Family Business Performance from a Governance Perspective: A Review of Empirical Research

Decision making is defined as the process which allows the organisation to make proper decision required for the company to enhance the various aspects that influence the growth of their business. Contextual factors refer to the important aspect of the firm that helps to develop the most effective result which enhances the decision-making process of the manager. In this factor, the primary concept is governance, capabilities, risks and laws and regulations that enhance the firm to perform their best among the other competitors of the firm. The primary purpose of the paper is to provide an annotated bibliography related to the five different topics which are associated with all these contextual factors. The annotation provided by this five-article also demonstrated the decision-making process of the manger related to the firm. In other words, the articles also help to understand the topic related to contextual factors and its effects on the managers of the firm.                   

Pindado, J., & Requejo, I. (2015). Family business performance from a governance perspective: A review of empirical research. International Journal of Management Reviews, 17(3), 279-311. DOI: 10.1111/ijmr.12040 

The article discusses the complexity of the family business process, and for this proper family, control is beneficial for the growth of the firm performance. In order to reduce this issue, the paper enlightens over more than 350 journals to determine the family business governance system. The articles provide a depth analysis of the governance system of the family business and describe it in three steps. In the first step, the author describes that various family business definitions, as well as measurement of performance, cause a direct effect on the business performance of the family in various geographical provinces. In other words, the author also suggested that performance measures are used in various empirical research, and it also helps in determining the effect of family business performance on different areas. In the second step, the author gives attention on the ownership structures choice over the family business and also analyse how the owners influence the strategic decisions faced by the firm, and it includes the succession process too. Lastly, the author demonstrates that interaction between the governance devices with family control help the business to understand both the corporate performance and decision-making procedures of the family organisations. In other words, the article describes that governance helps the manager of the family firms to give a unique performance in the market. The author suggested that with the help of governance devices the manager can easily identify its obvious consequences and antecedents. By integrating the management as well as finance perspectives, the manager can easily influence the family firm business at a higher position within the market.              

External Determinants and Financial Outcomes of an Eco-friendly Orientation in Smaller Manufacturing Firms

Leonidou, L., Christodoulides, P., & Thwaites, D. (2016). External Determinants and Financial Outcomes of an Eco?friendly Orientation in Smaller Manufacturing Firms. Journal of Small Business Management, 54(1), 5-25. DOI: 10.1111/jsbm.12121

The article describes the significant growth of the issue which is mainly associated with the natural environment. In other words, it also provides that the numerous small organisations are developing on a huge scale and they are engaged in different environmental friendly activities. From the article, it is noticed that environmental regulation, competitive intensity as well as public environmental concerns play a quite important role in the growth of a firm. The concept behind the fact is that it is developing rapidly in the recent years and thereby different firms become active in the environmentally friendly activities. Besides this, it can be seen that environment possess an enormous force on the activity of the firm which is quite effective for the decision-making process of the organisation. Hence, in other words, it can be said that the ecological orientation produces a direct impact on the decision-making process of the managers of the organisation and by this factor, the managers influence the growth of the firm within the market. The main vital process or activity occurs in this process is to deal with the numerous activity as well as the working function of the firm. Apart from this the article also suggested that the eco-friendly activity of the firm plays a critical role in the enhancement of the business within the market. It is considered to be the major activity to deal with the various working function of the firm about the environmental activists of the market. Thus it considers as one of the primary activity that enhances the decision-making process of the managers.           

Martin, X. (2012). Solving theoretical and empirical conundrums in international strategy research: Linking foreign entry mode choices and performance. Journal of International Business Studies, 44(1), 28-41. DOI: 10.1057/jibs.2012.29

The article is dealing with both the theoretical as well as practical developments of the firm in the international market and also suggested their mode of entry in the foreign market in concerning to their choice as well as the performance of the firm. In other words, the article is based on the modes of entry of an organisation in the global market, and due to this some theoretical, as well as empirical issues, are discussed in this context. From the findings of the article, it is seen that various empirical and theoretical advances are present in this context about the modes of entry of the firm in the foreign market, but the most important strategy of entry process in the international market was mainly followed by the Brouthers’ JIBS Decade Award Winning paper theory. In concern to this theory, Brouthers defines as an archetype of the integration of both institutional perspectives and transaction costs. Besides this, the Brothers theory also contributed several uniquely rich as well as direct measures that help the organisation for getting the entry into the international market. From the findings of the articles, it is seen that this theory not only exhibit awareness of self-selection or endogeneity issues but also influences the comparative analysis of the firm in the foreign market. Hence this theory helps the managers to enhance their decision-making process for the growth of the business within the market. Furthermore, it is seen that this Brouthers theory influence the manager to take the right decision suitable for their organisation to enter into the international market.                   

Solving Theoretical and Empirical Conundrums in International Strategy Research: Linking Foreign Entry Mode Choices and Performance

Kehoe, R., & Wright, P. (2013). The Impact of High-Performance Human Resource Practices on Employees’ Attitudes and Behaviors. Journal of Management, 39(2), 366-391. DOI: 10.1177/0149206310365901

The article demonstrates the role of strategic human resource management that enhances the firm to develop a relationship between the organisation level market as well as outcomes with the high performance of HR management. The article also focuses on the role of employees’ ability in concerning HR practices that bring better outcomes of the production and thereby it plays an important role in the relationship of employees and HR practices. In other words, the main aim of the article is to demonstrate the relationship between the ability of the employees to do better in their work which the management can utilise for their organisation in case of employees absent. For determining this, a survey data has been provided in the article over the employees of a large food service firm. The results from this survey show the ability of the employees as well as the responsibility of the HR management in a group that brings a positive impact on the firm growth. In other words, the results also demonstrate the commitment done by the HR practices of the organisation and whether it has been fulfilled by the management or not. The article also defines the behaviour of the organisation that provides a huge impact on the firm and enhances to bring positive outcomes. Besides this, the article also suggested that positive outcomes enhance the manager to take the right decision for the betterment of the firm. The managers with the help of this article motivate their staff to handle their roles and responsibility for the growth of their performance thereby it helps the firm to achieve its goals.

Brauer, M., & Wiersema, M. (2018). Analyzing Analyst Research: A Review of Past Coverage and Recommendations for Future Research. Journal of Management, 44(1), 218-248. DOI: 10.1177/0149206317734900

The article describes that knowledgeable as well as visible experts that analyse, disseminate as well as collect information about the prospects of the private organisations as well as their financial analysts give important information to the investors. It also helps the investors in monitoring the function and information brokerage that is required for the firm to grow their business in the coming days. Besides this, the paper also demonstrates that investment advice as well as financial analysts also influence the demands for the stocks of the firm and also its price over the market. In other words, the executives of the organisation give attention to the financial analysts’ remunerations projections as well as on its recommendation, so that the firm can easily focus on their expenses. After that, the executives make a proper strategy that enhances long-term interests for the firm. From the article, it is seen that analysis of strategic management is growing over the organisation which enhances the decision-making process of the manager and the investors but the absence of understanding between the extent and nature of analysts sometimes affected their decisions. With proper organising, synthesising as well as analysing the extent research also enhances the decision making process of both the managers as well as the investors of the firm. In other words, both analysis and recommendation help the managers to increase their research and thereby it also enhances the stakeholders of the firm. Thus it can be stated that financial analysts help the mangers to provide the recommendation that became helpful for the firm in coming days.                        

Conclusion 

The paper concludes that the decision-making process of the manager helps the firm to increase their business to the local as well as on the international market. For this reason, various aspects of factors are described in this paper which influences the decision-making process of the managers. The several factors are organisational structure or governance, risk confronting the firm, environmental forces, the function of different firm and the organisation and business practices. All these factors influence the decision-making process of the manager related to the firm. It is recommended that if the HR practices of the firm maintain a good relationship with the employees, then it helps the firm to maintain a competitive advantage in the market. In other words, it also enhances the manager to motivate their employees so that they perform their best for the firm. Thus it can be said that the Human Resource Management team is the only one that helps the firm to enhance their business in both the international as well as global market. Along with this, it can also say that this manager only brings a positive impact on the growth of the organisation and for this proper strategy should be maintained by the manager.