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Family Firms: A Breed of Extremes?

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  • Danny Miller
  • Isabelle Le Breton-Miller

Abstract

Conflicts in the family business literature abound due to the breed’s heterogeneity. However, a key aspect of heterogeneity has been ignored—a tendency for many family firms to gravitate toward unusual and opposite extremes in their behavior toward stakeholders and their strategic initiatives. We attribute these to family emotional bonds, secrecy from scrutiny, and exceptional managerial discretion. These bivalent qualities may combine to cause both salutary and abusive treatment of stakeholders as well as extraordinary success and abysmal failure at strategic initiatives—depending on the temporal and social priorities of family owners. We present moderating conditions and propositions before developing theoretical and methodological implications.

Suggested Citation

  • Danny Miller & Isabelle Le Breton-Miller, 2021. "Family Firms: A Breed of Extremes?," Entrepreneurship Theory and Practice, , vol. 45(4), pages 663-681, July.
    • Handle: RePEc:sae:entthe:v:45:y:2021:i:4:p:663-681
    DOI: 10.1177/1042258720964186
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    References listed on IDEAS

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    4. Fabel, Oliver & Mináriková, Dana & Hopp, Christian, 2022. "Differences and similarities in executive hiring decisions of family and non-family firms," Journal of Family Business Strategy, Elsevier, vol. 13(2).
    5. Duarte Pimentel & André Pedra, 2023. "Primary Psychopathy in Formal Leaders and Job Satisfaction Levels of Employees Working in Family and Non-Family Firms," Administrative Sciences, MDPI, vol. 13(8), pages 1-13, August.
    6. Tanja Gavrić & Ivana Načinović Braje, 2024. "Managing Cultural Diversity and Conflict in Family Businesses: An Organizational Perspective," Administrative Sciences, MDPI, vol. 14(1), pages 1-17, January.
    7. Bargoni, Augusto & Kliestik, Tomas & Jabeen, Fauzia & Santoro, Gabriele, 2023. "Family firms’ characteristics and consumer behaviour: An enquiry into millennials’ purchase intention in the online channel," Journal of Business Research, Elsevier, vol. 156(C).
    8. Lambrechts, Frank & Gnan, Luca, 2022. "Human resources and mutual gains in family firms: New developments and possibilities on the horizon," Journal of Family Business Strategy, Elsevier, vol. 13(2).
    9. Le Breton-Miller, Isabelle & Miller, Danny, 2022. "Family businesses under COVID-19: Inspiring models – Sometimes," Journal of Family Business Strategy, Elsevier, vol. 13(2).
    10. Le Breton-Miller, Isabelle & Miller, Danny, 2023. "Contradiction and disaggregation for family firm research," Journal of Family Business Strategy, Elsevier, vol. 14(1).
    11. Cambrea, Domenico Rocco & Ponomareva, Yuliya & Pittino, Daniel & Minichilli, Alessandro, 2022. "Strings attached: Socioemotional wealth mixed gambles in the cash management choices of family firms," Journal of Family Business Strategy, Elsevier, vol. 13(3).
    12. Creemers, Sarah & Peeters, Ludo & Quiroz Castillo, Juan Luis & Vancauteren, Mark & Voordeckers, Wim, 2023. "Family firms and the labor productivity controversy: A distributional analysis of varying labor productivity gaps," Journal of Family Business Strategy, Elsevier, vol. 14(2).
    13. Belot, François & Waxin, Timothée, 2022. "Mandatory employee board representation: Good news for family firms?," International Review of Law and Economics, Elsevier, vol. 71(C).

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