IDEAS home Printed from https://ideas.repec.org/a/bla/jomstd/v47y2010i2p296-321.html
   My bibliography  Save this article

Locus of Ownership and Family Involvement in Small Private Firms

Author

Listed:
  • Mark K. Fiegener

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.

Suggested Citation

  • Mark K. Fiegener, 2010. "Locus of Ownership and Family Involvement in Small Private Firms," Journal of Management Studies, Wiley Blackwell, vol. 47(2), pages 296-321, March.
    • Handle: RePEc:bla:jomstd:v:47:y:2010:i:2:p:296-321
    DOI: 10.1111/j.1467-6486.2009.00892.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-6486.2009.00892.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-6486.2009.00892.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kimberly A. Eddleston & Franz Willi Kellermanns & Ravi Sarathy, 2008. "Resource Configuration in Family Firms: Linking Resources, Strategic Planning and Technological Opportunities to Performance," Journal of Management Studies, Wiley Blackwell, vol. 45(1), pages 26-50, January.
    2. Michael H. Lubatkin & Yan Ling & William S. Schulze, 2007. "An Organizational Justice‐Based View of Self‐Control and Agency Costs in Family Firms," Journal of Management Studies, Wiley Blackwell, vol. 44(6), pages 955-971, September.
    3. Steier, Lloyd, 2003. "Variants of agency contracts in family-financed ventures as a continuum of familial altruistic and market rationalities," Journal of Business Venturing, Elsevier, vol. 18(5), pages 597-618, September.
    4. Zahra, Shaker A., 2003. "International expansion of U.S. manufacturing family businesses: the effect of ownership and involvement," Journal of Business Venturing, Elsevier, vol. 18(4), pages 495-512, July.
    5. Sue Birley, 2002. "Attitudes of Owner-Managers' Children towards Family and Business Issues," Entrepreneurship Theory and Practice, , vol. 26(3), pages 5-19, April.
    6. Danny Miller & Isabelle Le Breton‐Miller & Barry Scholnick, 2008. "Stewardship vs. Stagnation: An Empirical Comparison of Small Family and Non‐Family Businesses," Journal of Management Studies, Wiley Blackwell, vol. 45(1), pages 51-78, January.
    7. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    8. W. Gibb Dyer Jr., 2003. "The Family: The Missing Variable in Organizational Research," Entrepreneurship Theory and Practice, , vol. 27(4), pages 401-416, October.
    9. Michael Lubatkin & Eric Gedajlovic & William S. Schulze, 2004. "Crossing the threshold from founder management to professional management : A governance perspective," Post-Print hal-02311640, HAL.
    10. M. Teresa Lunati, 1997. "Ethical Issues in Economics," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-37358-7.
    11. Jean‐Luc Arregle & Michael A. Hitt & David G. Sirmon & Philippe Very, 2007. "The Development of Organizational Social Capital: Attributes of Family Firms," Journal of Management Studies, Wiley Blackwell, vol. 44(1), pages 73-95, January.
    12. William S. Schulze & Michael H. Lubatkin & Richard N. Dino & Ann K. Buchholtz, 2001. "Agency Relationships in Family Firms: Theory and Evidence," Organization Science, INFORMS, vol. 12(2), pages 99-116, April.
    13. Eric Gedajlovic & Michael H. Lubatkin & William S. Schulze, 2004. "Crossing the Threshold from Founder Management to Professional Management: A Governance Perspective," Journal of Management Studies, Wiley Blackwell, vol. 41(5), pages 899-912, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vandekerkhof, Pieter & Steijvers, Tensie & Hendriks, Walter & Voordeckers, Wim, 2019. "The effect of nonfamily managers on decision-making quality in family firm TMTs: The role of intra-TMT power asymmetries," Journal of Family Business Strategy, Elsevier, vol. 10(3), pages 1-1.
    2. Jane N. O. Khayesi & Gerard George & John Antonakis, 2014. "Kinship in Entrepreneur Networks: Performance Effects of Resource Assembly in Africa," Entrepreneurship Theory and Practice, , vol. 38(6), pages 1323-1342, November.
    3. Kwon, Yonghyun & Han, Seung Hun & Lee, Bong-Soo, 2016. "Financial constraints and negative spillovers in business groups: Evidence from Korea," Pacific-Basin Finance Journal, Elsevier, vol. 39(C), pages 84-100.
    4. Ulrich Lichtenthaler & Miriam Muethel, 2012. "Retracted: The Impact of Family Involvement on Dynamic Innovation Capabilities: Evidence from German Manufacturing Firms," Entrepreneurship Theory and Practice, , vol. 36(6), pages 1235-1253, November.
    5. 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.
    6. Henrik Harms, 2014. "Review of Family Business Definitions: Cluster Approach and Implications of Heterogeneous Application for Family Business Research," IJFS, MDPI, vol. 2(3), pages 1-35, July.
    7. William S. Schulze & Eric R. Gedajlovic, 2010. "Whither Family Business?," Journal of Management Studies, Wiley Blackwell, vol. 47(2), pages 191-204, March.
    8. Cabrera-Suárez, Mª Katiuska & Déniz-Déniz, Mª de La Cruz & Martín-Santana, Josefa D., 2014. "The setting of non-financial goals in the family firm: The influence of family climate and identification," Journal of Family Business Strategy, Elsevier, vol. 5(3), pages 289-299.
    9. Allen, Mathew R. & George, Bradley A. & Davis, James H., 2018. "A model for the role of trust in firm level performance: The case of family businesses," Journal of Business Research, Elsevier, vol. 84(C), pages 34-45.
    10. Wessel, Stephan & Decker, Carolin & Lange, Knut S.G. & Hack, Andreas, 2014. "One size does not fit all: Entrepreneurial families’ reliance on family offices," European Management Journal, Elsevier, vol. 32(1), pages 37-45.
    11. Alfredo De Massis & Josip Kotlar & Pietro Mazzola & Tommaso Minola & Salvatore Sciascia, 2018. "Conflicting Selves: Family Owners' Multiple Goals and Self-Control Agency Problems in Private Firms," Entrepreneurship Theory and Practice, , vol. 42(3), pages 362-389, May.
    12. Basco, Rodrigo & Pérez Rodríguez, María José, 2011. "Ideal types of family business management: Horizontal fit between family and business decisions and the relationship with family business performance," Journal of Family Business Strategy, Elsevier, vol. 2(3), pages 151-165.
    13. Raj Mahto & Peter Davis & Dmitry Khanin, 2014. "Continuation Commitment: Family’s Commitment to Continue the Family Business," Journal of Family and Economic Issues, Springer, vol. 35(2), pages 278-289, June.
    14. Pittino, Daniel & Chirico, Francesco & Baù, Massimo & Villasana, Marcia & Naranjo-Priego, Elvira E. & Barron, Elda, 2020. "Starting a family business as a career option: The role of the family household in Mexico," Journal of Family Business Strategy, Elsevier, vol. 11(2).
    15. 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.
    16. Ryan Federo & Yuliya Ponomareva & Ruth V. Aguilera & Angel Saz‐Carranza & Carlos Losada, 2020. "Bringing owners back on board: A review of the role of ownership type in board governance," Corporate Governance: An International Review, Wiley Blackwell, vol. 28(6), pages 348-371, November.
    17. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shaker A. Zahra, 2010. "Harvesting Family Firms' Organizational Social Capital: A Relational Perspective," Journal of Management Studies, Wiley Blackwell, vol. 47(2), pages 345-366, March.
    2. Michael Carney & Marc Van Essen & Eric R. Gedajlovic & Pursey P.M.A.R. Heugens, 2015. "What do we know about Private Family Firms? A Meta–Analytical Review," Entrepreneurship Theory and Practice, , vol. 39(3), pages 513-544, May.
    3. Astrachan, Joseph H., 2010. "Strategy in family business: Toward a multidimensional research agenda," Journal of Family Business Strategy, Elsevier, vol. 1(1), pages 6-14, March.
    4. Wright, Mike & Kellermanns, Franz W., 2011. "Family firms: A research agenda and publication guide," Journal of Family Business Strategy, Elsevier, vol. 2(4), pages 187-198.
    5. Alain Verbeke & Liena Kano, 2012. "The Transaction Cost Economics Theory of the Family Firm: Family–Based Human Asset Specificity and the Bifurcation Bias," Entrepreneurship Theory and Practice, , vol. 36(6), pages 1183-1205, November.
    6. Weiping Liu & Haibin Yang & Guangxi Zhang, 2012. "Does family business excel in firm performance? An institution-based view," Asia Pacific Journal of Management, Springer, vol. 29(4), pages 965-987, December.
    7. Lindow, Corinna M. & Stubner, Stephan & Wulf, Torsten, 2010. "Strategic fit within family firms: The role of family influence and the effect on performance," Journal of Family Business Strategy, Elsevier, vol. 1(3), pages 167-178, September.
    8. Henssen, Bart & Voordeckers, Wim & Lambrechts, Frank & Koiranen, Matti, 2014. "The CEO autonomy–stewardship behavior relationship in family firms: The mediating role of psychological ownership," Journal of Family Business Strategy, Elsevier, vol. 5(3), pages 312-322.
    9. Eric Gedajlovic & Michael Carney, 2010. "Markets, Hierarchies, and Families: Toward a Transaction Cost Theory of the Family Firm," Entrepreneurship Theory and Practice, , vol. 34(6), pages 1145-1172, November.
    10. Mike W. Peng & Yi Jiang, 2010. "Institutions Behind Family Ownership and Control in Large Firms," Journal of Management Studies, Wiley Blackwell, vol. 47(2), pages 253-273, March.
    11. Ahlers, Oliver & Hack, Andreas & Kellermanns, Franz W., 2014. "“Stepping into the buyers’ shoes”: Looking at the value of family firms through the eyes of private equity investors," Journal of Family Business Strategy, Elsevier, vol. 5(4), pages 384-396.
    12. Kimberly A. Eddleston & Franz W. Kellermanns & Thomas M. Zellweger, 2012. "Exploring the Entrepreneurial Behavior of Family Firms: Does the Stewardship Perspective Explain Differences?," Entrepreneurship Theory and Practice, , vol. 36(2), pages 347-367, March.
    13. Salvatore Sciascia & Pietro Mazzola & Joseph Astrachan & Torsten Pieper, 2012. "The role of family ownership in international entrepreneurship: exploring nonlinear effects," Small Business Economics, Springer, vol. 38(1), pages 15-31, January.
    14. Carney, Michael & Duran, Patricio & van Essen, Marc & Shapiro, Daniel, 2017. "Family firms, internationalization, and national competitiveness: Does family firm prevalence matter?," Journal of Family Business Strategy, Elsevier, vol. 8(3), pages 123-136.
    15. Alfredo De Massis & Josip Kotlar & Pietro Mazzola & Tommaso Minola & Salvatore Sciascia, 2018. "Conflicting Selves: Family Owners' Multiple Goals and Self-Control Agency Problems in Private Firms," Entrepreneurship Theory and Practice, , vol. 42(3), pages 362-389, May.
    16. Pieper, Torsten M., 2010. "Non solus: Toward a psychology of family business," Journal of Family Business Strategy, Elsevier, vol. 1(1), pages 26-39, March.
    17. Hatak, Isabella & Kautonen, Teemu & Fink, Matthias & Kansikas, Juha, 2016. "Innovativeness and family-firm performance: The moderating effect of family commitment," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 120-131.
    18. Xiao Wei & Ling Chen, 2022. "Dispersion of Family Ownership and Innovation Input in Family Firms," Sustainability, MDPI, vol. 14(14), pages 1-20, July.
    19. Andrea Calabrò & Donata Mussolino, 2013. "How do boards of directors contribute to family SME export intensity? The role of formal and informal governance mechanisms," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(2), pages 363-403, May.
    20. Arzubiaga, Unai & Kotlar, Josip & De Massis, Alfredo & Maseda, Amaia & Iturralde, Txomin, 2018. "Entrepreneurial orientation and innovation in family SMEs: Unveiling the (actual) impact of the Board of Directors," Journal of Business Venturing, Elsevier, vol. 33(4), pages 455-469.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jomstd:v:47:y:2010:i:2:p:296-321. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-2380 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.