How a larger family business is different from a non-family one?

•Larger family businesses seek to replicate large non-family businesses’ practices.•Family leaders’ educational background will drive the professionalization efforts.•There are long-terms limits to the influence of dominant families in the business.•Professionalizing the large family businesses can...

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Bibliographic Details
Published in:Journal of business research 2022-02, Vol.139, p.292-302
Main Authors: Chang, Erick P.C., Zare, Sina, Ramadani, Veland
Format: Article
Language:English
Subjects:
Agency Theory
Corporate Governance
Family Business
Institutional Theory
Publicly-traded firms
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Summary:•Larger family businesses seek to replicate large non-family businesses’ practices.•Family leaders’ educational background will drive the professionalization efforts.•There are long-terms limits to the influence of dominant families in the business.•Professionalizing the large family businesses can drive global competitiveness. A larger family business seeks to remain strong and competitive against larger non-family businesses in domestic and foreign markets. This goal can result in replicating practices adopted by larger non-family businesses. We build from agency and institutional theories to explore how different are large family businesses from non-family ones as they become professionally managed and conform to isomorphic pressures. We conduct our study with a sample of Ibero-American and Asian firms ranked in the Top 750 largest family businesses. Our findings provide an initial assessment about the limits of the family influence on the business and discuss the potential implications for future research in the field.
ISSN:0148-2963
1873-7978
DOI:10.1016/j.jbusres.2021.09.060