  46(3), pp351- 371 Accepted with revisions

Craig, J. B., Dibrell, C., & Davis, P. S.

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 modelling 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.

Fuelling innovation through information technology in small and medium-sized firms.

(2008) Journal of Small Business Management, 46(2), pp203-218

Dibrell, C., Davis, P. S., & Craig, J. B.

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).

Working with family business: A content validity study of the Aspen Family Business Inventory.

(2006) Family Business Research Handbook. Elgar Publications, 215-233.

Moncrief, S., Paul, J., & Craig, J. B.

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 familiarise 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.

Destructive leadership in family business: Modelling social exchange between generations.

(2008) International Journal of Entrepreneurship and Small Business. In Press.

Robinson, D. A., Harvey, M. & Yupitun, M.

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.

The natural environment, innovation, and firm performance: A comparative study of family and non-family firms.

(2006) Family Business Review, 21(4), 275-287.

Dibrell, C., & Craig, J. B. 

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

A ten year investigation of strategy, systems and environment upon innovation in family firms.

(2006) Family Business Review, 19(1), 1-10.

Craig, J. B., Cassar, G., & Moores, K. J.

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 techno-economic 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

Balanced scorecards to drive the strategic planning of family firms.

(2005) Family Business Review, XVIII(2), 105-122.

Craig, J. B., & Moores, K. J.

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 professionalise 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

How Australia’s Dennis Family Corporation professionalized its family business.

(2002) Family Business Review, March, XV(1), 59-70.

Craig, J. B., & Moores, K. J.

Abstract
This paper examines a second-generation family business that recently introduced professional corporate governance structures to its organisation. 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.

Incorporating the family dynamic into the entrepreneurship process.

(2002) Journal of Small Business and Enterprise Development, 9(4), 416-430.

Craig, J. B., & Lindsay, N. J.

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.

The Salience of Market, Bureaucratic, and Clan Controls in the Management of Family Firm Transitions: Some Tentative Australian Evidence.

(2000) Family Business Review. 13 (2), 91–106.

Moores, K. & Mula, Joseph

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 organisational 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 organisational passage (life cycles).

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