The Influence of the Business Name on the Economic Performance of Family Firms: An Analysis According to the Generational Stage

• Terrón-Ibáñez, Sara ^[1] ; Gómez-Miranda, Maria Elena ^[1] ; Rodríguez-Ariza, Lázaro ^[1]
  1. [1] Universidad de Granada

     Universidad de Granada

     Granada, España

     
• Localización: European Journal of Family Business, ISSN-e 2444-8788, ISSN 2444-877X, Vol. 12, Nº. 2, 2022, págs. 205-219
• Idioma: inglés
• DOI: 10.24310/ejfbejfb.v12i2.14071
• Títulos paralelos:
  • Influencia de la Razón Social en el Desempeño Económico de las Empresas Familiares: Análisis en Función de la Etapa Generacional
• Enlaces
  • Texto completo (pdf)
• Resumen
  • español

    La identidad familiar de la empresa, manifestada a través de la presencia del nombre familiar en su razón social, puede influenciar el valor de su rentabilidad económica. Se analiza si esta relación varía en función de la dimensión empresarial, así como de la etapa generacional a cargo de la organización. La muestra objeto de análisis está compuesta por pequeñas, medianas y grandes empresas familiares. El estudio contempla un extenso panel de datos con información de 21149 empresas familiares españolas desde el año 2003 hasta el 2015, obteniendo una base de datos equilibrada compuesta por 274937 observaciones. Contrariamente a las ventajas competitivas señaladas por investigaciones anteriores, el presente estudio señala un efecto negativo de la identidad familiar de la organización sobre la rentabilidad de las pymes familiares. Este efecto es más acentuado cuando la organización es gestionada por la generación fundadora. Los resultados en el caso de las empresas de mayor dimensión indican que tener una razón social familiar no influye sobre el valor de la rentabilidad económica.

  • English

    A family identity of a firm, exhibited by the presence of the family name in the business name, can influence the value of economic profitability. The present analysis also explores if this relationship varies depending on the size and the generation running the business. The sample used to conduct this study comprises a panel data set of 21,149 Spanish family firms containing information from 2003 to 2015, which translates into a balanced database including 274,937 observations. For analysis purposes, the firms are classified into small, medium-sized and large ones. Contrary to the competitive advantages brought about by the family identity of the businesses highlighted by previous research, the current study suggests its negative effects on the profitability of small and medium-sized family firms. This effect is more acute when the company is managed by its founding generation. The findings in the case of large family firms indicate that the company name does not have an impact upon economic profitability.

• Referencias bibliográficas
  • Alonso-Dos-Santos, M., Llanos-Contreras, O., & Farías, P. (2019). Family firms’ identity communication and consumers’ product involvement...
  • Alonso Dos Santos, M., Contreras, O. L., Moreno, F. C., & Felicio, J. A. (2020). Should a family firm communicate their family identity...
  • Arrondo-García, R., Fernández-Méndez, C., & Menéndez-Requejo, S. (2016). The growth and performance of family businesses during the global...
  • Arzubiaga, U., Maseda, A., & Iturralde, T. (2019). Exploratory and exploitative innovation in family businesses: the moderating role of...
  • Astrachan, C. B., & Botero, I. (2018). ‘We are a family firm’: an exploration of the motives for communicating the family business brand....
  • Astrachan, C. B., Botero, I., Astrachan, J. H., & Prügl, R. (2018). Branding the family firm: a review, integrative framework proposal,...
  • Banco de España (2017). Informe sobre la crisis financiera y bancaria en España 2008-2014, Madrid.
  • Beck, S., & Kenning, P. (2015). The influence of retailers’ family firm image on new product acceptance: an empirical investigation in...
  • Beck, S., & Prügl, R. (2018). Family firm reputation and humanization: consumers and the trust advantage of family firms under different...
  • Berrone, P., Cruz, C., & Gómez-Mejía, L. R. (2012). Socioemotional wealth in family firms: theoretical dimensions, assessment approaches,...
  • Binz, C., Hair, J. F., Pieper, T. M., & Baldauf, A. (2013). Exploring the effect of distinct family firm reputation on consumers’ preferences....
  • Bjornberg, A., & Nicholson, N. (2012). Emotional ownership: the next generation’s relationship with the family firm. Family Business Review,...
  • Block, J. (2010). Family management, family ownership, and downsizing: evidence from S&P 500 firms. Family Business Review, 23(2), 109–130....
  • Boisvert, J., & Burton, S. (2011). Towards a better understanding of factors affecting transfer of brand associations. Journal of Consumer...
  • Breusch, T. S., & Pagan, A. R. (1980). The Lagrange multiplier test and its applications to model specification in econometrics. The Review...
  • Brockman, P., Seung, H., Megginson, W., & Salas, J. (2018). It’s all in the name: evidence of founder-firm endowment effects. February,...
  • Campopiano, G., Brumana, M., Minola, T., & Cassia, L. (2020). Does growth represent chimera or bellerophon for a family business? The...
  • Campopiano, G., De Massis, A., & Chirico, F. (2014). Firm philanthropy in SME-sized family firms: the effects of family involvement in...
  • Casprini, E., Melanthiou, Y., Pucci, T., & Zanni, L. (2020). Managing founder-based brand identity during succession. Journal of Brand...
  • European Commission (2009). Commission staff working document on the implementation of Commission Recommendation of 6 May 2003 concerning...
  • Craig, J. B., Dibrell, C., & Davis, P. S. (2008). Leveraging family-based brand identity to enhance firm competitiveness and performance...
  • Cruz, C., & Nordqvist, M. (2012). Entrepreneurial orientation in family firms: a generational perspective. Small Business Economics, 38(1),...
  • Davis, W. D., Dibrell, C., Craig, J. B., & Green, J. (2013). The effects of goal orientation and client feedback on the adaptive behaviors...
  • Dawson, A., Irving, G., Sharma, P., Chirico, F., & Marcus, J. (2014). Behavioral outcomes of next generation family members’ commitment...
  • De Massis, A., Kotlar, J., Campopiano, G., & Cassia, L. (2013). Dispersion of family ownership and the performance of small-to-medium...
  • Deephouse, D. L., & Jaskiewicz, P. (2013). Do family firms have better reputations than non-family firms? An integration of socioemotional...
  • Delmas, M. A., & Gergaud, O. (2014). Sustainable certification for future generations: the case of family business. Family Business Review,...
  • Ensley, M. D., & Pearson, A. W. (2005). An exploratory comparison of the behavioral dynamics of top management teams in family and nonfamily...
  • Fang, H., Kotlar, J., Memili, E., Chrisman, J. J., & De Massis, A. (2018). The pursuit of international opportunities in family firms:...
  • Felicio, J. A., & Galindo-Villardón, M. P. (2015). Family characteristics and governance of small and medium-sized family firms. Journal...
  • Gallucci, C., Santulli, R., & Calabrò, A. (2015). Does family involvement foster or hinder firm performance? The missing role of family-based...
  • García-Ramos, R., Díaz-Díaz, B., & García-Olalla, M. (2017). Independent directors, large shareholders and firm performance: the generational...
  • Gómez-Mejía, L. R., Cruz, C., Berrone, P., & De Castro, J. (2011). The bind that ties: socioemotional wealth preservation in family firms....
  • Greene, W. H. (2012). Econometric analysis (7th ed.), International edition, New Jersey: Prentice Hall.
  • Habbershon, T., & Williams, M. (1999). A resource-based framework for assessing the strategic advantage of family firms. Family Business...
  • Hu, Q., Zhang, Y., & Yao, J. (2018). Family involvement in middle management and its impact on the labor productivity of family firms....
  • Ibáñez, M. J., Alonso Dos Santos, M., & Llanos-Contreras, O. (2021). Transmission of family identity and consumer response: do consumers...
  • IEF, & Red de Cátedras de Empresa Familiar (2016). La empresa familiar en España (2015). Instituto de la Empresa Familiar, 107.
  • IEF, & Red de Cátedras de Empresa Familiar (2018). Factores de competitividad y análisis financiero en la empresa familiar. Instituto...
  • Jiang, D. S., Kellermanns, F. W., Munyon, T. P., & Morris, M. L. (2018). More than meets the eye: a review and future directions for the...
  • Kashmiri, S., & Mahajan, V. (2010). What’s in a name? An analysis of the strategic behavior of family firms. International Journal of...
  • Kashmiri, S., & Mahajan, V. (2014). A rose by any other name: are family firms named after their founding families rewarded more for their...
  • Kotlar, J., Fang, H., De Massis, A., & Frattini, F. (2014). Profitability goals, control goals, and the R&D investment decisions of...
  • Krappe, A., Goutas, L., & Schlippe, A. (2011). The family business brand: an enquiry into the construction of the image of family businesses....
  • López-González, E., Martínez-Ferrero, J., & García-Meca, E. (2018). Corporate social responsibility in family firms: a contingency approach....
  • Lwango, A., Coeurderoy, R., & Giménez Roche, G. A. (2017). Family influence and SME performance under conditions of firm size and age....
  • Mahto, R. V., Chen, J. S., McDowell, W. C., & Ahluwalia, S. (2019). Shared identity, family influence, and the transgenerational intentions...
  • Maseda, A., Iturralde, T., & Arosa, B. (2015). Impact of outsiders on firm performance over different generations of family-owned SMEs....
  • Memili, E., Fang, H., Chrisman, J. J., & De Massis, A. (2015). The impact of small-and medium-sized family firms on economic growth. Small...
  • Micelotta, E. R., & Raynard, M. (2011). Concealing or revealing the family? Corporate brand identity strategies in family firms. Family...
  • Muzellec, L. (2006). What is in a name change? Re-joycing corporate names to create corporate brands. Corporate Reputation Review, 8(4), 305–321....
  • Naldi, L., Chirico, F., Kellermanns, F. W., & Campopiano, G. (2015). All in the family? An exploratory study of family member advisors...
  • Olivares-Delgado, F., Pinillos-Laffón, A., & Benlloch-Osuna, M. T. (2016). An approach to patronymic names as a resource for familiness...
  • Parada, M. J., & Dawson, A. (2017). Building family business identity through transgenerational narratives. Journal of Organisational...
  • Pérez-González, F. (2006). Inherited control and firm performance. American Economic Review, 96(5), 1559–1588. https://doi.org/10.1257/aer.96.5.1559...
  • Pittino, D., Chirico, F., Henssen, B., & Broekaert, W. (2020). Does increased generational involvement foster business growth? The moderating...
  • Rojo Ramírez, A. A., Diéguez Soto, J., & López Delgado, P. (2011). Importance of the concept of family business in research: the use of...
  • https://doi.org/10.24310/ejfbejfb.v1i1.5034 DOI: https://doi.org/10.24310/ejfbejfb.v1i1.5034
  • Rousseau, M. B., Kellermanns, F., Zellweger, T., & Beck, T. E. (2018). Relationship conflict, family name congruence, and socioemotional...
  • Rovelli, P., Benedetti, C., Fronzetti Colladon, A., & De Massis, A. (2022). As long as you talk about me: the importance of family firm...
  • Sageder, M., Mitter, C., & Feldbauer-Durstmüller, B. (2016). Image and reputation of family firms: a systematic literature review of the...
  • Sánchez-Marín, G., Pemartín, M., & Monreal-Pérez, J. (2020). The influence of family involvement and generational stage on learning-by-exporting...
  • Schellong, M., Kraiczy, N. D., Malär L., & Hack, A. (2019). Family firm brands, perceptions of doing good, and consumer happiness. Entrepreneurship...
  • Shen, A., & Tikoo, S. (2020). Family business identity, consumer product evaluations and firm size. Journal of Product and Brand Management,...
  • Simons, T. L., & Peterson, R. S. (2000). Task conflict and relationship conflict in top management teams: the pivotal role of intragroup...
  • Sundaramurthy, C., & Kreiner, G. E. (2008). Governing by managing identity boundaries: the case of family businesses. Entrepreneurship...
  • Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533....
  • Tomo, A., Mangia, G., Pezzillo Iacono, M., & Canonico, P. (2021). Family firms going international: integrating corporate identity-building...
  • Uhlaner, L. M., Van Goor-Balk, H. J. M., & Masurel, E. (2004). Family business and corporate social responsibility in a sample of Dutch...
  • Verbeek, M. (2012). A guide to modern econometrics, 4th ed. John Wiley & Sons.
  • Wagner, D., Block, J. H., Miller, D., Schwens, C., & Xi, G. (2015). A meta-analysis of the financial performance of family firms: another...
  • Weismeier-Sammer, D., Frank, H., & Von Schlippe, A. (2013). Untangling ‘Familiness’: a literature review and directions for future research....
  • https://doi.org/10.5367/ijei.2013.0119 DOI: https://doi.org/10.5367/ijei.2013.0119
  • Wielsma, A. J., & Brunninge, O. (2019).’Who am I? Who are we?’ Understanding the impact of family business identity on the development...
  • Zahra, S. A., Hayton, J. C., & Salvato, C. (2004). Entrepreneurship in family vs. non-family firms: a resource-based analysis of the effect...
  • Zellweger, T. M., Eddleston, K. A., & Kellermanns, F. W. (2010). Exploring the concept of familiness: introducing family firm identity....
  • Zellweger, T. M., Nason, R. S., Nordqvist, M., & Brush, C. G. (2013). Why do family firms strive for nonfinancial goals? An organisational...