“Bivalent Attributes of the Family Firm.” Tagiuri, Renato, and John Davis. 1996 Family Business Review 9, no. 2 (June 1, 1996): 199–208.
Although family-owned and managed firms are the predominant form of business organization in the world today, little systematic research exists on these companies. This paper builds upon insights found in the emerging literature on these enterprises and upon our own observations to provide a conceptual framework to better understand these complex organizations. We introduce the concept of the Bivalent Attributes, a unique, inherent feature of an organization that is the source of both advantages and disadvantages? to explain the dynamics of the family firm.
“Comment on ‘Family Values or Crony Capitalism?’ (Harold James)” 2008 Randall Morck Capitalism and Society 3 (1).
The 20th century ran countless experiments to see what form of government works least badly. Unless things turn around unexpectedly, James I would have lost money betting on the absolute monarchy. The 21st century now gets to sort out what form of corporate governance works least badly; and I suspect Prof. James is premature in declaring for family firms.
“Family Values or Crony Capitalism?” Harold James Capitalism and Society 3 (1) 2008
Family firms are very prominent in many parts of the world, including in many of the most dynamic emerging markets. They are often thought to be associated with poor corporate and political governance. This article examines the debate about their durability and efficiency, using material drawn from the long experience of continental Europe and sketches out an ideal type of the family, in which there is a historical experience of entrepreneurship, a brand, and a network built around family enterprise. It then tests various common explanations for the prevalence of family firms, including Roman law versus common law traditions, tax incentives, share voting privileges, and inheritance law; and finds that each applies only in a quite particular historical epoch. Finally, the article suggests that family businesses offer advantages that are most apparent at times of shocks and discontinuities, and that they are thus a response to uneven development.
“The Bind that Ties: Socioemotional Wealth Preservation in Family Firms”
Luis R. Gomez-Mejia, Cristina Cruz, Pascual Berrone & Julio De Castro The Academy of Management Annals 5 (1): 653–707. 2011
A growing body of research shows that family firms are different from other organizations in significant ways. In this paper we review this literature by examining how family firms differ from nonfamily firms along five broad categories of managerial decisions. These categories encompass a set of key organizational choices concerning management processes, firm strategies, corporate governance, stakeholder relations and business venturing. We argue that socioemotional wealth or affective endowment of family owners explain many of these choices. We also examine some contingency factors (namely family stage, firm size, firm hazard, and the presence of nonfamily shareholders) that moderate the influence of socioemotional wealth preservation as a point of reference when making managerial decisions in family firms. Lastly, we explore the firm performance consequences of family ownership.
“The Role of Family in Family Firms,” Marianne Bertrand and Antoinette Schoar, The Journal of Economic Perspectives 20, no. 2 (2006): 73–96. (Open Access)
History is replete with examples of spectacular ascents of family businesses. Yet there are also numerous accounts of family businesses brought down by bitter feuds among family members, disappointed expectations between generations, and tragic sagas of later generations unable to manage their wealth. A large fraction of businesses throughout the world are organized around families. Why are family firms so prevalent? What are the implications of family control for the governance, financing and overall performance of these businesses?
“Corporate Ownership Around the World” Rafael La Porta, Florencio Lopez-De-Silanes, Andrei Shleifer The Journal of Finance 54 (2): 471–517. 1999 (Open Access)
We use data on ownership structures of large corporations in 27 wealthy economies to identify the ultimate controlling shareholders of these firms. We find that, except in economies with very good shareholder protection, relatively few of these firms are widely held, in contrast to Berle and Means’s image of ownership of the modern corporation. Rather, these firms are typically controlled by families or the State. Equity control by financial institutions is far less common. The controlling shareholders typically have power over firms significantly in excess of their cash flow rights, primarily through the use of pyramids and participation in management.
Journal of Family Business Management (JFBM) is a refereed journal publishing since 2011. JFBM provides broad and unrivalled coverage of all aspects of family business. JFBM offers a unique focus on behavioural and applied research, particularly considering the impact of research on policy and practice; it aims to communicate the latest family business research and knowledge worldwide for the benefit of scholars and family business practitioners. Other articles unique to JFBM are our ‘In conversation with’ series which provides insights from practicing family business advisors about how they are using theory in their practice now. JFBM aims to stimulate dialogue between scholars and practitioners in a timely manner.
The family business arena is dynamic. Family business owners, managers, and practitioners need to be aware of changing management approaches, processes and strategies which allow them to respond to global competition in an increasingly chaotic world, while keeping in mind the unique character, culture, and attributes of family owned businesses.
Journal of Family Business Strategy publishes research that contributes new knowledge and understanding to the field of family business. The Journal is international in scope and welcomes submissions that address all aspects of how family influences business and business influences family. Topics include, but are not limited to, the following:
Published as a refereed journal since 1988, Family Business Review (FBR) is the leading scholarly publication devoted exclusively to exploration of the dynamics of family-controlled enterprise, including firms ranging in size from the very large to the relatively small. FBR is focused not only the entrepreneurial founding generation, but also on family enterprises in the 2nd and 3rd generation and beyond, including some of the oldest companies in the world. In addition, the journal publishes interdisciplinary research on families of wealth, family foundations and offices. The journal covers areas such as but not limited to the following:
An introduction to the main family business concepts, defining where and how family firms are distinctive. How to plot your family firm’s stage of development, plus the varying and often overlapping roles, motivations and expectations of family members.