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Family involvement and firm performance: a family embeddedness perspective

Author

Listed:
  • CRISTINA CRUZ

    (Instituto de Empresa)

  • Rachida Justo

    (Instituto de Empresa)

  • Julio De Castro

    (Instituto de Empresa)

Abstract

This paper uses family embeddedness (Cliff and Aldrich, 2003) and Work Family Interface (WFI) (Jennings and McDougald, 2007) to analyze the effect of gender and income on the relationship between family employment and firm performance in the context of micro and small family enterprises. Our results indicate that family employment contributed to increase sales but was negatively related to firm´s profitability. Moreover, the results indicate that when the business is the main source of household income the family employee´s positive impact on performance is reduced, and that the positive relationship between family employment and firm performance is stronger in woman run firms.

Suggested Citation

  • CRISTINA CRUZ & Rachida Justo & Julio De Castro, 2008. "Family involvement and firm performance: a family embeddedness perspective," Working Papers Economia wp08-09, Instituto de Empresa, Area of Economic Environment.
    • Handle: RePEc:emp:wpaper:wp08-09
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    Keywords

    Family firms; Gender;

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