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Firing managers: The benefits of family ownership and costs of family management

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  • Tsao, Chiung-Wen
  • Le Breton-Miller, Isabelle
  • Miller, Danny
  • Chen, Shyh-Jer

Abstract

We investigate how family ownership versus family management moderates the relationship between involuntary managerial turnover (IMT) and organizational performance in public firms. We postulate extended socioemotional priorities for family owners versus more restricted socioemotional priorities for family managers, thus arguing that family ownership versus management have contrasting effects on the performance implications of IMT, the former more positive than the latter. By combining hand collected survey and archival data from 299 Taiwanese listed family firms, we find that IMT is associated with better subsequent financial performance, but more so under family ownership than family management.

Suggested Citation

  • Tsao, Chiung-Wen & Le Breton-Miller, Isabelle & Miller, Danny & Chen, Shyh-Jer, 2021. "Firing managers: The benefits of family ownership and costs of family management," Journal of Family Business Strategy, Elsevier, vol. 12(3).
    • Handle: RePEc:eee:fambus:v:12:y:2021:i:3:s1877858520301388
    DOI: 10.1016/j.jfbs.2020.100411
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    Cited by:

    1. Lin, Hsing-Er & Yu, Andy & Stambaugh, Jeff & Tsao, Chiung-Wen & Wang, Rebecca Jen-Hui & Hsu, I-Chieh, 2023. "Family CEO duality and research and development intensity in public family enterprises: Temporality as a model boundary," Journal of Business Research, Elsevier, vol. 158(C).
    2. Le Breton-Miller, Isabelle & Miller, Danny, 2023. "Contradiction and disaggregation for family firm research," Journal of Family Business Strategy, Elsevier, vol. 14(1).

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