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Family Firm Heterogeneity and Governance: A Configuration Approach

Author

Listed:
  • Mattias Nordqvist
  • Pramodita Sharma
  • Francesco Chirico

Abstract

Family involvement in ownership and management of business varies significantly within family firms. Although the literature recognizes the diversity in family firms, it remains unclear what governance mechanisms are most appropriate to achieve prioritized performance goals of different types of family firms. By combining two established categorizations of family involvement in firm ownership and management, nine types of family firms are identified. Drawing on the configuration approach, we theorize the governance mechanisms likely to most efficiently address the incentive systems, authority relations, and norms of legitimization in each of these types of family firms.

Suggested Citation

  • Mattias Nordqvist & Pramodita Sharma & Francesco Chirico, 2014. "Family Firm Heterogeneity and Governance: A Configuration Approach," Journal of Small Business Management, Taylor & Francis Journals, vol. 52(2), pages 192-209, April.
    • Handle: RePEc:taf:ujbmxx:v:52:y:2014:i:2:p:192-209
    DOI: 10.1111/jsbm.12096
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    Cited by:

    1. Ramdani, Boumediene & Belaid, Fateh & Goutte, Stephane, 2023. "SME internationalisation: Do the types of innovation matter?," International Review of Financial Analysis, Elsevier, vol. 88(C).
    2. Angela Dettori & Michela Floris, 2023. "Improving continuity by simplifying the structure of family firms: a replication study," Management Review Quarterly, Springer, vol. 73(2), pages 635-660, June.
    3. Arteaga, R. & Menéndez-Requejo, S., 2017. "Family Constitution and Business Performance: Moderating Factors," MPRA Paper 120028, University Library of Munich, Germany.
    4. Christophe J. Godlewski & Hong Nhung Le, 2024. "Family ties and firm performance empirical evidence from East Asia," Post-Print hal-04435944, HAL.
    5. Moritz Belling & Ulrich Pidun & Dodo zu Knyphausen-Aufseß, 2021. "Unbundling Strategic Change in Family Firms: the Influence of Familiness on the Strategic Change Process," Schmalenbach Journal of Business Research, Springer, vol. 73(3), pages 381-411, December.
    6. Amirmahmood Amini Sedeh & Rosa Caiazza & Amir Pezeshkan, 2023. "Unraveling the resource puzzle: exploring entrepreneurial resource management and the quest for new venture success," The Journal of Technology Transfer, Springer, vol. 48(5), pages 1552-1573, October.
    7. Herdhayinta, Heyvon & Lau, James & Shen, Carl Hsin-han, 2023. "Cash holdings of minority family businesses in Indonesia," Emerging Markets Review, Elsevier, vol. 55(C).

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