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Family involvement in a hierarchical culture: Effect of dispersion of family ownership control and family member tenure on firm performance in Chinese family owned firms

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  • Goel, Sanjay
  • He, Xiaogang
  • Karri, Ranjan

Abstract

We tested the effect of control rights dispersion on firm performance in Chinese family-owned firms. Developing arguments based on balancing cultural norms of hierarchy and respect for elders with providing tangible incentives to express crucial divergent views in a culturally acceptable manner, we hypothesized that high dispersion of control among family members in a Chinese family firm would be associated with positive firm performance and the tenure of family members would positively moderate this relationship. Results generally support our model, and suggest that involvement of family members in a variety of cultural contexts is an important direction to advance the field.

Suggested Citation

  • Goel, Sanjay & He, Xiaogang & Karri, Ranjan, 2011. "Family involvement in a hierarchical culture: Effect of dispersion of family ownership control and family member tenure on firm performance in Chinese family owned firms," Journal of Family Business Strategy, Elsevier, vol. 2(4), pages 199-206.
  • Handle: RePEc:eee:fambus:v:2:y:2011:i:4:p:199-206
    DOI: 10.1016/j.jfbs.2011.10.003
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. De Massis, Alfredo & Kotlar, Josip & Campopiano, Giovanna & Cassia, Lucio, 2013. "Dispersion of family ownership and the performance of small-to-medium size private family firms," Journal of Family Business Strategy, Elsevier, vol. 4(3), pages 166-175.
    2. 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, vol. 4(1), pages 42-66.
    3. González-Cruz, Tomás F. & Cruz-Ros, Sonia, 2016. "When does family involvement produce superior performance in SME family business?," Journal of Business Research, Elsevier, vol. 69(4), pages 1452-1457.
    4. 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, vol. 7(3), pages 149-159.

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