Portal de Periódicos da CAPES

Family Firm Heterogeneity and Governance: A Configuration Approach

2014; Wiley; Volume: 52; Issue: 2 Linguagem: Inglês

10.1111/jsbm.12096

0047-2778

Mattias Nordqvist, Pramodita Sharma, Francesco Chirico,

Entrepreneurship Studies and Influences

Journal of Small Business ManagementVolume 52, Issue 2 p. 192-209 Original Article Family Firm Heterogeneity and Governance: A Configuration Approach Mattias Nordqvist, Corresponding Author Mattias NordqvistMattias Nordqvist is professor at the CeFEO, Jönköping International Business School.Address correspondence to: Mattias Nordqvist, Jönköping International Business School, CeFEO, PO Box 1026, Jönköping, 590 17, Sweden. E-mail: [email protected].Search for more papers by this authorPramodita Sharma, Pramodita SharmaPramodita Sharma is professor at the School of Business Administration, University of Vermont.Search for more papers by this authorFrancesco Chirico, Francesco ChiricoFrancesco Chirico is associate professor at the CeFEO, Jönköping International Business School.Search for more papers by this author Mattias Nordqvist, Corresponding Author Mattias NordqvistMattias Nordqvist is professor at the CeFEO, Jönköping International Business School.Address correspondence to: Mattias Nordqvist, Jönköping International Business School, CeFEO, PO Box 1026, Jönköping, 590 17, Sweden. E-mail: [email protected].Search for more papers by this authorPramodita Sharma, Pramodita SharmaPramodita Sharma is professor at the School of Business Administration, University of Vermont.Search for more papers by this authorFrancesco Chirico, Francesco ChiricoFrancesco Chirico is associate professor at the CeFEO, Jönköping International Business School.Search for more papers by this author First published: 12 March 2014 https://doi.org/10.1111/jsbm.12096Citations: 188 Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onEmailFacebookTwitterLinkedInRedditWechat 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. References Anderson, R. C., and D. M. Reeb (2003). "Founding Family Ownership and Firm Performance: Evidence from the S&P 500," Journal of Finance 58, 1301–1328. Bammens, Y., W. Voorderckers, and A. Van Gils (2008). "Board of Directors in Family Firms: A Generational Perspective," Small Business Economics 31, 163–180. Bammens, Y., W. Voodeckers, and A. Van Gils (2011). "Board of Directors in Family Businesses: A Literature Review and Research Agenda," International Journal of Management Reviews 13, 134–152. Bartunek, J. (2007). "Academic-Practitioner Collaboration Need Not Require Joint or Relevant Research: Toward a Relational Scholarship of Integration," Academy of Management Journal 50, 1323–1333. Basco, R., and M. J. Pérez Rodríguez (2011). "Ideal Types of Family Business Management: Horizontal Fit between Family and Business Decisions and the Relationship with Family Business Performance," Journal of Family Business Strategy 2, 151–165. Bettinelli, C. (2011). "Board of Directors in Family Firms: An Exploratory Study of Structure and Group Processes," Family Business Review 24, 151–169. Calabró, A., and D. Mussolino (2011). "How Do Board of Directors Contribute to Family SMEs Export Intensity? The Role of Formal and Informal Governance Mechanisms," Journal of Management and Governance 17(2), 363–403. Carney, M. (2005). "Corporate Governance and Competitive Advantage in Family Controlled Firms," Entrepreneurship Theory and Practice 29(3), 249–265. Carney, M., and E. Gedajlovic (2003). "Governance, Inducements-Contributions and Organizational Capabilities," Paper presented at 2003 Academy of Management Meetings, Seattle, August. Chirico, F., D. Sirmon, S. Sciascia, and P. Mazzola (2011). "Resource Orchestration in Family Firms: Investigating How Entrepreneurial Orientation, Generational Involvement and Participative Strategy Affect Performance," Strategic Entrepreneurship Journal 5(4), 307–326. Chrisman, J. J., J. H. Chua, and R. A. Litz (2004). "Comparing the Agency Costs of Family and Non-Family Firms: Conceptual Issues and Exploratory Evidence," Entrepreneurship Theory & Practice 28(4), 335–354. Chua, J. H., L. P. Steier, and J. H. Chrisman (2006). "How Family Firms Solve Intra-Family Agency Problems Using Interlocking Directorates: An Extension," Entrepreneurship Theory & Practice 30(6), 777–783. Chua, J. H., J. J. Chrisman, L. P. Steier, and S. B. Rau (2012). "Sources of Heterogeneity in Family Firms: An Introduction," Entrepreneurship Theory and Practice 36, 1103–1113. Coles, J. W., V. B. McWilliams, and N. Sen (2001). "An Examination of the Relationship of Governance Mechanisms to Performance," Journal of Management 27, 23–50. Corbetta, G., and C. A. Salvato (2004a). "The Board of Directors in Family Firms: One Size Fits All?" Family Business Review 17(2), 119–134. Corbetta, G., and C. A. Salvato (2004b). "Self-Serving or Self-Actualizing? Models of Man and Agency Costs in Different Types of Family Firms: A Commentary on 'Comparing the Agency Costs of Family and Non-Family Firms: Conceptual Issues and Exploratory Evidence'," Entrepreneurship: Theory and Practice 28(4), 355–362. Daily, C. M., D. R. Dalton, and A. A. Cannella Jr (2003). "Corporate Governance: Decades of Dialogue and Data," Academy of Management Review 28, 371–382. Dalton, D. R., C. M. Daily, A. E. Ellstrand, and J. L. Johnson (1998). "Meta-Analytic Reviews of Board Composition, Leadership Structure, and Financial Performance," Strategic Management Journal 19, 269–290. Davis, J. A. (1982). The influence of life stage on father–son work relationship in family companies. Doctoral Dissertation. Harvard University. Davis, J. A. (2008). " Toward a Typology of Family Business Systems," in Family Values and Value Creation: How Do Family-Owned Businesses Foster Enduring Values. Eds. J. Tapies and J. L. Ward. New York: Palgrave Macmillan Publishers, 127–154. Davis, J. A., and R. Tagiuri (1989). "The Influence of Life-Stage on Father-Son Work Relationships in Family Companies," Family Business Review 2(1), 47–74. Doty, D. H., W. H. Glick, and G. P. Huber (1993). "Fit, Equifinality, and Organisational Effectiveness: A Test of Two Configurational Theories," Academy of Management Journal 36(6), 1196–1250. Dyer, W. G. Jr (1986). Cultural Change in Family Firms: Anticipating and Managing Business and Family Transitions. San Francisco, CA: Jossey-Bass. Ensley, M. D., and A. W. Pearson (2005). "An Exploratory Comparison of the Behavioral Dynamics of Top Management Teams in Family and Nonfamily New Ventures: Cohesion, Conflict, Potency, and Consensus," Entrepreneurship: Theory and Practice 29(3), 267–284. Fiss, P. C. (2007). "A Set-Theoretic Approach to Organizational Configurations," Academy of Management Review 32(4), 1180–1198. Frooman, J. (1999). "Stakeholder Influence Strategies," Academy of Management Review 24(2), 191–205. Gedajlovic, E., M. H. Lubaktin, and W. S. Schulze (2004). "Crossing the Threshold from Founder Management to Professional Management: A Governance Perspective," Journal of Management Studies 41(5), 899–912. Gersick, K. E., and N. Feliu (2014). " Governing the Family Enterprise: Practices, Performance, and Research," in SAGE Handbook of Family Business. Eds. L. Melin, M. Nordqvist and P. Sharma. Thousand Oaks, CA: SAGE, 196–225. Gersick, K. E., J. A. Davis, M. M. Hampton, and I. Lansberg (1997). Generation to Generation: Life Cycles of the Family Business. Boston, MA: Harvard Business School Press. Goel, S., I. Jussila, and T. Ikäheimonen (2014). " Governance in Family Firms: A Review and Research Agenda," in The SAGE Handbook of Family Business. Eds. L. Melin, M. Nordqvist and P. Sharma. Thousand Oaks, CA: SAGE, 226–248. Gómez-Mejía, L. R., C. Cruz, P. Berrone, and J. De Castro (2011). "The Bind That Ties: Socioemotional Wealth Preservation in Family Firms," Academy of Management Annals 5(1), 653–707. Gómez-Mejía, L. R., K. T. Haynes, M. Núñez-Nickel, K. J. L. Jacobson, and J. Moyano-Fuentes (2007). "Socioemotional Wealth and Business Risks in Family-Controlled Firms: Evidence from Spanish Olive Oil Mills," Administrative Science Quarterly 52, 106–137. Greenwood, R., and C. R. Hinings (1996). "Understanding Radical Organizational Change: Bringing Together the Old and the New Institutionalism," Academy of Management Review 21, 1022–1054. Greiner, L. E. (1972). "Evolution and Revolution as Organizations Grow," Harvard Business Review. 50(4), 37–46. Habbershon, T. G., and J. Pistrui (2002). "Enterprising Families Domain: Family-Influenced Ownership Groups in Pursuit of Transgenerational Wealth," Family Business Review 15(3), 223–238. Habbershon, T. G., M. L. Williams, and I. C. MacMillan (2003). "A Unified Systems Perspective of Family Firm Performance," Journal of Business Venturing 18, 451–465. Hall, A., and M. Nordqvist (2008). "Professional Management in Family Businesses: Extending the Current Understanding," Family Business Review 11(1), 51–69. Hoy, F., and P. Sharma (2010). Entrepreneurial Family Firms. Prentice Hall Entrepreneurship Series edited by M. Morris and D. Ireland. Upper Saddle River, NJ: Pearson Prentice Hall. Jensen, M. C., and W. H. Meckling (1976). "Theory of the Firm Managerial Behaviour, Agency Costs, and Ownership Structure," Journal of Financial Economics 3, 305–360. Kotlar, J., and A. De Massis (2013). "Goal Setting in Family Firms: Goal Diversity, Social Interactions, and Collective Commitment to Family-Centered Goals," Entrepreneurship Theory & Practice 37(6), 1263–1288. Lansberg, I. (1999). Succeeding Generations: Realizing the Dream of Families in Business. Boston, MA: Harvard Business School Press. Le-Breton Miller, I., and D. Miller (2013). "Socioemotional Wealth across the Family Firm Life Cycle: A Commentary on "Family Business Survival and the Role of Boards"," Entrepreneurship Theory & Practice 37(6), 1391–1397. Lubatkin, M. H., R. Durand, and Y. Ling (2007). "The Missing Lens in Family Firm Governance Theory: A Self-Other Typology of Parental Altruism," Journal of Business Research 60(10), 1022–1029. Magretta, J. (1998). "Governing the Family-Owned Enterprise: An Interview with Finland's Krister Ahlstrom," Harvard Business Review January-February, 113–123. McKenny, A., J. C. Short, M. A. Zachary, and G. T. Payne (2013). "Assessing Espoused Goals in Private Family Firms Using Content Analysis," Family Business Review 25(3), 298–317. Melin, L., and M. Nordqvist (2007). "The Reflexive Dynamics of Institutionalization: The Case of the Family Business," Strategic Organization 5(4), 321–333. Meyer, A., A. Tsui, and C. R. Hinings (1993). "Configurational Approached to Organizational Analysis," Academy of Management Journal 36(10), 1175–1195. Miller, D. (1981). "Towards a New Contingency Approach: The Search for Organizational Gestalts," Journal of Management Studies 18, 1–26. Miller, D. (1996). "Configurations Revisited," Strategic Management Journal 17(7), 505–512. Miller, D., and P. Friesen (1984). Organizations: A Quantum View. Englewood Cliffs, NJ: Prentice-Hall. Miller, D., and I. Le Breton-Miller (2006a). "Priorities and Strategies in Successful and Failing Family Businesses: An Elaboration and Test of the Configurational Perspective," Strategic Organization 4(4), 379–407. Miller, D., and I. Le Breton-Miller (2006b). "Family Governance and Firm Performance: Agency, Stewardship, and Capabilities," Family Business Review 19, 73–87. Miller, D., and I. Le-Breton Miller (2005). Managing for the Long Run: Lessons in Competitive Advantage from Great Family Businesses. Boston, MA: Harvard Business School Press. Minichilli, A., G. Corbetta, and I. C. MacMillan (2010). "Top Management Teams in Family-Controlled Companies: Familiness, Faultliness and Their Impact on Financial Performance," Journal of Management Studies 47(2), 205–222. Mustakallio, M., E. Autio, and S. A. Zahra (2002). "Relational and Contractual Governance in Family Firms: Effects on Strategic Decision Making," Family Business Review 15, 205–222. Neubauer, F., and A. G. Lank (1998). The Family Business—Its Governance for Sustainability. London: MacMillan Business. Salvato, C., A. Minichilli, and R. Piccarreta (2012). "Faster Route to the CEO Suite: Nepotism or Managerial Proficiency?" Family Business Review 25(2), 206–224. Santiago, A. L. (2011). "The Family in Family Business: Case of the In-Laws in Philippine Businesses," Family Business Review 24(4), 343–361. Schulze, W. S., M. H. Lubatkin, R. N. Dino, and A. K. Buchholtz (2001). "Agency Relationships in Family Firms: Theory and Evidence," Organization Science 12(2), 85–105. Schulze, W. S., M. H. Lubatkin, and R. N. Dino (2003). "Exploring the Agency Consequences of Ownership Dispersion among the Directors of Private Family Firm," Academy of Management Journal 46(2), 179–194. Sciascia, S., P. Mazzola, and F. Chirico (2013). "Generational Involvement in the Top Management Team of Family Firms: Exploring Non-Linear Effects on Entrepreneurial Orientation," Entrepreneurship Theory and Practice 37(1), 69–85. Sharma, P. (2004). "An Overview of the Field of Family Business Studies: Current Status and Directions for Future," Family Business Review 17(1), 1–36. Sharma, P., and S. Manikutty (2005). "Strategic Divestments in Family Firms: Role of Family Structure and Community Culture," Entrepreneurship Theory and Practice. 29(3), 293–312. Sharma, P., and M. Nordqvist (2008). " A Classification Scheme for Family Firms: From Family Values to Effective Governance to Firm Performance," in Family Values and Value Creation: How Do Family-Owned Businesses Foster Enduring Values. Eds. J. Tapies and J. L. Ward. New York: Palgrave Macmillan Publishers, 71–101. Sharma, P., and M. Nordqvist (2013). " Understanding the Reasons for and Consequences of Varied Family Involvement in Business: A Configuration Approach," Handbook of Research on Family Businesses, 2nd ed. Eds. K. Smyrnios, P. Poutziouris and S. Goel. Cheltenham, UK and Brookfield: Edward Elgar Publishing, 142–160. Sirmon, D. G., and M. A. Hitt (2003). "Managing Resources: Linking Unique Resources, Management, and Wealth Creation in Family Firms," Entrepreneurship Theory and Practice 27(4), 339–358. Stewart, A., and M. A. Hitt (2012). "Why Can't a Family Business Be More like a Nonfamily Business? Modes of Professionalization in Family Firms," Family Business Review 25, 58–86. Sundaramurthy, C., and G. E. Kreiner (2008). "Governing by Managing Identity Boundaries: The Case of Family Business," Entrepreneurship Theory & Practice 32(3), 415–436. Todd, E. (1985). The Explanation of Ideology, Family Structures and Social Systems. Oxford: Basil Blackwell. Ward, J. L. (1987). Keeping the Family Business Healthy. San Francisco, CA: Jossey-Bass. Westhead, P., and C. Howorth (2007). "Types of Private Family Firms: An Exploratory Conceptual and Empirical Analysis," Entrepreneurship and Regional Development 19(5), 405–431. Zahra, S. A., and J. A. Pearce, II (1989). "Board of Directors and Corporate Financial Performance: A Review and Integrative Model," Journal of Management 15(2), 291–334. Citing Literature Volume52, Issue2Special Issue: Family Firms, Entrepreneurship, and Economic DevelopmentApril 2014Pages 192-209 ReferencesRelatedInformation