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Towards a better understanding of Family Business Groups and their key dimensions

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  • Della Piana, Bice
  • Vecchi, Alessandra
  • Cacia, Claudia

Abstract

The purpose of this study is to introduce an analytical framework aimed at critically assessing the governance associated with inter-organisational relations in a Family Business Group (FBG). In this study, we focus on the FBG's distinctive dimensions of analysis, namely, their nature, type, intensity and persistence over time. By coupling the literature on family firms and business groups with a family embeddedness perspective, and by relying on an in-depth exploratory case-study based on a well established FBG in the fashion industry (which consists of a focal firm and 33 subsidiaries), we empirically assess the relevance of these four dimensions. The preliminary findings indicate that not only do the relational structure (shareholdings) and the relational texture (interlocking directorships) play a crucial role in the governance of an FBG, but the intensity and the persistence of this specific set of inter-organisational relations over time should also be considered among its key dimensions. The analytical and the methodological contributions of this study, the managerial implications stemming from its main findings and directions for future research are also addressed in the concluding section of the paper.

Suggested Citation

  • Della Piana, Bice & Vecchi, Alessandra & Cacia, Claudia, 2012. "Towards a better understanding of Family Business Groups and their key dimensions," Journal of Family Business Strategy, Elsevier, vol. 3(3), pages 174-192.
    • Handle: RePEc:eee:fambus:v:3:y:2012:i:3:p:174-192
    DOI: 10.1016/j.jfbs.2012.05.004
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    2. Zamudio, César & Anokhin, Sergey & Kellermanns, Franz W., 2014. "Network analysis: A concise review and suggestions for family business research," Journal of Family Business Strategy, Elsevier, vol. 5(1), pages 63-71.
    3. Schell, Sabrina & Hiepler, Miriam & Moog, Petra, 2018. "It’s all about who you know: The role of social networks in intra-family succession in small and medium-sized firms," Journal of Family Business Strategy, Elsevier, vol. 9(4), pages 311-325.
    4. Torres, Juan Pablo & Jara Bertín, Mauricio & López-Iturriaga, Félix J., 2017. "Corporate control and firm value: The bright side of business groups," Journal of Family Business Strategy, Elsevier, vol. 8(2), pages 99-108.
    5. Lee, Tingko, 2019. "Management ties and firm performance: Influence of family governance," Journal of Family Business Strategy, Elsevier, vol. 10(2), pages 105-118.
    6. Pérez-López, M. Carmen & Gómez-Miranda, M. Elena & Argente-Linares, Eva & López-Sánchez, Lina, 2018. "The internationalisation of Spanish family firms through business groups: Factors affecting the profitability, and the moderating effect of the family nature of the Spanish business," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 21(1), pages 82-90.
    7. Khatua, Apalak, 2023. "Why is diversification not dead? Evidence from family business groups during economic reforms in India," Journal of Family Business Strategy, Elsevier, vol. 14(2).

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