Family Business Towards an Enterprising Family: A Theoretical Review of Performance Measurement
Putu Yudy Wijaya
Hindu Indonesia University, Jl. Sangalangit Tembau Penatih Denpasar, Bali, Indonesia
https://doi.org/10.47191/jefms/v6-i11-20ABSTRACT:
Family businesses have an important role in the economy, and on the other hand also have deviations from the general assumptions of a firm. The existence of a family element in its activities makes family businesses tend to be irrational. This review aims to examine models related to their definition and performance measurement. By using a descriptive approach and literature review techniques, it is hoped that we will be able to present a clear definition of family business performance towards an entrepreneurial family. Various literature and theories provide a definition that family business is a metasystem consisting of a feedback cycle between the family unit, business entity and family members. Family business enterprises (FBE) are expected to generate transgenerational profits and wealth so that they can guarantee the creation of an entrepreneurial family. FBE performance that supports entrepreneurial families requires supernormal profits from business activities. Where FBE performance is influenced by system performance, which comes from resources and capabilities. Meanwhile, FBE's competitiveness comes from distinctive familiarity. So it can be concluded that the role of distinctive familiness is important for FBE performance and the success of creating transgenerational wealth.
KEYWORDS:
family business, enterprising family, family business enterprise, distinctive familiness
REFERENCES:
1) Arshed, N. & Danson, M. (2015). The Literature Review. In O’Gorman, K. & MacIntosh, R. The Global Management Series: Research Methods for Business & Management (A guide to writing your dissertation). Second Edition. Goodfellow Publishers Limited.
2) Barney, J. (1991), ‘Firm resources and sustained competitive advantage’, Journal of Management, 17(1), 99–120.
3) Chrisman, J. and McMullan, W.E. (2000), ‘A preliminary assessment of outsider assistance as a knowledge resource. The longer-term impact of new venture counseling’, Entrepreneurship Theory and Practice, 24(3), 37–53.
4) Chua, J.H., Chrisman, J.J. and Sharma, P. (1999), “Defining the family business by behavior”, EntrepreneurshipTtheory and Practice, Vol. 23 No. 4, pp. 19-39.
5) Colli, A. and Rose, M.B. (2008), The Oxford Handbook of Business History, Oxford University Press, Oxford, ISBN: 9780199263684.
6) Fletcher, D.E. 2002. Understanding the Small Family Business. London and New York: Routledge, Taylor & Francis Group.
7) Habbershon, T.G., Williams, M., Mac Millan, I.C. 2006. A unified systems perspective of family form performance. In Handbook of Research on Family Business. Edward Elgar Publishing Limited.
8) Hadjimanolis, A. (2000), ‘A resource-based view of innovativeness in small firms’, Technology Analysis and Strategic Management, 12(2), 263–81.
9) Hitt, M.A., Ireland, R.D. and Hoskisson, R.E. (2001), Strategic Management: Competitiveness and Globalization, Cincinnati, OH: South-Western College Publishing.
10) Intihar, A. and Pollack, J.M. (2012), “Exploring small family-owned firms’ competitive ability: differentiation through trust, value -orientation, and market specialization”, Journal of Family Business Management, Vol. 2 No. 1 pp. 76-86.
11) Johansson, D., Karlsson, J., Malm, A. (2020). Family business – A missing link in economics? Journal of Family Business Strategy, 11(1): 100306. https://doi.org/10.1016/j.jfbs.2019.100306
12) King, A.W. and Zeithaml, C.P. (2001), ‘Competencies and firm performance: examining the causal ambiguity paradox’, Strategic Management Journal, 22, 75–98.
13) Macintosh, R. and Maclean, D. (1999), ‘Conditioned emergence: a dissipative structures approach to transformation’, Strategic Management Journal, 20(4), 297–316.
14) Makadok, R. (2001), ‘Toward a synthesis of the resource-based and dynamic-capability views of rent creation’, Strategic Management Journal, 22, 387–401.
15) Pounder, P. 2015. Family business insights: an overview of the literature. Journal of Family Business Management, 5(1): 116-127. http://dx.doi.org/10.1108/JFBM-10-2014-0023
16) Rowe, W.G. (2001), ‘Creating wealth in organizations: the role of strategic leadership’, Academy Management Executive, 15(1), 81–94.
17) Sari, M. & Asmendri. 2020. Penelitian Kepustakaan (Library Research) dalam Penelitian Pendidikan IPA. NATURAL SCIENCE: Jurnal Penelitian Bidang IPA dan Pendidikan IPA, 6(1): 41-53. DOI: 10.15548/NSC.V6I1.1555
