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Do family ties shape the performance consequences of diversification? Evidence from the European Union

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  • Muñoz-Bullón, Fernando
  • Sánchez-Bueno, Maria J.
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    Abstract

    This paper examines the moderating effect of family involvement in ownership and control on the relationship between diversification strategies – both product and international diversification – and corporate performance. We argue that this moderating effect is related to the distinctive characteristics of family firms compared to non-family firms. The empirical evidence is provided by a sample of firms from the European Union during the 2005–2009 time period. Our results found that family firms are more profitable than non-family firms when they engage in joint product and international diversification.

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    File URL: http://www.sciencedirect.com/science/article/pii/S1090951611000721
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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 47 (2012)
    Issue (Month): 3 ()
    Pages: 469-477

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    Handle: RePEc:eee:worbus:v:47:y:2012:i:3:p:469-477

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    Related research

    Keywords: Family firms; Product diversification; International diversification; Performance; EU;

    References

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    16. Luis R. Gomez-Mejia & Marianna Makri & Martin Larraza Kintana, 2010. "Diversification Decisions in Family-Controlled Firms," Journal of Management Studies, Wiley Blackwell, vol. 47(2), pages 223-252, 03.
    17. Delios, Andrew & Zhou, Nan & Xu, Wei Wei, 2008. "Ownership structure and the diversification and performance of publicly-listed companies in China," Business Horizons, Elsevier, vol. 51(6), pages 473-483.
    18. Zulima Fern�ndez & Mar�a Jes�s Nieto, 2006. "Impact of ownership on the international involvement of SMEs," Journal of International Business Studies, Palgrave Macmillan, vol. 37(3), pages 340-351, May.
    19. Danny Miller & Jangwoo Lee & Sooduck Chang & Isabelle Le Breton-Miller, 2009. "Filling the institutional void: The social behavior and performance of family vs non-family technology firms in emerging markets," Journal of International Business Studies, Palgrave Macmillan, vol. 40(5), pages 802-817, June.
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