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The effect of nonfamily managers on decision-making quality in family firm TMTs: The role of intra-TMT power asymmetries

Pieter Vandekerkhof, Tensie Steijvers, Walter Hendriks and Wim Voordeckers

Journal of Family Business Strategy, 2019, vol. 10, issue 3, -

Abstract: In this paper, we examine the impact of the presence of both family and nonfamily managers on TMT decision-making quality. Based on a unique multiple respondent sample of 284 managers from 52 Belgian private family firms, we find that a higher proportion of nonfamily managers reduces TMT decision-making quality through intra-TMT ownership power asymmetries. In addition, we find that variety in knowledge and expertise in the TMT mitigates the negative effect of intra-TMT ownership power differences on decision-making quality. As such, we argue that expertise power can be a good counterbalance for the negative impact of a higher proportion of nonfamily managers on TMT outcomes in family firms.

Keywords: Family firm; Top management teams; Power; Decision-making quality; Ownership disparity; Knowledge variety (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:fambus:v:10:y:2019:i:3:1

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DOI: 10.1016/j.jfbs.2019.01.002

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