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Do family ties shape the performance consequences of diversification? Evidence from the European Union

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  • Muñoz-Bullón, Fernando
  • Sánchez-Bueno, Maria J.

Abstract

This paper examines the moderating effect of family involvement in ownership and control on the relationship between diversification strategies – both product and international diversification – and corporate performance. We argue that this moderating effect is related to the distinctive characteristics of family firms compared to non-family firms. The empirical evidence is provided by a sample of firms from the European Union during the 2005–2009 time period. Our results found that family firms are more profitable than non-family firms when they engage in joint product and international diversification.

Suggested Citation

  • Muñoz-Bullón, Fernando & Sánchez-Bueno, Maria J., 2012. "Do family ties shape the performance consequences of diversification? Evidence from the European Union," Journal of World Business, Elsevier, vol. 47(3), pages 469-477.
    • Handle: RePEc:eee:worbus:v:47:y:2012:i:3:p:469-477
    DOI: 10.1016/j.jwb.2011.05.013
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