Your browser does not support the PubReader view.
Go to this page to see a list of supporting browsers.
Korean Academic Society of Business Administration
[ Article ]
korean management review - Vol. 47, No. 5, pp.1175-1200
ISSN: 1226-1874 (Print)
Print publication date 31 Oct 2018
Received 11 Jul 2018 Accepted 28 Aug 2018
DOI: https://doi.org/10.17287/kmr.2018.47.5.1175

Family Ownership and SME Performance: A Moderated Mediation Model of Internationalization and Institutional Ownership

Jaeyoung Cho* ; Jangwoo Lee**
*(First Author) Kyungpook National University kylu2080@knu.ac.kr
**(Corresponding Author) Kyungpook National University antonio@knu.ac.kr
가족 소유 지분율과 중소기업 성과: 국제화와 기관투자가 소유 지분율의 조절된 매개모형
조재영* ; 이장우**
*경북대학교 경영학부, 주저자
**경북대학교 경영학부, 교신저자

Abstract

This study draws on stewardship and agency theories to examine the impact of family ownership on the performance of family small- and medium-sized enterprises (SMEs), the mediating impact of internationalization, and the moderating impact of institutional ownership. Additionally, by integrating the mediating and moderating impacts, we propose a moderated mediation model for the performance of family SMEs. This study argues and finds in a study of listed Korean family SMEs that family ownership promotes performance. In addition, SMEs with high family ownership have the high performance at low levels of internationalization, low performance at medium levels of internationalization, and high performance again at high levels of internationalization. Institutional ownership also acts as a positive moderator in the family ownership-internationalization relationship and through both low and high levels of internationalization, and the positive indirect impact of family ownership on performance is stronger when institutional ownership is high.

초록

가족 소유 지분율이 가족 중소기업의 재무적 성과에 중요한 영향을 미친다는 이론적인 논쟁에도 불구하고, 선행연구에서는 왜 그리고 언제 가족 소유 지분율이 성과를 이끌어내는지에 대한 고찰은 상대적으로 부족하였다. 본 연구에서는 청지기 이론과 대리인 이론을 기반으로 가족 소유 지분율이 가족 중소기업의 재무적 성과에 미치는 효과를 검증하고, 국제화가 이 두 변수와의 관계를 매개함을 검증하였다. 또한 가족 소유 지분율과 국제화 간의 관계에 있어서 기관투자가 소유 지분율의 조절효과를 검증하였다. 끝으로 기관투자가 소유 지분율의 정도가 가족 소유 지분율이 국제화에 의해 매개되어 재무적 성과에 영향을 미치는 간접효과의 강도를 조절하는 조절된 매개효과 모형을 검증하였다. 이를 위해 본 연구는 2003년부터 2013년까지 한국증권거래소에 상장되었던 232개의 가족 중소기업을 대상으로 실증분석을 실시하였다. 연구결과 가족 소유 지분율은 가족 중소기업의 재무적 성과를 향상 시키며, 이때 국제화가 가족 소유 지분율과 재무적 성과 간의 관계를 부분매개 함이 밝혀졌다. 또한 기관투자가 소유 지분율은 가족 소유 지분율과 국제화 간의 관계를 조절하는 것으로 밝혀졌으며, 조절효과와 매개효과의 통합적인 검증을 통해서 기관투자가 소유 지분율의 정도가 가족 소유 지분율, 국제화, 재무적 성과 간의 관계를 조절함을 입증하였다. 연구의 결과를 바탕으로 학문적, 실무적 기여와 한계 및 향후 연구 과제를 제시하였다.

Keywords:

Family Ownership, Internationalization, Institutional Ownership, Family SMEs, A Moderated Mediation Approach

키워드:

가족 소유 지분율, 국제화, 기관투자가 소유 지분율, 가족 중소기업, 조절된 매개모형

Acknowledgments

The authors sincerely appreciate helpful comments and suggestions from the editor and two anonymous reviewers, as well as that from participants at a number of seminars and conferences. The earlier version of this paper received the Best Paper Award from the Strategic Management Division, Korean Academic Society of Business Administration Annual Conference in 2016. All errors remain ours.

References

  • Alessandri, T. M., and Seth, A.(2014), “The Effects of Managerial Oownership on International and Business Diversification: Balancing Incentives and Risks,” Strategic Management Journal, 35(13), 2064-2075. [https://doi.org/10.1002/smj.2222]
  • Amann, B., and Jaussaud, J.(2012). “Family and Non-family Business Resilience in an Economic Downturn,” Asia Pacific Business Review, 18(2), 203-223. [https://doi.org/10.1080/13602381.2010.537057]
  • Anderson, R. C., and Reeb, D. M.(2003), “Founding-family Ownership and Firm Performance: Evidence from the S&P 500,” The Journal of Finance, 58(3), 1301-1328. [https://doi.org/10.1111/1540-6261.00567]
  • Baron, R. M., and Kenny, D. A.(1986), “The Moderator–mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations,” Journal of Personality and Social Psychology, 51(6), 1173. [https://doi.org/10.1037/0022-3514.51.6.1173]
  • Boyd, B. K., and Solarino, A. M. (2016), “Ownership of corporations: A review, synthesis, and research agenda,” Journal of Management, 42(5), 1282-1314. [https://doi.org/10.1177/0149206316633746]
  • Capar, N., and Kotabe, M.(2003). “The Relationship between International Diversification and Performance in Service Firms,” Journal of International Business Studies, 34(4), 345-355. [https://doi.org/10.1057/palgrave.jibs.8400036]
  • Chaganti, R., and Damanpour, F.(1991), “Institutional Oownership, Capital Structure, and Firm Performance,” Strategic Management Journal, 12(7), 479-491. [https://doi.org/10.1002/smj.4250120702]
  • Chang, S. J.(2003), “Ownership Structure, Expropriation, and Performance of Group-affiliated Companies in Korea,” Academy of Management Journal, 46(2), 238-253. [https://doi.org/10.2307/30040617]
  • Chang, S. J., and Shim, J.(2015), “When does Transitioning from Family to Professional Management Improve Firm Performance?,” Strategic Management Journal, 36(9), 1297-1316. [https://doi.org/10.1002/smj.2289]
  • Chen, H. L., Hsu, W. T., and Chang, C. Y.(2014), “Family Ownership, Institutional Ownership, and Internationalization of SMEs,” Journal of Small Business Management, 52(4), 771-789. [https://doi.org/10.1111/jsbm.12031]
  • Cho, J., and Lee, J.(2018), “Internationalization and Performance of Korean SMEs: The Moderating Role of Competitive Strategy,” Asian Business & Management, 17(2), 140-166. [https://doi.org/10.1057/s41291-018-0036-8]
  • Cho, J., and Lee, J(2017), “The Impact of Ownership Structure on Internationalization: An Empirical Study of Korean SMEs,” Global Business and Finance Review, 22, 51-66. [https://doi.org/10.17549/gbfr.2017.22.1.51]
  • Choi, Y. R., Zahra, S. A., Yoshikawa, T., and Han, B. H.(2015), “Family Ownership and R&D Investment: The Role of Growth Opportunities and Business Group Membership,” Journal of Business Research, 68(5), 1053-1061. [https://doi.org/10.1016/j.jbusres.2014.10.007]
  • Chu, W.(2009), “The influence of Family Ownership on SME Performance: Evidence from Public Firms in Taiwan,” Small Business Economics, 33(3), 353-373. [https://doi.org/10.1007/s11187-009-9178-6]
  • Chu, W.(2011). “Family Ownership and Firm Performance: Influence of Family Management, Family Control, and Firm Size,” Asia Pacific Journal of Management, 28(4), 833-851. [https://doi.org/10.1007/s10490-009-9180-1]
  • Chung, R., Firth, M., and Kim, J. B.(2005), “Earnings Management, Surplus Free Cash Flow, and External Monitoring,” Journal of Business Research, 58(6), 766-776. [https://doi.org/10.1016/j.jbusres.2003.12.002]
  • Davila, A., Foster, G., and Gupta, M.(2003), “Venture Capital Financing and the Growth of Startup Firms,” Journal of Business Venturing, 18(6), 689-708. [https://doi.org/10.1016/S0883-9026(02)00127-1]
  • Davis, J. H., Schoorman, F. D., and Donaldson, L. (1997). “Toward a Stewardship Theory of Management,” Academy of Management Review, 22(1), 20-47. [https://doi.org/10.5465/amr.1997.9707180258]
  • De Massis, A., Kotlar, J., Campopiano, G., and Cassia, L.(2015), “The Impact of Family Involvement on SMEs’ Performance: Theory and Evidence,” Journal of Small Business Management, 53(4), 924-948. [https://doi.org/10.1111/jsbm.12093]
  • Gatfield, T., and Youseff, M.(2001), “A Critical Examination of and Reflection on the Chinese Family Nusiness Unit and the Chinese Business Clan,” Family Business Review, 14(2), 153-158. [https://doi.org/10.1111/j.1741-6248.2001.00153.x]
  • George, G., Wiklund, J., and Zahra, S. A.(2005), “Ownership and the Internationalization of Small Firms,” Journal of Management, 31(2), 210-233. [https://doi.org/10.1177/0149206304271760]
  • Gomes, L., and Ramaswamy, K.(1999), “An Empirical Examination of the form of the Relationship between Multinationality and Performance,” Journal of International Business Studies, 30(1), 173-187. [https://doi.org/10.1057/palgrave.jibs.8490065]
  • Gómez-Mejía, L. R., Cruz, C., Berrone, P., and De Castro, J.(2011), “The Bind that Ties: Socioemotional Wealth Preservation in Family Firms,” Academy of Management Annals, 5(1), 653-707. [https://doi.org/10.5465/19416520.2011.593320]
  • Gómez-Mejía, L. R., Haynes, K. T., Núñez-Nickel, M., Jacobson, K. J., and Moyano-Fuentes, J.(2007), “Socioemotional Wealth and Business Risks in Family-controlled Firms: Evidence from Spanish Olive Oil Mills,” Administrative Science Quarterly, 52(1), 106-137. [https://doi.org/10.2189/asqu.52.1.106]
  • Gómez-Mejía, L. R., Nunez-Nickel, M., and Gutierrez, I.(2001), “The Role of Family Ties in Agency Contracts,” Academy of Management Journal, 44(1), 81-95. [https://doi.org/10.2307/3069338]
  • Graves, C., and Thomas, J.(2008), “Determinants of the Internationalization Pathways of Family Firms: An Examination of Family Influence,” Family Business Review, 21(2), 151-167. [https://doi.org/10.1111/j.1741-6248.2008.00119.x]
  • Graves, S. B.(1988), “Institutional Ownership and Corporate R&D in the Computer Industry,” Academy of Management Journal, 31(2), 417-428. [https://doi.org/10.5465/256557]
  • Hansen, G. S., and Hill, C. W.(1991), “Are Institutional Investors Myopic? A Time-series Study of Four Technology-driven Industries,” Strategic Management Journal, 12(1), 1-16. [https://doi.org/10.1002/smj.4250120102]
  • Jensen, M. C., and Meckling, W. H.(1976), “Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure,” Journal of Financial Economics, 3(4), 305-360. [https://doi.org/10.1016/0304-405X(76)90026-X]
  • Jun, I., Sheldon, P., and Rhee, J.(2010), “Business Groups and Regulatory Institutions: Korea's Chaebols, Cross-company Shareholding and the East Asian Crisis,” Asian Business & Management, 9(4), 499-523. [https://doi.org/10.1057/abm.2010.26]
  • Kim, H., Kim, H., and Lee, P. M.(2008), “Ownership Structure and the Relationship between Financial Slack and R&D Investments: Evidence from Korean Firms,” Organization Science, 19(3), 404-418. [https://doi.org/10.1287/orsc.1080.0360]
  • Lee, H., Kelley, D., Lee, J., and Lee, S.(2012), “SME Survival: The Impact of Internationalization, Technology Resources, and Alliances,” Journal of Small Business Management, 50(1), 1-19. [https://doi.org/10.1111/j.1540-627X.2011.00341.x]
  • Lee, J. W.(2010), Small Giants in Korea, Miraein-books.
  • Lee, J., and Chang, S. D.(2007), “Strategies and Performance of Family Firms in High-tech Industry,” Asia Pacific Journal of Small Business, 29(4), 1–18.
  • Lin, W. T., and Liu, Y.(2012), “Successor Characteristics, Change in the Degree of Firm Internationalization, and Firm Performance: The Moderating Role of Environmental Uncertainty,” Journal of Management and Organization, 18(1), 16-35. [https://doi.org/10.5172/jmo.2012.18.1.16]
  • Lu, J. W., and Beamish, P. W.(2001), “The Internationalization and Performance of SMEs,” Strategic Management Journal, 22(6-7), 565-586. [https://doi.org/10.1002/smj.184]
  • Madison, K., Holt, D. T., Kellermanns, F. W., and Ranft, A. L.(2015), “Viewing Family Firm Behavior and Governance through the Lens of Agency and Stewardship Theories,” Family Business Review, 0894486515594292. [https://doi.org/10.1177/0894486515594292]
  • Madison, K., Kellermanns, F. W., and Munyon, T. P.(2017), “Coexisting Agency and Stewardship Governance in Family Firms: An Empirical Iinvestigation of Individual-level and Firm-level Effects,” Family Business Review, 30(4), 347-368. [https://doi.org/10.1177/0894486517727422]
  • Miller, D., and Le Breton-Miller, I.(2005), Managing for the Long Run: Lessons in Competitive Advantage from Great Family Businesses. Harvard Business Press.
  • Miller, D., Breton-Miller, L., and Lester, R. H. (2010), “Family Ownership and Acquisition Behavior in Publicly-traded Companies,” Strategic Management Journal, 31(2), 201-223. [https://doi.org/10.1002/smj.802]
  • Miller, D., Lee, J., Chang, S., and Le Breton-Miller, I.(2009), “Filling the Institutional Void: The Social Behavior and Performance of Family vs Non-family Technology Firms in Emerging Markets,” Journal of International Business Studies, 40(5), 802-817. [https://doi.org/10.1057/jibs.2009.11]
  • Miller, D., Minichilli, A., and Corbetta, G.(2013), “Is Family Leadership always Beneficial?,” Strategic Management Journal, 34(5), 553-571. [https://doi.org/10.1002/smj.2024]
  • Muller, D., Judd, C. M., and Yzerbyt, V. Y.(2005), “When Moderation is Mediated and Mediation is Moderated,” Journal of Personality and Social Psychology, 89(6), 852-863. [https://doi.org/10.1037/0022-3514.89.6.852]
  • Musteen, M., Datta, D. K., and Herrmann, P.(2009), “Ownership Structure and CEO Compensation: Implications for the Choice of Foreign Market Entry Modes,” Journal of International Business Studies, 40(2), 321-338. [https://doi.org/10.1057/jibs.2008.63]
  • Pangarkar, N.(2008), “Internationalization and Per-formance of Small-and Medium-sized Enterprises,” Journal of World Business, 43(4), 475-485. [https://doi.org/10.1016/j.jwb.2007.11.009]
  • Poza, E.(2013), Family business. Cengage Learning.
  • Preacher, K. J., Rucker, D. D., and Hayes, A. F. (2007), “Addressing Moderated Mediation Hypotheses: Theory, Methods, and Prescriptions,” Multivariate Behavioral Research, 42(1), 185-227. [https://doi.org/10.1080/00273170701341316]
  • Ramaswamy, K., Kroeck, K. G., and Renforth, W. (1996), “Measuring the Degree of Internationalization of a Firm: A Comment,” Journal of International Business Studies, 27(1), 167-177. [https://doi.org/10.1057/palgrave.jibs.8490131]
  • Randøy, T., and Goel, S.(2003), “Ownership Structure, Founder Leadership, and Performance in Norwegian SMEs: Implications for Financing Entrepreneurial Opportunities,” Journal of Business Venturing, 18(5), 619-637. [https://doi.org/10.1016/S0883-9026(03)00013-2]
  • Rowley, C., and Bae, J.(1998), “Introduction: The Icarus Paradox in Korean Business and Management,” Asia Pacific Business Review, 4(2-3), 1-17. [https://doi.org/10.1080/13602389812331288334]
  • Sciascia, S., and Mazzola, P.(2008), “Family Involvement in Ownership and Management: Exploring Nonlinear Effects on Pperformance,” Family Business Review, 21(4), 331-345. [https://doi.org/10.1177/08944865080210040105]
  • Sciascia, S., Mazzola, P., Astrachan, J. H., and Pieper, T. M.(2012), “The Role of Family Ownership in International Entrepreneurship: Exploring Nonlinear Effects,” Small Business Economics, 38(1), 15-31. [https://doi.org/10.1007/s11187-010-9264-9]
  • Shleifer, A., and Vishny, R. W.(1986), “Large Stockholders and Corporate Control,” The Journal of Political Economy, 461-488. [https://doi.org/10.1086/261385]
  • Shleifer, A., and Vishny, R. W.(1997), “A Survey of Corporate Governance,” The Journal of Finance, 52(2), 737-783. [https://doi.org/10.1111/j.1540-6261.1997.tb04820.x]
  • Sui, S., and Baum, M.(2014), “Internationalization Strategy, Firm Resources and the Survival of SMEs in the Export Market,” Journal of International Business Studies, 45(7), 821-841. [https://doi.org/10.1057/jibs.2014.11]
  • Sullivan, D.(1994a), “Measuring the Degree of Internationalization of a Firm,” Journal of International Business Studies, 325-342. [https://doi.org/10.1057/palgrave.jibs.8490203]
  • Sullivan, D.(1994b), “The Threshold of Internationalization: Replication, Extension, and Reinterpretation,” MIR: Management International Review, 165-186.
  • Tallman, S., and Li, J.(1996), “Effects of International Diversity and Product Diversity on the Performance of Multinational Firms,” Academy of Management Journal, 39(1), 179-196. [https://doi.org/10.2307/256635]
  • Thomsen, S., and Pedersen, T.(2000), “Ownership Structure and Economic Performance in the Largest European Companies,” Strategic Management Journal, 21(6), 689-705. [https://doi.org/10.1002/(SICI)1097-0266(200006)21:6<689::AID-SMJ115>3.0.CO;2-Y]
  • Tihanyi, L., Johnson, R. A., Hoskisson, R. E., and Hitt, M. A.(2003), “Institutional Ownership Differences and International Diversification: The Effects of Boards of Directors and Technological Opportunity,” Academy of Management Journal, 46(2), 195-211. [https://doi.org/10.2307/30040614]
  • Villalonga, B., and Amit, R.(2006), “How do Family Ownership, Control and Management affect Firm Value?,” Journal of Financial Economics, 80(2), 385-417. [https://doi.org/10.1016/j.jfineco.2004.12.005]
  • Webb, R., Beck, M., and McKinnon, R.(2003), “Problems and Limitations of Institutional Investor Participation in Corporate Governance,” Corporate Governance: An International Review, 11(1), 65-73. [https://doi.org/10.1111/1467-8683.00302]
  • Yoo, T., and Rhee, M.(2013), “Agency Theory and the Context for R&D Investment: Evidence from Korea,” Asian Business & Management, 12(2), 227-252. [https://doi.org/10.1057/abm.2013.2]
  • Zahra, S. A. (2003). “International Rxpansion of US Manufacturing Family Businesses: The Effect of Ownership and Involvement,” Journal of Business Venturing, 18(4), 495-512. [https://doi.org/10.1016/S0883-9026(03)00057-0]
  • Zahra, S. A.(2005), “Entrepreneurial Risk Taking in Family Firms,” Family Business Review, 18(1), 23-40. [https://doi.org/10.1111/j.1741-6248.2005.00028.x]
  • Zhou, J., Tam, O. K., and Yu, P.(2013), “An Investigation of the Role of Family Ownership, Control and Management in Listed Chinese Family Firms,” Asian Business & Management, 12(2), 197-225. [https://doi.org/10.1057/abm.2012.40]
  • Zhou, L., Wu, W. P., and Luo, X.(2007), “Internationalization and the Performance of Born-global SMEs: the Mediating Role of Social Networks,” Journal of International Business Studies, 673-690. [https://doi.org/10.1057/palgrave.jibs.8400282]

• 저자 조재영은 현재 경북대학교 경영학부 전략 및 조직관리 전공 박사과정으로 재학 중이다. 경영전략 분야를 주로 연구하며, 구체적인 연구 대상은 가족기업, 중소기업, IT관련 산업 등이다.

• 저자 이장우는 현재 경북대학교 경영학부 전략 및 조직관리 전공 정교수로 재직 중이다. 서울대학교 경영학과를 졸업하였으며, 한국과학기술원(KAIST)에서 산업공학 석사 및 경영과학 박사를 취득하였다. 미국 퍼듀 대학과 스탠포드 대학에서 방문학자로 연구하였다. 주요연구분야는 기업가정신과 벤처창업, 경영전략, 강소기업 경쟁력 등이다.