The Enigma of the Family Successor–Firm Performance Relationship: A Methodological Reflection and Reconciliation Attempt

J. P. Ahrens; A. Calabrò; Jolien Huybrechts; M. Woywode

doi:10.1177/1042258718816290

The Enigma of the Family Successor–Firm Performance Relationship: A Methodological Reflection and Reconciliation Attempt

J. P. Ahrens^*, A. Calabrò, Jolien Huybrechts, M. Woywode

^*Corresponding author for this work

Organisation,Strategy & Entrepreneurship

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

Empirical studies examining firm performance following CEO succession in family firms predominantly document inferior performance of family successors. This evidence is at odds with general theoretical literature that attests a positive effect of family involvement inside the firm. To explore this enigma, we theoretically and empirically disentangle the influence of the CEO attribute family member (i.e., the CEO is affiliated to the family) on post-succession firm performance, from other, distinct CEO attributes (e.g., CEO-related human capital). Our analysis on the individual CEO level shows that after respective controls, the family member attribute is significantly positively related to post-succession firm performance.

Original language	English
Pages (from-to)	437-474
Number of pages	38
Journal	Entrepreneurship Theory and Practice
Volume	43
Issue number	3
DOIs	https://doi.org/10.1177/1042258718816290
Publication status	Published - May 2019

Keywords

succession
family successor
firm performance
CEO characteristics
family firms
MANAGEMENT
BUSINESS SUCCESSION
BEHAVIOR
CORPORATE GOVERNANCE
SOCIAL-EXCHANGE THEORY
UPPER ECHELONS
ORGANIZATION
AGENCY
HUMAN-CAPITAL THEORY
OWNERSHIP

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title = "The Enigma of the Family Successor–Firm Performance Relationship: A Methodological Reflection and Reconciliation Attempt",

abstract = "Empirical studies examining firm performance following CEO succession in family firms predominantly document inferior performance of family successors. This evidence is at odds with general theoretical literature that attests a positive effect of family involvement inside the firm. To explore this enigma, we theoretically and empirically disentangle the influence of the CEO attribute family member (i.e., the CEO is affiliated to the family) on post-succession firm performance, from other, distinct CEO attributes (e.g., CEO-related human capital). Our analysis on the individual CEO level shows that after respective controls, the family member attribute is significantly positively related to post-succession firm performance.",

keywords = "succession, family successor, firm performance, CEO characteristics, family firms, MANAGEMENT, BUSINESS SUCCESSION, BEHAVIOR, CORPORATE GOVERNANCE, SOCIAL-EXCHANGE THEORY, UPPER ECHELONS, ORGANIZATION, AGENCY, HUMAN-CAPITAL THEORY, OWNERSHIP",

author = "Ahrens, {J. P.} and A. Calabr{\`o} and Jolien Huybrechts and M. Woywode",

note = "data source: own collected data (by co-author)",

year = "2019",

month = may,

doi = "10.1177/1042258718816290",

language = "English",

volume = "43",

pages = "437--474",

journal = "Entrepreneurship Theory and Practice",

issn = "1042-2587",

publisher = "Wiley-Blackwell",

number = "3",

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T1 - The Enigma of the Family Successor–Firm Performance Relationship: A Methodological Reflection and Reconciliation Attempt

AU - Ahrens, J. P.

AU - Calabrò, A.

AU - Huybrechts, Jolien

AU - Woywode, M.

N1 - data source: own collected data (by co-author)

PY - 2019/5

Y1 - 2019/5

N2 - Empirical studies examining firm performance following CEO succession in family firms predominantly document inferior performance of family successors. This evidence is at odds with general theoretical literature that attests a positive effect of family involvement inside the firm. To explore this enigma, we theoretically and empirically disentangle the influence of the CEO attribute family member (i.e., the CEO is affiliated to the family) on post-succession firm performance, from other, distinct CEO attributes (e.g., CEO-related human capital). Our analysis on the individual CEO level shows that after respective controls, the family member attribute is significantly positively related to post-succession firm performance.

AB - Empirical studies examining firm performance following CEO succession in family firms predominantly document inferior performance of family successors. This evidence is at odds with general theoretical literature that attests a positive effect of family involvement inside the firm. To explore this enigma, we theoretically and empirically disentangle the influence of the CEO attribute family member (i.e., the CEO is affiliated to the family) on post-succession firm performance, from other, distinct CEO attributes (e.g., CEO-related human capital). Our analysis on the individual CEO level shows that after respective controls, the family member attribute is significantly positively related to post-succession firm performance.

KW - succession

KW - family successor

KW - firm performance

KW - CEO characteristics

KW - family firms

KW - MANAGEMENT

KW - BUSINESS SUCCESSION

KW - BEHAVIOR

KW - CORPORATE GOVERNANCE

KW - SOCIAL-EXCHANGE THEORY

KW - UPPER ECHELONS

KW - ORGANIZATION

KW - AGENCY

KW - HUMAN-CAPITAL THEORY

KW - OWNERSHIP

U2 - 10.1177/1042258718816290

DO - 10.1177/1042258718816290

M3 - Article

SN - 1042-2587

VL - 43

SP - 437

EP - 474

JO - Entrepreneurship Theory and Practice

JF - Entrepreneurship Theory and Practice

IS - 3

ER -

The Enigma of the Family Successor–Firm Performance Relationship: A Methodological Reflection and Reconciliation Attempt

Abstract

Keywords

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