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Familiness vs. family ownership and control: what is the impact on the performance of a firm? Evidence from the field

Author

Listed:
  • Davide Sola
  • Roberto Quaglia
  • Jerome Couturier
  • Angela Lo Pinto

Abstract

This paper investigates the differing impact on the performance of family ownership and control in relation to 'familiness'. In particular, it aims to analyse the impact of the loss of family ownership and control in two different scenarios: diffusion of familiness, and not diffused familiness within the organisation. Grounded Theory methodology was applied with the intention of generating a conceptual model related to the phenomenon. Therefore, evidence from the examination of prior knowledge and real-life observations are contrasted, searching for elements that supported or disproved the emergent theoretical construct. According to our conceptual model, 'Four Pillars of Positive Familiness Effect' - long-term commitment, reciprocal altruism, trust, and collective values and shared vision - if present and diffused within the organisation, determine the positive effect of family control on the performance of the firm. After the loss of family control, the effect on the performance would depend on the pre-existence of those characteristics.

Suggested Citation

  • Davide Sola & Roberto Quaglia & Jerome Couturier & Angela Lo Pinto, 2012. "Familiness vs. family ownership and control: what is the impact on the performance of a firm? Evidence from the field," International Journal of Management Practice, Inderscience Enterprises Ltd, vol. 5(4), pages 326-342.
    • Handle: RePEc:ids:ijmpra:v:5:y:2012:i:4:p:326-342
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    Cited by:

    1. Ferraris, Alberto & Giachino, Chiara & Ciampi, Francesco & Couturier, Jerome, 2021. "R&D internationalization in medium-sized firms: The moderating role of knowledge management in enhancing innovation performances," Journal of Business Research, Elsevier, vol. 128(C), pages 711-718.

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