Toward a Stewardship Theory of Management

Davis, James H.; Schoorman, F. David; Donaldson, Lex

doi:10.5465/amr.1997.9707180258

Cited by 2,723 publications

(1,609 citation statements)

References 49 publications

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“…Thus, we disagree with Anderson and Reeb (2003), Barontini and Caprio (2006), Kowalewski, Talavera and Stetsyuk (2010), Maury (2006), and Schulze, Lubatkin and Dino (2003), who claim that the objectives of the owner and the firm are aligned in family-owned firms. Based on our results , we assume that family-owned firms possess distinct resources such as the social capital and stewardship behavior stemming from common ancestry and shared family identity (Corbetta & Salvato, 2004), also supporting basic stewardship theory (Davis et al, 1997;Donaldson & Davis, 1991). In line with Carney (2005), we suppose that such resources influence family-owned firm performance and form the comparative advantage family-owned firms have over large public corporations.…”

Section: Discussionmentioning

confidence: 54%

Family-Owned Firms between Agency Conflicts and Stewardship: Corporate Governance Factors Driving Firm Performance

Siddik

Kabiraj

2016

J. Bus. Mgt. Res.

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The performance of family-owned firms has been driven by factors relating to family ownership, family leadership, and external supervision. In this paper, we offer an empirical study investigating the effects of those corporate governance concerns. To serve the purpose, we conducted a survey on 121 Chinese family-owned firms over the period of 2012-2014. Using pooled ordinary least square technique we find that family leadership and external supervision significantly influence the firms' Return on Assets (ROA) and Return on Equity (ROE) whereas family ownership significantly influences ROA, but not ROE. Findings also indicate that firm size, total assets, and solidity have significant impact on ROA and ROE. Discussing our findings in light of stewardship and agency theories, we especially supplement stewardship theory due to the close alignment between owners and managers in family-owned firms.

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Section: Discussionmentioning

confidence: 54%

Family-Owned Firms between Agency Conflicts and Stewardship: Corporate Governance Factors Driving Firm Performance

Siddik

Kabiraj

2016

J. Bus. Mgt. Res.

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“…Contrary to agency theory, the stewardship perspective uses a different model of man and assumes different situational and psychological antecedents to individual behaviors (Davis et al, 1997;Fox & Hamilton, 1994). Managers that act as stewards, rather than agents, gain higher utility from pro-organizational, collectivistic behavior than from individualistic, self-serving behavior presumed by agency theory.…”

Section: Family Ownership and Firm Performancementioning

confidence: 96%

“…This situation is particularly relevant to family businesses where kinship ties prevail between organizational members (Jaskiewicz & Klein, 2007;Lane, Astrachan, Keyt, & McMillan, 2006). Within family firms, the interests between owners and managers are well aligned, and governance mechanisms designed on agency-theoretic prescriptions may be redundant to and inefficient in family firms, because the stewards automatically tend to pursue the advantages of the firms (Davis et al, 1997;Pieper et al, 2008).…”

Section: Family Ownership and Firm Performancementioning

confidence: 97%

“…However, scholars argue that family CEOs and top managers can bring valuable resources and skills to the firms that outside managers do not possess. The stewardship theory argues that, unlike agents, stewards maximize their utility as they achieve organizational rather than self-serving objectives (Davis et al, 1997). In family firms, family CEOs and managers often act as stewards and identify themselves strongly with the firms because they view the firm as an extension of themselves and therefore consider the continuing health of the enterprise as connected to their own personal well-being.…”

Section: Influence Of Family Managementmentioning

confidence: 99%

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Family ownership and firm performance: Influence of family management, family control, and firm size

2009

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This study examines the relationship between family ownership and firm performance by considering the influence of family management, family control, and firm size. Using proxy data of 786 public family firms in Taiwan during 2002-2007, this study found that family ownership is positively associated with firm performance. The positive association is strong particularly when family members serve as CEOs, top managers, chairpersons, or directors of the firms; however, the association becomes weak when family members are not involved in firm management or control. The findings suggest that the potential family-ownership effects are more likely to be realized when family ownership is combined with active family management and control. In addition, the association between family ownership and firm performance is stronger in small-and medium-sized enterprises (SMEs) than in large companies.

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“…Executives of firms operating in a particular country are subject to the pressure imposed by that country's national culture. Because, countries differ in their culture, the degree of constraints of those societal norms varies from one country to another (Davis et al, 1997). In this vein, the degree of respect, status, privilege and influence accorded to leaders will correspondingly fluctuate across cultures (House el al., 2004).…”

Section: Theoretical Background and Research Hypothesesmentioning

confidence: 99%

Strategizing in a focused context: managerial discretion in the Arab world

Youssef¹,

Christodoulou

2017

JSMA

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Purpose The purpose of this paper is to broaden the national-level construct of managerial discretion and to investigate the effect of cultural practices on executive discretion. Design/methodology/approach Based on a sample of six Arabian countries and using a panel of prominent cross-cultural scholars who provided 262 discretion scores for the sample countries, the authors replicate and extend the national framework of Crossland and Hambrick (2011) in a new cultural context. The cultural dimensions were measured using survey responses of middle managers based on House et al.’s (2004) cultural practices scale. Findings The authors extend the national-level framework of managerial discretion and find that an encompassing array of cultural practices plays a crucial role in shaping the degree of discretion provided to CEOs. The authors empirically demonstrate that power distance, future and performance orientation, along with gender egalitarianism and assertiveness have positive relationships with managerial discretion. However, institutional collectivism, uncertainty avoidance and humane orientation negatively affect the degree of discretion provided to CEOs. Originality/value The study fills a gap in the literature regarding the national-level framework of managerial discretion. The results indicate that executives can take idiosyncratic and bold actions to the extent to which the cultural environment allows them to do so. Also, the authors discover new national-level antecedents of managerial discretion that have not been considered in earlier studies and confirm the context dependency of this concept.

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Toward a Stewardship Theory of Management

Cited by 2,723 publications

References 49 publications

Family-Owned Firms between Agency Conflicts and Stewardship: Corporate Governance Factors Driving Firm Performance

Family-Owned Firms between Agency Conflicts and Stewardship: Corporate Governance Factors Driving Firm Performance

Family ownership and firm performance: Influence of family management, family control, and firm size

Strategizing in a focused context: managerial discretion in the Arab world

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