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The influence of family firm image on access to financial resources in family SMEs: a signaling theory perspective

Author

Listed:
  • Unai Arzubiaga

    (University of the Basque Country (UPV/EHU))

  • Alfredo De Massis

    (Free University of Bozen-Bolzano
    Lancaster University Management School (UK)
    Zhejiang University
    IMD Business School)

  • Amaia Maseda

    (University of the Basque Country (UPV/EHU))

  • Txomin Iturralde

    (University of the Basque Country (UPV/EHU))

Abstract

This study investigates whether a projected family firm image can affect access to financial resources, which is key to providing broader strategic options and meeting short-term financial needs, especially for small and medium-sized enterprises (SMEs). Building on the signaling literature, we consider the family SME leaders’ perspective and conceptually and empirically examine whether they believe a projected family firm image acts as a credible signal to the lender. We also examine additional boundary conditions influencing the family SME’s projected image–access to financial resources relationship, by specifically investigating whether firm age and size alter the degree of the signaling effect. Our unique data on 289 Spanish family SMEs reveal that projected family firm image can act as an attractive signal to lenders, leading to better access to financial resources for SMEs. Furthermore, firm size reinforces the role of the projected family firm image as a positive signal. These findings address an important practical issue in terms of family firm stakeholder perceptions, offering contributions to the corporate branding, family business, and financing literature.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:rvmgts:v:17:y:2023:i:1:d:10.1007_s11846-021-00516-2
    DOI: 10.1007/s11846-021-00516-2
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    More about this item

    Keywords

    Family SMEs; Family firm image; Access to financial resources; Signaling theory; Firm age; Firm size;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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