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The effect of nonfamily managers on decision-making quality in family firm TMTs: The role of intra-TMT power asymmetries

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  • Vandekerkhof, Pieter
  • Steijvers, Tensie
  • Hendriks, Walter
  • Voordeckers, Wim

Abstract

In this paper, we examine the impact of the presence of both family and nonfamily managers on TMT decision-making quality. Based on a unique multiple respondent sample of 284 managers from 52 Belgian private family firms, we find that a higher proportion of nonfamily managers reduces TMT decision-making quality through intra-TMT ownership power asymmetries. In addition, we find that variety in knowledge and expertise in the TMT mitigates the negative effect of intra-TMT ownership power differences on decision-making quality. As such, we argue that expertise power can be a good counterbalance for the negative impact of a higher proportion of nonfamily managers on TMT outcomes in family firms.

Suggested Citation

  • Vandekerkhof, Pieter & Steijvers, Tensie & Hendriks, Walter & Voordeckers, Wim, 2019. "The effect of nonfamily managers on decision-making quality in family firm TMTs: The role of intra-TMT power asymmetries," Journal of Family Business Strategy, Elsevier, vol. 10(3), pages 1-1.
  • Handle: RePEc:eee:fambus:v:10:y:2019:i:3:1
    DOI: 10.1016/j.jfbs.2019.01.002
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    References listed on IDEAS

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    Cited by:

    1. Jiong Wu & Feifei Wang & Xing Xu, 2021. "The influence of management team continuation on inefficient investment after family firms inheritance," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(1), pages 156-169, January.
    2. Migliori, Stefania & De Massis, Alfredo & Maturo, Fabrizio & Paolone, Francesco, 2020. "How does family management affect innovation investment propensity? The key role of innovation impulses," Journal of Business Research, Elsevier, vol. 113(C), pages 243-256.

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