They Are Not All the Same!:Investigating the Effect of Executive versus Non-executive Family Board Members on Firm Performance

Basco, Rodrigo and Campopiano, Giovanna and Calabrò, Andrea and Kraus, Sascha (2020) They Are Not All the Same!:Investigating the Effect of Executive versus Non-executive Family Board Members on Firm Performance. Journal of Small Business Management, 57 (Suppl.). pp. 637-657. ISSN 0047-2778

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Abstract

Drawing on faultlines and challenging the assumption that family board members form a homogenous subgroup, we hypothesize that the distinction between executive and non-executive family board members can create faultlines that affect firm performance. We propose that the discrepancy between results and goals can activate and exacerbate faultlines. Using a sample of 421 family small and medium-sized enterprises (SMEs), we find a U-shaped relationship between the ratio of family executive board members and firm performance showing the consequences of relationship-based and task-related faultlines. Moreover, we find that the U-shaped relationship occurs when firms perceive that they under-achieve their objectives, whereas a reverse J-shaped relationship appears when firms over-achieve their objectives.

Item Type:
Journal Article
Journal or Publication Title:
Journal of Small Business Management
Additional Information:
This is an Accepted Manuscript of an article published by Taylor & Francis in Journal of Small Business Management on 04/01/2020, available online:  https://www.tandfonline.com/doi/abs/10.1111/jsbm.12535
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/1400/1405
Subjects:
ID Code:
149529
Deposited By:
Deposited On:
30 Nov 2020 13:30
Refereed?:
Yes
Published?:
Published
Last Modified:
28 Nov 2021 10:07