Salvatore Sciascia - Academia.edu (original) (raw)
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Papers by Salvatore Sciascia
Research on the profitability of family firms is growing, but results are mixed, especially for s... more Research on the profitability of family firms is growing, but results are mixed, especially for small unlisted companies. We argue this is due to the co-presence of benefits and disadvantages of both family ownership (FO) and family involvement (FI). Thus, we build upon two complementary theoretical perspectives -the stewardship and the stagnation perspectives -to explore the presence of non-linear effects of these two variables on profitability. We run regression analyses on longitudinal data drawn from 294 small privately-held family firms in Italy. We measure FI by the involvement of the family in management, the involvement of the family in the board of directors and the number of generations involved. Our results grasp the complexity of the effects of FO and FI in small unquoted companies: we find an inverted U-shaped relationship between FO and ROA, a positive relationship between family involvement in management and ROE, and a negative relationship between the number of generations involved and ROE.
Entrepreneurship and Regional Development, 2010
Previous literature on corporate entrepreneurship (CE) in family business (FB) focusses on the de... more Previous literature on corporate entrepreneurship (CE) in family business (FB) focusses on the determinants of CE and presents conflicting results on its effects on firm-level performance. We argue that previous studies have overlooked the idea of FBs being complex social systems comprising three components, controlling families, business entities and individual family members; and any business activity in a FB should also be studied with respect to its effects on the family and individual family members, which ultimately impacts the performance. Moreover, previous FB literature addresses CE as a monolithic concept and does not separate its two primary types: corporate venturing (CV) and strategic renewal (SR). This article focusses solely on CV, investigating the impact of CV on FB. The research is based upon a set of longitudinal in-depth case studies of three FBs engaged in CV initiatives. The findings suggest that CV can have positive, negative or possibly both effects at the family and individual levels depending on four moderating factors. At the individual level, if a succession process is present, CV may increase the incumbent leader's capability to effectively direct the selection and development process of next generation family members (NGFMs) as well as the NGFMs’ human capital. However, CV could also reduce the affective commitment of NGFMs to the core business and such a risk appears to be higher when CV participation in the FB strategy is low. At the family level, development of CV initiatives may both enhance and reduce the family cohesion. The risk of its decrease grows with greater relevance of non-active family members’ ownership and the greater financial impact of the CV initiative itself.
Small Business Economics, 2012
Empirical research on international entrepreneurship is growing, but results on the role of famil... more Empirical research on international entrepreneurship is growing, but results on the role of family ownership in this phenomenon are inconsistent. We believe these inconsistencies owe to prior researchers having not yet investigated nonlinear relationships. Drawing on opposing perspectives of stewardship and stagnation, we explore potential benefits and drawbacks of family ownership for international entrepreneurship and explore nonlinear relationships among these two variables. Using a sample of 1,035 US family businesses and applying ordinal regression analysis, we find an inverted U-shaped relationship between family ownership and international entrepreneurship: International entrepreneurship is maximized when family ownership stands at moderate levels. We discuss the implications of our findings for theory and practice and indicate avenues for future research.
Family Business Review, 2008
Research on the performance of family firms is growing, but results are mixed, especially for non... more Research on the performance of family firms is growing, but results are mixed, especially for nonlisted companies. Thus, on the basis of the co-presence of benefits and disadvantages of family involvement in ownership and management, we explored the presence of nonlinear effects of these two variables on performance. We run regression analyses on data drawn from 620 privately held family firms in Italy: A negative quadratic relationship between family involvement in management and performance was found, but we did not find any association between family involvement in ownership and performance. Our results suggest that in privately held firms the positive effects that previous literature associates with the presence of family managers do not appear strong enough to compensate for the disadvantages deriving from a nonmonetary goal orientation, nor do they compensate for the costs deriving from the need to solve conflicts between family managers and the impossibility of enlarging the company's social and intellectual capital through the employment of nonfamily managers. Moreover, the quadratic nature of the relationship calls for greater attention to be paid to these effects by family business owners, especially in those cases where family involvement in management is high.
Family Business Review, 2008
Research on the performance of family firms is growing, but results are mixed, especially for non... more Research on the performance of family firms is growing, but results are mixed, especially for nonlisted companies. Thus, on the basis of the co-presence of benefits and disadvantages of family involvement in ownership and management, we explored the presence of nonlinear effects of these two variables on performance. We run regression analyses on data drawn from 620 privately held family firms in Italy: A negative quadratic relationship between family involvement in management and performance was found, but we did not find any association between family involvement in ownership and performance. Our results suggest that in privately held firms the positive effects that previous literature associates with the presence of family managers do not appear strong enough to compensate for the disadvantages deriving from a nonmonetary goal orientation, nor do they compensate for the costs deriving from the need to solve conflicts between family managers and the impossibility of enlarging the company's social and intellectual capital through the employment of nonfamily managers. Moreover, the quadratic nature of the relationship calls for greater attention to be paid to these effects by family business owners, especially in those cases where family involvement in management is high.
To better understand the EO/performance relationship in family firms, we consider the joint moder... more To better understand the EO/performance relationship in family firms, we consider the joint moderating effect of generational involvement and participative strategy. Based on 199 Swiss family firms, our results indicate that increased generational involvement, unless managed carefully, negatively moderates the EO/performance relationship. A participative strategy not only mitigates the negative effects of generational involvement, but also enables family firms to effectively bundle and leverage the heterogeneous yet complementary knowledge and experiences of multigenerational family members to convert entrepreneurial opportunities into high-performance outcomes. Our theory suggests that realizing the benefits of EO in family firms is a complicated matter, jointly affected by generational involvement and participative strategy.
Research on the profitability of family firms is growing, but results are mixed, especially for s... more Research on the profitability of family firms is growing, but results are mixed, especially for small unlisted companies. We argue this is due to the co-presence of benefits and disadvantages of both family ownership (FO) and family involvement (FI). Thus, we build upon two complementary theoretical perspectives -the stewardship and the stagnation perspectives -to explore the presence of non-linear effects of these two variables on profitability. We run regression analyses on longitudinal data drawn from 294 small privately-held family firms in Italy. We measure FI by the involvement of the family in management, the involvement of the family in the board of directors and the number of generations involved. Our results grasp the complexity of the effects of FO and FI in small unquoted companies: we find an inverted U-shaped relationship between FO and ROA, a positive relationship between family involvement in management and ROE, and a negative relationship between the number of generations involved and ROE.
Entrepreneurship and Regional Development, 2010
Previous literature on corporate entrepreneurship (CE) in family business (FB) focusses on the de... more Previous literature on corporate entrepreneurship (CE) in family business (FB) focusses on the determinants of CE and presents conflicting results on its effects on firm-level performance. We argue that previous studies have overlooked the idea of FBs being complex social systems comprising three components, controlling families, business entities and individual family members; and any business activity in a FB should also be studied with respect to its effects on the family and individual family members, which ultimately impacts the performance. Moreover, previous FB literature addresses CE as a monolithic concept and does not separate its two primary types: corporate venturing (CV) and strategic renewal (SR). This article focusses solely on CV, investigating the impact of CV on FB. The research is based upon a set of longitudinal in-depth case studies of three FBs engaged in CV initiatives. The findings suggest that CV can have positive, negative or possibly both effects at the family and individual levels depending on four moderating factors. At the individual level, if a succession process is present, CV may increase the incumbent leader's capability to effectively direct the selection and development process of next generation family members (NGFMs) as well as the NGFMs’ human capital. However, CV could also reduce the affective commitment of NGFMs to the core business and such a risk appears to be higher when CV participation in the FB strategy is low. At the family level, development of CV initiatives may both enhance and reduce the family cohesion. The risk of its decrease grows with greater relevance of non-active family members’ ownership and the greater financial impact of the CV initiative itself.
Small Business Economics, 2012
Empirical research on international entrepreneurship is growing, but results on the role of famil... more Empirical research on international entrepreneurship is growing, but results on the role of family ownership in this phenomenon are inconsistent. We believe these inconsistencies owe to prior researchers having not yet investigated nonlinear relationships. Drawing on opposing perspectives of stewardship and stagnation, we explore potential benefits and drawbacks of family ownership for international entrepreneurship and explore nonlinear relationships among these two variables. Using a sample of 1,035 US family businesses and applying ordinal regression analysis, we find an inverted U-shaped relationship between family ownership and international entrepreneurship: International entrepreneurship is maximized when family ownership stands at moderate levels. We discuss the implications of our findings for theory and practice and indicate avenues for future research.
Family Business Review, 2008
Research on the performance of family firms is growing, but results are mixed, especially for non... more Research on the performance of family firms is growing, but results are mixed, especially for nonlisted companies. Thus, on the basis of the co-presence of benefits and disadvantages of family involvement in ownership and management, we explored the presence of nonlinear effects of these two variables on performance. We run regression analyses on data drawn from 620 privately held family firms in Italy: A negative quadratic relationship between family involvement in management and performance was found, but we did not find any association between family involvement in ownership and performance. Our results suggest that in privately held firms the positive effects that previous literature associates with the presence of family managers do not appear strong enough to compensate for the disadvantages deriving from a nonmonetary goal orientation, nor do they compensate for the costs deriving from the need to solve conflicts between family managers and the impossibility of enlarging the company's social and intellectual capital through the employment of nonfamily managers. Moreover, the quadratic nature of the relationship calls for greater attention to be paid to these effects by family business owners, especially in those cases where family involvement in management is high.
Family Business Review, 2008
Research on the performance of family firms is growing, but results are mixed, especially for non... more Research on the performance of family firms is growing, but results are mixed, especially for nonlisted companies. Thus, on the basis of the co-presence of benefits and disadvantages of family involvement in ownership and management, we explored the presence of nonlinear effects of these two variables on performance. We run regression analyses on data drawn from 620 privately held family firms in Italy: A negative quadratic relationship between family involvement in management and performance was found, but we did not find any association between family involvement in ownership and performance. Our results suggest that in privately held firms the positive effects that previous literature associates with the presence of family managers do not appear strong enough to compensate for the disadvantages deriving from a nonmonetary goal orientation, nor do they compensate for the costs deriving from the need to solve conflicts between family managers and the impossibility of enlarging the company's social and intellectual capital through the employment of nonfamily managers. Moreover, the quadratic nature of the relationship calls for greater attention to be paid to these effects by family business owners, especially in those cases where family involvement in management is high.
To better understand the EO/performance relationship in family firms, we consider the joint moder... more To better understand the EO/performance relationship in family firms, we consider the joint moderating effect of generational involvement and participative strategy. Based on 199 Swiss family firms, our results indicate that increased generational involvement, unless managed carefully, negatively moderates the EO/performance relationship. A participative strategy not only mitigates the negative effects of generational involvement, but also enables family firms to effectively bundle and leverage the heterogeneous yet complementary knowledge and experiences of multigenerational family members to convert entrepreneurial opportunities into high-performance outcomes. Our theory suggests that realizing the benefits of EO in family firms is a complicated matter, jointly affected by generational involvement and participative strategy.