Owner-Management, Firm Age, and Productivity in Italian Family Firms

Cucculelli, Marco; Mannarino, Lidia; Pupo, Valeria; Ricotta, Fernanda

doi:10.1111/jsbm.12103

Cited by 92 publications

(83 citation statements)

References 108 publications

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“…This prediction is rooted in established agency arguments suggesting that labor productivity is at least partially a function of both moral hazards, such as misaligned interests between owners and managers, and adverse selection, such as from hiring from a suboptimal talent pool (Akerlof, 1970;Eisenhardt, 1989;Jensen & Meckling, 1976). In conjunction with recent arguments from the family business (Chrisman et al, 2017;Cucculelli, Mannarino, Pupo, & Ricotta, 2014) and finance (Barth et al, 2005;Burkart, Panunzi, & Shleifer, 2003) literatures, we suggest that these problems are particularly severe in family firms. Moral hazards are rampant given the diverging interests of family owners and their nonfamily employees (Chua, Chrisman, & Bergiel, 2009;Schulze et al, 2001).…”

Section: Labor Productivitymentioning

confidence: 71%

Are Family Firms Good Employers?

Neckebrouck

Schulze

Zellweger

2018

AMJ

199

174

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Family firms employ about 60 percent of the global workforce. While it is widely assumed that they are good employers, data about their conduct is mixed. In this study, we extend stewardship and agency theories to test competing propositions about the impact of family on employment practices using data from 14,961 private Belgian firms over a 19-year period. Higher investments, lower dividend payout, and higher risk tolerance indicate that family firms are better financial stewards of their companies than nonfamily firms. However, family firms are worse organizational stewards than nonfamily firms: They offer lower compensation, invest less in employee training, and exhibit higher voluntary turnover and lower labor productivity. Further, and contrary to earlier research, we find that financial practices in private family firms do not change over time, and that the deleterious influence of family on employment practices rises with both firm age and with heightened family involvement. Together, our findings suggest that a more nuanced understanding of stewardship and agency theory is needed to understand the impact of family on the governance of private firms

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Section: Labor Productivitymentioning

confidence: 71%

Are Family Firms Good Employers?

Neckebrouck

Schulze

Zellweger

2018

AMJ

199

174

View full text Add to dashboard Cite

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“…The reason why the family firm is the center of our model is because of its unique characteristics (i.e., firm familiness [Habbershon & Williams, 1999]) that alter the way it is governed and managed. Even more, because of the effect of the family on the firm, firm objectives and incentives are altered, causing family firms use, create, and allocate resources in different ways than non-family firms do (Cucculelli, Mannarino, Pupo, & Ricotta, 2014). Under this premise, we argue that the embeddedness of family businesses in regional economic structures influences the regional economy.…”

Section: Interdependence Gap Between Family Business and Regional Ecomentioning

confidence: 91%

Family business and regional science: “Bridging the gap”

Stough

Welter

Block

et al. 2015

Journal of Family Business Strategy

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Abstract. The purpose of this special issue is to stimulate research on the interaction between the fields of family business and regional science. Despite their overlapping themes and the high relevance of family firms for many regions, the two academic fields have emerged independently from each other, and little exchange exists. We discuss not only the role family firms play within the region in order to enhance our understanding of the ways family firms may (or may not) contribute to regional economic development but also the effect of socio-spatial and institutional context on firm behavior and performance. The set of empirical and theoretical articles included in this special issue represents an important early step bridging insights between the two fields.2

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“…Results show that firms in the supplier dominated sector and small firms have, ceteris paribus, a lower TFP while firms located in Northern Italy exhibit higher productivity, as already stressed by the literature (Aiello et al, 2014, Ascari and Di Cosmo, 2005, Byrne et al, 2009). Moveover, as expected, family firms are less efficient Marchionne, 2012 andCucculelli et al, 2014), TFP is positively affected by labour quality (Ascari and Di Cosmo, 2005;Ciccone, 2004) while intangible assets have no significant effect. As regards the specific variable of interest, we find that research carried out by 9 Cost of labour per employee should be correlated with skill intensity if more skilled workers receive higher wages.…”

Section: Resultsmentioning

confidence: 86%

Do Firms Benefit from University Research? Evidence from Italy

2016

Self Cite

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Abstract.The aim of this paper is to assess the effect on firm total factor productivity of the university research. Since the impact of universities on firms' performance is subtle and complex, we verify whether territorial context, sector and firm size may influence this relationship. Results show that university R&D does not seem to affect Italian firm productivity. However, if we consider geographical location and sector, we find that university activities have a positive effect on the performance of firms located in the North of Italy or operating in the specialised supplier sector. Several robustness checks confirm the significant role played by universities above all in the North of Italy. The policy implications of these findings are discussed.

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Owner-Management, Firm Age, and Productivity in Italian Family Firms

Cited by 92 publications

References 108 publications

Are Family Firms Good Employers?

Are Family Firms Good Employers?

Family business and regional science: “Bridging the gap”

Do Firms Benefit from University Research? Evidence from Italy

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