Journal ArticleDOI
Stewardship or Agency? A Social Embeddedness Reconciliation of Conduct and Performance in Public Family Businesses
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TLDR
This paper argues that both these views have application but under different circumstances, determined in part by the degree to which the firm and its executive actors are embedded within the family and thus identify with its interests.Abstract:
Two contradictory perspectives of family business conduct and performance are prominent in the literature. The stewardship perspective argues that family business owners and managers will act as farsighted stewards of their companies, investing generously in the business to enhance value for all stakeholders. By contrast, the agency and behavioral agency perspectives maintain that major family owners, in catering to family self-interest, will underinvest in the firm, avoid risk, and extract resources. This paper argues that both these views have application but under different circumstances, determined in part by the degree to which the firm and its executive actors are embedded within the family and thus identify with its interests. Stewardship behavior will be less common, and agency behavior will be more common the greater the number of family directors, officers, generations, and votes, and the more executives are susceptible to family influence. These findings are supported among Fortune 1000 firms, as well as among the subsample of those firms that are family businesses.read more
Citations
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Journal ArticleDOI
Family firms in India: family involvement, innovation and agency and stewardship behaviors
TL;DR: This paper studied how different aspects of family involvement influence technological innovation in a firm and found that family involvement in ownership, management and board of directors, and business group affiliation influence R&D investments and patents obtained by the firm.
Journal ArticleDOI
The Resilient Family Firm: Stakeholder Outcomes and Institutional Effects
TL;DR: In this paper, the authors investigated the relationship between publicly listed family-controlled firms and investor and employee outcomes before and during the global financial crisis and found that family firms are less likely to downsize their workforce or cut wages in both pre-crisis and crisis conditions.
Journal ArticleDOI
To Merge, Sell, or Liquidate? Socioemotional Wealth, Family Control, and the Choice of Business Exit:
Francesco Chirico,Francesco Chirico,Luis R. Gomez-Mejia,Karin Hellerstedt,Michael C. Withers,Mattias Nordqvist +5 more
TL;DR: In this paper, the authors take the perspective that considering the affective motives of dominant owners is essential to understanding business exit, drawing on a refinement of behavioral agency theory, they argue that fam...
Journal ArticleDOI
Roots to Grow: Family Firms and Local Embeddedness in Rural and Urban Contexts:
Massimo Baù,Francesco Chirico,Francesco Chirico,Daniel Pittino,Mikaela Backman,Johan Klaesson,Johan Klaesson +6 more
TL;DR: The authors analyzes the nexus among business growth, ownership structure, and local embeddedness, i.e., the involvement of economic actors in a geographically bound social structure in rural areas.
Journal ArticleDOI
Is the Family an “Asset” or “Liability” for Firm Performance? The Moderating Role of Environmental Dynamism
TL;DR: In this article, the authors show that the percentage of family members on the top management team has an inverted U-shaped relationship with firm performance, and when environmental dynamism is low, this curvilinear relationship becomes steeper.
References
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TL;DR: In this article, the authors draw on recent progress in the theory of property rights, agency, and finance to develop a theory of ownership structure for the firm, which casts new light on and has implications for a variety of issues in the professional and popular literature.
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Prospect theory: an analysis of decision under risk
Daniel Kahneman,Amos Tversky +1 more
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The iron cage revisited institutional isomorphism and collective rationality in organizational fields
Paul DiMaggio,Walter W. Powell +1 more
TL;DR: In this paper, the authors argue that rational actors make their organizations increasingly similar as they try to change them, and describe three isomorphic processes-coercive, mimetic, and normative.
Journal ArticleDOI
Prospect theory: analysis of decision under risk
Daniel Kahneman,Amos Tversky +1 more
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