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Locus of Ownership and Family Involvement in Small Private Firms

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  • Mark K. Fiegener
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    Abstract

    The relationship between ownership and family involvement in small businesses is not altogether clear because empirical studies have not distinguished among family ownership, family management, and owner-management in composing their samples. In the present study, a large sample of small private firms is parsed into sub-samples with distinctly different types of owners in order to isolate the effects of locus of ownership. The results show that firms with different locus of ownership behave differently with respect to the extent of involvement by the CEO's relatives as employees, key managers, advisors, and board members. Although owner-managers and sole-proprietors would seem to have more authority than other CEOs to involve family members in the operations of the business, the findings indicate that these self-owned firms have significantly less family involvement than firms owned entirely by relatives of the CEO. Copyright (c) 2009 The Author. Journal compilation (c) 2009 Blackwell Publishing Ltd and Society for the Advancement of Management Studies.

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Journal of Management Studies.

    Volume (Year): 47 (2010)
    Issue (Month): 2 (03)
    Pages: 296-321

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    Handle: RePEc:bla:jomstd:v:47:y:2010:i:2:p:296-321

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    Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2380

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    Cited by:
    1. Grundström, Christina & Öberg, Christina & Öhrwall Rönnbäck, Anna, 2012. "Family-owned manufacturing SMEs and innovativeness: A comparison between within-family successions and external takeovers," Journal of Family Business Strategy, Elsevier, vol. 3(3), pages 162-173.
    2. Basco, Rodrigo, 2013. "The family's effect on family firm performance: A model testing the demographic and essence approaches," Journal of Family Business Strategy, Elsevier, vol. 4(1), pages 42-66.
    3. Chrisman, James J. & Chua, Jess H. & Steier, Lloyd P. & Wright, Mike & McKee, D’Lisa N., 2012. "An agency theoretic analysis of value creation through management buy-outs of family firms," Journal of Family Business Strategy, Elsevier, vol. 3(4), pages 197-206.

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