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Family Businesses in the Corporate Governance of MNCs

Author

Listed:
  • Pavla Odehnalová

    (Faculty of Economics and Administration, Faculty of Business and Economics, Masaryk University, Lipová 41a, 602 00 Brno, Czech Republic)

  • Petr Pirožek

    (Faculty of Economics and Administration, Faculty of Business and Economics, Masaryk University, Lipová 41a, 602 00 Brno, Czech Republic)

Abstract

The issue of family businesses is currently a very topical theme in the academic world. The importance of family businesses increases with internationalization and is associated with business success in global market conditions. A fundamental part of business activities abroad is the correct application of the corporate governance of subsidiaries of multinational family businesses. The available findings do not cover this area sufficiently, especially in the context of transformed economies in CEE. In view of the nature of foreign business activities, the degree of centralization of competences transferred between subsidiaries and headquarters and the presence of expatriates from the headquarters of multinational companies represented by the family firm in statutory bodies can be regarded as important variables. The main aim of the present paper is, based on research carried out, to describe and analyze the degree of centralization and presence of expatriates in the corporate governance of subsidiaries of multinational family businesses operating in the Czech Republic. The paper presents the results of an empirical investigation with a description of the presence of expatriates in the statutory bodies of subsidiaries of multinational companies in the Czech Republic. The results obtained present the number of subsidiaries corresponding to the definition of a family business with an emphasis on SMEs of up to 250 employees and the degree of centralization and presence of expatriates in administrative or executive authority, or in other positions. The sample which was used to research the family business comprised 214 subsidiaries of multinational companies from the most important sectors of the Czech economy.

Suggested Citation

  • Pavla Odehnalová & Petr Pirožek, 2015. "Family Businesses in the Corporate Governance of MNCs," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 63(3), pages 979-984.
    • Handle: RePEc:mup:actaun:actaun_2015063030979
    DOI: 10.11118/actaun201563030979
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    References listed on IDEAS

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    1. Michael Lubatkin & Eric Gedajlovic & William S. Schulze, 2004. "Crossing the threshold from founder management to professional management : A governance perspective," Post-Print hal-02311640, HAL.
    2. 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, July.
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