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The family's effect on family firm performance: A model testing the demographic and essence approaches

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  • Basco, Rodrigo
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    Abstract

    The demographic and essence approaches have emerged as two separate streams to tackle the issue of how the family affects family firm performance. However, this debate is still open. After analyzing 80 published articles from 2007 to 2011, I conclude that the contradictions between these two approaches come from implicit assumptions that are not modeled when each approach is tested individually. Therefore, the aim of this article is to put the demographic and essence approaches to the test. To reach this objective, I developed a theoretical framework to analyze the relationship between family management involvement, family-oriented strategic decision making, and family firm performance. I conclude that contradictory conclusions may result from each model whether they are tested separately or together.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Family Business Strategy.

    Volume (Year): 4 (2013)
    Issue (Month): 1 ()
    Pages: 42-66

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    Handle: RePEc:eee:fambus:v:4:y:2013:i:1:p:42-66

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    Related research

    Keywords: Family business; Essence and demographic approach; Family firm performance; Top management team; Agency and stewardship theory; Family business literature review;

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    Cited by:
    1. De Massis, Alfredo & Kotlar, Josip & Campopiano, Giovanna & Cassia, Lucio, 2013. "Dispersion of family ownership and the performance of small-to-medium size private family firms," Journal of Family Business Strategy, Elsevier, vol. 4(3), pages 166-175.
    2. 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.

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