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Centralization and delegation practices in family versus non-family SMEs: a Rasch analysis

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Listed:
  • Wendy L. Martin

    (Trinity International University)

  • Alexander McKelvie

    (Syracuse University)

  • G. T. Lumpkin

    (University of Oklahoma)

Abstract

In this paper, we examine differences in centralization and delegation practices of family and non-family firms. Using Aston studies measures, we examine specific types of decisions and the level of authority involved in decision making by owner-managers. We use Rasch analysis to examine the concentration of authority in a sample of 124 small- and medium-sized firms. We find that family firms maintain more centralized decision making and delegate differently than their non-family counterparts. Whereas family firms prioritize centralizing operational issues, non-family firms centralize employment issues more. Our findings have implications for understanding the distinctiveness and professionalization of family firms.

Suggested Citation

  • 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.
    • Handle: RePEc:kap:sbusec:v:47:y:2016:i:3:d:10.1007_s11187-016-9762-5
    DOI: 10.1007/s11187-016-9762-5
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    7. Kerbouche Mohammed & Bouguesri Imene, 2020. "A Structural Analysis of the Chinese Patriarchal Family Business Model: What Happens in the Corridors of the Shrine?," Economics and Business, Sciendo, vol. 34(1), pages 224-245, February.
    8. James J. Chrisman & Jess H. Chua & Alfredo Massis & Tommaso Minola & Silvio Vismara, 2016. "Management processes and strategy execution in family firms: from “what” to “how”," Small Business Economics, Springer, vol. 47(3), pages 719-734, October.
    9. Ipsmiller, Edith & Dikova, Desislava & Brouthers, Keith D., 2022. "Digital Internationalization of Traditional Firms: Virtual Presence and Entrepreneurial Orientation," Journal of International Management, Elsevier, vol. 28(4).
    10. Vanessa Weimann & Maike Gerken & Marcel Hülsbeck, 2020. "Business model innovation in family firms: dynamic capabilities and the moderating role of socioemotional wealth," Journal of Business Economics, Springer, vol. 90(3), pages 369-399, April.
    11. Alfredo De Massis & Kimberly A. Eddleston & Paola Rovelli, 2021. "Entrepreneurial by Design: How Organizational Design Affects Family and Non‐family Firms’ Opportunity Exploitation," Journal of Management Studies, Wiley Blackwell, vol. 58(1), pages 27-62, January.
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