Firm Philanthropy in Small- and Medium-Sized Family Firms: The Effects of Family Involvement in Ownership and Management

Family Business Review

Volumn 27, Issue 3, 2014, Pages 244-258

  Campopiano, Giovanna ^a   de Massis, Alfredo ^b,c   Chirico, Francesco ^d  

^a UNIVERSITY OF WITTEN HERDECKE   (Germany)

^b Lancaster University   (United Kingdom)

^c UNIVERSITY OF BERGAMO   (Italy)

^d JÖNKÖPING INTERNATIONAL BUSINESS SCHOOL   (Sweden)

Author keywords

family firms; family involvement; ownership dispersion; philanthropy; social issues

Indexed keywords

EID: 84997995407     PISSN: 08944865     EISSN: 17416248     Source Type: Journal    
DOI: 10.1177/0894486514538450     Document Type: Article

References (97)

1. Anderson R. C., Reeb D. (2003). Founding family ownership and firm performance: Evidence from the S&P 500. Journal of Finance, 58, 1301-1327.
2. Arosa B., Iturralde T., Maseda A. (2010). Ownership structure and firm performance in non-listed firms: Evidence from Spain. Journal of Family Business Strategy, 1, 88-96.
3. Arregle J. L., Hitt M. A., Sirmon D. G., Very P. (2007). The development of organizational social capital: Attributes of family firms. Journal of Management Studies, 44, 73-95.
4. Astrachan J. H., Shanker M. C. (2003). Family businesses’ contribution to the US economy: A closer look. Family Business Review, 16, 211-219.
5. Atkinson L., Galaskiewicz J. (1988). Stock ownership and company contributions to charity. Administrative Science Quarterly, 33, 82-100.
6. Bammens Y., Notelaers G., Van Gils A. (2014). Implications of family business employment for employees’ innovative work involvement. Family Business Review. Advance online publication. doi:10.1177/0894486513520615
7. Bartkus B. R., Morris S. A., Seifert B. (2002). Governance and corporate philanthropy restraining Robin Hood? Business & Society, 41, 319-344.
8. Beck T., Demirguc-Kunt A., Levine R. (2005). SMEs, growth, and poverty: Cross-country evidence. Journal of Economic Growth, 10, 199-229.
9. Bertrand M., Johnson S., Samphantharak K., Schoar A. (2008). Mixing family with business: A study of Thai business groups and the families behind them. Journal of Financial Economics, 88, 466-498.
10. Bingham J. B., Dyer W. G. Jr., Smith I., Adams G. L. (2011). A stakeholder identity orientation approach to corporate social performance in family firms. Journal of Business Ethics, 99, 565-585.
11. Bird M., Wennberg K. (2013). Regional influences on the prevalence of family versus non-family start-ups. Journal of Business Venturing, 23, 421-436.
12. Bradley S. W., Patel P. C., McMullen J. S., Parida V. (2011). Searching wide or deep? Absorptive capacity, slack resources and the role of external search in small firm growth. Frontiers of Entrepreneurship Research, 31(15), Article 1.
13. Brammer S., Millington A. (2003). The effect of stakeholder preferences, organizational structure and industry type on corporate community involvement. Journal of Business Ethics, 45, 213-226.
14. Brammer S., Millington A. (2005). Corporate reputation and philanthropy: An empirical analysis. Journal of Business Ethics, 61, 29-44.
15. Brammer S., Millington A. (2006). Firm size, organizational visibility and corporate philanthropy: an empirical analysis. Business Ethics: A European Review, 15, 6-18.
16. Campopiano G., De Massis A. (2014). Corporate social responsibility reporting: A content analysis in family and non-family firms. Journal of Business Ethics. Advance online publication. doi:10.1007/s10551-014-2174-z
17. Carney M. (2005). Corporate governance and competitive advantage in family-controlled firms. Entrepreneurship Theory and Practice, 29, 249-265.
18. Caselli S., Di Giuli A. (2010). Does the CFO matter in family firms? Evidence from Italy. European Journal of Finance, 16, 381-411.
19. Chirico F., Baù M. (2014). Is the family an “Asset” or “Liability” for firm performance? The moderating role of environmental dynamism. Journal of Small Business Management, 52, 210-225.
20. Chirico F., Sirmon D. G., Sciascia S., Mazzola P. (2011). Resource orchestration in family firms: Investigating how entrepreneurial orientation, generational involvement, and participative strategy affect performance. Strategic Entrepreneurship Journal, 5, 307-326.
21. Chrisman J. J., Chua J. H., Pearson A. W., Barnett T. (2012). Family involvement, family influence, and family-centered non-economic goals in small firms. Entrepreneurship Theory and Practice, 36, 267-293.
22. Chrisman J. J., Chua J. H., Kellermanns F. (2009). Priorities, resource stocks, and performance in family and nonfamily firms. Entrepreneurship Theory and Practice, 33, 739-760.
23. Chrisman J. J., Steier L. P., Chua J. H. (2008). Toward a theoretical basis for understanding the dynamics of strategic performance in family firms. Entrepreneurship Theory and Practice, 32, 935-947.
24. Chua J. H., Chrisman J. J., Sharma P. (1999). Defining the family business by behavior. Entrepreneurship: Theory and Practice, 23, 19-39.
25. 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, 355-362.
26. Craig J., Dibrell C. (2006). The natural environment, innovation, and firm performance: A comparative study. Family Business Review, 19, 275-288.
27. Davis J., Schoorman R., Donaldson L. (1997). Towards a stewardship theory of management. Academy of Management Review, 22, 20-47.
28. De Massis A., Chua J. H., Chrisman J. J. (2008). Factors preventing intra family succession. Family Business Review, 21, 183-199.
29. De Massis A., Kotlar J., Campopiano G., Cassia L. (2013). Dispersion of family ownership and the performance of small-to-medium size private family firms. Journal of Family Business Strategy, 4, 166-175. doi:10.1016/j.jfbs.2013.05.001
30. De Massis A., Kotlar J., Campopiano G., Cassia L. (2014). The impact of family involvement on SMEs’ performance: Theory and evidence. Journal of Small Business Management. Advance online publication. doi:10.1111/jsbm.12093
31. De Massis A., Kotlar J., Chua J. H., Chrisman J. J. (2014). Ability and willingness as sufficiency conditions for family-oriented particularistic behavior: Implications for theory and empirical studies. Journal of Small Business Management, 52, 344-364.
32. De Massis A., Sharma P., Chua J. H., Chrisman J. J. (2012). Family business studies: An annotated bibliography. Northampton, MA: Edward Elgar.
33. DeTienne D. R., Chirico F. (2013). Exit strategies in family firms: How socioemotional wealth drives the threshold of performance. Entrepreneurship Theory and Practice, 37, 1297-1318.
34. Dibrell C., Craig J. B., Kim J., Johnson A. J. (2014). Establishing how natural environmental competency, organizational social consciousness, and innovativeness relate. Journal of Business Ethics, 1-15.
35. Donaldson L. (1990). The Ethereal hand: Organizational economics and management theory. Academy of Management Review, 15, 369-381.
36. Donaldson L., Davis J. (1991). Stewardship theory or agency theory: CEO governance and shareholder returns. Australian Journal of Management, 16, 49-64.
37. Dunn B. (1996). Family enterprises in the UK: A special sector? Family Business Review, 9, 139-155.
38. Eddleston K. A., Kellermanns F. W. (2007). Destructive and productive family relationships: A stewardship theory perspective. Journal of Business Venturing, 22, 545-565.
39. Eddleston K. A., Kellermanns F. W., Zellweger T. M. (2012). Exploring the entrepreneurial behavior of family firms: Does the stewardship perspective explain differences? Entrepreneurship Theory and Practice, 36, 347-367.
40. Eddleston K. A., Otondo R. F., Kellermanns F. W. (2008). Conflict, participative decision making, and generational ownership dispersion: A multilevel analysis. Journal of Small Business Management, 46, 456-484.
41. European Commission SMEs (2003). What is SME? Retrieved from http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/sme-definition/index_en.htm
42. Fox M. A., Hamilton R. T. (1994). Ownership and diversification: Agency theory or stewardship theory. Journal of Management Studies, 31, 69-81.
43. Galaskiewicz J. (1985). Social organization of an urban grants economy: A study of business philanthropy and nonprofit organizations. Orlando, FL: Academic Press.
44. Gallo M. A. (2004). The family business and its social responsibilities. Family Business Review, 17, 135-149.
45. Genest C. M. (2005). Cultures, organizations and philanthropy. Corporate Communications: An International Journal, 10, 315-327.
46. Gersick K. E., Davis J. A., McCollom Hampton M., Lansberg I. (1997). Generation to generation: Life cycles of the family business. Boston, MA: Harvard Business School Press.
47. Godfrey P. (2005). The relationship between corporate philanthropy and shareholder wealth: A risk management perspective. Academy of Management Review, 30, 777-798.
48. Goel S., He X., Karri R. (2011). Family involvement in a hierarchical culture: Effect of dispersion of family ownership control and family member tenure on firm performance in Chinese family owned firms. Journal of Family Business Strategy, 2, 199-206.
49. Gómez-Mejía L. R., Haynes K. T., Núñez-Nickel M., Jacobson K. J. L., Moyano-Fuentes J. (2007). Socioemotional wealth and business risks in family-controlled firms: Evidence from Spanish olive oil mills. Administrative Science Quarterly, 52, 106-137.
50. Gómez-Mejía L. R., Nunez-Nickel M., Gutierrez I. (2001). The role of family ties in agency contracts. Academy of Management Journal, 44, 81-95.
51. Hess D., Rogovsky N., Dunfee T. W. (2002). The next wave of corporate community involvement: Corporate social initiatives. California Management Review, 44, 110-125.
52. Hoopes D. G., Miller D. (2006). Owner preferences, competitive heterogeneity and strategic capabilities. Family Business Review, 19, 89-101.
53. James H. S. (2006). Family capitalism: Wendels, Haniels, Falcks, and the continental European model. Cambridge, MA: Belknap Press of Harvard University Press.
54. Kotlar J., De Massis A. (2013). Goal setting in family firms: Goal diversity, social interactions, and collective commitment to family-centered goals. Entrepreneurship Theory and Practice, 37, 1263-1288. doi:10.1111/etap.12065
55. La Porta R., Lopez-de-Silanes F., Shleifer A. (1999). Corporate ownership around the world. Journal of Finance, 54, 471-517.
56. Lam Y. S., Shankar V., Erramilli M. K., Murthy B. (2004). Customer value, satisfaction, loyalty, and switching costs: An illustration from a business-to-business service context. Journal of the Academy of Marketing Science, 32, 293-311.
57. Le Breton-Miller I., Miller D. (2006). Why do some family businesses out compete? Governance, long term orientations, and sustainable capability. Entrepreneurship Theory and Practice, 30, 731-746.
58. Le Breton-Miller I., Miller D. (2013). Socioemotional wealth across the family firm life cycle: A commentary on “Family business survival and the role of boards”. Entrepreneurship Theory and Practice, 37, 1391-1397.
59. Le Breton-Miller I., Miller D., Lester R. H. (2011). Stewardship or agency: A social embeddedness reconciliation of conduct and performance in public family businesses. Organization Science, 22, 704-721.
60. Ling Y., Kellermanns F. W. (2010). The effects of family firm specific sources of TMT diversity: The moderating role of information exchange frequency. Journal of Management Studies, 47, 322-344.
61. Litz R. A., Stewart A. C. (2000). Charity begins at home: Family firms and patterns of community involvement. Nonprofit and Voluntary Sector Quarterly, 29, 131-148.
62. Long R. G., Mathews K. M. (2011). Ethics in the family firm. Business Ethics Quarterly, 21, 287-308.
63. Lubatkin M. H., Schulze W. S., Ling Y., Dino R. N. (2005). The effects of parental altruism on the governance of family-managed firms. Journal of Organizational Behavior, 26, 313-330.
64. Lumpkin G. T., Brigham K. H. (2011). Long-term orientation and intertemporal choice in family firms. Entrepreneurship Theory and Practice, 35, 1149-1169.
65. Lumpkin G. T., Brigham K. H., Moss T. (2010). Long-term orientation: Implications for the entrepreneurial orientation and performance of family businesses. Entrepreneurship and Regional Development, 22(3), 1-24.
66. Maas K., Liket K. (2011). Talk the walk: Measuring the impact of strategic philanthropy. Journal of Business Ethics, 100, 445-464.
67. Maignan I. (2001). Consumers’ perceptions of corporate social responsibilities: A cross-cultural comparison. Journal of Business Ethics, 30, 57-72.
68. Maury B. (2006). Family ownership and firm performance: Empirical evidence from Western European corporations. Journal of Corporate Finance, 12, 321-341.
69. Mazzi C. (2011). Family business and financial performance: Current state of knowledge and future research challenges. Journal of Family Business Strategy, 2, 166-181.
70. Miller D., Le Breton-Miller I. (2005). Managing for the long run: Lessons in competitive advantage from great family businesses. Boston, MA: Harvard Business School Press.
71. Miller D., Le Breton-Miller I., Scholnick B. (2008). Stewardship vs. stagnation: An empirical comparison of small family and non-family businesses. Journal of Management Studies, 45, 51-78.
72. Minichilli A., Corbetta G., MacMillan I. C. (2010). Top management teams in family controlled companies: “Familiness”, “Faultlines”, and their impact on financial performance. Journal of Management Studies, 47, 205-222.
73. Motwani J., Levenburg N. M., Schwarz T. V., Blankson C. (2006). Succession planning in SMEs: An empirical analysis. International Small Business Journal, 24, 471-495.
74. Murillo D., Lozano J. M. (2006). SMEs and CSR: An approach to CSR in their own words. Journal of Business Ethics, 67, 227-240.
75. Orlitzky M., Schmidt F. L., Rynes S. L. (2003). Corporate social and financial performance: A meta-analysis. Organization Studies, 24, 403-441.
76. Porter M. E., Kramer M. R. (2002). The competitive advantage of corporate philanthropy. Harvard Business Review, 80(12), 56-68.
77. Pratt M. G., Foreman P. O. (2000). Classifying managerial responses to multiple organizational identities. Academy of Management Review, 25, 18-42.
78. Rutherford M. W., Kuratko D. F., Holt D. T. (2008). Examining the link between “Familiness” and performance: Can the F-PEC untangle the family business theory jungle? Entrepreneurship Theory and Practice, 32, 1089-1109.
79. Saiia D. H., Carroll A. B., Buchholtz A. K. (2003). Philanthropy as strategy when corporate charity “Begins at home”. Business & Society, 42, 169-201.
80. Schulze W. S., Lubatkin M. H., Dino R. N. (2003a). Exploring the agency consequences of ownership dispersion among the directors of private family firms. Aca demy of Management Journal, 46, 179-194.
81. Schulze W. S., Lubatkin M. H., Dino R. N. (2003b). Toward a theory of agency and altruism in family firms. Journal of Business Venturing, 18, 473-490.
82. Schulze W. S., Lubatkin M. H., Dino R. N., Buchholtz A. K. (2001). Agency relationships in family firms: Theory and evidence. Organization Science, 12, 99-116.
83. Schulze W., Lubatkin M. H., Ling Y. (2007). An organizational justice based view of self-control and agency cost in family firms. Journal of Management Studies, 44, 955-971.
84. Seifert B., Morris S. A., Bartkus B. R. (2003). Comparing big givers and small givers: Financial correlates of corporate philanthropy. Journal of Business Ethics, 45, 195-211.
85. Seifert B., Morris S. A., Bartkus B. R. (2004). Having, giving, and getting: Slack resources, corporate philanthropy, and firm financial performance. Business & Society, 43, 135-161.
86. Sirmon D. G., Arregle J. L., Hitt M. A., Webb J. W. (2008). The role of family influence in firms’ strategic responses to threat of imitation. Entrepreneurship Theory and Practice, 32, 979-998.
87. Tagiuri R., Davis J. (1996). Bivalent attributes of the family firm. Family Business Review, 9, 199-208.
88. Villalonga B., Amit R. (2006). How do family ownership, control and management affect firm value? Journal of Financial Economics, 80, 385-417.
89. Wang H., Choi J., Li J. (2008). Too little or too much? Untangling the relationship between corporate philanthropy and firm financial performance. Organization Science, 19, 143-159.
90. Wang J., Coffey B. (1992). Board composition and corporate philanthropy. Journal of Business Ethics, 11, 771-778.
91. Wang H., Qian C. (2011). Corporate philanthropy and corporate financial performance: The roles of stakeholder response and political access. Academy of Management Journal, 54, 1159-1181.
92. Williams R. (2003). Women on board of directors and their influence on corporate philanthropy. Journal of Business Ethics, 69, 217-236.
93. Windsor D. (2006). Corporate social responsibility: Three key approaches. Journal of Management Studies, 43, 93-114.
94. Wood D. J. (1991). Corporate social performance revisited. Academy of Management Review, 16, 691-718.
95. Wood D. J. (2010). Measuring corporate social performance: A review. International Journal of Management Reviews, 12, 50-84.
96. Wood D. J., Jones R. (1996). Research in corporate social performance: What have we learned? In BurlingameD. F., YoungD. R.,(Eds. ), Corporate philanthropy at the crossroads (pp. 41-85). Bloomington: Indiana University Press.
97. Zhang R., Zhu J., Yue H., Zhu C. (2010). Corporate philanthropic giving, advertising intensity, and industry competition level. Journal of Business Ethics, 94, 39-52.