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Family governance oversight, performance, and high performance work systems

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  • Tsao, Chiung-Wen
  • Chen, Shyh-Jer
  • Wang, Yi-Hsien

Abstract

Recent analyses of U.S. public family firms (PFFs) show that family firms outperform other forms of organization. However, scholars call for more studies to determine why PFFs outperform the market. High performance work systems (HPWSs) reflect the extent to which an organization adopts and implements a strategic approach in HRM practices and could be why PFFs outperform. Using the stewardship perspective, agency theory, and the resource-based view of the firm, this study empirically examines the relationship among family governance oversight, HPWS, and performance at PFFs. Using a sample of 159 Taiwanese public firms, the empirical results indicate that independent directors on the board and the level of family member board participation associate with HPWS adoption. Adopting HPWS also mediates the effect of independent directors and subjective firm performance. This finding has both theoretical and practical implications.

Suggested Citation

  • Tsao, Chiung-Wen & Chen, Shyh-Jer & Wang, Yi-Hsien, 2016. "Family governance oversight, performance, and high performance work systems," Journal of Business Research, Elsevier, vol. 69(6), pages 2130-2137.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:6:p:2130-2137
    DOI: 10.1016/j.jbusres.2015.12.020
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    Cited by:

    1. Ryan Federo & Yuliya Ponomareva & Ruth V. Aguilera & Angel Saz‐Carranza & Carlos Losada, 2020. "Bringing owners back on board: A review of the role of ownership type in board governance," Corporate Governance: An International Review, Wiley Blackwell, vol. 28(6), pages 348-371, November.
    2. Islam, Nazrul & Wang, Qidong & Marinakis, Yorgos & Walsh, Steven, 2022. "Family enterprise and technological innovation," Journal of Business Research, Elsevier, vol. 147(C), pages 208-221.
    3. Wei Wei & Ryan W. Tang & Jing Yu Yang, 2018. "Independent directors in Asian firms: An integrative review and future directions," Asia Pacific Journal of Management, Springer, vol. 35(3), pages 671-696, September.
    4. Yi-Ying Chang & Paul Hughes & Ian Hodgkinson & Che-Yuan Chang & Yi-Tai Seih, 2022. "The antecedents of corporate entrepreneurship: multilevel, multisource evidence," Review of Managerial Science, Springer, vol. 16(2), pages 355-390, February.
    5. Peláez-León, Juan David & Sánchez-Marín, Gregorio, 2023. "High-performance work systems in family firms: A mixed gamble approach," Journal of Business Research, Elsevier, vol. 156(C).

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