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Dispersion of family ownership and the performance of small-to-medium size private family firms

Author Info

Listed author(s):
  • De Massis, Alfredo
  • Kotlar, Josip
  • Campopiano, Giovanna
  • Cassia, Lucio
Registered author(s):

    Abstract

    In this study we investigate how the dispersion of family ownership among family members affects the performance of small-to-medium-size family firms. Based on agency theory and prior research on family firms, we develop arguments pointing to the existence of a U-shaped relationship between the degree of family ownership dispersion and firm performance. We also consider the involvement of family members in top management as a moderating factor of this relationship. The empirical analyses conducted on 494 small-to-medium size private family firms in Italy support our hypotheses and offer further evidence about curvilinear relationships between family ownership and family involvement in management, and performance. Overall, our study represents a theoretical synthesis and extension of the effects of family involvement on the performance of small-to-medium size private firms. It adds empirical evidence to this stream of research, offers new insights into the sources of heterogeneity among the population of family firms, and paves the way for future investigations on other organizational outcomes, especially firm growth, in family firms.

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    File URL: http://www.sciencedirect.com/science/article/pii/S1877858513000405
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    Article provided by Elsevier in its journal Journal of Family Business Strategy.

    Volume (Year): 4 (2013)
    Issue (Month): 3 ()
    Pages: 166-175

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    Handle: RePEc:eee:fambus:v:4:y:2013:i:3:p:166-175
    DOI: 10.1016/j.jfbs.2013.05.001
    Contact details of provider: Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/719791/description#description

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    Keywords: Family SMEs; Private firms; Family ownership dispersion; Performance;

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    1. Achleitner, Ann-Kristin & Kaserer, Christoph & Kauf, Tobias, 2012. "The dynamics of voting ownership in lone-founder, family-founder, and heir firms," Journal of Family Business Strategy, Elsevier, vol. 3(2), pages 79-96.
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    22. 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.
    23. Eric Gedajlovic & Michael H. Lubatkin & William S. Schulze, 2004. "Crossing the Threshold from Founder Management to Professional Management: A Governance Perspective," Journal of Management Studies, Wiley Blackwell, vol. 41(5), pages 899-912, 07.
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    Cited by:

    1. 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.
    2. 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.
    3. Sund, Lars-Göran & Melin, Leif & Haag, Kajsa, 2015. "Intergenerational ownership succession," Journal of Family Business Strategy, Elsevier, vol. 6(3), pages 166-177.
    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.
    5. López-Delgado, P. & Diéguez-Soto, J., 2015. "Lone founders, types of private family businesses and firm performance," Journal of Family Business Strategy, Elsevier, vol. 6(2), pages 73-85.
    6. De Massis, Alfredo & Kotlar, Josip, 2014. "The case study method in family business research: Guidelines for qualitative scholarship," Journal of Family Business Strategy, Elsevier, vol. 5(1), pages 15-29.
    7. 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.

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