Leader behaviours of family and non-family executives in family firms

Abstract

Purpose Several studies of family firm failures have pointed to non-family members in leading positions as a reason. However, non-family members have often played a key role in family-firm longevity, while non-family executives’ involvement in family firms is increasing. These non-family executives who (co-)run family firms are thought to require an almost impossible set of behavioural qualities. The aim of this exploratory study is to find out how specific leader behaviours of effective family executives and non-family executives may differ. Design/methodology/approach Based on Dulewicz and Higgs’ (2005) broad leadership frame, the authors draw attention to a large range of behaviours of family-firm executives. In-depth interviews were conducted with successful German executives, both family and non-family ones. Their answers had to contain specific behavioural examples. Findings More behavioural similarities than differences are shown between family- and non-family-based executives. Yet, the self-reflective communicative behavioural qualities of the non-family executives could balance a lack of such qualities among the family-based executives. Based on the three major differences – decision-making style, communication versatility and self-awareness – specific new research propositions are distilled about effective family firm leadership. Originality/value Practical suggestions for recruiting non-family executives are offered. Future quantitative longitudinal research on how to pair specific behavioural qualities of family and non-family based executives that optimise family-firm longevity is urgently needed.

Are non-blood related “family” members treated differently? Determinants of bifurcation bias among family members in the family firm

“…However, the focus of extant literature remains solely on the dichotomous classification of family members and non-family members (e.g. Kotlar and Sieger, 2019;Neffe et al, 2020;Samara et al, 2019). In this article, we acknowledge the nuances of varying types of family membership and question the assumed homogeneity of family members.…”

Emotionally intelligent top management and high family firm performance: Evidence from Germany

“…This includes supportive behavior in critical situations (Pescocsolido, 2002) and creating a respectful work environment (Jordan & Lawrence, 2009), which are all elements associated with behavioral integration. TMT members are not only supported by TMT EI, which often induces or maintains the TMT coordination, but also by a CEO's TFL (Neffe et al, 2020). Hence, we can state the following hypothesis (see, Fig.…”

“…While well-chosen non-family executives may lead family firms into success (Neffe, Wilderom, & Lattuch, 2020), this study's focus is on how a family-based CEO and his or her non-family based executive team deal with their inevitable daily emotions. These emotions arise during interactions between the family, the firm's individual members, and the business (Chrisman, Chua, & Litz, 2003;Habbershon & Williams, 1999).…”

“…A family's power to shape the firm's goals and behaviors is a resource that differentiates family from non-family firms (Neffe et al, 2020). Its long-term orientation and value-driven decision-making has been associated with high-performance firms (Carr, Vardaman, Marler, McLarty, & ;Kellermanns et al, 2014;Lattuch, 2019).…”

Building innovation capabilities through human resources practices

“…Due to their organizational role, executives have the power to realize their innovation goals and adapt their leadership style to do so (Neffe et al, 2020). However, without support from a team of HR professionals and line managers, he or she is unlikely to implement innovation efforts successfully.…”