Purpose

There is a growing consensus that entrepreneurial activity is essentially a collective family endeavour, with some configuration of family involvement in business (FIB) working better than others. This paper aims to examine the effects of FIB on strategy and financial performance (FP), drawing from the institutional theory for the Indian family businesses.

Design/methodology/approach

The sample comprises of 105 pharmaceutical companies listed on the Bombay Stock Exchange for FY2013–2017. A two-way random effects panel model was invoked to examine the relationship between FIB and strategy, as well as the intermediating effect that strategy has on the FIB-FP link.

Findings

On average, the family has a high ownership concentration, with the founders predominantly holding the chief executive officer (CEO) and chair positions. The econometric results highlight that the founder’s descendants adopt a conservative strategy. A significant positive moderating effect of strategy on FIB-FP link was observed for the descendants as the largest owners, CEO and board chair. The presence of a professional CEO and independent chair, however, leads to an intervening adverse impact on FP. The ownership-management-governance configurations highlight that some combinations of family and non-FIB leads to better performance than others.

Originality/value

The study provides a plausible explanation for the conflicting evidence on the direct FIB-FP relationship through the strategy intermediation. The institutional perspective emphasizing the identity and role family members play in terms of strategy provides an unconventional epistemological underpinning to the present research.

中文翻译：

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战略创业与绩效：印度家族企业的制度视角

目的

越来越多的人认为，创业活动本质上是一项家庭集体努力，家庭参与商业 (FIB) 的某些配置比其他配置更好。本文旨在研究 FIB 对战略和财务绩效 (FP) 的影响，借鉴印度家族企业的制度理论。

设计/方法/方法

样本包括 2013-2017 财年在孟买证券交易所上市的 105 家制药公司。调用双向随机效应面板模型来检查 FIB 与策略之间的关系，以及策略对 FIB-FP 链接的中介效应。

发现

平均而言，该家族拥有高度的所有权集中度，创始人主要担任首席执行官 (CEO) 和主席职位。计量经济学结果突出表明创始人的后代采取了保守的策略。对于作为最大所有者、首席执行官和董事会主席的后代，观察到战略对 FIB-FP 链接的显着正向调节作用。然而，专业 CEO 和独立主席的存在会对 FP 产生不利影响。所有权-管理-治理配置突出显示，家庭和非 FIB 的某些组合比其他组合会带来更好的性能。

原创性/价值

该研究通过战略中介为直接 FIB-FP 关系的相互矛盾的证据提供了合理的解释。强调家庭成员在战略方面的身份和作用的制度视角为本研究提供了非常规的认识论基础。