IDEAS home Printed from https://ideas.repec.org/a/eee/fambus/v2y2011i3p151-165.html
   My bibliography  Save this article

Ideal types of family business management: Horizontal fit between family and business decisions and the relationship with family business performance

Author

Listed:
  • Basco, Rodrigo
  • Pérez Rodríguez, María José

Abstract

Despite considerable progress made using systems and configurative approaches in family business research, current knowledge remains limited on how different combinations of organizational attributes determine relevant outcomes and, therefore, how family affects businesses. To address this question, we focus on the overlap between family and business at management and governance levels. We posit that family- and business-oriented decisions emerge in four areas: board of directors, succession, human resources, and strategic process. This argument allows us to conceive three ideal types of family firms that yield maximum family firm performance, by considering the way that family firms adjust their orientations in their decisions. Building on a sample of 732 privately owned Spanish family firms, we propose the following main hypothesis: the greater the similarity of a family firm to an ideal profile, the better its performance. Our main results show that family firms can achieve successful business results by using a combination of family and business orientations in their decision making.

Suggested Citation

  • Basco, Rodrigo & Pérez Rodríguez, María José, 2011. "Ideal types of family business management: Horizontal fit between family and business decisions and the relationship with family business performance," Journal of Family Business Strategy, Elsevier, vol. 2(3), pages 151-165.
  • Handle: RePEc:eee:fambus:v:2:y:2011:i:3:p:151-165 DOI: 10.1016/j.jfbs.2011.07.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1877858511000453
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Arosa, Blanca & Iturralde, Txomin & Maseda, Amaia, 2010. "Ownership structure and firm performance in non-listed firms: Evidence from Spain," Journal of Family Business Strategy, Elsevier, vol. 1(2), pages 88-96, June.
    2. Zellweger, Thomas M. & Eddleston, Kimberly A. & Kellermanns, Franz W., 2010. "Exploring the concept of familiness: Introducing family firm identity," Journal of Family Business Strategy, Elsevier, vol. 1(1), pages 54-63, March.
    3. N. Venkatraman & Vasudevan Ramanujam, 1987. "Planning System Success: A Conceptualization and an Operational Model," Management Science, INFORMS, pages 687-705.
    4. Jeroen van den Heuvel & Anita Van Gils & Wim Voordeckers, 2006. "Board Roles in Small and Medium-Sized Family Businesses: performance and importance," Corporate Governance: An International Review, Wiley Blackwell, vol. 14(5), pages 467-485, September.
    5. Frank, Hermann & Lueger, Manfred & Nosé, Lavinia & Suchy, Daniela, 2010. "The concept of "Familiness": Literature review and systems theory-based reflections," Journal of Family Business Strategy, Elsevier, vol. 1(3), pages 119-130, September.
    6. Garcia-Castro, Roberto & Casasola, Mª José, 2011. "A set-theoretic analysis of the components of family involvement in publicly listed and major unlisted firms," Journal of Family Business Strategy, Elsevier, vol. 2(1), pages 15-25, March.
    7. Wennberg, Karl & Nordqvist, Mattias & Bau, Massimo & Hellerstedt, Karin, 2010. "Succession in Private Firms as an Entrepreneurial Process – A Review and Suggestions of New Research avenues," Ratio Working Papers 157, The Ratio Institute.
    8. Holland, Phyllis G. & Boulton, William R., 1984. "Balancing the "Family" and the "Business" in family business," Business Horizons, Elsevier, vol. 27(2), pages 16-21.
    9. Lindow, Corinna M. & Stubner, Stephan & Wulf, Torsten, 2010. "Strategic fit within family firms: The role of family influence and the effect on performance," Journal of Family Business Strategy, Elsevier, vol. 1(3), pages 167-178, September.
    10. Leenders, Mark & Waarts, Eric, 2003. "Competitiveness and Evolution of Family Businesses:: The Role of Family and Business Orientation," European Management Journal, Elsevier, vol. 21(6), pages 686-697, December.
    11. Astrachan, Joseph H., 2010. "Strategy in family business: Toward a multidimensional research agenda," Journal of Family Business Strategy, Elsevier, vol. 1(1), pages 6-14, March.
    12. Ensley, Michael D. & Pearson, Allison W. & Sardeshmukh, Shruti R, 2007. "The negative consequences of pay dispersion in family and non-family top management teams: an exploratory analysis of new venture, high-growth firms," Journal of Business Research, Elsevier, vol. 60(10), pages 1039-1047, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Henrik Harms, 2014. "Review of Family Business Definitions: Cluster Approach and Implications of Heterogeneous Application for Family Business Research," International Journal of Financial Studies, MDPI, Open Access Journal, vol. 2(3), pages 1-35, July.
    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, pages 85-96.
    3. Hirigoyen, Gérard & Labaki, Rania, 2012. "The role of regret in the owner-manager decision-making in the family business: A conceptual approach," Journal of Family Business Strategy, Elsevier, pages 118-126.
    4. Stough, Roger & Welter, Friederike & Block, Joern & Wennberg, Karl & Basco, Rodrigo, 2015. "Family business and regional science: “Bridging the gap”," Journal of Family Business Strategy, Elsevier, pages 208-218.
    5. Peterson, Preston & Distelberg, Brian J., 2011. "Differentiating value orientations and unity in values as predictors of varying family business system processes," Journal of Family Business Strategy, Elsevier, pages 207-219.
    6. López-Delgado, P. & Diéguez-Soto, J., 2015. "Lone founders, types of private family businesses and firm performance," Journal of Family Business Strategy, Elsevier, pages 73-85.
    7. repec:eee:fambus:v:8:y:2017:i:3:p:157-169 is not listed on IDEAS
    8. Tappeiner, Florian & Howorth, Carole & Achleitner, Ann-Kristin & Schraml, Stephanie, 2012. "Demand for private equity minority investments: A study of large family firms," Journal of Family Business Strategy, Elsevier, pages 38-51.
    9. Basco, Rodrigo, 2013. "The family's effect on family firm performance: A model testing the demographic and essence approaches," Journal of Family Business Strategy, Elsevier, pages 42-66.
    10. Goel, Sanjay & Mazzola, Pietro & Phan, Phillip H. & Pieper, Torsten M. & Zachary, Ramona K., 2012. "Strategy, ownership, governance, and socio-psychological perspectives on family businesses from around the world," Journal of Family Business Strategy, Elsevier, pages 54-65.
    11. Collin, Sven-Olof Yrjö & Ahlberg, Jenny, 2012. "Blood in the boardroom: Family relationships influencing the functions of the board," Journal of Family Business Strategy, Elsevier, pages 207-219.
    12. Basco, Rodrigo, 2015. "Family business and regional development—A theoretical model of regional familiness," Journal of Family Business Strategy, Elsevier, pages 259-271.
    13. San Martin-Reyna, J.M. & Duran-Encalada, Jorge A., 2012. "The relationship among family business, corporate governance and firm performance: Evidence from the Mexican stock exchange," Journal of Family Business Strategy, Elsevier, pages 106-117.
    14. Barros, Ismael & Hernangómez, Juan & Martin-Cruz, Natalia, 2016. "A theoretical model of strategic management of family firms. A dynamic capabilities approach," Journal of Family Business Strategy, Elsevier, pages 149-159.
    15. Gérard Hirigoyen & Thierry Poulain-Rehm, 2014. "The Corporate Social Responsibility of Family Businesses: An International Approach," International Journal of Financial Studies, MDPI, Open Access Journal, vol. 2(3), pages 1-26, July.
    16. Dawson, Alexandra & Mussolino, Donata, 2014. "Exploring what makes family firms different: Discrete or overlapping constructs in the literature?," Journal of Family Business Strategy, Elsevier, pages 169-183.
    17. Craig, Justin B. & Dibrell, Clay & Garrett, Robert, 2014. "Examining relationships among family influence, family culture, flexible planning systems, innovativeness and firm performance," Journal of Family Business Strategy, Elsevier, pages 229-238.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:fambus:v:2:y:2011:i:3:p:151-165. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/719791/description#description .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.