Centralization and delegation practices in family versus non-family SMEs: a Rasch analysis

Wendy L. Martin (), Alexander McKelvie () and G. T. Lumpkin ()
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Wendy L. Martin: Trinity International University
Alexander McKelvie: Syracuse University
G. T. Lumpkin: University of Oklahoma

Small Business Economics, 2016, vol. 47, issue 3, No 11, 755-769

Abstract: Abstract In this paper, we examine differences in centralization and delegation practices of family and non-family firms. Using Aston studies measures, we examine specific types of decisions and the level of authority involved in decision making by owner-managers. We use Rasch analysis to examine the concentration of authority in a sample of 124 small- and medium-sized firms. We find that family firms maintain more centralized decision making and delegate differently than their non-family counterparts. Whereas family firms prioritize centralizing operational issues, non-family firms centralize employment issues more. Our findings have implications for understanding the distinctiveness and professionalization of family firms.

Keywords: Centralization; Delegation; Family firms; Decision making; Rasch (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (12)

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DOI: 10.1007/s11187-016-9762-5

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