Founding-family ownership and firm performance: The role of high-performance work systems

Family Business Review

Volumn 22, Issue 4, 2009, Pages 319-332

  Tsao, Chiung Wen ^a   Chen, Shyh Jer ^b   Lin, Chiou Shiu ^b   Hyde, William ^b  

^a TAJEN UNIVERSITY   (Taiwan)

^b NATIONAL SUN YAT SEN UNIVERSITY   (Taiwan)

Author keywords

Family controlled public firms; Firm performance; Founding family ownership; High performance work system; Taiwanese family firms

Indexed keywords

EID: 70749118728     PISSN: 08944865     EISSN: 17416248     Source Type: Journal    
DOI: 10.1177/0894486509339322     Document Type: Article

References (76)

1. Aiken, L.S., & West, S.G. (1991). Multiple regressions: Testing and interpreting interactions. Newbury Park, CA: Sage.
2. Anderson, R.C., & Reeb, D.M. (2003). Founding-family ownership and firm performance: Evidence from the S&P 500. Journal of Finance, 58, 1301-1329.
3. Anderson, R.C., & Reeb, D.M. (2004). Board composition: Balancing family influence in S&P 500 firms. Administrative Science Quarterly, 49, 209-237.
4. Appelbaum, E., Baily, T., Berg, P., & Kalleberg, A. (2000). Manufacturing advantage: Why high performance work system pay off. Ithaca, NY: ILR Press.
5. Appelbaum, E., & Batt, R. (1994). The new American workplace: Transforming work systems in the United States. Ithaca, NY: ILR Press.
6. Arthur, J.B. (1992). The link between business strategy and industrial relations systems in American steel minimills. Industrial and Labor Relations Review, 45(3), 488-506.
7. Arthur, J.B. (1994). Effects of human resource systems on manufacturing performance and turnover. Academy of Management Journal, 37, 670-687.
8. Astrachan, J.H., & Kolenko, T.A. (1994). A neglected factor explaining family business success: Human resource practices. Family Business Review, 7, 251-262.
9. Bae, J., Chen, S., & Lawler, J.J. (1998). Variations in human resource management in Asian countries: MNC home-country and host-country effects. International Journal of Human Resource Management, 9, 653-670.
10. Bae, J., Chen, S., Wan, T., Lawler, J.J., & Walumbwa, F.O. (2003). Human resource strategy and firm performance in Pacific Rim countries. International Journal of Human Resource Management, 14(8), 1308-1332.
11. Bae, J., & Gargiulo, M. (2004). Partner substitutability, alliance network structure, and firm profitability in the telecommunications industry. Academy of Management Journal, 47, 843-859.
12. Bae, J., & Lawler, J. (2000). Organizational and HRM strategies in Korea: Impact on firm performance in an emerging economy. Academy of Management Journal, 43, 502-517.
13. Baird, L., & Meshoulam, I. (1988). Managing two fits of strategic human resources management. Academy of Management Review, 13(1), 116-128.
14. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
15. Batt, R. (2002). Managing customer services: Human resource practices, quit rates, and sales growth. Academy of Management Journal, 45, 587-597.
16. Becker, B., & Gerhart, B. (1996). The impact of human resource management on organizational performance: Progress and prospects. Academy of Management Journal, 39, 779-801.
17. Braun, M., & Sharma, A. (2007). Should the CEO also be chair of the board? An empirical examination of family-controlled public firms. Family Business Review, 20, 111-126.
18. Cappelli, P., & Neumark, D. (2001). Do high-performance work practices improve establish-level outcomes? Industrial and Labor Relations Review, 54, 737-775.
19. Chang, P.L., & Chen, W.L. (2002). The effect of human resource practices on firm performance: Empirical evidence from high-tech firms in Taiwan. International Journal of Management, 19(4), 622-631.
20. Chen, C. (1990). Confucian style of management in Taiwan. In J. M. Putti (Ed.), Management: Asia context (pp. 177-197). New York: McGraw-Hill.
21. Chen, M. (2001). Inside Chinese business: A guide for managers worldwide. Boston: Harvard Business School Press.
22. Chen, S., Ko, J., & Lawler, J. (2003). Changing patterns of industrial relations in Taiwan. Industrial Relations, 42(3), 315-340.
23. Chen, S., Lawler, J., & Bae, J. (2005). Convergence in human resource systems: A comparison of locally owned and MNC subsidiaries in Taiwan. Human Resource Management, 44(3), 237-256.
24. Claessens, S., Djankov, S., Fan, J.P.H., & Lang, L.H.P. (2002). Disentangling the incentive and entrenchment effects of large share-holdings. Journal of Finance, 57, 2741-2771.
25. Cronqvist, H., & Nilsson, M. (2003). Agency costs of controlling minority shareholders. Journal of Financial and Quantitative Analysis, 38, 695-719.
26. Delery, J. (1998). Issues of fit in strategic human resource management: Implications for research. Human Resource Management Review, 8(3), 289-309.
27. Delery, J., & Doty, D. (1996). Modes of theorizing in strategic human resource management: Tests of universalistic, contingency, and configurational performance predictions. Academy of Management Journal, 39, 802-835.
28. Demsetz, H., & Lehn, K. (1985). The structure of corporate ownership: Causes and consequences. Journal of Political Economy, 93, 1155-1177.
29. Dyer, W.G., Jr. (2006). Examining the family effect on firm performance. Family Business Review, 19, 253-273.
30. Fama, E., & Jensen, M.C. (1983). Agency problems and residual claims. Journal of Law and Economics, 26, 325-344.
31. Filatotchev, I., Lien, Y., & Piesse, J. (2005). Corporate governance and performance in publicly listed, family-controlled firms: Evidence from Taiwan. Asia Pacific Journal of Management, 22, 257-283.
32. Gersick, K.E., Davis, J.A., Hampton, M.M., & Lansberg, I. (1997). Generation to generation: Life cycle of family business. Boston: Harvard Business School Press.
33. Gordard, J. (2001). High performance and the transformation of work? The implications of alternative work practices for the experience and outcomes of work. Industrial and Labor Relations Review, 54, 776-805.
34. Guest, D.E. (1999). Human resource management-The workers verdict. Human Resource Management Journal, 9(3), 5-25.
35. Guthrie, J.P. (2001). High-involvement work practices, turnover, and productivity: Evidence from New Zealand. Academy of Management Journal, 44, 180-190.
36. Hulland, J. (1999). Use of partial least squares (PLS) in strategic management research: A review of four recent studies. Strategic Management Journal, 20, 195-204.
37. Huselid, M. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal, 38, 635-672.
38. Huselid, M., & Becker, B. (1996). Methodological issues in cross-sectional and panel estimates of the human resource-firm performance link. Industrial Relations, 35, 400-422.
39. Huselid, M., Jackson, S., & Schuler, R. (1997). Technical and strategic human resource management effectiveness as determinants of firm performance. Academy of Management Journal, 40, 171-188.
40. Ichniowski, C., Kochan, T.A., Levine, D., Olson, C., & Strauss, G. (1996). What works at work: Overview and assessment. Industrial Relations, 35(3), 299-333.
41. Jackson, S.E., & Schuler, R.S. (1995). Understanding human resource management in the context of organizations and their environments. Annual Review of Psychology, 46(1), 237-264.
42. Jaskiewicz, P. (2005, September). Family influence and performance: An empirical study for Germany and France. Paper presented at the FBN-IFERA conference, Brussels, Belgium.
43. Jensen, M.C., & Meckling, W.H. (1976). Theory of the firm: Managerial behavior, agency cost, and ownership structure. Journal of Financial Economics, 3, 305-360.
44. Lansberg, I. (1983). Managing human resources in family firms: The problem of institutional overlap. Organizational Dynamics, 12, 39-46.
45. Lawler, E.E., III, Mohrman, S.A., & Ledford, G.E., Jr. (1998). Strategies for high performance organizations: Employee involvement, TQM, and reengineering programs in Fortune 1000 corporations. San Francisco: Jossey-Bass.
46. Lee, J. (2006a). Family firm performance: Further evidence. Family Business Review, 19, 103-114.
47. Lee, Y. (2006b). The study of Taiwan's family firms on debt financing. Unpublished doctoral dissertation, National Sun Yat-Sen University, Kaohsiung, Taiwan.
48. Lepak, D., & Snell, S. (1999). The human resource architecture: Toward a theory of human capital allocation and development. Academy of Management Review, 24(1), 31-48.
49. MacDuffie, J. (1995). Human resource bundles and manufacturing performance: Organizational logic and flexible production systems in the world auto industry. Industrial and Labor Relations Review, 48, 197-221.
50. Martínez, J.I., Stöhr, B.S., & Quiroga, B.F. (2007). Family ownership and firm performance: Evidence from public companies in Chile. Family Business Review, 20, 83-94.
51. Maury, B. (2006). Family ownership and firm performance: Empirical evidence from Western European corporations. Journal of Corporate Finance, 12, 321-341.
52. McConaughy, D.L., Walker, M.C., Henderson, G.V., Jr., & Mishra, C.S. (1998). Founding family controlled firms: Efficiency and value. Review of Financial Economics, 7, 1-19.
53. Miller, D., & Le Breton-Miller, I. (2006). Family governance and firm performance: Agency, stewardship, and capabilities. Family Business Review, 19, 73-87.
54. Miller, D., Le Breton-Miller, I., Lester, R.H., & Cannella, A.A., Jr. (2007). Are family firms really superior performers? Journal of Corporate Finance, 13, 829-858.
55. Osterman, P. (1995). Work/family program and the employment relationship. Administrative Science Quarterly, 40(4), 681-700.
56. Pfeffer, J. (1994). Competitive advantage through people. Boston: Harvard Business School Press.
57. Podsakoff, P.M., Mackenzie, S.B., & Podsakoff, N.P. (2003). Common method bias in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88, 879-903.
58. Schuler, R.S., & Jackson, S.E. (1987). Organizational strategy and organization level as determinants of human resource management practices. Human Resource Planning, 10(3), 125-142.
59. Schulze, W.S., Lubatkin, M.H., Dino, R.N., & Buchholtz, A.K. (2001). Agency relationships in family firms: Theory and evidence. Organization Science, 12(2), 99-116.
60. Sciascia, S., & Mazzola, P. (2008). Family involvement in ownership and management: Exploring nonlinear effects on performance. Family Business Review, 21, 331-345.
61. Sharma, P. (2004). An overview of the field of family business studies: Current status and directions for the future. Family Business Review, 17, 1-36.
62. Takeuchi, N., Wakabayashi, M., & Chen, Z. (2003). The strategic HRM configuration for competitive advantage: Evidence from Japanese firms in China and Taiwan. Asia Pacific Journal of Management, 20(4), 447-480.
63. Tomer, J.F. (2001). Understanding high performance work systems: The joint contribution of economics and human resource management. Journal of Socio-Economics, 30, 63-73.
64. Triandis, H.C. (1995). Individualism and collectivism. Boulder, CO: Westview.
65. Ulrich, D., & Lake, D. (1990). Organizational capability: Competing from the inside out. New York: John Wiley.
66. Ward, J.L. (1987). Keeping the family business healthy: How to plan for continuous growth, profitability, and family leadership. San Francisco: Jossey-Bass.
67. Weidenbaum, M. (1996). The Chinese family business enterprises. California Management Review, 38, 144.
68. Weiner, N., & Mahoney, T.A. (1981). A model of corporate performance as a function of environmental, organizational, and leadership influences. Academy of Management Journal, 24, 453-470.
69. Whitener, E.M. (2001). Do high commitment human resource practices affect employee commitment? A cross-level analysis using hierarchical linear modelling. Journal of Management, 27, 515-535.
70. Wold, H. (1974). Causal flows with latent variables. European Economic Review, 5, 67-86.
71. Wold, H. (1985). Systems analysis by partial least squares. In P. Nijkamp, L. Leitner, & N. Wrigley (Eds.), Measuring the unmeasurable (pp. 221-251). Dordrecht, Netherlands: Marinus Nijhoff.
72. Wright, P.M., Dunford, B.B., & Snell, S.A. (2001). Human resources and the resource-based view of the firm. Journal of Management, 27, 701-721.
73. Wright, P.M., Gardner, T.M., & Moynihan, L.M. (2003). The impact of HR practices on the performance of business units. Human Resource Management Journal, 13(3), 21-36.
74. Yalabik, Z., Chen, S., Lawler, J., & Kim, K. (2008). High performance work system and organizational turnover in East and Southeast Asian countries. Industrial Relations, 47(1), 145-152.
75. Yan, J., & Sorenson, R. (2006). The effect of Confucian values on succession in family business. Family Business Review, 19, 235-250.
76. Youndt, M., Snell, S., Dean, J., & Lepak, D. (1996). Human resource management, manufacturing strategy, and firm performance. Academy of Management Journal, 39, 836-866.