Strategic planning and flexibility: Governance control mechanisms in family and non-family firms

Clay Dibrell; Justin B Craig; Donald O. Neubaum

Strategic planning and flexibility: Governance control mechanisms in family and non-family firms

Clay Dibrell, Justin B Craig, Donald O. Neubaum

Bond Business School

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Research › peer-review

1 Downloads (Pure)

Abstract

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.

Original language	English
Title of host publication	Proceedings of 11th IFERA Annual World Family Business Research Conference
Subtitle of host publication	Intelligence and courage-family firms' vision in the era of economic turmoil
Editors	S. Tomaselli
Place of Publication	Madrid, Spain
Publisher	International Family Enterprise Research Academy
Pages	1-21
Number of pages	21
Publication status	Published - 2011
Event	International Family Enterprise Research Annual World Family Business Research Conference - Sicily, Sicily, Italy Duration: 28 Jun 2011 → 1 Jul 2011 Conference number: 11th http://www.ifera2011.com/Pagg/docs.html

Conference

Conference	International Family Enterprise Research Annual World Family Business Research Conference
Abbreviated title	IFERA Annual World Family Business Research Confernce
Country/Territory	Italy
City	Sicily
Period	28/06/11 → 1/07/11
Internet address	http://www.ifera2011.com/Pagg/docs.html

Cite this

Dibrell, C., Craig, J. B., & Neubaum, D. O. (2011). Strategic planning and flexibility: Governance control mechanisms in family and non-family firms. In S. Tomaselli (Ed.), Proceedings of 11th IFERA Annual World Family Business Research Conference: Intelligence and courage-family firms' vision in the era of economic turmoil (pp. 1-21). International Family Enterprise Research Academy.

Dibrell, Clay ; Craig, Justin B ; Neubaum, Donald O. / Strategic planning and flexibility: Governance control mechanisms in family and non-family firms. Proceedings of 11th IFERA Annual World Family Business Research Conference: Intelligence and courage-family firms' vision in the era of economic turmoil. editor / S. Tomaselli. Madrid, Spain : International Family Enterprise Research Academy, 2011. pp. 1-21

@inproceedings{4ceb18aa5fc24ac0949e8bdb8bb4f14c,

title = "Strategic planning and flexibility: Governance control mechanisms in family and non-family firms",

abstract = "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.",

author = "Clay Dibrell and Craig, {Justin B} and Neubaum, {Donald O.}",

year = "2011",

language = "English",

pages = "1--21",

editor = "S. Tomaselli",

booktitle = "Proceedings of 11th IFERA Annual World Family Business Research Conference",

publisher = "International Family Enterprise Research Academy",

note = "International Family Enterprise Research Annual World Family Business Research Conference, IFERA Annual World Family Business Research Confernce ; Conference date: 28-06-2011 Through 01-07-2011",

url = "http://www.ifera2011.com/Pagg/docs.html",

}

Dibrell, C, Craig, JB & Neubaum, DO 2011, Strategic planning and flexibility: Governance control mechanisms in family and non-family firms. in S Tomaselli (ed.), Proceedings of 11th IFERA Annual World Family Business Research Conference: Intelligence and courage-family firms' vision in the era of economic turmoil. International Family Enterprise Research Academy, Madrid, Spain, pp. 1-21, International Family Enterprise Research Annual World Family Business Research Conference, Sicily, Italy, 28/06/11.

Strategic planning and flexibility: Governance control mechanisms in family and non-family firms. / Dibrell, Clay; Craig, Justin B; Neubaum, Donald O.
Proceedings of 11th IFERA Annual World Family Business Research Conference: Intelligence and courage-family firms' vision in the era of economic turmoil. ed. / S. Tomaselli. Madrid, Spain: International Family Enterprise Research Academy, 2011. p. 1-21.

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Research › peer-review

TY - GEN

T1 - Strategic planning and flexibility: Governance control mechanisms in family and non-family firms

AU - Dibrell, Clay

AU - Craig, Justin B

AU - Neubaum, Donald O.

N1 - Conference code: 11th

PY - 2011

Y1 - 2011

N2 - 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.

AB - 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.

UR - https://ifera.org/

M3 - Conference contribution

SP - 1

EP - 21

BT - Proceedings of 11th IFERA Annual World Family Business Research Conference

A2 - Tomaselli, S.

PB - International Family Enterprise Research Academy

CY - Madrid, Spain

T2 - International Family Enterprise Research Annual World Family Business Research Conference

Y2 - 28 June 2011 through 1 July 2011

ER -

Dibrell C, Craig JB, Neubaum DO. Strategic planning and flexibility: Governance control mechanisms in family and non-family firms. In Tomaselli S, editor, Proceedings of 11th IFERA Annual World Family Business Research Conference: Intelligence and courage-family firms' vision in the era of economic turmoil. Madrid, Spain: International Family Enterprise Research Academy. 2011. p. 1-21

Strategic planning and flexibility: Governance control mechanisms in family and non-family firms

Abstract

Conference

Other files and links

Fingerprint

Cite this