Skip to main navigation menu Skip to main content Skip to site footer
FrancoAngeli Journals

Articles

No. 1 (2022)

Centenarian family and non-family companies. An exploratory analysis

DOI
https://doi.org/10.3280/cgrds1-2022oa13744
Submitted
aprile 28, 2022
Published
2022-08-03

Abstract

Few companies are able to reach 100 years of existence, and even fewer do so without losing ownership control to the founders’ families. Perhaps due to its scarcity, few quantitative data are available on this type of company. This paper analyzes, based on a sample of 120 Spanish centenary companies, the differences between family and non-family centenary companies, from a quantitative and exploratory perspective. Likewise, a comparison is made with a control sample of another 120 non-centenarian companies in order to draw conclusions. The analysis shows that there are more non-family centenary companies than family companies, although the latter obtain higher returns and have a more robust financial structure (less indebtedness and more liquidity) than the rest of the companies. Despite the limitations derived from the data used, the work contributes to the literature on business demography and on the longevity of family businesses. 

References

  1. Ahmad S., Omar R., Quoquab F. (2021). Family firms’ sustainable longevity: the role of family involvement in business and innovation capability. Journal of Family Business Management, 11(1): 86-106. DOI: 10.1108/JFBM-12-2019-0081.
  2. Amato S, Basco R., Lattanzi N. (2021). Contextualizing employment outcomes in family business research: current findings and future research avenues. Management Review Quarterly, forthcoming. DOI: 10.1007/s11301-021-00226-9.
  3. Amato S., Basco R., Gómez-Ansón S., Lattanzi N. (2020). Family-managed firms and employment growth during an economic downturn: Does their location matter? Baltic Journal of Management, 15(4): 607–630. DOI: 10.1108/BJM-07-2019-0260.
  4. 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. DOI: 10.1111/1540-6261.00567.
  5. Aronoff C.E. (2004). Self-Perpetuation Family Organization Built on Values: Necessary Condition for Long-Term Family Business Survival. Family Business Review, 17(1): 55-59. DOI: 10.1111/j.1741-6248.2004.00003.x.
  6. Aronoff C.E., Ward J.L. (2011). Family business values: How to assure a legacy of continuity and success. Palgrave-McMillan, New York.
  7. Astrachan J.H. (2010). Strategy in family business: Toward a multidimensional research agenda. Journal of Family Business Strategy, 1(1): 6-14. DOI: 10.1016/j.jfbs.2010.02.001.
  8. Astrachan J.H., Klein S.B., Smyrnios K.X. (2002). The F–PEC scale of family influence: a proposal for solving the family business definition problem, Family Business Review, 15(1): 45–58. DOI: 10.1111/j.1741-6248.2002.00045.x.
  9. Barney J.B. (1991). Firm Resources and Sustained Competitive Advantage, Journal of Management, 17(1): 99-120. DOI: 10.1177/014920639101700108.
  10. Bauguess S., Stegemoller M. (2008). Protective governance choices and the value of acquisition activity. Journal of Corporate Finance, 14(5): 550-566. DOI: 10.1016/j.jcorpfin.2008.09.011.
  11. Becchetti L., Trovato G. (2002). The determinants of growth for small and medium sized firms. The role of the availability of external finance. Small Business Economics, 19: 291–306. DOI: 10.1023/A:1019678429111.
  12. 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. DOI: 10.1177/0894486511435355.
  13. Brigham K.H., Lumpkin G.T., Payne G.T. (2014). Researching Long-Term Orientation: A Validation Study and Recommendations for Future Research. Family Business Review, 27(1): 72-88. DOI: 10.1177/0894486513508980.
  14. Calabrò A., Frank H., Minichilli A., Suess-Reyes J. (2021). Business families in times of crises: The backbone of family firm resilience and continuity. Journal of Family Business Strategy, 12(2): 100442. DOI: 10.1016/j.jfbs.2021.100442.
  15. Combs J.G., Jaskiewicz P., Bau S., Agrawal R. (2021). Inheriting the legacy but not the business: When and where do family non-successors become entrepreneurial? Journal of Small Business Management, (forthcoming). DOI: 10.1080/00472778.2021.1883038.
  16. De la Garza M., Zerón M., Briano-Turrent G. (2022). Strategic Behavior of Zombie Companies: Differences between Family and Non-Family Companies Listed in Mexico. European Journal of Family Business, 12(1): 51-62. DOI: 10.24310/ejfbejfb.v12i1.10528.
  17. Debicki B.J., Van de Graaff R., Sobczak M. (2017): Socioemotional Wealth and Family Firm Performance: A Stakeholder Approach. Journal of Managerial Issues, 29(1): 82-111. https://www.jstor.org/stable/45176535.
  18. Diéguez, J., López, P., Rojo,A. (2015). Identifying and classifying family businesses. Review of Managerial Science, 9(3): 603-634. Doi: 10.1007/s11846-014-0128-6.
  19. Esposito E., Mirone F. (2019). The influence of generational shift on sustainability practices: A preliminary analysis based on text‐analysis of “I Centenari’s” websites. In: Esposito De Falco S., Alvino F., Kostyuk A. (Eds.), New Challenges in Corporate Governance: Theory and Practice, Virtus Interpress, 236‐256. DOI: 10.22495/ncpr_38.
  20. Foss N. (2020). Behavioral Strategy and the COVID-19 Disruption. Journal of Management, 46(8): 1322–1329. DOI: 10.1177/0149206320945015.
  21. Gallo M.A., Sveen J. (1991). Internationalizing the family business: Facilitating and restraining factors. Family Business Review, 4: 181-190. DOI: 10.1111/j.1741-6248.1991.00181.x.
  22. Gallo M.A., Amat J.M. (2003). Los secretos de las empresas familiares centenarias. Colección del Instituto de la Empresa Familiar. Deusto.
  23. Ge B., De Massis A., Kotlar J. (2021). Mining the Past: History Scripting Strategies and Competitive Advantage in a Family Business, Entrepreneurship, Theory & Practice, 46(1): 223-251. DOI: 10.1177/10422587211046547.
  24. Gentry R., Dibrell G., Kim J. (2016). Long–Term Orientation in Publicly Traded Family Businesses: Evidence of a Dominant Logic. Entrepreneurship, Theory & Practice, 40(4): 733-757. DOI: 10.1111/etap.12140.
  25. Gomez-Mejia L. R., Haynes K., Nuñez-Nickel M., Jacobson K.J.L., Moyano-Fuentes J. (2007). Socioemotional wealth and business risks in familycontrolled firms: Evidence from Spanish olive oil mills. Administrative Science Quarterly, 52: 106-137. DOI: 10.2189/asqu.52.1.106.
  26. Habbershon T.G., Williams M.L. (1999). A resource-based framework for assessing the strategic advantages of family firms, Family Business Review, 12(1): 1-26. DOI: 10.1111/j.1741-6248.1999.00001.x.
  27. Handler W.C. (1994). Succession in Family Business: A Review of the Research. Family Business Review, 7(2): 133-157. DOI: 10.1111/j.1741-6248.1994.00133.x.
  28. Hemmington N., Neill L. (2022). Hospitality business longevity under COVID-19: The impact of COVID-19 on New Zealand’s hospitality industry, Tourism and Hospitality Research, 22(1): 102-114. DOI: 10.1177/1467358421993875.
  29. Hoffmann C., Wulf T., Stubner S. (2016). Understanding the performance consequences of family involvement in the top management team: The role of long-term orientation. International Small Business Journal: Researching Entrepreneurship, 34(3): 345-368. DOI: 10.1177/0266242614550500.
  30. 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. DOI: 10.1016/j.jbusvent.2014.07.001.
  31. Jeong S.H., Kim H., Kim H. (2021). Strategic nepotism in family director appointments: evidence from family business groups in South Korea. Academy of Management Journal, forthcoming. DOI: 10.5465/amj.2018.1418.
  32. Jones O., Ghobadian A., O’Regan N., Antcliff V. (2013). Dynamic capabilities in a sixth‐generation family firm: Entrepreneurship and the Bibby Line. Business History, 55(6): 910-941. DOI: 10.1080/00076791.2012.744590.
  33. Kempers M., Leitterstorf M.P., Kammerlander N. (2018). Risk Behavior of Family Firms: A Literature Review, Framework, and Research Agenda. The Palgrave Handbook of Heterogeneity among Family Firms, 431–460.
  34. Kinias I. (2022). The Performance of Family Firms During Crisis Periods: The Case of Greece. European Journal of Family Business, 12(1): 63-79. DOI: 10.24310/ejfbejfb.v12i1.13020.
  35. Lansberg I., Perrow E., Rogolsky S. (1988). Editor’s notes of 1st number of Family Business Review, Family Business Review, 1(1): 1–8. DOI: 10.1111/j.1741-6248.1988.00001.x.
  36. Le-Breton Miller I., Miller D. (2006). Why Do Some Family Businesses Out–Compete? Governance, Long-Term Orientations, and Sustainable Capability. Entrepreneurship, Theory & Practice, 30(6): 731-746. DOI: 10.1111/j.1540-6520.2006.00147.x.
  37. Le-Breton Miller, I. and Miller, D. (2022). Family businesses under COVID-19: Inspiring models - Sometimes. Journal of Family Business Strategy, 13(2): 100452. DOI: 10.1016/j.jfbs.2021.100452.
  38. Lim E.N.K., Lubatkin M.H., Wiseman R.M. (2010). A family firm variant of the behavioral agency theory. Strategic Entrepreneurship Journal, 4(3): 197-211. DOI: 10.1002/sej.91.
  39. Löhde A.S.K., Calabrò A., Torchia, M. (2020). Understanding the main drivers of family firm longevity: the role of business family learning. International Studies of Management & Organization, 50(2): 130–152. DOI: 10.1080/00208825.2020.1758421.
  40. Lorenzo D. (2020). Barriers to change in family businesses. European Journal of Family Business, 10(1): 54‐63. DOI: 10.24310/ejfbejfb.v10i1.7018.
  41. Lumpkin G.T., Brigham K.H., Moss T.W. (2010). Long-term orientation: Implications for the entrepreneurial orientation and performance of family businesses. Entrepreneurship & Regional Development, 22(3-4): 241-264. DOI: 10.1080/08985621003726218.
  42. Lumpkin G.T., Brigham K.H. (2011). Long-term orientation and intertemporal choice in family firms. Entrepreneurship Theory and Practice, 35(6): 1149-1169. DOI: 10.1111/j.1540-6520.2011.00495.x.
  43. Mazzola F., Lo Cascio I., Epifanio R., Di Giacomo G. (2018). Territorial capital and growth over the Great Recession: a local analysis for Italy. Annals of Regional Science, 60: 411–441. DOI: 10.1007/s00168-017-0853-2.
  44. Metzola J., Kuivalainen O. (2021). International Business Decision-Making in Family Small and-Medium-Sized Enterprises. European Journal of Family Business, 11(2): 72-79. DOI: 10.24310/ejfbejfb.v11i2.13842.
  45. Moreno-Menéndez A.M., Casillas J.C. (2021). How do family businesses grow? Differences in growth patterns between family and non-family firms. Journal of Family Business Strategy, 12(3): 100420. DOI: 10.1016/j.jfbs.2021.100420.
  46. Muñoz-Bullon F., Sanchez-Bueno M.J. (2011). The Impact of Family Involvement on the R&D Intensity of Publicly Traded Firms. Family Business Review, 24(1): 62-70. DOI: 10.1177/0894486510396870.
  47. Peteraf M.A. (1993). The cornerstones of competitive advantage: a resource-based view. Strategic Management Journal, 14: 179–191.
  48. DOI: 10.1002/smj.4250140303.
  49. Revilla A.J., Pérez-Luño A., Nieto M.J. (2016). Does Family Involvement in Management Reduce the Risk of Business Failure? The Moderating Role of Entrepreneurial Orientation. Family Business Review. 29(4): 365-379. DOI: 10.1177/0894486516671075.
  50. Riviezzo A., Skippari M., Garofano, A. (2015). Who wants to live forever: exploring 30 years of research on business longevity. Business History, 57(7): 970-987. DOI: 10.1080/00076791.2014.993617.
  51. Salvato C., Sargiacomo M., Amore M.D., Minichilli A. (2020). Natural disasters as a source of entrepreneurial opportunity: Family business resilience after an earthquake, Strategic Entrepreneurship Journal, 14(4): 594-615. DOI: 10.1002/sej.1368.
  52. Sharma P. (2004). An overview of the field of family business studies: Current status and directions for the future. Family Business Review, 17(1): 1-36. DOI: 10.1111/j.1741-6248.2004.00001.x.
  53. Stafford K., Danes S.M., Haynes G.W. (2013). Long-term family firm survival and growth considering owning family adaptive capacity and federal disaster assistance receipt. Journal of Family Business Strategy, 4(3): 188-200. DOI: 10.1016/j.jfbs.2013.06.002.
  54. Stamm I., Lubinski C. (2011). Crossroads of family business research and firm demography — A critical assessment of family business survival rates. Journal of Family Business Strategy, 2(3): 117-127. DOI: 10.1016/j.jfbs.2011.07.002.
  55. Suddaby R., Jaskiewicz P. (2020). Managing Traditions: A Critical Capability for Family Business Success. Family Business Review, 33(3): 234-243. DOI: 10.1177/0894486520942611.
  56. Tàpies J., Fernández-Moya M. (2012). Values and longevity in family business: evidence from a crosscultural analysis. Journal of Family Business Management, 2(2): 130‐146. DOI: 10.1108/20436231211261871.
  57. Van Gils A., Voordeckers W., van den Heuvel J. (2004). Environmental Uncertainty and Strategic Behavior in Belgian Family Firms. European Management Journal, 22(5): 588-595. DOI: 10.1016/j.emj.2004.09.015.
  58. Ventura M., Vesperi W., Melina A.M., Reina R. (2018). Resilience in family firms: a theoretical overview and proposed theory. International Journal of Management and Enterprise Development, 19(2): 164-186. DOI: 10.1504/ijmed.2020.107403.
  59. Ward J. (1987). Keeping the Family Business Healthy. San Francisco, CA: Jossey‐Bass.
  60. Wenerfelt B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2): 171–180. DOI: 10.1002/smj.4250050207.
  61. Zahra A. (2005). Entrepreneurial Risk Taking in Family Firms. Family Business Review, 18(1): 23-40. DOI: 10.1111/j.1741-6248.2005.00028.x.
  62. Zellweger T.M., Nason R.S., Nordqvist M. (2012). From Longevity of Firms to Transgenerational Entrepreneurship of Families: Introducing Family Entrepreneurial Orientation. Family Business Review, 25(2): 136‐155. DOI: 10.1177/0894486511423531.

Metrics

Metrics Loading ...