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The family's effect on family firm performance: A model testing the demographic and essence approaches

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  • Basco, Rodrigo

Abstract

The demographic and essence approaches have emerged as two separate streams to tackle the issue of how the family affects family firm performance. However, this debate is still open. After analyzing 80 published articles from 2007 to 2011, I conclude that the contradictions between these two approaches come from implicit assumptions that are not modeled when each approach is tested individually. Therefore, the aim of this article is to put the demographic and essence approaches to the test. To reach this objective, I developed a theoretical framework to analyze the relationship between family management involvement, family-oriented strategic decision making, and family firm performance. I conclude that contradictory conclusions may result from each model whether they are tested separately or together.

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  • 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.
  • Handle: RePEc:eee:fambus:v:4:y:2013:i:1:p:42-66
    DOI: 10.1016/j.jfbs.2012.12.003
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    2. 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.
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    4. Miralles-Marcelo, José Luis & Miralles-Quirós, Maria del Mar & Lisboa, Inês, 2014. "The impact of family control on firm performance: Evidence from Portugal and Spain," Journal of Family Business Strategy, Elsevier, vol. 5(2), pages 156-168.
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    6. Sciascia, Salvatore & Mazzola, Pietro & Kellermanns, Franz W., 2014. "Family management and profitability in private family-owned firms: Introducing generational stage and the socioemotional wealth perspective," Journal of Family Business Strategy, Elsevier, vol. 5(2), pages 131-137.
    7. Basco, Rodrigo, 2015. "Family business and regional development—A theoretical model of regional familiness," Journal of Family Business Strategy, Elsevier, vol. 6(4), pages 259-271.
    8. 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.
    9. 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, vol. 5(3), pages 229-238.
    10. Arrondo-García, Rubén & Fernández-Méndez, Carlos & Menéndez-Requejo, Susana, 2016. "The growth and performance of family businesses during the global financial crisis: The role of the generation in control," Journal of Family Business Strategy, Elsevier, vol. 7(4), pages 227-237.
    11. Gallucci, Carmen & Santulli, Rosalia & Calabrò, Andrea, 2015. "Does family involvement foster or hinder firm performance? The missing role of family-based branding strategies," Journal of Family Business Strategy, Elsevier, vol. 6(3), pages 155-165.
    12. 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, vol. 5(1), pages 85-96.
    13. Suess, Julia, 2014. "Family governance – Literature review and the development of a conceptual model," Journal of Family Business Strategy, Elsevier, vol. 5(2), pages 138-155.
    14. Blanco-Mazagatos, Virginia & de Quevedo-Puente, Esther & Delgado-García, Juan Bautista, 2016. "How agency conflict between family managers and family owners affects performance in wholly family-owned firms: A generational perspective," Journal of Family Business Strategy, Elsevier, vol. 7(3), pages 167-177.
    15. Wouter Broekaert & Petra Andries & Koenraad Debackere, 2016. "Innovation processes in family firms: the relevance of organizational flexibility," Small Business Economics, Springer, vol. 47(3), pages 771-785, October.
    16. Hauck, Jana & Prügl, Reinhard, 2015. "Innovation activities during intra-family leadership succession in family firms: An empirical study from a socioemotional wealth perspective," Journal of Family Business Strategy, Elsevier, vol. 6(2), pages 104-118.
    17. Wagner, Dominik & Block, Joern H. & Miller, Danny & Schwens, Christian & Xi, Guoqian, 2015. "A meta-analysis of the financial performance of family firms: Another attempt," Journal of Family Business Strategy, Elsevier, vol. 6(1), pages 3-13.
    18. Dawson, Alexandra & Mussolino, Donata, 2014. "Exploring what makes family firms different: Discrete or overlapping constructs in the literature?," Journal of Family Business Strategy, Elsevier, vol. 5(2), pages 169-183.

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