KOTEBE UNIVERSITY OF

EDUCATION
BUSINESS AND ECONOMICS FACULTY
DEPARTMENT OF MANAGEMENT
MANAGEMENT THEORY
ARTICLE REVIEW ON
• Families as active monitors of firm performance
• Technology Transfer and Human Capital in the Industrial 4.0 Scenario: A
Theoretical Study

Prepared by: _ Kalkidan Fikremariam Alem

ID: - PGW/28954/15

Summited to: -Abdela K (Assi. Prof)

May, 2023
Families as active monitors of firm performance
Authors: David B. Audretsch a,b , Marcel Hu¨lsbeck c,d, *, Erik E. Lehmann c,d
Journal title: Elsevier Ltd.
Volume number: 4
Issue number: 2
Page numbers: 118-130
Publication date: Jun,2013

The article is about the role of family members as internal monitors of firm performance in family
businesses. The study examines the impact of family monitoring on firm performance and suggests
that family monitoring is a missing link in the ownership, control, and performance debate on
family firms. The article examines the relationship between family ownership, control, and firm
performance in German public firms. The authors argue that family ownership and control can
have both positive and negative effects on firm performance, depending on the level of family
involvement and the quality of corporate governance. The study finds that family ownership has a
positive effect on firm performance, but this effect is moderated by the level of family involvement
and the quality of corporate governance. The authors suggest that family firms should focus on
improving their corporate governance practices to enhance their performance. The major theme of
the article is the relationship between family ownership and control of firms and their performance.
The article explores the impact of family ownership and control on firm value, earnings quality,
and risk-taking behavior, among other factors. It also examines the role of family members as
monitors of firm performance and the effect of outside investors and board members on family-
owned firms. the article explored the impact of family ownership and control on firm value,
earnings quality, and risk-taking behavior, among other factors. It also examined the role of family
members as monitors of firm performance and the effect of outside investors and board members
on family-owned firms.

the article presents a clear hypothesis to be evaluated in the empirical study and discussed in the
article. The hypothesis is that family monitoring leads to better firm performance, and the authors
test this hypothesis on a dataset of 386 German corporations as well as distinct subsamples for
family businesses and SMEs. The paper discusses the relationship between family ownership-
control and firm performance. The authors develop three hypotheses related to this relationship.
The paper also reviews and compares various theories and empirical studies related to family
ownership, control, and management, including the agency theory, stewardship theory, resource-
based view, and socioemotional wealth perspective. The authors find that the empirical evidence
on the relationship between family ownership and firm performance is mixed and that the impact
of family involvement on firm performance depends on various factors such as the degree of family
control, family experience, succession, and kinship. the article provides a detailed description of
the research design and methods used in the study. The authors clearly state their hypotheses,
variables of interest, and controls, and explain their rationale for including them in the analysis.
They also describe the dataset used and the estimation method employed, and provide descriptive
statistics and graphs to support their findings. Overall, the article appears to have a rigorous and
well-structured research design and methodology.

The author supports the hypothesis that family monitoring leads to better firm performance. They
use a dataset of 386 German corporations as well as distinct subsamples for family businesses and
SMEs and use simultaneous quantile regressions to find consistent proof for their hypothesis over
different quantiles of firm performance. The author's reasons are valid as they use empirical
evidence to support their hypothesis and use a large dataset to ensure the validity of their findings.
However, it is important to note that this study only focuses on German corporations and may not
be applicable to other countries or regions. the authors accurately report and discuss the results of
their empirical study. They hypothesize that family monitoring leads to better firm performance
and test this hypothesis on a dataset of 386 German corporations as well as distinct subsamples for
family businesses and SMEs. Using simultaneous quantile regressions, they find consistent proof
for their hypothesis over different quantiles of firm performance. They also discuss the limitations
of their study and suggest avenues for future research. The article discusses the findings of the
study and presents the conclusions drawn from those findings. Therefore, the conclusions of the
article align with the findings of the study. it is difficult to determine the specific contribution of
the article to the overall topic of management theory. The article appears to focus on the
performance and characteristics of family businesses, and how factors such as family involvement,
ownership, and management can impact firm value and success. However, without more
information about the broader context of management theory and the specific research questions
and findings of the article, it is not possible to provide a more detailed answer. the paper seems to
suggest that hiring a professional outside management team and overseeing them can be beneficial
for family-owned businesses. The study also highlights the importance of family monitoring in
terms of firm performance and innovation. The paper provides a comprehensive list of references
and statistical data to support its findings. However, without further information, it is difficult to
determine any specific strengths or weaknesses of the paper.

Strengths and limitations

It cannot provide a complete answer to this question as the strengths and limitations of the
academic article titled "Family ownership, control and performance: A study of German public
firms" are not explicitly stated in the given context. The context only provides information about
the hypotheses and findings of the study, as well as references to other related studies.

significance (lessons drawn)

The context provided is an excerpt from an academic article titled "Family ownership, control and
performance: A study of German public firms". The article discusses the relationship between
family ownership and firm performance, with a focus on family monitoring as a factor that can
lead to better performance. The authors develop three hypotheses and test them on a dataset of 386
German corporations. They find consistent proof for their hypothesis that family monitoring leads
to better firm performance. The article provides insights into the ownership, control, and
performance debate on family firms and highlights the importance of family monitoring in
improving firm performance. The article also references other academic studies on the topic and
provides a list of references for further reading.

Reference
Admati, A. R., & Pfleiderer, P. (2009). The ‘‘Wall Street Walk’’ and shareholder activism: Exit as
a form of voice. Review of Financial Studies, 22(7), 2645–2685

Ali, A., Chen, T. Y., & Radhakrishnan, S. (2007). Corporate disclosures by family firms. Journal
of Accounting and Economics, 44(1–2), 238–286

Anderson, R. C., & Reeb, D. M. (2003). Founding family ownership and firm performance:
Evidence from the S&P 500. Journal of Finance, 58(3), 1308–1328

Anderson, R. C., & Reeb, D. M. (2004). Board composition: Balancing family influence in S&P
500 firms. Administrative Science Quarterly, 49(2), 209–237
Ang, J. S., Cole, R. A., & Lin, J. W. (2000). Agency costs and ownership structure. Journal of
Finance, 55(1), 81–106

Astrachan, J. H., & Zellweger, T. (2008). Performance of family firms: A literature review and
guidance for future research. ZfKE – Zeitschrift fu¨r KMU und Entrepreneurship, 56(1/2), 1–22

Barontini, R., & Caprio, L. (2006). The effect of family control on firm value and performance:
Evidence from Continental Europe. European Financial Management, 12(5), 689–723

Berle, A. A., & Means, G. C. (1932). The modern corporation and private property. New
Brunswick: Transaction

13. Villalonga, B., & Amit, R. (2006). How do family ownership, control and management affect
firm value? Journal of Financial Economics, 80(2), 385–417

Wang, D. (2006). Founding family ownership and earnings quality. Journal of Accounting
Research, 44(3), 619–656
Yammeesri, J., & Lodh, S. (2004). Is family ownership a pain or gain to firm performance.
Journal of American Academy of Business, 4(1/2), 263–289

Yeh, Y. H., Lee, T. S., & Woidtke, T. (2001). Family Control and Corporate Governance:
Evidence from Taiwan. International Review of Finance, 2(1–2), 21–48
Zahra, S. A. (2003). International expansion of US manufacturing family businesses: The effect
of ownership and involvement. Journal of Business Venturing, 18(4), 495–512

Zahra, S. A. (2005). Entrepreneurial risk taking in family firms. Family Business Review, 18(1),
23–40.
Technology Transfer and Human Capital in the Industrial 4.0 Scenario: A Theoretical
Study
Authors: Vander Luiz da Silva, João Luiz Kovaleski & Regina Negri Pagani
Journal title: Future Studies Research Journal
Volume number: 11
Issue number: 1
Page numbers: 102-122
Publication date: January/April 2019
ISSN: 2175-5825

The article is a theoretical study on the topic of technology transfer and human capital in the
context of Industry 4.0. The authors conducted a systematic literature review of 88 articles,
selecting 50 for content analysis. They identified changes in human skills and tasks in the industry
4.0 scenario, and emphasized the need to qualify people to work in industries. The study also
classified the research as qualitative, exploratory, and a bibliography exploratory research. The
authors used keywords such as "Industry 4.0", "Smart Manufacturing", "Fourth Industrial
Revolution", "Smart Industry", "Human", "Worker", and "Technology Transfer" to conduct their
literature review.

The article "Technology Transfer and Human Capital in the Industrial 4.0 Scenario: A Theoretical
Study" by Vander Luiz da Silva, João Luiz Kovaleski & Regina Negri Pagani, published in the
Future Studies Research Journal in January/April 2019, provides a comprehensive review of the
literature on the changes and perspectives of human work in Industry 4.0. The article highlights
the need to qualify people to work in industries and explores the possible changes in human skills
and tasks in Industry 4.0. The article also discusses the role of universities, industries, and
governments in technology transfer and the need for effective integration between them. The major
theme of the article is the exploration of possible changes and perspectives of human work in
Industry 4.0, with a focus on the need to qualify people to work in industries and the role of
technology transfer in the industry 4.0 scenario. the article provided sufficient background
information for the intended audience to comprehend the exploration of possible changes and
perspectives of human work in Industry 4.0, including the need to qualify people to work in
industries and the role of technology transfer in the industry 4.0 scenario. The article discussed the
history of industrial revolutions, the concept of Industry 4.0, the importance of technology transfer,
and the need to qualify people for work in the manufacturing industry. It also provided a systematic
literature review to explore the set of changes and perspectives of human work in Industry 4.0.
The article seems to focus on a systematic literature review and analysis of articles related to
human work in the industry 4.0 scenario, rather than presenting an empirical study with a specific
research question or hypothesis.

The paper discusses three models: the Static Model, the Laissez-Faire Model, and the Triple Helix
Model. The Static Model involves the government driving the relationship between university and
industry, while the Laissez-Faire Model establishes a strong relationship between university and
industry. The Triple Helix Model configures the overlap of institutional spheres and the origin of
emerging hybrid organizations, whose spheres interact independently. The paper also discusses the
concept of Industry 4.0, which refers to changes in the industrial scenario based on production and
innovation enabled by Cyber-Physical Systems. The paper explores the possible changes and
perspectives of human work in Industry 4.0, and identifies human competencies for work in
Industry 4.0, classifying them into four categories: professional, methodological, social, and
personal competencies. Overall, the paper compares the different models and discusses their
implications for technology transfer and human capital in the context of Industry 4.0. the article
provided appropriate details about the research design and methods. The article clearly stated that
a systematic literature review was conducted using the protocols of Pagani, Kovaleski, and
Resende (2015), which included steps such as selecting bibliographic databases, establishing
keywords and combinations of keywords, defining search criteria in databases, eliminating
duplicate articles, defining and applying criteria to eliminate articles incompatible with the
proposed theme, qualifying articles from the calculation and analysis of Inordinate values, and full
reading of selected articles. The article also mentioned the keywords used, the databases searched,
and the filtering procedures applied to select relevant articles. Additionally, the article stated that
the research was classified as qualitative and exploratory, and that technical procedures included
a bibliography exploratory research. Overall, the article provided sufficient details about the
research design and methods.

The article is about exploring the possible changes and perspectives of human work in Industry
4.0, and it presents a systematic literature review of 50 articles related to the topic. The article does
not seem to provide reasons for supporting or rejecting a specific theory. There is no mention of
an empirical study in the article. The article is a systematic literature review that explores the
possible changes and perspectives of human work in Industry 4.0. The authors accurately report
and discuss the findings of the literature review. The context provided does not include the
conclusions of the article, so it is not possible to determine how well they align with the findings
of the systematic literature review. The article discusses the changes and perspectives of human
work in Industry 4.0 and explores the need to qualify people to work in industries. It provides a
systematic literature review of 50 articles, analyzing the competencies needed for work in Industry
4.0 and the changes in human skills and tasks. The article also discusses the Triple Helix Model,
which evaluates how technology transfer occurs between university, industry, and government.
The article's contribution to the topic of management theory is its analysis of the competencies and
skills needed for work in Industry 4.0, which can inform the development of human resource
management strategies. It also highlights the importance of collaboration between university,
industry, and government in technology transfer. The article relates to the overall course by
discussing the impact of technological changes on the workforce and the need for organizations to
adapt their management strategies accordingly. It also emphasizes the importance of collaboration
and knowledge transfer between different stakeholders in the innovation process. The given
context is an article published in the Future Studies Research Journal, which presents a systematic
literature review on the topic of human capital and technology transfer in the context of Industry
4.0. Therefore, it is not appropriate to comment on the strengths and weaknesses of the paper as it
is not a standalone research paper. However, the article provides a comprehensive overview of the
current state of research on the topic and highlights the need for further research in this area.

Strengths and limitations,

One of the strengths of the article is its systematic literature review, which follows a structured
script and selects 50 articles for analysis based on criteria for selection of studies. The article also
provides a clear and concise summary of the main findings of the selected articles, which makes
it easy for readers to understand the key issues related to human work in Industry 4.0

However, one of the limitations of the article is that it is a theoretical study and does not provide
empirical evidence to support its arguments. The article also focuses mainly on the Brazilian
context and does not provide a global perspective on the issues related to human work in
Industry 4.0. Additionally, the article does not discuss the potential ethical and social
implications of the changes in human work in Industry 4.0, which is an important area of
concern.

significance (lessons drawn)

The article discusses the need for technology transfer and human capital development in the
context of Industry 4.0. It highlights the importance of the integration between university, industry,
and government in making Industry 4.0 a reality. The article suggests that the government needs
to provide research incentives to universities and qualification training centers, participate in
policy-making in conjunction with universities and industries, and invest in educational
infrastructure in the country. The universities of higher education must propose new courses of
specialization directed at the training of people for work. The article also emphasizes the need for
restructuring of curricula based on the identification and prioritization of human competences. The
manufacturing industries will have to hire skilled workers and/or prepare them so that technologies
are efficiently shared and adopted. The article concludes by encouraging the development of
studies on technology transfer oriented towards Industry 4.0.

References
Anderl, I. R. Industrie 4.0 (2014). Advanced Engineering of Smart Products and Smart
Production. In: Anais do XIX Internation Seminar on High Technology. Piracicaba, SP.
Annunziata, M.; Biller, S. (2017). The Future of Work Starts Now. Access in September 3, 2017,
http://www.ge.com.
Becker, T.; Stern, H. (2016). Future Trends in Human Work area Design for Cyber-Physical
Production Systems. Procedia CIRP, 57, 404-409.
Bedolla, J. S.; D’ Antonio, G.; Chiabert, P. (2017). A novel approach for teaching IT tools within
Learning Factories. Procedia Manufacturing, 9, 175-181.
Etzkowitz, H.; Leydesdorff, L. (2000). The dynamics of innovation: from National Systems and
‘‘Mode 2’’ to a Triple Helix of university–industry–government relations. Research Policy, 29,
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123.