The duality of internal and external development of successors: Opportunity recognition in family firms

Family Business Review

Volumn 24, Issue 2, 2011, Pages 111-125

  Sardeshmukh, Shruti R ^a   Corbett, Andrew C ^b  

^a UNIVERSITY OF SOUTH AUSTRALIA   (Australia)

^b RENSSELAER POLYTECHNIC INSTITUTE   (United States)

Author keywords

entrepreneurial self efficacy; family business; opportunity perception; succession; successor development

Indexed keywords

EID: 79957931399     PISSN: 08944865     EISSN: 17416248     Source Type: Journal    
DOI: 10.1177/0894486510391783     Document Type: Article

References (99)

1. Aldrich, H.E., and Cliff, J.E. (2003). The pervasive effects of family on entrepreneurship: Toward a family embeddedness perspective. Journal of Business Venturing, 18, 573-596.
2. Astrachan, J.H., and Shanker, M.C. (2003). Family businesses' contribution to the U.S. economy: A closer look. Family Business Review, 16, 211-219.
3. Bandura, A. (1982). Self-efficacy mechanism in human agency. American Psychologist, 37, 122-147.
4. Bandura, A. (1993). Perceived self-efficacy in cognitive development and functioning. Educational Psychologist, 28, 117-148.
5. Barbosa, S., Gerhardt, M., and Kickul, J. (2007). The role of cognitive style and risk preference on entrepreneurial self-efficacy and entrepreneurial intentions. Journal of Leadership and Organizational Studies, 13, 86-104.
6. Baron, R. (2000). Psychological perspectives on entrepreneurship: Cognitive and social factors in entrepreneurs' success. Current Directions in Psychological Science, 9, 15-18.
7. Baron, R. (2006). Opportunity recognition as pattern recognition: How entrepreneurs "connect the dots" to identify new business opportunities. Academy of Management Perspectives, 20, 104-119.
8. Baron, R.A. (1998). Cognitive mechanisms in entrepreneurship: Why and when entrepreneurs think differently than other people. Journal of Business Venturing, 13, 275-294.
9. Baron, R., and Ensley, M.D. (2006). Opportunity recognition as the detection of meaningful patterns: Evidence from comparisons of novice and experienced entrepreneurs. Management Science, 52, 1331-1344.
10. Baron, R.A., and Shane, S. (2008). Entrepreneurship a process perspective (2nd ed.). Mason, OH: Thompson South-Western.
11. Bates, T. (1990). Entrepreneur human capital inputs and small business longevity. Review of Economics and Statistics, 72, 551-559.
12. Bauer, T., Bodner, T., Erdogan, B., Truxillo, D., and Tucker, J. (2007). Newcomer adjustment during organizational socialization: A meta-analytic review of antecedents, outcomes, and methods. Journal of Applied Psychology, 92, 707-721.
13. Baum, J., and Locke, E. (2004). The relationship of entrepreneurial traits, skill, and motivation to subsequent venture growth. Journal of Applied Psychology, 89, 587-598.
14. Becker, G.S. (1962). Investment in human capital: A theoretical analysis. Journal of Political Economy, 70, 9-49.
15. Becker, G.S. (1964). Human capital: A theoretical and empirical analysis with special reference to education. New York, NY: National Bureau of Economic Research.
16. Beckhard, R., and Dyer, W.G., Jr. (1983). Managing continuity in the family-owned business. Organizational Dynamics, 12, 5-12.
17. Bentler, P., and Yuan, K. (1999). Structural equation modeling with small samples: Test statistics. Multivariate Behavioral Research, 34, 181-197.
18. Bjuggren, P., and Sund, L. (2001). Strategic decision making in intergenerational successions Of small-and medium-size family-owned businesses. Family Business Review, 14, 11-23.
19. Bjuggren, P., and Sund, L. (2002). A transition cost rationale for transition of the firm within the family. Small Business Economics, 19, 123-133.
20. Bjuggren, P., and Sund, L. (2005). Organization of transfers of small and medium-sized enterprises within the family: Tax law considerations. Family Business Review, 18, 305-319.
21. Bosma, N., van Praag, M., Thurik, R., and de Wit, G. (2004). The value of human and social capital investments for the business performance of startups. Small Business Economics, 23, 227-236.
22. Byrne, B. (2001). Structural equation modeling with AMOS basic concepts, applications and programming. Mahwah, NJ: Lawrence Erlbaum.
23. Cabrera-Suarez, K., Saa-Perez, P., and Garcia-Almeida, D. (2001). The succession process from a resource- and knowledge-based view of the family firm. Family Business Review, 14, 37-48.
24. Carr, J.C., and Sequeira, J.M. (2007). Prior family business exposure as intergenerational influence and entrepreneurial intent: A theory of planned behavior approach. Journal of Business Research Family Influences on Firms, 60, 1090-1098.
25. Carter, N.M., Gartner, W.B., Shaver, K.G., and Gatewood, E.J. (2003). The career reasons of nascent entrepreneurs. Journal of Business Venturing, 18, 13-39.
26. Casillas, J.C., Moreno, A.M., and Barbero, J.L. (2010). A configurational approach of the relationship between entrepreneurial orientation and growth of family firms. Family Business Review, 23, 27-44.
27. Cater, J., and Justis, R. (2009). The development of successors from followers to leaders in small family firms: An exploratory study. Family Business Review, 22, 109-124.
28. Chen, C.C., Greene, P.G., and Crick, A. (1998). Does entrepreneurial self-efficacy distinguish entrepreneurs from managers? Journal of Business Venturing, 13(4), 295-316.
29. Chrisman, J.J., Chua, J.H., and Sharma, P. (2005). Trends and directions in the development of a strategic management theory of the family firm. Entrepreneurship Theory and Practice, 29, 555-576.
30. Chrisman, J., Sharma, P., and Taggar, S. (2007). Family influences on firms: An introduction. Journal of Business Research, 60, 1005-1011.
31. Chua, J.H., Chrisman, J.J., and Sharma, P. (1999). Defining the family business by behavior. Entrepreneurship Theory and Practice, 23, 19-39.
32. Cooper, A., Gimeno-Gascon, F., and Woo, C. (1994). Initial human and financial capital as predictors of new venture performance. Journal of Business Venturing, 9, 371-395.
33. Corbett, A.C. (2005). Experiential learning within the process of opportunity identification and exploitation. Entrepreneurship Theory and Practice, 29, 473-491.
34. Corbett, A.C. (2007). Learning asymmetries and the discovery of entrepreneurial opportunities. Journal of Business Venturing, 22, 97-118.
35. Datta, D., Guthrie, J., and Wright, P. (2005). Human resource management and labor productivity: Does industry matter. Academy of Management Journal, 48, 135-145.
36. Davidsson, P., and Honig, B. (2003). The role of social and human capital among nascent entrepreneurs. Journal of Business Venturing, 18, 301-331.
37. Debicki, B., Matherne, C., III, Kellermanns, F., and Chrisman, J. (2009). Family business research in the new millennium: An overview of the who, the where, the what, and the why. Family Business Review, 22, 151-166.
38. De Massis, A., Chua, J.H., and Chrisman, J.J. (2008). Factors preventing intra-family succession. Family Business Review, 21, 183-199.
39. DeTienne, D., and Koberg, C. (2002). The impact of environmental and organizational factors on discontinuous innovation within high-technology industries. IEEE Transactions on Engineering Management, 49, 352-364.
40. Dimov, D.P., and Shepherd, D.A. (2005). Human capital theory and venture capital firms: exploring "home runs" and "strike outs." Journal of Business Venturing, 20, 1-21.
41. Dunemann, M., and Barrett, R. (2005). Succession planning in family business: A reflection on what we know and how we can find out more. Paper presented at the 50th annual conference of the International Council of Small Business, Washington, DC.
42. Dunn, T., and Holtz-Eakin, D. (2000). Financial capital, human capital, and the transition to self-employment: Evidence from intergenerational links. Journal of Labor Economics, 18, 282-305.
43. Eckhardt, J.T., and Shane, S. (2003). Opportunities and entrepreneurship. Journal of Management, 29, 333-349.
44. Forbes, D.P. (2005). The effects of strategic decision making on entrepreneurial self-efficacy. Entrepreneurship Theory and Practice, 29, 599-626.
45. Geletkanycz, M., and Black, S. (2001). Bound by the past? Experience-based effects on commitment to the strategic status quo. Journal of Management, 27, 3-21.
46. Gersick, K.E., Davis, J.A., Hampton, M.M., and Lansberg, I. (1997). Generation to generation: Lifecycles of family business. Boston, MA: Harvard Business School Press.
47. Gimeno, J., Folta, T.B., Cooper, A.C., and Woo, C.Y. (1997). Survival of the fittest? Entrepreneurial human capital and the persistence of underperforming firms. Administrative Science Quarterly, 42, 750-783.
48. Gist, M. (1987). Self-efficacy: Implications for organizational behavior and human resource management. Academy of Management Review, 12, 472-485.
49. Goldberg, S.D. (1996). Research note: Effective successors in family-owned businesses: Significant elements. Family Business Review, 9, 185-197.
50. Gruber, M., MacMillan, I.C., and Thompson, J.D. (2008). Look before you leap: Market opportunity identification in emerging technology firms. Management Science, 54, 1652-1665.
51. Guth, W., and Ginsberg, A. (1990). Guest editor's introduction: Corporate entrepreneurship. Strategic Management Journal, 11, 5-15.
52. Hall, A., Melin, L., and Nordqvist, M. (2001). Entrepreneurship as radical change in the family business: Exploring the role of cultural patterns. Family Business Review, 14, 193-208.
53. Handler, W.C. (1994). Succession in family business: A review of the research. Family Business Review, 7, 133-157.
54. Heck, R., Hoy, F., Poutziouris, P., and Steier, L. (2008). Emerging paths of family entrepreneurship research. Journal of Small Business Management, 46, 317-330.
55. Hills, G.E., Lumpkin, G.T., and Singh, R.P. (1997). Opportunity recognition: Perceptions and behaviors of entrepreneurs. Frontiers of entrepreneurship research, 17, 168-182.
56. Hmieleski, K., and Corbett, A. (2008). The contrasting interaction effects of improvisational behavior with entrepreneurial self-efficacy on new venture performance and entrepreneur work satisfaction. Journal of Business Venturing, 23, 482-496.
57. Kellermanns, F.W., and Eddleston, K.A. (2006). Corporate entrepreneurship in family firms: A family perspective. Entrepreneurship Theory and Practice, 30, 809-830.
58. Kellermanns, F.W., Eddleston, K.A., Barnett, T., and Pearson, A. (2008). An exploratory study of family member characteristics and involvement: Effects on entrepreneurial behavior in the family firm. Family Business Review, 21, 1-14.
59. Kolb, D. (1984). Experiential learning: Experience as the source of learning and development. Upper Saddle River, NJ: Prentice Hall.
60. Krueger, N.F.J. (2007). What lies beneath? The experiential essence of entrepreneurial thinking. Entrepreneurship Theory and Practice, 31, 123-138.
61. Kuratko, D.F., Hornsby, J.S., and Naffziger, D.S. (1997). An examination of owner's goals in sustaining entrepreneurship. Journal of Small Business Management, 35, 24-33.
62. Laband, D., and Lentz, B. (1983). Like father, like son: Toward an economic theory of occupational following. Southern Economic Journal, 50, 474-493.
63. Lansberg, I. (1988). The succession conspiracy. Family Business Review, 1, 119-143.
64. LeBreton, J.M., Wu, J., and Bing, M.N. (2009). The truth(s) on testing for mediation in the social and organizational sciences. In C. E. Lance and R. J. Vandenberg (Eds.), Statistical and methodological myths and urban legends: Doctrine, verity, and fable in the organizational and social sciences (pp. 109-144). New York, NY: Routledge.
65. Lentz, B., and Laband, D. (1990). Entrepreneurial success and occupational inheritance among proprietors. Canadian Journal of Economics, 23, 563-579.
66. Mazzola, P., Marchisio, G., and Astrachan, J. (2006). Using the strategic planning process as a next-generation training tool in family business. In P. Z. Poutziouris, K. X. Smyrnios, and S. B. Klien (Eds.), Handbook of research on family business (pp. 402-421). Northampton, MA: Edward Elgar.
67. Mazzola, P., Marchisio, G., and Astrachan, J. (2008). Strategic planning in family business: A powerful developmental tool for the next generation. Family Business Review, 21, 239-258.
68. McCall, M., Lombardo, M., and Morrison, A. (1988). The lessons of experience. Lexington MA: Lexington Books.
69. McMullen, J.S., and Shepherd, D.A. (2006). Entrepreneurial action and the role of uncertainty in the theory of the entrepreneur. Academy of Management, 31, 132-152.
70. Miller, D., Steier, L., and Le Breton-Miller, I. (2003). Lost in time: Intergenerational succession, change, and failure in family business. Journal of Business Venturing, 18, 513-531.
71. Mitchell, R., Busenitz, L., Bird, B., Marie Gaglio, C., McMullen, J., Morse, E., and Smith, J. (2007). The central question in entrepreneurial cognition research 2007. Entrepreneurship Theory and Practice, 31, 1-27.
72. Molly, V., Laveren, E., and Deloof, M. (2010). Family business succession and its impact on financial structure and performance. Family Business Review, 23, 131-147.
73. Morris, M.H., Williams, R.O., Allen, J.A., and Avila, R.A. (1997). Correlates of success in family business transitions. Journal of Business Venturing, 12, 385-401.
74. Neck, H., Meyer, G., Cohen, B., and Corbett, A. (2004). An entrepreneurial system view of new venture creation. Journal of Small Business Management, 42, 190-208.
75. Nielsen, B.B., and Nielsen, S. (2009). Learning and innovation in international strategic alliances: An empirical test of the role of trust and tacitness. Journal of Management Studies, 46, 1031-1056.
76. Ohlott, P., Ruderman, M., and McCauley, C. (1994). Gender differences in managers' developmental job experiences. Academy of Management Journal, 37, 46-67.
77. Pérez-González, F. (2006). Does inherited control hurt firm performance. American Economic Review, 96, 1559-1588.
78. Podsakoff, P., MacKenzie, S., Lee, J., and Podsakoff, N. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88, 879-903.
79. Podsakoff, P.M., and Organ, D.W. (1986). Self-reports in organizational research: Problems and prospects. Journal of Management, 12, 531-544.
80. Quinones, M., Ford, J., and Teachout, M. (1995). The relationship between work experience and job performance: A conceptual and meta-analytic review. Personnel Psychology, 48, 887-910.
81. Ronstadt, R. (1988). The corridor principle. Journal of Business Venturing, 3, 31-40.
82. Royer, S., Simons, R., Boyd, B., and Rafferty, A. (2008). Promoting family: A contingency model of family business succession. Family Business Review, 21, 15-30.
83. Shane, S. (2000). Prior knowledge, and the discovery of entrepreneurial opportunities. Organization Science, 11, 448-469.
84. Shane, S. (2003). A general theory of entrepreneurship: The individual-opportunity nexus. Northampton, England: Edward Elgar.
85. Shane, S. (2008). The illusions of entrepreneurship. New Haven, CT: Yale University Press.
86. Shane, S., and Venkataraman, S. (2000). Entrepreneurship as a field of research. Academy of Management Review, 25, 217-226.
87. Stuart, R.W., and Abetti, P.A. (1990). Impact of entrepreneurial and management experience on early performance. Journal of Business Venturing, 5, 151-162.
88. Tesluk, P., and Jacobs, R. (1998). Toward an integrated model of work experience. Personnel Psychology, 51, 321-355.
89. Townsend, D., Busenitz, L., and Arthurs, J. (2010). To start or not to start: Outcome and ability expectations in the decision to start a new venture. Journal of Business Venturing, 25, 192-202.
90. Ucbasaran, D., Westhead, P., and Wright, M. (2008). Opportunity identification and pursuit: Does an entrepreneur's human capital matter? Small Business Economics, 30, 153-173.
91. Ucbasaran, D., Westhead, P., and Wright, M. (2009). The extent and nature of opportunity identification by experienced entrepreneurs. Journal of Business Venturing, 24, 99-115.
92. Vago, M. (2004). Integrated Change Management©: Challenges for family business clients and consultants. Family Business Review, 17, 71-80.
93. Vallejo, M. (2009). Analytical model of leadership in family firms under transformational theoretical approach: An exploratory study. Family Business Review, 22, 136-150.
94. Venkataraman, S. (1997). The distinct domain of entrepreneurship research. Advances in Entrepreneurship, Firm Emergence and Growth, 3, 119-138.
95. Ward, J.L. (1997). Growing the family business: Special challenges and best practices. Family Business Review, 10, 323-337.
96. Wood, R., and Bandura, A. (1989). Social cognitive Theory of organizational management. Academy of Management Review, 14, 361-384.
97. Zahra, S.A. (2005). Entrepreneurial risk taking in family firms. Family Business Review, 18, 23-40.
98. Zahra, S., Korri, J., and Yu, J. (2005). Cognition and international entrepreneurship: implications for research on international opportunity recognition and exploitation. International Business Review, 14, 129-146.
99. Zhao, H., Seibert, S., and Hills, G. (2005). The mediating role of self-efficacy in the development of entrepreneurial intentions. Journal of Applied Psychology, 90, 1265-1272.