From Generation to Generation of Thai Family Business: Key Factors Affecting Management Adaptation

Main Article Content

Tanachart Raoprasert

Abstract

This paper aims to examine the key factors influencing management adaptation toward business performance in Thai family business firms. The paper also seeks to demonstrate the impact level of three motivational factors including vision, leadership, and relationship, on management adaptation, and to explore the relationship between management adaptation and performance of Thai family business. Structural equation modeling was applied to analyze a conceptual model with survey data collected from 305 family business owners in Thailand. The results indicated that strong leadership and relationship have significant positive impacts, while vision is of negative influences on management adaptation. Results also indicated a positive relationship between management adaptation and business performance.

Downloads

Download data is not yet available.

Article Details

Section
Research Articles
Author Biography

Tanachart Raoprasert, King Mongkut’s University of Technology North Bangkok

A lecturer at Faculty of Business Administration and Service Industry, King Mongkut's University Of Technology North Bangkok Prachinburi Campus

References

Alas, R. (2007). Reactions to organizational change from the institutional perspective: The case of Estonia. Problems and Perspectives in Management, 5(3), 19-30.
Amornpipat, I., & Sorod, B. (2016). The study of structural relationships between Thai authentic leadership, follower’s wellbeing and innovative work behavior in Thai military context. NKRAFA Journal of Humanities and Social Sciences, 4(4), 5-28.
Anderson, R. C., & Reeb, D. M. (2004). Board composition: Balancing family influence in S&P 500 firms. Administrative Science Quarterly, 49(2), 209–237.
Atkinson, P., & Mackenzie, R. (2015). Without leadership there is no change. Management Services, 59(2), 42-47.
Beck, N., Bruderl, J., & Woywode, M. (2008). Momentum or deceleration? Theoretical and methodological reflections of the analysis of organizational change. Academy of Management Journal, 51(3), 413-435.
Bentler, P. (1992). On the fit of models to covariance and methodology to the Bulletin. Psychological Bulletin, 112(3), 400-404.
Browne, M. W., & Mels, G. (1990). RAMONA user's guide. Ohio: Department of Psychology, Ohio State University.
Camblanne, L. (2013). Family vision and cognition: An illustration through forest owners’ harvesting decisions. Journal of Family Business Strategy, 4(4), 245–259.
Canning, L., & Hanmer-Lloyd, S. (2002). Modelling the adaptation process in interactive business relationships. Journal of Business & Industrial Marketing, 17(7), 615-636.
Caprio, L., Croci, E., & Del Giudice, A. (2011). Ownership structure, family control, and acquisition decisions. Journal of Corporate Finance, 17(5), 1636–1657.
Carter, M. Z., Armenakis, A. A., Feild, H. S., & Mossholder, K. W. (2013). Transformational leadership, relationship quality, and employee performance during continuous incremental organizational change. Journal of Organizational Behavior, 34(7), 942-958.
Chaimahawong, V., & Sakulsriprasert, A. (2013). Family business succession and post succession performance: Evidence from Thai SMEs. International Journal of Business and Management, 8(2), 19-28.
Chapman, J. A. (2002). A framework for transformational change in organizations. Leadership & Organization Development Journal, 23(1), 16-25.
Chen, C. R., Steiner, T. L., & White, A. M. (2001). Risk taking behavior and managerial ownership in the United States life insurance industry. Applied Financial Economics, 11(2), 165-171.
Claver, E., Rienda, L., & Quer, D. (2008). Family firms' risk perception: Empirical evidence on the internationalization process. Journal of Small Business and Enterprise Development, 15(3), 457-471.
Cooper, R. (2004). Thais mean business: The expat's guide to doing business in Thailand (Revised). Singapore: Marshall Cavendish.
Costa, L. A., & De Matos, J. A. (2002). Towards an organizational model of attitude change. Computational and Mathematical Organization Theory, 8(4), 315-335.
Costa, L. A., De Matos, J. A., & Cunha, M. P. (2003). The manager as change agent. International Studies of Management & Organization, 33(4), 65-93.
Department of Business Development. (2018). Entrepreneurship report 2013-2018. Bangkok: Author.
Duarte Alonso, A., Kok, S., & O’Shea, M. (2018). Family businesses and adaptation: A dynamic capabilities approach. Journal of Family and Economic Issues, 39(4), 683–698.
Dyer, W. G. (2006). Examining the “family effect” on firm performance. Family Business Review, 19(4), 253-273.
Farjoun, M. (2010). Beyond dualism: Stability and change as a duality. Academy of Management Review, 35(2), 202-225.
Fatima, J. K., & Razzaque, M. A. (2014). Service quality and satisfaction in the banking sector. International Journal of Quality & Reliability Management, 31(4), 367-379.
Fernandez, S., & Rainey, H. G. (2006). Managing successful organizational change in the public sector. Public Administration Review, 66(2), 168-176.
Filser, M., Kraus, S., & Mark, S. (2013). Psychological aspects of succession in family business management. Management Research Review, 36(3), 256-277.
Foster, R. D., & Akdere, M. (2007). Effective organizational vision: Implications for human resource development. Journal of European Industrial Training, 31(2), 100-111.
Gedajlovic, E., Carney, M., Chrisman, J. J., & Kellermanns, F. W. (2012). The adolescence of family firm research: Taking stock and planning for the future. Journal of Management, 38(4), 1010–1037.
Goel, S., Mazzola, P., Phan, P. H., Pieper, T. M., & Zachary, R. K. (2012). Strategy, ownership, governance, and socio-psychological perspectives on family businesses from around the world. Journal of Family Business Strategy, 3(2), 54–65.
Guidice, R. M, Mero, N. P., & Greene, J. V. (2013). Perceptions of accountability in family business: Using accountability theory to understand differences between family and nonfamily executives. Journal of Family Business Strategy, 4(4), 233–244.
Hair, J. F., Babin, B. J., Anderson, R. E., & Black, W. C. (2018). Multivariate data analysis (8th ed.). London, UK: Cengage Learning EMEA.
Hao, M. J., & Yazdanifard, R. (2015). How effective leadership can facilitate change in organizations through improvement and innovation. Global Journal of Management and Business Research: Administration and Management, 15(9), 1-6.
Hiebl, M. R. W., Feldbauer-Durstmüller, B., & Duller, C. (2013). The changing role of management accounting in the transition from a family business to a non-family business. Journal of Accounting & Organizational Change, 9(2), 119-154.
Hofstede, G. H., Hofstede, G. J., & Minkov, M. (2010). Cultures and organizations software of the mind. (Revised and expanded 3rd ed.). New York: McGraw-Hill.
Hu, L. T., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling, 6(1), 1-55.
Johnson-Cramer, M. E., Cross, R. L., & Yan, A. (2003). Sources of fidelity in purposive organizational change: Lessons from a re-engineering case. Journal of Management Studies, 40(7), 1837-1870.
Kidwell, R. E., Hoy, F., & Ibarreche, S. (2012). ‘‘Ethnic’’ family business or just family business? Human resource practices in the ethnic family firm. Journal of Family Business Strategy, 3(1), 12-17.
Kilenthong, W. T., & Rueanthip, K. (2018). Entrepreneurship and family businesses in Thailand. Asian-Pacific Economic Literature, 32(1), 77-93.
King, R., & Peng, W. Q. (2013). The effect of industry characteristics on the control longevity of founding-family firms. Journal of Family Business Strategy, 4(4), 281–295.
Klarner, P., & Raisch, S. (2013). Move to the beat-rhythms of change and firm performance. Academy of Management Journal, 56(1), 160-184.
Kline, R. B. (2011). Principles and practice of structural equation modeling (3rd ed.). New York: The Guilford Press.
Koh, A., Tan, E., & Ejercito, J. (2013). Asian business families succession: Going the distance with the next generation (Research report). Singapore: Deloitte Southeast Asia.
Kotey, B. (2005). Goals, management practices, and performance of family SEMs. International Journal of Entrepreneurial Behaviour & Research, 11(1), 3-24.
Landrum, N. E., Howell, J. P., & Paris, L. (2000). Leadership for strategic change. Leadership & Organization Development Journal, 21(3), 150-156.
Landry, S., Fortin, A., & Callimaci, A. (2013). Family firms and the lease decision. Journal of Family Business Strategy, 4(3), 176–187.
Lawler, J. J., & Atmiyanandana, V. (2003). HRM in Thailand: A post-1997 update. Asia Pacific Business Review, 9(4), 165-185.
Letens, G., Van Aken, E. M., Farris, J. A., Heene, A., & Leysen, J. (2008). Organization development and change through multi-method action research. In Proceedings of conference of the American society for engineering management (pp. 407-416). West Point, New York.
Locke, E. A., & Latham, G. P. (2004). What should we do about motivation theory? Six recommendations for the twenty-first century. Academy of Management Review, 29(3), 388-403.
Lubatkin, M. H., Ling, Y., & Schulze, W. S. (2007). An organizational justice-based view of self-control and agency costs in family firms. Journal of Management Studies, 44(6), 955–971.
Luthra, A., & Dahiya, R. (2015). Effective leadership is all about communicating effectively: Connecting leadership and communication. International Journal of Management & Business Studies, 5(3), 43-48.
Marzec, M. (2007). Telling the corporate story: Vision into action. Journal of Business Strategy, 28(1), 29-36.
McAdam, R. (2003). Radical change: A conceptual model for research agenda. Leadership & Organization Development Journal, 24(4), 226-235.
McConaughy, D. L., Matthews, C. H., & Fialko, A. S. (2001). Founding family controlled firms: Performance, risk, and value. Journal of Small Business Management, 39(1), 31-49.
McPherson, M. (2010). Business practices within South Asian family and non-family firms: A comparative study. International Journal of Entrepreneurial Behaviour & Research, 16(5), 389-413.
Mdletye, M. A., Coetzee, J., & Ukpere, W. I. (2014). The reality of resistance to change behaviour at the Department of Correctional Services of South Africa. Mediterranean Journal of Social Sciences, 5(3), 548-560.
Millar, C., Hind, P., & Magala, S. (2012). Sustainability and the need for change: Organisational change and transformational vision. Journal of Organizational Change Management, 25(4), 489-500.
Miralles-Marcelo, J. L., Miralles-Quiros, M. D. M., & Lisboa, I. (2014). The impact of family control on firm performance: Evidence from Portugal and Spain. Journal of Family Business Strategy, 5(2), 156-168.
Morakul, S., & Wu, F. (2001). Cultural influence on the ABC implementation in Thailand’s environment. Journal of Managerial Psychology, 16(2), 142-58.
Neergard, H., Sahaw, E., & Carter, S. (2005). The impact of gender, social capital, and networks on business ownership: A research agenda. International Journal of Entrepreneurial Behaviour & Research, 11(5), 338-357.
Neuman, W. L. (2006). Social research methods: Qualitative and quantitative approaches (6th ed.). Boston, MA: Pearson/Allyn & Bacon.
Nikezić, S., Purić, S., & Purić, J. (2012). Transactional and transformational leadership: Development through change. International Journal for Quality Research, 6(3), 285-296.
Northouse, P. G. (2007). Leadership: Theory and practice (4th ed.). Thousand Oaks: Sage.
Perry, J. L., Mesch, D., & Paarlberg, L. (2006). Motivating employees in a new governance ear: The performance paradigm revisited. Public Administration Review, 66(4), 505-514.
Peterson, P., & Distelberg, B. J. (2011). Differentiating value orientations and unity in values as predictors of varying family business system processes. Journal of Family Business Strategy, 2(4), 207–219.
Porter, L. W., Angle, H. L., & Allen, W. R. (2003). Organizational influence processes (2nd ed.). New York: M.E. Sharpe.
Rurkkhum, S., & Bartlett, K. R. (2012). The relationship between employee engagement and organizational citizenship behavior in Thailand. Human Resource Development International, 15(2), 157-174.
Saebi, T., Lien, L. B., & Foss, N. J. (2017). What drives business model adaptation? The impact of opportunities, threats and strategic orientation. Long Range Planning, 50(5), 567-581.
Salloum, C., Bouri, E., & Samara, G. (2013). Impact of family involvement in ownership management and direction on financial performance of the Lebanese firms. International Strategic Management Review, 1(1-2), 30-41.
Smit, B., & Wandel, J. (2006). Adaptation, adaptive capacity and vulnerability. Global Environmental Change, 16(3), 282–292.
Stouten, J., Rousseau, D. M., & de Cremer, D. (2018). Successful organizational change: Integrating the management practice and scholarly literatures. Academy of Management Annals, 12(2), 752–788.
Suehiro, A., & Wailerdsak, N. (2004). Family business in Thailand: Its management governance, and future challenges. ASEAN Economic Bulletin, 21(1), 81-93.
Swartz, E., Elliott, D., & Herbane, B. (2003). Greater than the sum of its parts: Business continuity management in UK Finance sector. Risk Management and International Journal, 5(1), 65-80.
Taormina, R. J., & Lao, S. K. (2007). Measuring Chinese entrepreneurial motivation: Personality and environmental influences. International Journal of Entrepreneurial Behaviour & Research, 13(4), 200-221.
Torres, R., Sidorova, A., & Jones, M. C. (2018). Enabling firm performance through business intelligence and analytics: A dynamic capabilities perspective. Information & Management, 55(7), 822-839.
Tucker, B. A., & Russell, R. F. (2004). The influence of the transformational leader. Journal of Leadership and Organizational Studies, 10(4), 103-111.
Turner, R. L. (2007). The development of a two-stage regression model describing the IS graduate (Doctoral thesis, Monash University).
Vandercammen, L., Hofmans, J., & Theuns, P. (2014). The mediating role of affect in the relationship between need satisfaction and autonomous motivation. Journal of Occupational and Organizational Psychology, 87(1), 62–79.
Venkataramani, V., Labianca, G., & Grosser, T. (2013). Positive and negative workplace relationships, social satisfaction, and organizational attachment. Journal of Applied Psychology, 98(6), 1028-1039.
Yukl, G. A. (2002). Leadership in organizations (5th ed.). Upper Saddle River, NJ: Prentice-Hall.