Justin B. Craig Copyright (c) 2012 All rights reserved. http://works.bepress.com/justin_craig Recent documents in Justin B. Craig en-us Sun, 25 Nov 2012 02:24:15 PST 3600 Stewardship behaviour as governance in family businesses http://works.bepress.com/justin_craig/55 http://works.bepress.com/justin_craig/55 Tue, 16 Oct 2012 23:31:00 PDT Extract:

To demonstrate the potential of stewardship behavior in the governance of family businesses, we introduce a statistically valid and reliable measure that captures the degree to which family leaders act to engender stewardship governance in their family's firm. Demonstrating nomological validity of our measure through significantly positive relationships with innovativeness and firm performance further links our scale to entrepreneutrial behaviors. We discuss the contribution to our research for practitioners and scholars.

]]> Justin B. Craig et al. The Belcher family gain legitimacy in a new industry: Sailing into the unknown http://works.bepress.com/justin_craig/54 http://works.bepress.com/justin_craig/54 Sun, 14 Oct 2012 17:45:50 PDT Extract

This chapter documents the challenges that entrepreneurial family businesses
face in gaining legitimacy in a new industry. Here, we feature the founding generation of Australia’s Belcher family business and trace its evolution from start-up to industry leader. The integral role the entrepreneurial founders John and Jane Belcher played in positioning a new industry, the management rights industry, is also explored.

]]> Justin B. Craig et al. The Deague family: Learning entrepreneurship through osmosis http://works.bepress.com/justin_craig/53 http://works.bepress.com/justin_craig/53 Sun, 14 Oct 2012 17:45:49 PDT Extract

In this chapter, we introduce the idea of learning entrepreneurship by
osmosis. Drawing from the experiential learning literature, we feature
Australia’s Deague family. Experiential learning suggests that knowledge
is continuously gained through both personal and environmental experiences
(Kolb 1984). However, in order to gain genuine knowledge from an
experience, certain abilities are required. Specifically, the learner must: (i)
be willing to be actively involved in the experience; (ii) be able to reflect on
the experience; (iii) possess and use analytical skills to conceptualize the
experience; and (iv) possess decision-making and problem-solving skills in
order to use the new ideas gained from the experience.

]]> Justin B. Craig et al. Twin brothers in arms learn the family business http://works.bepress.com/justin_craig/52 http://works.bepress.com/justin_craig/52 Sun, 14 Oct 2012 17:45:48 PDT Extract

In this case, Moores and Barrett’s (2002) family business learning and life cycle framework has been used as the foundation, along with entrepreneurial orientation (EO) (Lumpkin and Dess 1996; Miller 1983) and the resource-based view of the firm (RBV) (Mahoney and Pandian 1992; Peteraf 1993; Wernerfelt 1984), for a review of an intriguing Australian second generation migrant family business.

]]> Justin B. Craig et al. Stewardship climate scale: Measurement and an assessment of reliability and validity http://works.bepress.com/justin_craig/51 http://works.bepress.com/justin_craig/51 Thu, 04 Oct 2012 20:45:45 PDT Building on the seminal work of Davis, Schoorman, and Donaldson (1997), using a three study approach and a combined multi-level respondent sample of 847 from 237 firms, we develop a statistically valid and reliable 18-item measure to capture the degree to which executives act to engender a stewardship climate in their organizations. Nomological validity of our dual (psychological and situational) mechanism measure is established by demonstrating significant associations with multiple individual- and firm-level measures.

]]> Justin B. Craig et al. A study of Schumpterian (radical) vs. Kirznerian (incremental) innovations in knowledge intensive industries http://works.bepress.com/justin_craig/50 http://works.bepress.com/justin_craig/50 Thu, 04 Oct 2012 20:45:45 PDT In this study we draw upon Schumpeterian and Kirznerian theories of innovation, to frame through use of U.S. patent data for the pharmaceutical and biotechnology industries for investigating the value of an organization’s knowledge through its intellectual property. Measures for both radical and incremental are developed and tested against firm performance. Our findings support the perspective of knowledge generation increasing financial and market performance returns for ventures concentrating their resources on the pursuit of Schumpeterian radical innovations through a strong organizational emphasis on the knowledge impact compared to lower performance returns for ventures which sought incremental innovation.

]]> Cory Taylor Cromer et al. Strategic planning and flexibility: Governance control mechanisms in family and non-family firms http://works.bepress.com/justin_craig/49 http://works.bepress.com/justin_craig/49 Thu, 04 Oct 2012 20:45:44 PDT We examine governance systems within the contexts of family and non-family owned firms. Specifically, we suggest that while a formal governance mechanism (i.e., formal strategic planning) is positively associated with financial performance in both family and non-family firms, the relative benefit of such a formal governance structure is greater for non-family firms. We posit that strategic flexibility can also be used as a governance mechanism, but the value of this informal governance mechanism is greater for family firms. In a study of 354 firms using moderated regression analysis, we discovered the relative benefit of formal and informal governance mechanisms in family- and non-family-owned firms. In the case of family firms, strategic flexibility moderated the strategic planning to firm financial performance relationship. In non-family firms, we found direct relationships from strategic planning and strategic flexibility to firm performance, but we did not find an interaction effect between strategic planning and strategic flexibility to firm financial performance. This project contributes by demonstrating the individual and combined roles of strategic planning and strategic flexibility as formal and informal governance mechanisms and their usage in family and non-family firms.

]]> Clay Dibrell et al. Natural environment, market orientation, and firm innovativeness: An organizational life cycle perspective http://works.bepress.com/justin_craig/48 http://works.bepress.com/justin_craig/48 Thu, 04 Oct 2012 20:45:43 PDT Drawing upon the corporate social responsibility literature, we investigate the moderating effects of the natural environment and the stage of an organization’s life cycle on the market orientation to firm innovativeness relationship. Through 229 owners or chief executive officer respondents, our results establish evidence of (1) a positive linkage between market orientation and firm innovativeness; (2) natural environmental policy positively moderating the market orientation to firm innovativeness relationship; and (3) organizational life cycle negatively moderating market orientation to innovativeness. Our findings suggest ventures characterized as being early in the organizational life cycle are more likely to have a positive environmental policy toward the natural environment leading to a competitive advantage through firm innovativeness.

]]> Clay Dibrell et al. Intrapreneurship in multi-generational family businesses http://works.bepress.com/justin_craig/47 http://works.bepress.com/justin_craig/47 Thu, 04 Oct 2012 20:45:42 PDT Drawing from the agency and stewardship theory literature, this conceptual work explores the role of intrapreneurship (internal corporate venturing) in multi-generational family businesses. Specifically, governance and managerial considerations unique to family businesses are used to predict both the relatedness between a parent firm and its ventures, and how these internal new ventures are managed.

]]> Robert P. Garrett et al. LEGITIMIZING THE NATURAL ENVIRONMENT IN SMES: A STRATEGIC ISSUE INTERPRETATION PERSPECTIVE (SUMMARY) http://works.bepress.com/justin_craig/46 http://works.bepress.com/justin_craig/46 Tue, 13 Sep 2011 16:55:22 PDT How do businesses legitimize their natural environmental strategic initiatives? In this research, we are concerned with how managerial interpretations of natural environmental issues predict natural environmental strategic action related to firm innovativeness in SMEs. Results from this study will provide managers with a greater understanding of the benefits from a natural environmental initiative. The research questions that are addressed include: (1) Does the legitimization of the natural environment in an SME positively affect firm innovativeness? (2) What benefits are associated with socially embedding natural environmental policies? and (3) How do the strategic issue and social embeddedness theories predict how a SME will benefit from an increased focus on the natural environment?

We draw from strategic issue interpretation perspective, which suggests the processes that determine what managers heed and ignore in their decision making processes. As responses to societal expectations are ambiguous and require interpretative categorization by managers, we also frame our conversation in the social embeddedness literature. Our overarching argument focuses on the notion that there are measurable payoffs from legitimizing the natural environment inside the firm, and this process of legitimization has increased benefits if it is more thoroughly embedded in the firm. Specifically, the more discretion that manager’s are given in the implementation of natural environmental policies, the greater will be the positive outcomes of innovativeness.

]]> Clay Dibrell et al. Organizational strategy ACCESSION TOURNAMENTS: THE APPLICATION OF A GAME THEORY DERIVATIVE TO THE MULTI-DIMENSIONAL FAMILY BUSINESS ACCESSION PROCESS (INTERACTIVE PAPER) http://works.bepress.com/justin_craig/45 http://works.bepress.com/justin_craig/45 Tue, 13 Sep 2011 16:55:20 PDT We argue that the recent governance and professionalization focus in family business research conversations, while helpful in understanding succession, and family businesses in general, needs to be complemented with a theoretical discussion of the multi-dimensional accession process. We contend that this process is multi-dimensional as, unlike in a corporate setting where the incumbent is succeeded by a suitable successor, multi-generational family businesses are more complex and there is potentially a plethora of positions of influence for which actors can compete. We use tournament theory to propose how family actors will act in accession tournaments and propose that the absence of a ‘final’ tournament further distinguishes family from non-family businesses.

]]> Justin Craig et al. Family business OVERCOMING THE LIABILITY OF THEORETICAL NEWNESS: THE CASE FOR STEWARDSHIP THEORY (SUMMARY) http://works.bepress.com/justin_craig/44 http://works.bepress.com/justin_craig/44 Tue, 13 Sep 2011 16:55:18 PDT To overcome stewardship theory’s liability of newness, we introduce a validated and reliable measure for stewardship. Using Dubin’s features of a theoretical model to position stewardship theory, we endeavour to take a structured approach in the Kuhn-characterised normal science stage of entrepreneurship. There is a danger that stewardship theory currently bears many of the hallmarks of a summative unit (in Dubin’s terms), where a summative unit is one that can be referred to as a global unit that stands for an entire complex phenomenon; conveys a great deal of meaning but is always diffuse; draws together a number of different properties of a thing and gives them a label that highlights one of the more important properties. In the Kuhnian normal science stage of the entrepreneurship field without a validated robust scale, stewardship will remain positioned as a summative unit with a limited role to play in theory building.

Stewardship theory defines relationships based upon behavioural premises not addressed by the manager-principal interest divergence canvassed in agency theory. In that way, a steward unlike an agent is not motivated by self-interest. His/her motives are allied with the objectives of the principals. Psychological and situational aspects differentiate principal-steward relationships from principal-agent relationships. Stewardship theory has had conceptual but limited empirical development.

]]> Justin Craig et al. Organizational governance Observe, experience and integrate: Enhancing professional development using international study tours http://works.bepress.com/justin_craig/43 http://works.bepress.com/justin_craig/43 Tue, 13 Sep 2011 16:55:15 PDT This chapter provides evidence of the positive benefits associated with adopting an international study tour as a unique and effective professional development tool. Specifically, we show how involvement in an international study tour has the potential to make a significant contribution to students' ability to lead, their understanding of how important it is to show initiative particularly in uncertain situations and to be an effective contributor to a team. We couch our conversation within Kolb's (1984) experiential learning frame and use Bloom's Taxonomy (Bloom et al., 1956) to illustrate how the study tour's learning objectives are assessed. Finally, we discuss our insights into the points of differentiation that we believe international study tours are uniquely designed to deliver.

]]> Li-Anne Woo et al. Desk rejection: How to avoid being hit by a returning boomerang http://works.bepress.com/justin_craig/42 http://works.bepress.com/justin_craig/42 Tue, 13 Sep 2011 16:55:14 PDT Manuscripts are desk rejected when they do not fit the mission of the journal or are too underdeveloped to benefit from the review process. In such cases, two members of the editorial team go through the manuscript and provide a developmental letter to author or authors to advance the article further. This helps free up the time of editors and reviewers to concentrate on the most promising manuscripts.

]]> Justin B. Craig Working with family business: A content validity study of the Aspen Family Business Inventory http://works.bepress.com/justin_craig/41 http://works.bepress.com/justin_craig/41 Wed, 04 May 2011 22:55:39 PDT S. Moncrief et al. Linking transgenerational value creation with natural environment and sustainability policy in family and non-family owned firms: Extending the agency-stewardship theory debate http://works.bepress.com/justin_craig/40 http://works.bepress.com/justin_craig/40 Wed, 04 May 2011 22:40:40 PDT In this paper, we extend the existing agency-stewardship theory debate by linking transgenerational value creation with the natural environment. We enlist stewardship and agency theories to frame our discussion. Specifically, a firm with a positive natural environmental sustainability policy (ESP) acts as a proxy for the attributes of stewardship theory, whereas a neutral firm position toward ESP operates as a surrogate for agency theory. We test stewardship theory within the context of non-family (n=175) and family-owned (n=216) firms. Our findings suggest that family-owned firms do exhibit forms of stewardship behavior, while non-family-owned firms displayed propensity toward agency-like actions.

]]> Justin B. Craig et al. The professionalization process: The Dennis Family Corporation case http://works.bepress.com/justin_craig/39 http://works.bepress.com/justin_craig/39 Wed, 20 Apr 2011 23:27:23 PDT Bert and Dawn Dennis were faced with a decision that had to be made and they could not make it on their own. They called a family meeting. They asked their four adult off-spring to decide whether they would prefer them to sell the business that they had built over the past 25 years and divide the funds equally between them or whether the children would prefer to amalgamate their associated businesses with the parent company and take on the challenge of professionalizing this new entity. The four members of the second generation expressed unanimous desire to amalgamate and “make a real go of it”. This teaching case study details how the Dennis family has been able to professionalize their family business while still retaining their family values and realizing Bert and Dawn’s vision.

]]> Justin B. Craig et al. The natural environment, innovation and firm performance: A comparative study http://works.bepress.com/justin_craig/38 http://works.bepress.com/justin_craig/38 Wed, 20 Apr 2011 23:16:59 PDT In this article, we investigate the effect of firm-level natural-environment-related policies on innovation and financial performance in family and nonfamily firms. Our findings demonstrate that family firms are better able to facilitate environmentally friendly firm policies associated with improved firm innovation and greater financial performance more effectively than their nonfamily competitors.

]]> Justin B. Craig et al. Conflict and family functioning in family business http://works.bepress.com/justin_craig/37 http://works.bepress.com/justin_craig/37 Wed, 20 Apr 2011 23:11:20 PDT Justin B. Craig A look at organizational conflict in family business http://works.bepress.com/justin_craig/36 http://works.bepress.com/justin_craig/36 Wed, 20 Apr 2011 23:09:16 PDT Justin B. Craig