Managerial Capabilities in the Family Tourist Business: Is Professionalization the Key to Their Development?

Authors

DOI:

https://doi.org/10.24310/ejfbejfb.v11i2.10794

Keywords:

Family business, Governance structure, Management capabilities, Professionalization, Tourism sector

Abstract

The main objective of this paper is to analyze the elements of the particular governance structure of the family business and the involvement of the family in the business in order to verify its effects on managerial capabilities. Likewise, professionalization in this type of company will be studied as a moderating variable. To address this analysis, the Resource and Capabilities Based-View and the Agency Theory will be taken as a basis. The empirical study is carried out on a base of 591 Spanish tourism companies using a multiple linear regression analysis. The results show that many of the peculiar characteristics of the family business have a negative effect on their managerial skills, preventing their proper development. However, the professionalization of the maximum responsible of the family business would contribute to alleviating these problems, facilitating the development of the said skills in the family business.

Downloads

Download data is not yet available.

Metrics

Metrics Loading ...

References

Aldrich, H.E. & Cliff, J.E. (2003). The pervasive effects of family on entrepreneurship: Toward a family embeddedness perspective. Journal of Business Venturing, 15(5), 573-596.

Astrachan, J.H. (2010). Strategy in family business: Toward a multidimensional research agenda. Journal of Family Business Strategy, 1, 6-14.

Astrachan, J.H., Allen, I.E. & Spinelli, S. (2002): Mass mutual/Raymond Institute American family business survey. Springfield, MA: Mass Mutual Financial Group.

Ateljevic, I. & Doorne, S. (2000). Staying within the fence: Lifestyle entrepreneurship in tourism. Journal of Sustainable Tourism, 8, 378-392.

Bantel, K.A. & Jackson, S.E. (1989). Top management and innovations in banking: Does the composition of the top team make the difference?. Strategic Management Journal, 10, 107-124.

Bañegil, T.M., Barroso, A. & Tato, J.L. (2011). Profesionalizarse, emprender y aliarse para que la empresa familiar continúe. Revista de Empresa Familiar, 1(2), 27-41.

Barach, J.A., Ganitsky, J.B., Carson, J.A. & Doochin, B.A. (1988). Entry of the next generation: Strategic challenge for family business. Journal of Small Business Management, 26, 49-56.

Barontini, R. & Caprio, L. (2006). The effect of family control on firm value and performance: evidence from continental Europe. European Financial Management, 12(5), 689-723.

Basco, J.T. (2006). La investigación en la empresa familiar: Un debate sobre la existencia de un campo independiente. Investigaciones Europeas, 12(1), 33-54.

Benavides, C.A., Guzmán, V.F. & Quintana, C. (2011). Evolución de la literatura sobre empresa familiar como disciplina científica. Cuadernos de Economía de la Empresa, 14(2), 78-90.

Birley, S., Ng, D. & Godfrey, A. (1999). The family and the business. Long Range Planning, 32(6), 598-608.

Blumentritt, T.P., Keyt, A.D. & Astrachan, J.H. (2007). Creating an environment for successful nonfamily CEOs: an exploratory study of good principals. Family Business Review, 20(4), 321-335.

Braun, M. & Sharma, A. (2007). Should the CEO Also Be Chair of the Board? An Empirical Examination of Family-Controlled Public Firms. Family Business Review, 20(2), 111-126.

Brunninge, O. & Nordqvist, M. (2004). Ownership structure, board composition and entrepreneurship: Evidence from family firms and venture capital backed firms. International Journal of Entrepreneurial Behaviour and Research, 10(1/2), 85-105.

Burkart, M., Panunzi, F. & Shleifer, A. (2003). Family firms. Journal of Finance, 58(5), 2167–2201.

Cabrera, K., De Saá, P. & Garcia, D. (2001). The succession process from a resource -and knowledge- based view of the family firm. Family Business Review, 14, 37-46.

Carmeli, A. & Tishler, A. (2006). The relative importance of the top management team´s managerial skills”, International Journal of Manpower, 27(1), 9-36.

Carney, M. (2005). Corporate governance and competitive advantage in family-controlled firms. Entrepreneurship Theory and Practice, May, 249-265.

Chrisman, J.J., Chua, J.H. & Sharma P. (2005). Trends and directions in the development of a strategic management theory of the family firm. Entrepreneurship Theory and Practice, 29(5), 555-576.

Chrisman, J.J., Chua, J.H. & Sharma, P. (2003). Current trends and future directions in family business management studies: Toward a theory of the family firm. Coleman White Paper Series, 4(1), 1-63.

Chua, J.H., Chrisman, J.J. & Sharma, P. (1999). Defining the family business by behavior. Entrepreneurship Theory and Practice, Summer, 19-39.

Corbetta, G. & Salvato, C. (2004). “Self-serving or self-actualizing? Models of man and agency costs in different types of family firms: A commentary on ‘comparing the agency costs of family and non-family firms: Conceptual issues and exploratory evidence’. Entrepreneurship Theory and Practice, 28(4), 355-362.

Cromie, S., Stevenson, B. & Montieth, D. (1995). The management of family firms: an empirical investigation. International Small Business Journal, 13, 11-34.

Daily, C.M. & Dollinger, M.J. (1992). An empirical examination of ownership structure in family and professionally managed firms. Family Business Review, 5(2), 117-136.

Dekker, J., Lybaert, N., Steijvers, T. & Depaire, B. (2015). The effect of family business professionalization as a multidimensional construct on firm performance. Journal of Small Business Management, 53(2), 516-538.

Dertouzos, M.L., Lester, R.K. & Solow, R.M. (1989): Made in America: Regaining the productive edge. Cambridge, MA: MIT Press.

Dyer, W.G. Jr. & Handler, W. (1994). Entrepreneurship and family business: exploring the connections. Entrepreneurship Theory and Practice, 19(1), 71-83.

Eckrich, C. & Loughead, T. (1996). Effects of family business membership and psychological separation on the career development of late adolescents. Family Business Review, 9, 369-386.

Eddleston, K.A & Kellermanns, F.W. (2007). Destructive and productive family relationships: A stewardship theory perspective. Journal of Business Venturing, 22(4), 545-565.

Eddleston, K.A., Kellermanns, F.W. & Sarathy, R. (2008). Resource configuration in family firms: Linking resources, strategic planning and technological opportunities to performance. Journal of Management Studies, 45, 26-50.

Fernández, R., Castresana, J.I. & Fernández, N. (2006). Los recursos humanos en las Pymes: Análisis empírico de la formación, rotación y estructura de propiedad. Cuadernos de Gestión, 6(1), 63-80.

Fernández, Z. & Nieto, M.J. (2005). La estrategia de internacionalización de la pequeña empresa familiar. Cuadernos de Economía y Dirección de la Empresa, 22, 107-126.

Firfiray, S., Cruz, C., Neacsu, I. & Gomez-Mejia, L. R. (2018). Is nepotism so bad for family firms? A socioemotional wealth approach. Human Resource Management Review, 28(1), 83-97.

Fukuyama, F. (1995): Trust: The social virtues and the creation of prosperity. New York, NY: Free Press.

Gallo, M.A. (1995): Empresa familiar: Textos y casos. Barcelona: Praxis.

Galve, C. (2002). Propiedad y gobierno: La empresa familiar. Ekonomiaz, 50, 2º Cuatrimestre, 158-181.

Garcés-Galdeano, L. & García-Olaverri, Huerta, E. (2016). Management capability and performance in Spanish family firms. Academia Revista Latinoamericana de Administración, 29(3), 303-325.

García-Álvarez, E., López-Sintas, J. & Saldaña-Gonzalvo, P. (2002). Socialization patterns of successors in first - and second - generation family businesses. Family Business Review, 15(3), 189-203.

Getz, D. & Carlsen, J. (2000). Characteristics and goals of family and owner-operated business in the rural tourism and hospitality sectors. Tourism Management, 21, 547-560.

Hall, A. & Nordqvist, M. (2008). Professional management in family business: Toward an extended understanding. Family Business Review, 21(1), 51-69.

Hitt, M.A. & Ireland, R.D. (1985). Corporate distinctive competence, strategy, industry, and performance. Strategic Management Journal, 6(3), 273-293.

James Jr., H. (1999). What can the family contribute to business? Examining contractual relationships. Family Business Review, 12(1), 61-71.

Jaskiewicz, P., Combs, J. G. & Rau, S. B. (2015). Entrepreneurial legacy: Toward a theory of how some family firms nurture transgenerational entrepreneurship. Journal of Business Venturing, 30(1), 29–49.

Jaskiewicz, P. & Klein, S. (2007). The Impact of Goal Alignment on Board Composition and Board Size in Family Businesses. Journal of Business Research, 60, 1080-1089.

Kellermanns, F.W. & Eddleston, K.A. (2006). Corporate entrepreneurship in family firms: A family perspective. Entrepreneurship Theory and Practice, 30(6), 809-830.

Lane, P.J., Koka, B. & Pathak, S. (2006). The reification of absorptive capacity: A critical review and rejuvenation of the construct. Academy of Management Review, 31(4), 833-863.

Lansberg, I.S. (1983). Managing human resources in family firms: The problem of institutional overlap. Organizational Dynamics, 12, 39-46.

Lansberg, I.S. & Valera, F. (2001): Estructuras de gobierno en la empresa familiar tras diez años de experiencia. Instituto de la Empresa Familiar, documento nº 14.

Le Breton-Miller, I., Miller, D. & Steier, L. (2004). Toward an integrative model of effective FOB succession. Entrepreneurship Theory and Practice, 28(4), 305-328.

Leach, P. (1993). La empresa familiar. Barcelona: Granica.

Lee, D.S., Lim, G.H. & Lim, W.S. (2003). Family business succession: Appropriation risk and choice of successor. Academy of Management Review, 28(4), 657–666.

Lien, Y. C. & Li, S. (2014). Professionalization of family business and performance effect. Family Business Review, 27(4), 346-364.

Lindbeck, A. & Weibull, J.W. (1988). Altruism and time consistency: the economics of a fait accompli. The Journal of Political Economy, 96, 1165–1182.

Mahoney, J.T. (1995). The management of resources and the resource of management. Journal of Business Research, 33(2), 91-101.

Martínez, R., Charterina, J. & Araujo, A. (2010). Un modelo causal de competitividad empresarial planteado desde la VBR: Capacidades directivas, de innovación, marketing y calidad. Investigaciones Europeas de Dirección y Economía de la Empresa, 16(2), 1135-2523.

McConaughy, D.L., Walker, M.C., Henderson, G.V. Jr. & Mishra, C.S. (1999). Founding family-controlled firms: Efficiency and value. Review of Financial Economics, 7(1), 1–19.

Miller, D. & Le Breton-Miller, I. (2006). Family governance and firm performance: Agency, stewardship, and capabilities. Family Business Review, 19(1), 73-87.

Miller, D., Steier, L. & Le Breton-Miller, I. (2003). Lost in time. Intergenerational succession, change and failure in family business. Journal of Business Venturing, 18(4), 513-531.

Ng, P. Y., Dayan, M. & Di Benedetto, A. (2019). Performance in family firm: Influences of socioemotional wealth and managerial capabilities. Journal of Business Research, 102, 178-190.

Salvato, C. (2004). Predictors of entrepreneurship in family firms. Journal of Private Equity, 7(3), 68-76.

Sánchez-Crespo, A.J., Bellver, A. & Sánchez, A.M. (2005): La empresa familiar. Manual para empresarios: Claves legales para su correcta organización y continuidad. Barcelona: Ediciones Deusto.

Sandu, P. (2019). A framework of Family Business Professionalization. International Journal of Entrepreneurship, 23(1), 1-8.

Schulze, W.S., Lubatkin, M.H. & Dino, R.N. (2002). Altruism, agency, and the competitiveness of family firms. Managerial and Decision Economics, 23, 247-259.

Schulze, W.S., Lubatkin, M.H. & Dino, R.N. (2003). Toward a theory of agency and altruism in family firms. Journal of Business Venturing, 18, 473-490.

Sharma, P., Chrisman, J.J. & Chua, J.H. (1997). Strategic management of the family business: Past research and future challenges. Family Business Review, 10(1), 1-36.

Stavrou, E.T. & Swiercz, P.M. (1999). Securing the future of the family enterprise: A model of offspring intentions to join the business. Entrepreneurship Theory and Practice, 23(2), 19-39.

Tan, W. & Zutshi, R. (2001). Familienbetriebe und professionell Führungskräfte”, Zeitschrift für Klein- und Mittelunternehmen, 49(1/4), 1-17.

Terberger, D. (1998). Konfliktmanagement in Familienunternehmen, Bamberg.

Ward, J.L. (1987): Keeping the family business healthy: How to plan for continuing growth, profitability, and family leadership. San Francisco, CA: Jossey-Bass.

Westhead, P. (1997). Ambitions, ‘external’ environment and strategic factor differences between family and non-family companies”, Entrepreneurship & Regional Development, 9(2), 127-157.

Westhead, P., Cowling, M. & Howorth, C. (2001). The development of family companies: Management and ownership imperatives. Family Business Review, 14(4), 369-385.

Wiersema, M.F. & Bantel, K.A. (1992). Top management team demography and corporate strategic change. Academy of Management Journal, 35(1), 91-121.

Zahra, S. A., Hayton, J. C. & Salvato, C. (2004). Entrepreneurship in family vs. non-family firms: A resource-based analysis of the effect of organizational culture. Entrepreneurship Theory and Practice, 28(4), 363-381.

Zuñiga, J.A. & Sacristán, M. (2009). Los directivos externos y la sucesión en la empresa familiar: un caso de estudio. Universia Business Review, (22), 74-87.

Downloads

Published

2021-11-17

How to Cite

Camisón, C., Puig-Denia, A., Forés, B., Boronat-Navarro, M., & Fernández-Yáñez, J. M. (2021). Managerial Capabilities in the Family Tourist Business: Is Professionalization the Key to Their Development?. European Journal of Family Business, 11(2). https://doi.org/10.24310/ejfbejfb.v11i2.10794

Issue

Section

Research article

Similar Articles

You may also start an advanced similarity search for this article.