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Proprietorial Control In Family Firms: Some Functions Of ‘Quasi‐Organic’ Management Systems

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  • Robert Goffee
  • Richard Scase

Abstract

The purpose of this paper is to investigate the strategies of managerial control which are used by the proprietors of family‐owned business enterprises. Interviews with the proprietors and senior managers of businesses in the building industry illustrate the ‘quasi‐organic’ nature of management structures. These grant some autonomy to senior managers without threatening proprietorial decision‐making prerogatives. Although the family firm has certain distinctive features, similar control strategies designed to ensure that delegated decisions are ‘reliable’ and ‘responsible’ are evident in various types of business enterprise. There is, then, scope for further comparative research within a conceptual framework which does not entirely divorce the family firm from other business organizations.

Suggested Citation

  • Robert Goffee & Richard Scase, 1985. "Proprietorial Control In Family Firms: Some Functions Of ‘Quasi‐Organic’ Management Systems," Journal of Management Studies, Wiley Blackwell, vol. 22(1), pages 53-68, January.
    • Handle: RePEc:bla:jomstd:v:22:y:1985:i:1:p:53-68
    DOI: 10.1111/j.1467-6486.1985.tb00242.x
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    Cited by:

    1. Jörg Zimmermann & Wolfgang Sofka, 2013. "Knowledge search versus knowledge deployment: How foreignness can be both an asset and a liability for firms," JRC Working Papers on Corporate R&D and Innovation 2013-03, Joint Research Centre.
    2. David G. Sirmon & Jean–Luc Arregle & Michael A. Hitt & Justin W. Webb, 2008. "The Role of Family Influence in Firms’ Strategic Responses to Threat of Imitation," Entrepreneurship Theory and Practice, , vol. 32(6), pages 979-998, November.
    3. Kettunen, Jukka & Martikainen, Minna & Voulgaris, Georgios, 2021. "Employment policies in private loss firms: Return to profitability and the role of family CEOs," Journal of Business Research, Elsevier, vol. 135(C), pages 373-390.
    4. M. Ruiz Jiménez & Manuel Vallejo Martos & Rocío Martínez Jiménez, 2015. "Organisational Harmony as a Value in Family Businesses and Its Influence on Performance," Journal of Business Ethics, Springer, vol. 126(2), pages 259-272, January.
    5. Manuel Vallejo, 2011. "A model to study the organizational culture of the family firm," Small Business Economics, Springer, vol. 36(1), pages 47-64, January.
    6. Isabelle Le Breton-Miller & Danny Miller, 2009. "Agency vs. Stewardship in Public Family Firms: A Social Embeddedness Reconciliation," Entrepreneurship Theory and Practice, , vol. 33(6), pages 1169-1191, November.
    7. Jean–Luc Arregle & Lucia Naldi & Mattias Nordqvist & Michael A. Hitt, 2012. "Internationalization of Family–Controlled Firms: A Study of the Effects of External Involvement in Governance," Entrepreneurship Theory and Practice, , vol. 36(6), pages 1115-1143, November.
    8. Sumit Majumdar & Davina Vora & Ashok Nag, 2012. "Legal form of the firm and overseas market choice in India’s software and IT industry," Asia Pacific Journal of Management, Springer, vol. 29(3), pages 659-687, September.
    9. Elsetouhi, Ahmed M. & Hammad, Ahmed A. & Nagm, Abd-Elhakim A. & Elbaz, Ahmed Mohamed, 2018. "Perceived leader behavioral integrity and employee voice in SMEs travel agents: The mediating role of empowering leader behaviors," Tourism Management, Elsevier, vol. 65(C), pages 100-115.
    10. Wendy L. Martin & Alexander McKelvie & G. T. Lumpkin, 2016. "Centralization and delegation practices in family versus non-family SMEs: a Rasch analysis," Small Business Economics, Springer, vol. 47(3), pages 755-769, October.
    11. Thomas A. Martin & Walter Ruda & Markus Pfeffer, 2006. "Globalisation and EU-Enlargement: Co-operation and Internationalisation of German Small and Medium Sized Family Enterprises," Proceedings-4th International Conference on Management, Enterprise and Benchmarking (MEB 2006),, Óbuda University, Keleti Faculty of Business and Management.
    12. Mashapure Rahabhi & Madzimure Grace P.K & Msipah Nothando & Dandira Martin & Kandjinga Elias, 2021. "Women Entrepreneurship and Sustainable Rural Livelihoods," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 8(2), pages 64-73, February.
    13. Homburg, Christian & Böhler, Sina & Hohenberg, Sebastian, 2020. "Organizing for cross-selling: Do it right, or not at all," International Journal of Research in Marketing, Elsevier, vol. 37(1), pages 56-73.
    14. Flamini, Giulia & Pittino, Daniel & Visintin, Francesca, 2022. "Family leadership, family involvement and mutuality HRM practices in family SMEs," Journal of Family Business Strategy, Elsevier, vol. 13(2).
    15. Belitski, Maksim & Rejeb, Nada, 2022. "Does open customer innovation model hold for family firms?," Journal of Business Research, Elsevier, vol. 145(C), pages 334-346.
    16. Andrea Rey-Martí & Domingo Ribeiro-Soriano & Daniel Palacios-Marqués, 2016. "Entrepreneurial attributes of human capital and contingency factors in the culinary tourism," International Entrepreneurship and Management Journal, Springer, vol. 12(1), pages 67-85, March.
    17. Barth, Erling & Gulbrandsen, Trygve & Schonea, Pal, 2005. "Family ownership and productivity: the role of owner-management," Journal of Corporate Finance, Elsevier, vol. 11(1-2), pages 107-127, March.
    18. Sumon Kumar Bhaumik & Andros Gregoriou, 2010. "‘Family’ Ownership, Tunnelling And Earnings Management: A Review Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 24(4), pages 705-730, September.
    19. Gérard Hirigoyen & Thierry Poulain-Rehm, 2014. "The Corporate Social Responsibility of Family Businesses: An International Approach," Post-Print hal-01382070, HAL.
    20. Lindow, Corinna M. & Stubner, Stephan & Wulf, Torsten, 2010. "Strategic fit within family firms: The role of family influence and the effect on performance," Journal of Family Business Strategy, Elsevier, vol. 1(3), pages 167-178, September.
    21. Gérard Hirigoyen & Thierry Poulain-Rehm, 2014. "The Corporate Social Responsibility of Family Businesses: An International Approach," IJFS, MDPI, vol. 2(3), pages 1-26, July.
    22. Francesco Barbera & Ken Moores, 2013. "Firm ownership and productivity: a study of family and non-family SMEs," Small Business Economics, Springer, vol. 40(4), pages 953-976, May.

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