All In The Family

It’s not just the relations that make family businesses different from their counterparts. Forced to consider the extensive long-term in a way that’s not conventionally thought of, Dr. Todd Moss sought to discover if this planning and consistency aided in performance of family businesses in his recent article with Family Business Review  titled Strategic Consistency of Exploration and Exploitation in Family Businesses

The topic for the article grew out of my dissertation research, which examined exploration and exploitation across a number of organizations.  My background is in mechanical engineering, which naturally led me to wonder about how companies can explore new ideas for future growth and exploit their current ideas.  While collecting data specifically for my dissertation, I went beyond my immediate need and spent time gathering additional data as well (like any good Ph.D. student is taught to do).  Family businesses are well-known for managing for the long term, so examining exploration and exploitation in family businesses provided a context that we hoped would be interesting to other scholars. 

 The dataset used for gauging exploration and exploitation was management and discussion sections (MD&A) of firm annual reports, so we were essentially measuring the emphasis that a management team placed on exploration and/or exploitation in the MD&A sections over time.  One finding that surprised us was the extent to which familyfbr cover businesses were consistent over time–and how that consistency was related to increased performance–much more so than in non-family businesses.  We hope to explore this dataset further to see how other constructs emphasized by the firms’ management teams could be related to additional organizational outcomes.

Read the entire article online in Family Business Review, and sign up for e-alerts here so you don’t miss out on FBR’s latest articles and issues.

This entry was posted in Careers, Change, Entrepreneurship, Family Business, Finance, Strategy and tagged , , , , , , by Cynthia Nalevanko, Editor, Management INK. Bookmark the permalink.

About Cynthia Nalevanko, Editor, Management INK

Founded in 1965, SAGE is the world’s leading independent academic and professional publisher. Known for our commitment to quality and innovation, SAGE has helped inform and educate a global community of scholars, practitioners, researchers, and students across a broad range of subject areas. With over 900 employees globally from principal offices in Los Angeles, London, New Delhi, Singapore, and Washington DC, our publishing programme includes more than 560 journals and over 800 books, reference works and databases a year in business, humanities, social sciences, science, technology and medicine. Believing passionately that engaged scholarship lies at the heart of any healthy society and that education is intrinsically valuable, SAGE aims to be the world’s leading independent academic and professional publisher. This means playing a creative role in society by disseminating teaching and research on a global scale, the cornerstones of which are good, long-term relationships, a focus on our markets, and an ability to combine quality and innovation. Leading authors, editors and societies should feel that SAGE is their natural home: we believe in meeting the range of their needs, and in publishing the best of their work. We are a growing company, and our financial success comes from thinking creatively about our markets and actively responding to the needs of our customers.

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