Family firm human resource practices: Investigating the effects of professionalization and bifurcation bias on performance

Journal of Business Research

Volumn 84, Issue , 2018, Pages 327-336

  Madison, Kristen ^a   Daspit, Joshua J ^a   Turner, Kyle ^b   Kellermanns, Franz W ^c,d  

^a MISSISSIPPI STATE UNIVERSITY   (United States)

^b UNIVERSITY OF SOUTH CAROLINA UPSTATE   (United States)

^c UNIVERSITY OF NORTH CAROLINA AT CHARLOTTE   (United States)

^d WHU OTTO BEISHEIM SCHOOL OF MANAGEMENT   (Germany)

Author keywords

Bifurcation bias; Family firm performance; Human resource practices; Nonfamily employees; Organizational justice; Professionalization

Indexed keywords

EID: 85021390548     PISSN: 01482963     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jbusres.2017.06.021     Document Type: Article

References (86)

1. Adams, J.S., Inequity in social exchange. Berkowitz, L., (eds.) Advances in experimental social psychology, 2, 1965, Academic, New York, 267–299.
2. Akhtar, S., Ding, D.Z., Ge, G.L., Strategic HRM practices and their impact on company performance in Chinese enterprises. Human Resource Management 47:1 (2008), 15–32.
3. Alfes, K., Truss, C., Soane, E.C., Gatenby, M., The relationship between line manager behavior, perceived HRM practices, and individual performance: Examining the mediating role of engagement. Human Resource Management 52:6 (2013), 839–859.
4. Anderson, R.C., Reeb, D.M., Board composition: Balancing family influence in S&P 500 firms. Administrative Science Quarterly 49:2 (2004), 209–237.
5. Astrachan, J.H., Strategy in family business: Toward a multidimensional research agenda. Journal of Family Business Strategy 1:1 (2010), 6–14.
6. Astrachan, J.H., Kolenko, T.A., A neglected factor explaining family business success: Human resource practices. Family Business Review 7:3 (1994), 251–262.
7. Baird, L., Meshoulam, I., Managing two fits of strategic human resources management. Academy of Management Review 13:1 (1988), 116–128.
8. Baldridge, D., Schulze, W.S., Fairness in family firms. Best paper proceedings of the academy of management. 1999.
9. Barnett, T., Kellermanns, F.W., Are we family? Nonfamily employees’ perceptions of justice in the family firm. Entrepreneurship Theory and Practice 30:6 (2006), 837–854.
10. Barnett, T., Long, R.G., Marler, L.E., Vision and exchange in intra-family succession: Effects on procedural justice climate among nonfamily managers. Entrepreneurship Theory and Practice 36:6 (2012), 1207–1225.
11. Baum, C.F., Schaffer, M.E., Stillman, S., IVENDOG: Stata module to calculate Durbin-Wu-Hausman endogeneity test after ivreg. 2002, Boston College Department of Economics http://ideas.repec.org/c/boc/bocode/s429401.html (Accessed August 4, 2013).
12. Becker, B.E., Huselid, M.A., The incentive effects of tournament compensation systems. Administrative Science Quarterly, 1992, 336–350.
13. Björnberg, A., Nicholson, N., Emotional ownership: The next generation's relationship with the family firm. Family Business Review 25:4 (2012), 374–390.
14. Carlson, D.S., Upton, N., Seaman, S., The impact of human resource practices and compensation design on performance: An analysis of family-owned SMEs. Journal of Small Business Management 44:4 (2006), 531–543.
15. Chrisman, J.J., Chua, J.H., De Massis, A., Frattini, F., Wright, M., The ability and willingness paradox in family firm innovation. Journal of Product Innovation Management 32:3 (2015), 310–318.
16. Chrisman, J.J., Chua, J.H., Kellermanns, F.W., Chang, E.P., Are family managers agents or stewards? An exploratory study in privately held family firms. Journal of Business Research 60:10 (2007), 1030–1038.
17. Chrisman, J.J., Chua, J.H., Litz, R.A., Comparing the agency costs of family and non-family firms: Conceptual issues and exploratory evidence. Entrepreneurship Theory and Practice 28:4 (2004), 335–354.
18. Chrisman, J.J., Devaraj, S., Patel, P.C., The impact of incentive compensation on labor productivity in family and nonfamily firms. Family Business Review 30:2 (2017), 119–136.
19. Chrisman, J.J., Sharma, P., Steier, L.P., Chua, J.H., The influence of family goals, governance, and resources on firm outcomes. Entrepreneurship Theory and Practice 37:6 (2013), 1249–1261.
20. Chua, J.H., Chrisman, J.J., Bergiel, E.B., An agency theoretic analysis of the professionalized family firm. Entrepreneurship Theory and Practice 33:2 (2009), 355–372.
21. Chua, J.H., Chrisman, J.J., Steier, L.P., Rau, S.B., Sources of heterogeneity in family firms: An introduction. Entrepreneurship Theory and Practice 36:6 (2012), 1103–1113.
22. Cohen, J., Statistical power analysis for behavioral sciences. 2nd ed., 1988, Lawrence Erlbaum Associates, Hillside, NJ.
23. Connelly, B.L., Tihanyi, L., Ketchen, D.J., Carnes, C.M., Ferrier, W.J., Competitive repertoire complexity: Governance antecedents and performance outcomes. Strategic Management Journal 38:5 (2017), 1151–1173.
24. Daspit, J.J., Long, R.G., Mitigating moral hazard in entrepreneurial networks: Examining structural and relational social capital in East Africa. Entrepreneurship Theory and Practice 38:6 (2014), 1343–1350.
25. Daspit, J.J., Madison, K., Barnett, T., Long, R.G., The emergence of bifurcation bias from unbalanced families: Examining HR practices in the family firm using circumplex theory. Human Resource Management Review, 2017, 10.1016/j.hrmr.2017.05.003 (ahead of print).
26. Davidson, R., Mackinnon, J., Estimation and interference in economics. 1983, Oxford University Press, New York.
27. Dawson, A., Private equity investment decisions in family firms: The role of human resources and agency costs. Journal of Business Venturing 26:2 (2011), 189–199.
28. De Massis, A., Kotlar, J., Chua, J.H., Chrisman, J.J., Ability and willingness as sufficiency conditions for family-oriented particularistic behavior: Implications for theory and empirical studies. Journal of Small Business Management 52:2 (2014), 344–364.
29. Debicki, B.J., Matherne, C.F., Kellermanns, F.W., Chrisman, J.J., Family business research in the new millennium an overview of the who, the where, the what, and the why. Family Business Review 22:2 (2009), 151–166.
30. Dekker, J., Lybaert, N., Steijvers, T., Depaire, B., The effect of family business professionalization as a multidimensional construct on firm performance. Journal of Small Business Management 53:2 (2015), 516–538.
31. Dekker, J.C., Lybaert, N., Steijvers, T., Depaire, B., Mercken, R., Family firm types based on the professionalization construct: Exploratory research. Family Business Review 26:1 (2012), 81–99.
32. Dyer, W.G., Integrating professional management into a family owned business. Family Business Review 2:3 (1989), 221–235.
33. Dyer, W.G., Examining the “family effect” on firm performance. Family Business Review 19:4 (2006), 253–273.
34. Eddleston, K., Kellermanns, F.W., Destructive and productive family relationships: A stewardship theory perspective. Journal of Business Venturing 22:4 (2007), 545–565.
35. Eddleston, K.A., Kellermanns, F.W., Zellweger, T.M., Exploring the entrepreneurial behavior of family firms: Does the stewardship perspective explain differences?. Entrepreneurship Theory and Practice 36:2 (2012), 347–367.
36. Ehrhart, M.G., Leadership and procedural justice climate as antecendent of unit-level organizational citizenship behavior. Personnel Psychology 57 (2004), 61–94.
37. Eisenhardt, K.M., Agency theory: An assessment and review. Academy of Management Review 14:1 (1989), 57–74.
38. Fama, E.F., Agency problems and the theory of the firm. The Journal of Political Economy, 1980, 288–307.
39. Fama, E.F., Jensen, M.C., Separation of ownership and control. Journal of Law and Economics 26:2 (1983), 301–325.
40. Fassina, N.E., Jones, D.A., Uggerslev, K.L., Relationship clean-up time: Using meta-analysis and path analysis to clarify relationships among job satisfaction, perceived fairness, and citizenship behaviors. Journal of Management 34:2 (2008), 161–188.
41. Faul, F., Erdfelder, E., Buchner, A., Lang, A.-G., Statistical power analyses using G*Power 3.1: Tests for correlation and regression analyses. Behavior Research Methods 41 (2009), 1149–1160.
42. Filatotchev, I., Lien, Y.C., Piesse, J., Corporate governance and performance in publicly listed, family-controlled firms: Evidence from Taiwan. Asia Pacific Journal of Management 22:3 (2005), 257–283.
43. Gedajlovic, E., Lubatkin, M.H., Schulze, W.S., Crossing the threshold from founder management to professional management: A governance perspective. Journal of Management Studies 41:5 (2004), 899–912.
44. Gimeno, A., Parada, M., Professionalization of the family business: Decision making domains. Sharma, P., Sieger, P., Nason, R., Cristina, A., Ramachandran, K., (eds.) Exploring transgenerational entrepreneurship research: The role of resources and capabilities, 2014, Edward Elgar Publishing Inc., Northampton, MA.
45. Gómez-Mejía, L.R., Haynes, K., Nunez-Nickel, M., Jacobson, J.L., Moyano-Fuentes, J., Socioemotional wealth and business risks in family-controlled firms: Evidence from Spanish olive oil mills. Administrative Science Quarterly 52 (2007), 106–137.
46. Greenberg, J., Organizational justice: Yesterday, today, and tomorrow. Journal of Management 16 (1990), 399–432.
47. Greenberg, J., Organizational justice: The dynamics of fairness in the workplace. Zedeck, S., (eds.) APA handbook of industrial and organizational psychology: Maintaining, expanding, and contracting the organization, 3, 2011, American Psychological Association, Washington, DC, 271–328.
48. Hair, J.F., Anderson, R.E., Tatham, R.L., Black, W.C., Multivariate analysis. 1998, Prentice Hall International, Englewood.
49. Hamilton, B.H., Nickerson, J.A., Correcting for endogeneity in strategic management research. Strategic Organization 1 (2003), 51–78.
50. Herrbach, O., Mignonac, K., Vandenberghe, C., Negrini, A., Perceived HRM practices, organizational commitment, and voluntary early retirement among late-career managers. Human Resource Management 48:6 (2009), 895–915.
51. Jaskiewicz, P., Dyer, W.G., Addressing the elephant in the room: Disentangling family heterogeneity to advance family business research. Family Business Review 30:2 (2017), 111–118.
52. Jensen, M.C., Meckling, W.H., Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics 3:4 (1976), 305–360.
53. Kanuk, L., Berenson, C., Mail surveys and response rates: A literature review. Journal of Marketing Research 12:4 (1975), 440–453.
54. Karra, N., Tracey, P., Phillips, N., Altruism and agency in the family firm: Exploring the role of family, kinship, and ethnicity. Entrepreneurship Theory and Practice 30:6 (2006), 861–877.
55. Kellermanns, F.W., Eddleston, K.A., Corporate entrepreneurship in family firms: A family perspective. Entrepreneurship Theory and Practice 30:6 (2006), 809–830.
56. Kellermanns, F.W., Eddleston, K.A., Barnett, T., Pearson, A., An exploratory study of family member characteristics and involvement: Effects on entrepreneurial behavior in the family firm. Family Business Review 21:1 (2008), 1–14.
57. Kidwell, R.E., Kellermanns, F.W., Eddleston, K.A., Harmony, justice, confusion, and conflict in family firms: Implications for ethical climate and the “fredo effect”. Journal of Business Ethics 106:4 (2012), 503–517.
58. Klein, S., Bell, F.-A., Non-family executives in family businesses: A literature review. Electronic Journal of Family Business Studies 1:1 (2007), 19–37.
59. de Kok, J.M.P., Uhlaner, L.M., Thurik, A.R., Professional HRM practices in family owned-managed enterprises. Journal of Small Business Management 44:3 (2006), 441–460.
60. Krausert, A., HRM systems for knowledge workers: Differences among top managers, middle managers, and professional employees. Human Resource Management 53:1 (2014), 67–87.
61. Lee, J., Impact of family relationships on attitudes of the second generation in family business. Family Business Review 19:3 (2006), 175–191.
62. Lien, Y., Li, S., Professionalization of family businesses and performance effect. Family Business Review 27:4 (2014), 346–364.
63. Ling, Y., Kellermanns, F.W., The effects of family firm specific sources of TMT diversity: The moderating role of information exchange frequency. Journal of Management Studies 47:2 (2010), 322–344.
64. Lubatkin, M.H., Schulze, W.S., Ling, Y., Dino, R.N., The effects of parental altruism on the governance of family-managed firms. Journal of Organizational Behavior 26:3 (2005), 313–330.
65. Lyon, D.W., Lumpkin, G.T., Dess, G.G., Enhancing entrepreneurial orientation research: Operationalizing and measuring a key strategic decision making process. Journal of Management 26:5 (2000), 1055–1085.
66. Madison, K., Holt, D.T., Kellermanns, F.W., Ranft, A.L., Viewing family firm behavior and governance through the lens of agency and stewardship theories. Family Business Review 29:1 (2016), 65–93.
67. Madison, K., Kellermanns, F.W., Is the spiritual bond bound by blood? An exploratory study of spiritual leadership in family firms. Journal of Management, Spirituality & Religion 10:2 (2013), 159–182.
68. Marshall, J.P., Sorenson, R., Brigham, K., Wieling, E., Reifman, A., Wampler, R.S., The paradox for the family firm CEO: Owner age relationship to succession-related processes and plans. Journal of Business Venturing 21:3 (2006), 348–368.
69. Moorman, R.H., Relationship between organizational justice and organizational citizenship behaviors - do fairness perceptions influence employee citizenship. Journal of Applied Psychology 76:6 (1991), 845–855.
70. Olson, D.H., Circumplex model of marital and family systems. Journal of Family Therapy 22:2 (2000), 144–167.
71. Patel, P.C., Cooper, D., Structural power equality between family and non-family TMT members and the performance of family firms. Academy of Management Journal 57:6 (2014), 1624–1649.
72. Pearson, A.W., Bergiel, E., Barnett, T., Expanding the study of organizational behaviour in family business: Adapting team theory to explore family firms. European Journal of Work and Organizational Psychology 23:5 (2014), 657–664.
73. Podsakoff, P.M., Organ, D.W., Self-reports in organizational research: Problems and perspectives. Journal of Management 12 (1986), 531–544.
74. Ross, S.A., The economic theory of agency: The principal's problem. The American Economic Review, 1973, 134–139.
75. Schmelter, R., Mauer, R., Börsch, C., Brettel, M., Boosting corporate entrepreneurship through HRM practices: Evidence from German SMEs. Human Resource Management 49:4 (2010), 715–741.
76. Schulze, W.S., Lubatkin, M.H., Dino, R.N., Exploring the agency consequences of ownership dispersion among the directors of private family firms. Academy of Management Journal 46:2 (2003), 179–194.
77. Schulze, W.S., Lubatkin, M.H., Dino, R.N., Buchholtz, A.K., Agency relationships in family firms: Theory and evidence. Organization Science 12:2 (2001), 99–116.
78. Stewart, A., Hitt, M.A., Why can'ta family business be more like a nonfamily business? Modes of professionalization in family firms. Family Business Review 25:1 (2012), 58–86.
79. Tsao, C.W., Chen, S.J., Lin, C.S., Hyde, W., Founding-family ownership and firm performance: The role of high-performance work systems. Family Business Review 22:4 (2009), 319–332.
80. Tyler, T.R., Blader, S.L., Cooperation in groups: Procedural justice, social identity, and behavioral engagement. 2000, Psychology Press.
81. Van der Heyden, L., Blondel, C., Carlock, R.S., Fair process: Striving for justice in family business. Family Business Review 18:1 (2005), 1–21.
82. Venkatraman, N., Ramanujam, V., Measurement of business performance in strategy research: A comparison of approaches. Academy of Management Review 11:4 (1986), 801–814.
83. Verbeke, A., Kano, L., The transaction cost economics theory of the family firm: Family-based human asset specificity and the bifurcation bias. Entrepreneurship Theory and Practice 36:6 (2012), 1183–1205.
84. Winter, M., Danes, S.M., Koh, S., Fredericks, K., Paul, J.J., Tracking family businesses and their owners over time: Panel attrition, manager departure, and business demise. Journal of Business Venturing 19 (2004), 535–559.
85. Wright, P., Kroll, M., Executive discretion and corporate performance as determinants of CEO compensation, contingent on external monitoring activities. Journal of Management and Governance 6:3 (2002), 189–214.
86. Zellweger, T.M., Kellermanns, F.W., Chrisman, J.J., Chua, J.H., Family control and family firm valuation by family CEOs: The importance of intentions for transgenerational control. Organization Science 23:3 (2012), 851–868.