IDEAS home Printed from https://ideas.repec.org/a/eee/fambus/v1y2010i3p167-178.html
   My bibliography  Save this article

Strategic fit within family firms: The role of family influence and the effect on performance

Author

Listed:
  • Lindow, Corinna M.
  • Stubner, Stephan
  • Wulf, Torsten

Abstract

Research on family firms has proliferated in recent years. However, despite recurring scholarly calls, still little research is looking at the strategic management of family firms. In particular, the implications of strategic fit on the performance of family firms have been largely neglected thus far. Initially proposed for non-family firms, the concept of strategic fit states that an alignment between a firm's strategy and structure results in superior performance. However, it has been frequently argued that family firms differ in terms of their strategic behavior, mainly as a result of the influence of the family on the firm. This paper addresses the question of whether strategic fit contributes to improving performance in family firms and what role family influence plays. Drawing on the prominent fit-typology proposed to strategy research by Miles and Snow (1978), we revisit the traditional notions of strategic fit by considering the impact of family influence on the firm. Building on a sample of 171 German family firms, our results indicate that family influence plays an important role for the achievement of strategic fit and, in turn, for the achievement of superior performance.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:fambus:v:1:y:2010:i:3:p:167-178
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1877858510000562
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chrisman, James J. & Sharma, Pramodita & Taggar, Simon, 2007. "Family influences on firms: An introduction," Journal of Business Research, Elsevier, vol. 60(10), pages 1005-1011, October.
    2. 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.
    3. Zellweger, Thomas M. & Eddleston, Kimberly A. & Kellermanns, Franz W., 2010. "Exploring the concept of familiness: Introducing family firm identity," Journal of Family Business Strategy, Elsevier, vol. 1(1), pages 54-63, March.
    4. 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.
    5. Gregory G. Dess & Richard B. Robinson, 1984. "Measuring organizational performance in the absence of objective measures: The case of the privately‐held firm and conglomerate business unit," Strategic Management Journal, Wiley Blackwell, vol. 5(3), pages 265-273, July.
    6. Edward J. Zajac & Matthew S. Kraatz & Rudi K. F. Bresser, 2000. "Modeling the dynamics of strategic fit: a normative approach to strategic change," Strategic Management Journal, Wiley Blackwell, vol. 21(4), pages 429-453, April.
    7. McConaughy, Daniel L. & Walker, Michael C. & Henderson, Glenn Jr. & Mishra, Chandra S., 1998. "Founding family controlled firms: Efficiency and value," Review of Financial Economics, Elsevier, vol. 7(1), pages 1-19.
    8. 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.
    9. J Michael Geringer & Louis Hebert, 1991. "Measuring Performance of International Joint Ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(2), pages 249-263, June.
    10. Jean-Luc Arregle & Michael A. Hitt & David G. Sirmon & Philippe Véry, 2007. "The Development of Organizational Social Capital : Attributes of Family Firms," Post-Print hal-02312687, HAL.
    11. John A. Pearce & D. Keith Robbins & Richard B. Robinson, 1987. "The impact of grand strategy and planning formality on financial performance," Strategic Management Journal, Wiley Blackwell, vol. 8(2), pages 125-134, March.
    12. 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.
    13. Pollak, Robert A, 1985. "A Transaction Cost Approach to Families and Households," Journal of Economic Literature, American Economic Association, vol. 23(2), pages 581-608, June.
    14. Chrisman, James J. & Chua, Jess H. & Steier, Lloyd P., 2003. "An introduction to theories of family business," Journal of Business Venturing, Elsevier, vol. 18(4), pages 441-448, July.
    15. Edward J. Zajac & Stephen M. Shortell, 1989. "Changing generic strategies: Likelihood, direction, and performance implications," Strategic Management Journal, Wiley Blackwell, vol. 10(5), pages 413-430, September.
    16. Robert Goffee & Richard Scase, 1985. "Proprietorial Control In Family Firms: Some Functions Of ‘Quasi‐Organic’ Management Systems," Journal of Management Studies, Wiley Blackwell, vol. 22(1), pages 53-68, January.
    17. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    18. William L. James & Kenneth J. Hatten, 1995. "Further evidence on the validity of the self typing paragraph approach: Miles and snow strategic archetypes in banking," Strategic Management Journal, Wiley Blackwell, vol. 16(2), pages 161-168.
    19. Daniel Pittino & Francesca Visintin, 2009. "INNOVATION AND STRATEGIC TYPES OF FAMILY SMEs: A TEST AND EXTENSION OF MILES AND SNOW'S CONFIGURATIONAL MODEL," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 17(03), pages 257-295.
    20. 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.
    21. Henry Mintzberg, 1978. "Patterns in Strategy Formation," Management Science, INFORMS, vol. 24(9), pages 934-948, May.
    22. James J. Chrisman & Jess H. Chua & Franz W. Kellermanns & Curtis F. Matherne III & Bart J. Debicki, 2008. "Management Journals as Venues for Publication of Family Business Research," Entrepreneurship Theory and Practice, , vol. 32(5), pages 927-934, September.
    23. N. Venkatraman, 1990. "Performance Implications Of Strategic Coalignment: A Methodological Perspective," Journal of Management Studies, Wiley Blackwell, vol. 27(1), pages 19-41, January.
    24. James J. Chrisman & Jess H. Chua & Franz Kellermanns, 2009. "Priorities, Resource Stocks, and Performance in Family and Nonfamily Firms," Entrepreneurship Theory and Practice, , vol. 33(3), pages 739-760, May.
    25. Pramodita Sharma & James J. Chrisman & Jess H. Chua, 2008. "Das Management von Familienunternehmen: Einleitung und Folgerungen," ZfKE – Zeitschrift für KMU und Entrepreneurship, Duncker & Humblot, Berlin, vol. 56(1-2), pages 1-17.
    26. Jess H. Chua & James J. Chrisman & Pramodita Sharma, 1999. "Defining the Family Business by Behavior," Entrepreneurship Theory and Practice, , vol. 23(4), pages 19-39, July.
    27. W. Gibb Dyer Jr., 2003. "The Family: The Missing Variable in Organizational Research," Entrepreneurship Theory and Practice, , vol. 27(4), pages 401-416, October.
    28. Franz W. Kellermanns & Kimberly A. Eddleston, 2006. "Corporate Entrepreneurship in Family Firms: A Family Perspective," Entrepreneurship Theory and Practice, , vol. 30(6), pages 809-830, November.
    29. Reginald A. Litz, 1997. "The Family Firm's Exclusion from Business School Research: Explaining the Void; Addressing the Opportunity," Entrepreneurship Theory and Practice, , vol. 21(3), pages 55-71, April.
    30. Ronald C. Anderson & David M. Reeb, 2003. "Founding-Family Ownership and Firm Performance: Evidence from the S&P 500," Journal of Finance, American Finance Association, vol. 58(3), pages 1301-1327, June.
    31. 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.
    32. James J. Chrisman & Jess H. Chua & Pramodita Sharma, 2005. "Trends and Directions in the Development of a Strategic Management Theory of the Family Firm," Entrepreneurship Theory and Practice, , vol. 29(5), pages 555-575, September.
    33. Maury, Benjamin, 2006. "Family ownership and firm performance: Empirical evidence from Western European corporations," Journal of Corporate Finance, Elsevier, vol. 12(2), pages 321-341, January.
    34. Olof Brunninge & Mattias Nordqvist & Johan Wiklund, 2007. "Corporate Governance and Strategic Change in SMEs: The Effects of Ownership, Board Composition and Top Management Teams," Small Business Economics, Springer, vol. 29(3), pages 295-308, October.
    35. Ronald C. Anderson & David M. Reeb, 2003. "Founding‐Family Ownership and Firm Performance: Evidence from the S&P 500," Journal of Finance, American Finance Association, vol. 58(3), pages 1301-1328, June.
    36. Nordqvist, Mattias & Melin, Leif, 2010. "The promise of the strategy as practice perspective for family business strategy research," Journal of Family Business Strategy, Elsevier, vol. 1(1), pages 15-25, March.
    37. R. T. Hamilton & G. S. Shergill, 1992. "The Relationship Between Strategy‐Structure Fit And Financial Performance In New Zealand: Evidence Of Generality And Validity With Enhanced Controls," Journal of Management Studies, Wiley Blackwell, vol. 29(1), pages 95-113, January.
    38. William R. Sandberg, 1992. "Strategic Management's Potential Contributions to a Theory of Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 16(3), pages 73-90, April.
    Full references (including those not matched with items on IDEAS)

    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. 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.
    2. David G. Sirmon & Jean–Luc Arregle & Michael A. Hitt & Justin W. Webb, 2008. "The Role of Family Influence in Firms’ Strategic Responses to Threat of Imitation," Entrepreneurship Theory and Practice, , vol. 32(6), pages 979-998, November.
    3. James J. Chrisman & Jess H. Chua & Allison W. Pearson & Tim Barnett, 2012. "Family Involvement, Family Influence, and Family–Centered Non–Economic Goals in Small Firms," Entrepreneurship Theory and Practice, , vol. 36(2), pages 267-293, March.
    4. Mazzi, Chiara, 2011. "Family business and financial performance: Current state of knowledge and future research challenges," Journal of Family Business Strategy, Elsevier, vol. 2(3), pages 166-181.
    5. Ismael Barros-Contreras & Héctor Pérez-Fernández & Natalia Martín-Cruz & Juan Hernangómez B., 2023. "Can we make family social capital flourish? The moderating role of generational involvement," Journal of Family and Economic Issues, Springer, vol. 44(3), pages 655-673, September.
    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. Garcia-Castro, Roberto & Aguilera, Ruth V., 2014. "Family involvement in business and financial performance: A set-theoretic cross-national inquiry," Journal of Family Business Strategy, Elsevier, vol. 5(1), pages 85-96.
    8. Barros, Ismael & Hernangómez, Juan & Martin-Cruz, Natalia, 2016. "A theoretical model of strategic management of family firms. A dynamic capabilities approach," Journal of Family Business Strategy, Elsevier, vol. 7(3), pages 149-159.
    9. 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.
    10. McGuire, Jean & Dow, Sandra & Ibrahim, Bakr, 2012. "All in the family? Social performance and corporate governance in the family firm," Journal of Business Research, Elsevier, vol. 65(11), pages 1643-1650.
    11. James J. Chrisman & Jess H. Chua & Pramodita Sharma, 2005. "Trends and Directions in the Development of a Strategic Management Theory of the Family Firm," Entrepreneurship Theory and Practice, , vol. 29(5), pages 555-575, September.
    12. Block, Joern H. & Jaskiewicz, Peter & Miller, Danny, 2011. "Ownership versus management effects on performance in family and founder companies: A Bayesian reconciliation," Journal of Family Business Strategy, Elsevier, vol. 2(4), pages 232-245.
    13. Isabelle Le Breton-Miller & Danny Miller, 2009. "Agency vs. Stewardship in Public Family Firms: A Social Embeddedness Reconciliation," Entrepreneurship Theory and Practice, , vol. 33(6), pages 1169-1191, November.
    14. Unai Arzubiaga & Amaia Maseda & Txomin Iturralde, 2019. "Exploratory and exploitative innovation in family businesses: the moderating role of the family firm image and family involvement in top management," Review of Managerial Science, Springer, vol. 13(1), pages 1-31, February.
    15. Audretsch, David B. & Hülsbeck, Marcel & Lehmann, Erik E., 2013. "Families as active monitors of firm performance," Journal of Family Business Strategy, Elsevier, vol. 4(2), pages 118-130.
    16. Matthias Filser & Alexander Brem & Johanna Gast & Sascha Kraus & Andrea Calabrò, 2016. "Innovation In Family Firms — Examining The Inventory And Mapping The Path," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(06), pages 1-39, August.
    17. Jean–Luc Arregle & Lucia Naldi & Mattias Nordqvist & Michael A. Hitt, 2012. "Internationalization of Family–Controlled Firms: A Study of the Effects of External Involvement in Governance," Entrepreneurship Theory and Practice, , vol. 36(6), pages 1115-1143, November.
    18. 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.
    19. Debicki, Bart J. & Ramírez-Solís, Edgar Rogelio & Baños-Monroy, Verónica Ilián & Gutiérrez-Patrón, Lilia Magali, 2020. "The impact of strategic focus on relational capital: A comparative study of family and non-family firms," Journal of Business Research, Elsevier, vol. 119(C), pages 585-598.
    20. Suveera Gill & Parmjit Kaur, 2015. "Family Involvement in Business and Financial Performance: A Panel Data Analysis," Vikalpa: The Journal for Decision Makers, , vol. 40(4), pages 395-420, December.

    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:eee:fambus:v:1:y:2010:i:3:p:167-178. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/719791/description#description .

    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.