Work

Impact of Outsiders on Firm Performance over Different Generations of Family-Owned SMEs

Year: 2014

Type: article

Abstract: From the perspective of agency, resource-based view, and resource-dependence theories, we explore the impact of the presence of outside directors on firm performance in family small and medium-sized enterprise (SMEs). Using survey data from 369 Spanish family SMEs, our findings show an inverted U-shaped relationship between the proportion of outsiders on the boards of firstand second-generation family firms and firm performance. The results show that a balanced presence of outside directors contributes to value creation in family SMEs and confirm that the composition and the roles of the board of directors differ from generation to generation in family firms.

Source: Journal of Small Business Management

DOI: 10.1111/jsbm.12119

Authors: Amaia Maseda, Txomin Iturralde, Blanca Arosa

Institution: University of the Basque Country

Language: English

Topic: Family Business Performance and Succession

Subfield: Organizational Behavior and Human Resource Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

Funder: Euskal Herriko Unibertsitatea

Award: G7374307640