Impact of informal institutions on the prevalence, strategy, and performance of family firms: A meta-analysis

Pascual Berrone (), Patricio Duran (), Luis Gómez-Mejía (), Pursey P M A R Heugens (), Tatiana Kostova () and Marc Essen ()
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Pascual Berrone: Universidad of Navarra
Patricio Duran: Saint Louis University
Luis Gómez-Mejía: Arizona State University
Pursey P M A R Heugens: Erasmus University
Tatiana Kostova: University of South Carolina
Marc Essen: University of South Carolina

Journal of International Business Studies, 2022, vol. 53, issue 6, No 8, 1153-1177

Abstract: Abstract Family-controlled firms (FCFs)’ prevalence, strategies, and performance differ across countries. We explain these differences through the lens of informal institutions, suggesting that different countries have different levels of appreciation for family business. To capture this effect, we introduce the construct of family business legitimacy (FBL) and an associated index (FBLI). We empirically measure FBLI scores for 83 countries spanning both developed and emerging economies. By combining meta-analytic and archival data, we show that FCFs prevail, follow unique strategies, and outperform non-FCFs in countries with high FBLI scores. As a new contingency variable, FBL advances the literature on the informal institutional embeddedness of organizations and family business.

Keywords: family-controlled firms; family firm prevalence; firm performance; informal institutions; meta-analysis; strategic decisions (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (11)

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DOI: 10.1057/s41267-020-00362-6

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