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Family Firms and Labor Productivity: The Role of Enterprise‐Level Bargaining in the Italian Economy

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  • Mirella Damiani
  • Fabrizio Pompei
  • Andrea Ricci

Abstract

We investigate the role of Italian firms in labor productivity performance. We find that family‐owned firms have lower labor productivity than their non‐family counterparts. In a second step, we estimate the role of firm‐level bargaining (FLB) to determine whether family‐controlled firms that adopt this type of bargaining may partially close the gap in terms of labor productivity with their non‐family competitors. Our results, obtained through IV estimation to control for endogeneity bias, suggest that enterprises under family governance achieve significant labor productivity gains—greater than those achieved by their non‐family counterparts—when they adopt firm‐level bargaining.

Suggested Citation

  • Mirella Damiani & Fabrizio Pompei & Andrea Ricci, 2018. "Family Firms and Labor Productivity: The Role of Enterprise‐Level Bargaining in the Italian Economy," Journal of Small Business Management, Taylor & Francis Journals, vol. 56(4), pages 573-600, October.
    • Handle: RePEc:taf:ujbmxx:v:56:y:2018:i:4:p:573-600
    DOI: 10.1111/jsbm.12306
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    Cited by:

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    More about this item

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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