In the hand of the family: Management practices and perceived job quality

Stefanie Ehmann, Patrick Kampkötter, Julian Wenzel and Stefanie Wolter

Journal of Economic Behavior & Organization, 2025, vol. 237, issue C

Abstract: This paper explores the use and implications of management practices in family-owned firms compared to firms with dispersed ownership. We make use of a longitudinal, representative employer–employee dataset with detailed data on firm-level management practices and family firm management types. The analysis reveals that differences in the adoption of structured management practices are predominantly driven by management type rather than ownership. Family-owned firms led by family members implement significantly fewer formal management practices, whereas those managed by non-family managers adopt more structured practices, though still below the levels observed in firms with dispersed ownership. Yet, employees in family-owned firms, particularly those with non-family managers, rate job quality (e.g., job satisfaction, procedural fairness, leadership quality) similarly or superior despite fewer formal practices. These findings suggest that informal practices and a distinctive firm culture in family-owned firms may foster employee motivation and partially substitute for formal management structures. Importantly, additional heterogeneity analyses reveal that this substitution is only effective for lower-skilled employees and those in non-managerial positions, while formal management practices remain critical for higher-skilled and supervisory roles.

Keywords: Corporate ownership structure; Management practices; Family firms; Job satisfaction; Job quality (search for similar items in EconPapers)
JEL-codes: G32 M21 M50 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:237:y:2025:i:c:s0167268125002549

DOI: 10.1016/j.jebo.2025.107135

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