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Strategic Persistence in Family Business

Author

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  • Hanqing “Chevy†Fang
  • James J. Chrisman
  • Daniel T. Holt

Abstract

Using a behavioral theory framework, we argue that family firms are more persistent (less likely to engage in the strategic renewal form of corporate entrepreneurship) in their strategic behaviors over time than nonfamily firms owing to their goals of maintaining family tradition and parsimony. We also argue that family firms controlled by founders or having a family member as Chairman or CEO are more likely to be persistent in their strategies than family firms with different governance structures. Panel regression based on a sample of 8,748 firm-year observations of S&P 1500 manufacturing firms from 1996 to 2013 support our hypotheses.

Suggested Citation

  • Hanqing “Chevy†Fang & James J. Chrisman & Daniel T. Holt, 2021. "Strategic Persistence in Family Business," Entrepreneurship Theory and Practice, , vol. 45(4), pages 931-950, July.
    • Handle: RePEc:sae:entthe:v:45:y:2021:i:4:p:931-950
    DOI: 10.1177/10422587211001806
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    References listed on IDEAS

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    2. de Groote, Julia & Soluk, Jonas & Laue, Sarah-Larissa & Heck, Marius & Kammerlander, Nadine, 2023. "How can family-owned Mittelstand firms use their unique resources to master the digitalization age? The role of family historical, venture, and collaborative capital," Business Horizons, Elsevier, vol. 66(1), pages 133-152.
    3. Balaussa Azubayeva, 2021. "The Impact of Cultural Capital on Development of Entrepreneurship in Wales," Administrative Sciences, MDPI, vol. 11(4), pages 1-24, December.
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    6. Valentina Peruzzi, 2024. "Open innovation in family-owned firms," Working Papers CASMEF 2401, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    7. Stephen J. Smulowitz & Didier Cossin & Alfredo De Massis & Hongze (Abraham) Lu, 2023. "Wrongdoing in Publicly Listed Family- and Nonfamily-Owned Firms: A Behavioral Perspective," Entrepreneurship Theory and Practice, , vol. 47(4), pages 1233-1264, July.

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