IDEAS home Printed from https://ideas.repec.org/a/eee/fambus/v2y2011i3p151-165.html
   My bibliography  Save this article

Ideal types of family business management: Horizontal fit between family and business decisions and the relationship with family business performance

Author

Listed:
  • Basco, Rodrigo
  • Pérez Rodríguez, María José

Abstract

Despite considerable progress made using systems and configurative approaches in family business research, current knowledge remains limited on how different combinations of organizational attributes determine relevant outcomes and, therefore, how family affects businesses. To address this question, we focus on the overlap between family and business at management and governance levels. We posit that family- and business-oriented decisions emerge in four areas: board of directors, succession, human resources, and strategic process. This argument allows us to conceive three ideal types of family firms that yield maximum family firm performance, by considering the way that family firms adjust their orientations in their decisions. Building on a sample of 732 privately owned Spanish family firms, we propose the following main hypothesis: the greater the similarity of a family firm to an ideal profile, the better its performance. Our main results show that family firms can achieve successful business results by using a combination of family and business orientations in their decision making.

Suggested Citation

  • Basco, Rodrigo & Pérez Rodríguez, María José, 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, Elsevier, vol. 2(3), pages 151-165.
    • Handle: RePEc:eee:fambus:v:2:y:2011:i:3:p:151-165
    DOI: 10.1016/j.jfbs.2011.07.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1877858511000453
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jfbs.2011.07.004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Arosa, Blanca & Iturralde, Txomin & Maseda, Amaia, 2010. "Ownership structure and firm performance in non-listed firms: Evidence from Spain," Journal of Family Business Strategy, Elsevier, vol. 1(2), pages 88-96, June.
    2. Richard B. Robinson & John A. Pearce, 1983. "The impact of formalized strategic planning on financial performance in small organizations," Strategic Management Journal, Wiley Blackwell, vol. 4(3), pages 197-207, July.
    3. Paul Westhead & Carole Howorth, 2007. "‘Types’ of private family firms: an exploratory conceptual and empirical analysis," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 19(5), pages 405-431, September.
    4. Roger H. Ford, 1988. "Outside Directors and the Privately-Owned Firm: Are They Necessary?," Entrepreneurship Theory and Practice, , vol. 13(1), pages 49-57, October.
    5. Zellweger, Thomas M. & Eddleston, Kimberly A. & Kellermanns, Franz W., 2010. "Exploring the concept of familiness: Introducing family firm identity," Journal of Family Business Strategy, Elsevier, vol. 1(1), pages 54-63, March.
    6. Gregory G. Dess & Richard B. Robinson, 1984. "Measuring organizational performance in the absence of objective measures: The case of the privately‐held firm and conglomerate business unit," Strategic Management Journal, Wiley Blackwell, vol. 5(3), pages 265-273, July.
    7. N. Venkatraman & Vasudevan Ramanujam, 1987. "Planning System Success: A Conceptualization and an Operational Model," Management Science, INFORMS, vol. 33(6), pages 687-705, June.
    8. Jeroen Van Den Heuvel & Anita Van Gils & Wim Voordeckers, 2006. "Board Roles in Small and Medium‐Sized Family Businesses: performance and importance," Corporate Governance: An International Review, Wiley Blackwell, vol. 14(5), pages 467-485, September.
    9. Mark K. Fiegener, 2010. "Locus of Ownership and Family Involvement in Small Private Firms," Journal of Management Studies, Wiley Blackwell, vol. 47(2), pages 296-321, March.
    10. Frank, Hermann & Lueger, Manfred & Nosé, Lavinia & Suchy, Daniela, 2010. "The concept of "Familiness": Literature review and systems theory-based reflections," Journal of Family Business Strategy, Elsevier, vol. 1(3), pages 119-130, September.
    11. Garcia-Castro, Roberto & Casasola, Mª José, 2011. "A set-theoretic analysis of the components of family involvement in publicly listed and major unlisted firms," Journal of Family Business Strategy, Elsevier, vol. 2(1), pages 15-25, March.
    12. Wennberg, Karl & Nordqvist, Mattias & Bau, Massimo & Hellerstedt, Karin, 2010. "Succession in Private Firms as an Entrepreneurial Process – A Review and Suggestions of New Research avenues," Ratio Working Papers 157, The Ratio Institute.
    13. Matthew W. Rutherford & Donald F. Kuratko & Daniel T. Holt, 2008. "Examining the Link between “Familiness†and Performance: Can the F–PEC Untangle the Family Business Theory Jungle?," Entrepreneurship Theory and Practice, , vol. 32(6), pages 1089-1109, November.
    14. Astrachan, Joseph H., 2010. "Strategy in family business: Toward a multidimensional research agenda," Journal of Family Business Strategy, Elsevier, vol. 1(1), pages 6-14, March.
    15. Sue Birley, 2001. "Owner-Manager Attitudes to Family and Business Issues: A 16 Country Study," Entrepreneurship Theory and Practice, , vol. 26(2), pages 63-76, December.
    16. N. Venkatraman & John E. Prescott, 1990. "Environment‐strategy coalignment: An empirical test of its performance implications," Strategic Management Journal, Wiley Blackwell, vol. 11(1), pages 1-23, January.
    17. Alberto Gimeno & Gemma Baulenas & Joan Coma-Cros, 2010. "Family business models," Palgrave Macmillan Books, in: Family business models, chapter 3, pages 57-77, Palgrave Macmillan.
    18. James J. Chrisman & Jess H. Chua & Pramodita Sharma, 2005. "Trends and Directions in the Development of a Strategic Management Theory of the Family Firm," Entrepreneurship Theory and Practice, , vol. 29(5), pages 555-575, September.
    19. Holland, Phyllis G. & Boulton, William R., 1984. "Balancing the "Family" and the "Business" in family business," Business Horizons, Elsevier, vol. 27(2), pages 16-21.
    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. Alberto Gimeno & Gemma Baulenas & Joan Coma-Cros, 2010. "Family business models," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-28214-8, December.
    22. Leenders, Mark & Waarts, Eric, 2003. "Competitiveness and Evolution of Family Businesses:: The Role of Family and Business Orientation," European Management Journal, Elsevier, vol. 21(6), pages 686-697, December.
    23. Ensley, Michael D. & Pearson, Allison W. & Sardeshmukh, Shruti R, 2007. "The negative consequences of pay dispersion in family and non-family top management teams: an exploratory analysis of new venture, high-growth firms," Journal of Business Research, Elsevier, vol. 60(10), pages 1039-1047, October.
    24. Balaji S. Chakravarthy, 1986. "Measuring strategic performance," Strategic Management Journal, Wiley Blackwell, vol. 7(5), pages 437-458, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Basco, Rodrigo, 2013. "The family's effect on family firm performance: A model testing the demographic and essence approaches," Journal of Family Business Strategy, Elsevier, vol. 4(1), pages 42-66.
    2. Barros, Ismael & Hernangómez, Juan & Martin-Cruz, Natalia, 2016. "A theoretical model of strategic management of family firms. A dynamic capabilities approach," Journal of Family Business Strategy, Elsevier, vol. 7(3), pages 149-159.
    3. Mazzi, Chiara, 2011. "Family business and financial performance: Current state of knowledge and future research challenges," Journal of Family Business Strategy, Elsevier, vol. 2(3), pages 166-181.
    4. Goel, Sanjay & Mazzola, Pietro & Phan, Phillip H. & Pieper, Torsten M. & Zachary, Ramona K., 2012. "Strategy, ownership, governance, and socio-psychological perspectives on family businesses from around the world," Journal of Family Business Strategy, Elsevier, vol. 3(2), pages 54-65.
    5. Henrik Harms, 2014. "Review of Family Business Definitions: Cluster Approach and Implications of Heterogeneous Application for Family Business Research," IJFS, MDPI, vol. 2(3), pages 1-35, July.
    6. Hiebl, Martin R.W., 2013. "Bean counter or strategist? Differences in the role of the CFO in family and non-family businesses," Journal of Family Business Strategy, Elsevier, vol. 4(2), pages 147-161.
    7. Suveera Gill & Parmjit Kaur, 2015. "Family Involvement in Business and Financial Performance: A Panel Data Analysis," Vikalpa: The Journal for Decision Makers, , vol. 40(4), pages 395-420, December.
    8. Dawson, Alexandra & Mussolino, Donata, 2014. "Exploring what makes family firms different: Discrete or overlapping constructs in the literature?," Journal of Family Business Strategy, Elsevier, vol. 5(2), pages 169-183.
    9. Garcia-Castro, Roberto & Aguilera, Ruth V., 2014. "Family involvement in business and financial performance: A set-theoretic cross-national inquiry," Journal of Family Business Strategy, Elsevier, vol. 5(1), pages 85-96.
    10. Weismeier-Sammer, Daniela, 2011. "Entrepreneurial behavior in family firms: A replication study," Journal of Family Business Strategy, Elsevier, vol. 2(3), pages 128-138.
    11. Ismael Barros-Contreras & Jesús Manuel Palma-Ruiz & Angel Torres-Toukoumidis, 2021. "Organizational Capabilities for Family Firm Sustainability: The Role of Knowledge Accumulation and Family Essence," Sustainability, MDPI, vol. 13(10), pages 1-17, May.
    12. Rantanen, Noora & Jussila, Iiro, 2011. "F-CPO: A collective psychological ownership approach to capturing realized family influence on business," Journal of Family Business Strategy, Elsevier, vol. 2(3), pages 139-150.
    13. 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.
    14. Simon, Alexandra & Marquès, Pilar & Bikfalvi, Andrea & Dolors Muñoz, M., 2012. "Exploring value differences across family firms: The influence of choosing and managing complexity," Journal of Family Business Strategy, Elsevier, vol. 3(3), pages 132-146.
    15. Irava, Wayne J. & Moores, Ken, 2010. "Clarifying the strategic advantage of familiness: Unbundling its dimensions and highlighting its paradoxes," Journal of Family Business Strategy, Elsevier, vol. 1(3), pages 131-144, September.
    16. Tarja Niemelä & Reija Häkkinen, 2014. "The Role of Pluriactivity for Continuity and Survival in Family Farm Firms," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 10(4), pages 7-43.
    17. Unai Arzubiaga & Amaia Maseda & Txomin Iturralde, 2019. "Exploratory and exploitative innovation in family businesses: the moderating role of the family firm image and family involvement in top management," Review of Managerial Science, Springer, vol. 13(1), pages 1-31, February.
    18. Giulia Flamini & Paola Vola & Lucrezia Songini & Luca Gnan, 2021. "The Determinants of Tax Aggressiveness in Family Firms: An Investigation of Italian Private Family Firms," Sustainability, MDPI, vol. 13(14), pages 1-21, July.
    19. Frank, Hermann & Lueger, Manfred & Nosé, Lavinia & Suchy, Daniela, 2010. "The concept of "Familiness": Literature review and systems theory-based reflections," Journal of Family Business Strategy, Elsevier, vol. 1(3), pages 119-130, September.
    20. Cabrera-Suárez, Mª Katiuska & Déniz-Déniz, Mª de La Cruz & Martín-Santana, Josefa D., 2014. "The setting of non-financial goals in the family firm: The influence of family climate and identification," Journal of Family Business Strategy, Elsevier, vol. 5(3), pages 289-299.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:fambus:v:2:y:2011:i:3:p:151-165. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/719791/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.