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Effects of communicating family ownership and organisational size on an applicant's attraction to a firm: An empirical examination in the USA and China

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  • Botero, Isabel C.

Abstract

In recent years, family business owners have indicated that attracting and retaining qualified non-family applicants is one of the greatest challenge that firms face. Although there is some empirical research that explores why family firms face this challenge, most of this work has focused on understanding the role that human resource practices play in the success of recruitment practices in the family firm. This article explores the effects of information provided in initial recruitment messages on perceptions about attributes of the organisation (i.e., job security, advancement, compensation, and prestige) and how these perceptions influence attractiveness to a firm. Over 300 respondents from the USA (N=177) and China (N=127) read one of four organisational descriptions created by manipulating information about organisational size (50 vs. 500 employees) and family ownership (explicit vs. absent). The results indicate that explicitly communicating information about family ownership did not affect perceptions or attractiveness to a firm, while explicit information about organisational size did. Additionally, participants from China and the USA differed in terms of how information about family ownership influenced their perceptions about advancement opportunities. The implications of these results for family business recruitment strategies are discussed.

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  • Botero, Isabel C., 2014. "Effects of communicating family ownership and organisational size on an applicant's attraction to a firm: An empirical examination in the USA and China," Journal of Family Business Strategy, Elsevier, vol. 5(2), pages 184-196.
    • Handle: RePEc:eee:fambus:v:5:y:2014:i:2:p:184-196
    DOI: 10.1016/j.jfbs.2014.01.004
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    Cited by:

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    2. Chandler, Jeffrey A. & Payne, G. Tyge & Moore, Curt & Brigham, Keith H., 2019. "Family involvement signals in initial public offerings," Journal of Family Business Strategy, Elsevier, vol. 10(1), pages 8-16.
    3. Astrachan, Claudia Binz & Botero, Isabel & Astrachan, Joseph H. & Prügl, Reinhard, 2018. "Branding the family firm: A review, integrative framework proposal, and research agenda," Journal of Family Business Strategy, Elsevier, vol. 9(1), pages 3-15.
    4. Caprano, Johannes, 2019. "Recruiting Generation Y for the Backbone of Economy: Organizational Attractiveness of Small, Family Owned, and Rural Firms," Junior Management Science (JUMS), Junior Management Science e. V., vol. 4(4), pages 493-523.
    5. Arijs, Diane & Botero, Isabel C. & Michiels, Anneleen & Molly, Vincent, 2018. "Family business employer brand: Understanding applicants’ perceptions and their job pursuit intentions with samples from the US and Belgium," Journal of Family Business Strategy, Elsevier, vol. 9(3), pages 180-191.
    6. Waterwall, Brian & Alipour, Kent K., 2021. "Nonfamily employees’ perceptions of treatment in family businesses: Implications for organizational attraction, job pursuit intentions, work attitudes, and turnover intentions," Journal of Family Business Strategy, Elsevier, vol. 12(3).
    7. Unai Arzubiaga & Alfredo De Massis & Amaia Maseda & Txomin Iturralde, 2023. "The influence of family firm image on access to financial resources in family SMEs: a signaling theory perspective," Review of Managerial Science, Springer, vol. 17(1), pages 233-258, January.
    8. Jaufenthaler, Philipp, 2023. "A safe haven in times of crisis: The appeal of family companies as employers amid the COVID-19 pandemic," Journal of Family Business Strategy, Elsevier, vol. 14(1).
    9. Llanos-Contreras, Orlando & Alonso-Dos-Santos, Manuel & Welsh, Dianne H.B., 2024. "Graduating college students apply here: Communicating family firm ownership and firm size," Journal of Family Business Strategy, Elsevier, vol. 15(1).
    10. Jeworrek, Sabrina & Brachert, Matthias, 2022. "Where to go? High-skilled individuals' regional preferences," IWH Discussion Papers 27/2022, Halle Institute for Economic Research (IWH).
    11. Naciye Sekerci & Jamil Jaballah & Marc van Essen & Nadine Kammerlander, 2022. "Investors’ Reactions to CSR News in Family Versus Nonfamily Firms: A Study on Signal (In)credibility," Entrepreneurship Theory and Practice, , vol. 46(1), pages 82-116, January.
    12. Lude, Maximilian & Prügl, Reinhard, 2021. "Experimental studies in family business research," Journal of Family Business Strategy, Elsevier, vol. 12(1).
    13. Liang Huang & Yunyue Yang & Tomoki Sekiguchi, 2020. "Attractiveness of Japanese firms to international job applicants: the effects of belongingness, uniqueness, and employment patterns," Asian Business & Management, Palgrave Macmillan, vol. 19(1), pages 118-144, February.
    14. Binz Astrachan, Claudia & Prügl, Reinhard & Hair, Joseph F. & Babin, Barry J., 2019. "Marketing and branding in family business: Assessing the landscape and charting a path forward," Journal of Family Business Strategy, Elsevier, vol. 10(1), pages 3-7.
    15. Martina Sageder & Christine Mitter & Birgit Feldbauer‐Durstmüller, 2018. "Image and reputation of family firms: a systematic literature review of the state of research," Review of Managerial Science, Springer, vol. 12(1), pages 335-377, January.
    16. Maximilian Lude & Reinhard Prügl, 2019. "Risky Decisions and the Family Firm Bias: An Experimental Study Based on Prospect Theory," Entrepreneurship Theory and Practice, , vol. 43(2), pages 386-408, March.
    17. Martin Tao-Schuchardt & Frederik J. Riar & Nadine Kammerlander, 2023. "Family Firm Value in the Acquisition Context: A Signaling Theory Perspective," Entrepreneurship Theory and Practice, , vol. 47(4), pages 1200-1232, July.
    18. Gahye Hong & Eunmi Kim, 2017. "Overcoming country-of-origin image constraints on hiring: the moderating role of CSR," Asian Business & Management, Palgrave Macmillan, vol. 16(4), pages 253-271, December.
    19. Stutz, Adrian & Schell, Sabrina & Hack, Andreas, 2022. "In family firms we trust – Experimental evidence on the credibility of sustainability reporting: A replication study with extension," Journal of Family Business Strategy, Elsevier, vol. 13(4).

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