A Dynamic Framework of Noneconomic Goals and Inter-Family Agency Complexities in Multi-Family Firms

James J. Chrisman, Kristen Madison and Taewoo Kim

Entrepreneurship Theory and Practice, 2021, vol. 45, issue 4, 906-930

Abstract: Multi-family firms represent an important and complex type of family firm that is not as well understood as single-family firms. We develop a governance-based framework of the agency complexities in multi-family firms, theorizing that divergent family-centered noneconomic goals between the owning families create complex inter-family agency problems that are intensified by evolving family dynamics. We propose governance mechanisms that address these problems by limiting opportunistic behavior associated with the pursuit of noneconomic goals related to firm control, family altruism, social capital, and transgenerational succession. We then present a future research agenda that can expand our knowledge of multi-family firms.

Keywords: family business; multi-family firms; family-centered noneconomic goals; agency theory; mutual monitoring; contract renegotiations (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:entthe:v:45:y:2021:i:4:p:906-930

DOI: 10.1177/10422587211005775

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