Memili, Esra and Chrisman, James J. and Chua, Jess H. and Chang, Erick P.C. and Kellermanns, Franz W. (2011) The determinants of family firms’ subcontracting: a transaction cost perspective. Journal of Family Business Strategy, 2 (1). pp. 26-33. ISSN 1877-8585
Full text not available from this repository.Abstract
In this article we compare the governance choices of family and non-family firms regarding their subcontracting tendencies. Based on transaction cost theory, we argue that family firms are less likely to engage in subcontracting than non-family firms and that kinship ties, the extent to which a family firm's production activities are important, and cost minimization concerns influence the extent to which family firms utilize subcontractors. Using a sample of small, established firms, we find support for our hypotheses as well as for the use of transaction cost theory logic to explain family firm behavior.