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Commentary: Blockholder Structures and Power Mechanisms in Family Firms

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  • Gabriella Cacciotti
  • Deniz Ucbasaran

Abstract

We extend the work of Fattoum-Guedri, Guedri, and Delmar (2018) by suggesting that the number of family blockholders moderates the relationship between the distribution of voting power between family and nonfamily blockholders and firm performance. Building on power and negotiation theories, we argue that the participation of multiple generations of family members in the firm’s ownership leads to greater diversity of perspectives that generates potential conflict over the distribution of resources. We highlight four power mechanisms—potential power, perceived power, power games, and realized power—to explain why family blockholders’ conflicting and/or misaligned preferences, objectives, and visions for the family firm might influence the nature of the negotiation between the family and the nonfamily blockholder and impact family firm performance. We offer directions for future research.

Suggested Citation

  • Gabriella Cacciotti & Deniz Ucbasaran, 2018. "Commentary: Blockholder Structures and Power Mechanisms in Family Firms," Entrepreneurship Theory and Practice, , vol. 42(2), pages 252-258, March.
    • Handle: RePEc:sae:entthe:v:42:y:2018:i:2:p:252-258
    DOI: 10.1177/1042258717748653
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    References listed on IDEAS

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    1. Pinkley, Robin L. & Neale, Margaret A. & Bennett, Rebecca J., 1994. "The Impact of Alternatives to Settlement in Dyadic Negotiation," Organizational Behavior and Human Decision Processes, Elsevier, vol. 57(1), pages 97-116, January.
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    3. Asma Fattoum & Zied Guedri & Frédéric Delmar, 2018. "Multiple Blockholder Structures and Family Firm Performance," Post-Print hal-02312013, HAL.
    4. Rebecca J. Wolfe & Kathleen L. Mcginn, 2005. "Perceived Relative Power and its Influence on Negotiations," Group Decision and Negotiation, Springer, vol. 14(1), pages 3-20, January.
    5. Asma Fattoum-Guedri & Zied Guedri & Frédéric Delmar, 2018. "Multiple Blockholder Structures and Family Firm Performance," Entrepreneurship Theory and Practice, , vol. 42(2), pages 231-251, March.
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    7. Thomas Zellweger & Nadine Kammerlander, 2015. "Family, Wealth, and Governance: An Agency Account," Entrepreneurship Theory and Practice, , vol. 39(6), pages 1281-1303, November.
    8. Randall Morck & Bernard Yeung, 2003. "Agency Problems in Large Family Business Groups," Entrepreneurship Theory and Practice, , vol. 27(4), pages 367-382, October.
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    Cited by:

    1. Karaevli, Ayse & Yurtoglu, B. Burcin, 2021. "Family ownership, market development, and internationalization of Turkish business groups (1925-2017)," Journal of World Business, Elsevier, vol. 56(6).
    2. James J. Chrisman & Jess H. Chua & Isabelle Le Breton-Miller & Danny Miller & Lloyd P. Steier, 2018. "Governance Mechanisms and Family Firms," Entrepreneurship Theory and Practice, , vol. 42(2), pages 171-186, March.
    3. Patricio Duran & Marcelo Ortiz, 2020. "When More Is Better: Multifamily Firms and Firm Performance," Entrepreneurship Theory and Practice, , vol. 44(4), pages 761-783, July.

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